Bill Text: IL HB2853 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the General Provisions and Downstate Teacher Articles of the Illinois Pension Code. Provides that a teacher may establish one additional day of service credit for each day of service credit that was earned between March 16, 2020 and June 30, 2021 in which the teacher provided in-person instruction if he or she pays certain contributions and supplies satisfactory evidence. For a Tier 1 member, provides that the System shall waive the reduction in retirement annuity for persons who retire before age 60 if the member has attained age 59 and earned service credit in the 2020-2021 school. For a Tier 2 member, provides that the reduction in retirement annuity for persons who retire before age 67 shall be waived if the member has attained age 66 and earned service credit in the 2020-2021 school year. For a Tier 1 member who earned service credit in the 2020-2021 school year and has not attained age 59 or a Tier 2 member who earned service credit in the 2020-2021 school year and has not attained age 66, provides that the member shall be deemed to be one year older than his or her actual age for purposes of provisions concerning a reduction in retirement annuity due to a member's age. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2853 Detail]

Download: Illinois-2023-HB2853-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2853

Introduced , by Rep. Dave Severin

SYNOPSIS AS INTRODUCED:
40 ILCS 5/1-160
40 ILCS 5/16-127 from Ch. 108 1/2, par. 16-127
40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
40 ILCS 5/16-203

Amends the General Provisions and Downstate Teacher Articles of the Illinois Pension Code. Provides that a teacher may establish one additional day of service credit for each day of service credit that was earned between March 16, 2020 and June 30, 2021 in which the teacher provided in-person instruction if he or she pays certain contributions and supplies satisfactory evidence. For a Tier 1 member, provides that the System shall waive the reduction in retirement annuity for persons who retire before age 60 if the member has attained age 59 and earned service credit in the 2020-2021 school. For a Tier 2 member, provides that the reduction in retirement annuity for persons who retire before age 67 shall be waived if the member has attained age 66 and earned service credit in the 2020-2021 school year. For a Tier 1 member who earned service credit in the 2020-2021 school year and has not attained age 59 or a Tier 2 member who earned service credit in the 2020-2021 school year and has not attained age 66, provides that the member shall be deemed to be one year older than his or her actual age for purposes of provisions concerning a reduction in retirement annuity due to a member's age. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Effective immediately.
LRB103 28267 RPS 54646 b

A BILL FOR

HB2853LRB103 28267 RPS 54646 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 16-127, 16-133, and 16-203 as
6follows:
7 (40 ILCS 5/1-160)
8 (Text of Section from P.A. 102-719)
9 Sec. 1-160. Provisions applicable to new hires.
10 (a) The provisions of this Section apply to a person who,
11on or after January 1, 2011, first becomes a member or a
12participant under any reciprocal retirement system or pension
13fund established under this Code, other than a retirement
14system or pension fund established under Article 2, 3, 4, 5, 6,
157, 15, or 18 of this Code, notwithstanding any other provision
16of this Code to the contrary, but do not apply to any
17self-managed plan established under this Code or to any
18participant of the retirement plan established under Section
1922-101; except that this Section applies to a person who
20elected to establish alternative credits by electing in
21writing after January 1, 2011, but before August 8, 2011,
22under Section 7-145.1 of this Code. Notwithstanding anything
23to the contrary in this Section, for purposes of this Section,

HB2853- 2 -LRB103 28267 RPS 54646 b
1a person who is a Tier 1 regular employee as defined in Section
27-109.4 of this Code or who participated in a retirement
3system under Article 15 prior to January 1, 2011 shall be
4deemed a person who first became a member or participant prior
5to January 1, 2011 under any retirement system or pension fund
6subject to this Section. The changes made to this Section by
7Public Act 98-596 are a clarification of existing law and are
8intended to be retroactive to January 1, 2011 (the effective
9date of Public Act 96-889), notwithstanding the provisions of
10Section 1-103.1 of this Code.
11 This Section does not apply to a person who first becomes a
12noncovered employee under Article 14 on or after the
13implementation date of the plan created under Section 1-161
14for that Article, unless that person elects under subsection
15(b) of Section 1-161 to instead receive the benefits provided
16under this Section and the applicable provisions of that
17Article.
18 This Section does not apply to a person who first becomes a
19member or participant under Article 16 on or after the
20implementation date of the plan created under Section 1-161
21for that Article, unless that person elects under subsection
22(b) of Section 1-161 to instead receive the benefits provided
23under this Section and the applicable provisions of that
24Article.
25 This Section does not apply to a person who elects under
26subsection (c-5) of Section 1-161 to receive the benefits

HB2853- 3 -LRB103 28267 RPS 54646 b
1under Section 1-161.
2 This Section does not apply to a person who first becomes a
3member or participant of an affected pension fund on or after 6
4months after the resolution or ordinance date, as defined in
5Section 1-162, unless that person elects under subsection (c)
6of Section 1-162 to receive the benefits provided under this
7Section and the applicable provisions of the Article under
8which he or she is a member or participant.
9 (b) "Final average salary" means, except as otherwise
10provided in this subsection, the average monthly (or annual)
11salary obtained by dividing the total salary or earnings
12calculated under the Article applicable to the member or
13participant during the 96 consecutive months (or 8 consecutive
14years) of service within the last 120 months (or 10 years) of
15service in which the total salary or earnings calculated under
16the applicable Article was the highest by the number of months
17(or years) of service in that period. For the purposes of a
18person who first becomes a member or participant of any
19retirement system or pension fund to which this Section
20applies on or after January 1, 2011, in this Code, "final
21average salary" shall be substituted for the following:
22 (1) (Blank).
23 (2) In Articles 8, 9, 10, 11, and 12, "highest average
24 annual salary for any 4 consecutive years within the last
25 10 years of service immediately preceding the date of
26 withdrawal".

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1 (3) In Article 13, "average final salary".
2 (4) In Article 14, "final average compensation".
3 (5) In Article 17, "average salary".
4 (6) In Section 22-207, "wages or salary received by
5 him at the date of retirement or discharge".
6 A member of the Teachers' Retirement System of the State
7of Illinois who retires on or after June 1, 2021 and for whom
8the 2020-2021 school year is used in the calculation of the
9member's final average salary shall use the higher of the
10following for the purpose of determining the member's final
11average salary:
12 (A) the amount otherwise calculated under the first
13 paragraph of this subsection; or
14 (B) an amount calculated by the Teachers' Retirement
15 System of the State of Illinois using the average of the
16 monthly (or annual) salary obtained by dividing the total
17 salary or earnings calculated under Article 16 applicable
18 to the member or participant during the 96 months (or 8
19 years) of service within the last 120 months (or 10 years)
20 of service in which the total salary or earnings
21 calculated under the Article was the highest by the number
22 of months (or years) of service in that period.
23 (b-5) Beginning on January 1, 2011, for all purposes under
24this Code (including without limitation the calculation of
25benefits and employee contributions), the annual earnings,
26salary, or wages (based on the plan year) of a member or

HB2853- 5 -LRB103 28267 RPS 54646 b
1participant to whom this Section applies shall not exceed
2$106,800; however, that amount shall annually thereafter be
3increased by the lesser of (i) 3% of that amount, including all
4previous adjustments, or (ii) one-half the annual unadjusted
5percentage increase (but not less than zero) in the consumer
6price index-u for the 12 months ending with the September
7preceding each November 1, including all previous adjustments.
8 For the purposes of this Section, "consumer price index-u"
9means the index published by the Bureau of Labor Statistics of
10the United States Department of Labor that measures the
11average change in prices of goods and services purchased by
12all urban consumers, United States city average, all items,
131982-84 = 100. The new amount resulting from each annual
14adjustment shall be determined by the Public Pension Division
15of the Department of Insurance and made available to the
16boards of the retirement systems and pension funds by November
171 of each year.
18 (c) A member or participant is entitled to a retirement
19annuity upon written application if he or she has attained age
2067 (age 65, with respect to service under Article 12 that is
21subject to this Section, for a member or participant under
22Article 12 who first becomes a member or participant under
23Article 12 on or after January 1, 2022 or who makes the
24election under item (i) of subsection (d-15) of this Section)
25and has at least 10 years of service credit and is otherwise
26eligible under the requirements of the applicable Article.

HB2853- 6 -LRB103 28267 RPS 54646 b
1 A member or participant who has attained age 62 (age 60,
2with respect to service under Article 12 that is subject to
3this Section, for a member or participant under Article 12 who
4first becomes a member or participant under Article 12 on or
5after January 1, 2022 or who makes the election under item (i)
6of subsection (d-15) of this Section) and has at least 10 years
7of service credit and is otherwise eligible under the
8requirements of the applicable Article may elect to receive
9the lower retirement annuity provided in subsection (d) of
10this Section.
11 (c-5) A person who first becomes a member or a participant
12subject to this Section on or after July 6, 2017 (the effective
13date of Public Act 100-23), notwithstanding any other
14provision of this Code to the contrary, is entitled to a
15retirement annuity under Article 8 or Article 11 upon written
16application if he or she has attained age 65 and has at least
1710 years of service credit and is otherwise eligible under the
18requirements of Article 8 or Article 11 of this Code,
19whichever is applicable.
20 (d) The retirement annuity of a member or participant who
21is retiring after attaining age 62 (age 60, with respect to
22service under Article 12 that is subject to this Section, for a
23member or participant under Article 12 who first becomes a
24member or participant under Article 12 on or after January 1,
252022 or who makes the election under item (i) of subsection
26(d-15) of this Section) with at least 10 years of service

HB2853- 7 -LRB103 28267 RPS 54646 b
1credit shall be reduced by one-half of 1% for each full month
2that the member's age is under age 67 (age 65, with respect to
3service under Article 12 that is subject to this Section, for a
4member or participant under Article 12 who first becomes a
5member or participant under Article 12 on or after January 1,
62022 or who makes the election under item (i) of subsection
7(d-15) of this Section). However, this reduction shall be
8waived for any member under Article 16 who has attained age 66
9and has earned service credit under Article 16 for the
102020-2021 school year. For the purposes of this subsection,
11any member under Article 16 who has not attained age 66 and has
12earned service credit under Article 16 for the 2020-2021
13school year shall be deemed to be one year older than his or
14her actual age.
15 (d-5) The retirement annuity payable under Article 8 or
16Article 11 to an eligible person subject to subsection (c-5)
17of this Section who is retiring at age 60 with at least 10
18years of service credit shall be reduced by one-half of 1% for
19each full month that the member's age is under age 65.
20 (d-10) Each person who first became a member or
21participant under Article 8 or Article 11 of this Code on or
22after January 1, 2011 and prior to July 6, 2017 (the effective
23date of Public Act 100-23) shall make an irrevocable election
24either:
25 (i) to be eligible for the reduced retirement age
26 provided in subsections (c-5) and (d-5) of this Section,

HB2853- 8 -LRB103 28267 RPS 54646 b
1 the eligibility for which is conditioned upon the member
2 or participant agreeing to the increases in employee
3 contributions for age and service annuities provided in
4 subsection (a-5) of Section 8-174 of this Code (for
5 service under Article 8) or subsection (a-5) of Section
6 11-170 of this Code (for service under Article 11); or
7 (ii) to not agree to item (i) of this subsection
8 (d-10), in which case the member or participant shall
9 continue to be subject to the retirement age provisions in
10 subsections (c) and (d) of this Section and the employee
11 contributions for age and service annuity as provided in
12 subsection (a) of Section 8-174 of this Code (for service
13 under Article 8) or subsection (a) of Section 11-170 of
14 this Code (for service under Article 11).
15 The election provided for in this subsection shall be made
16between October 1, 2017 and November 15, 2017. A person
17subject to this subsection who makes the required election
18shall remain bound by that election. A person subject to this
19subsection who fails for any reason to make the required
20election within the time specified in this subsection shall be
21deemed to have made the election under item (ii).
22 (d-15) Each person who first becomes a member or
23participant under Article 12 on or after January 1, 2011 and
24prior to January 1, 2022 shall make an irrevocable election
25either:
26 (i) to be eligible for the reduced retirement age

HB2853- 9 -LRB103 28267 RPS 54646 b
1 specified in subsections (c) and (d) of this Section, the
2 eligibility for which is conditioned upon the member or
3 participant agreeing to the increase in employee
4 contributions for service annuities specified in
5 subsection (b) of Section 12-150; or
6 (ii) to not agree to item (i) of this subsection
7 (d-15), in which case the member or participant shall not
8 be eligible for the reduced retirement age specified in
9 subsections (c) and (d) of this Section and shall not be
10 subject to the increase in employee contributions for
11 service annuities specified in subsection (b) of Section
12 12-150.
13 The election provided for in this subsection shall be made
14between January 1, 2022 and April 1, 2022. A person subject to
15this subsection who makes the required election shall remain
16bound by that election. A person subject to this subsection
17who fails for any reason to make the required election within
18the time specified in this subsection shall be deemed to have
19made the election under item (ii).
20 (e) Any retirement annuity or supplemental annuity shall
21be subject to annual increases on the January 1 occurring
22either on or after the attainment of age 67 (age 65, with
23respect to service under Article 12 that is subject to this
24Section, for a member or participant under Article 12 who
25first becomes a member or participant under Article 12 on or
26after January 1, 2022 or who makes the election under item (i)

HB2853- 10 -LRB103 28267 RPS 54646 b
1of subsection (d-15); and beginning on July 6, 2017 (the
2effective date of Public Act 100-23), age 65 with respect to
3service under Article 8 or Article 11 for eligible persons
4who: (i) are subject to subsection (c-5) of this Section; or
5(ii) made the election under item (i) of subsection (d-10) of
6this Section) or the first anniversary of the annuity start
7date, whichever is later. Each annual increase shall be
8calculated at 3% or one-half the annual unadjusted percentage
9increase (but not less than zero) in the consumer price
10index-u for the 12 months ending with the September preceding
11each November 1, whichever is less, of the originally granted
12retirement annuity. If the annual unadjusted percentage change
13in the consumer price index-u for the 12 months ending with the
14September preceding each November 1 is zero or there is a
15decrease, then the annuity shall not be increased.
16 For the purposes of Section 1-103.1 of this Code, the
17changes made to this Section by Public Act 102-263 are
18applicable without regard to whether the employee was in
19active service on or after August 6, 2021 (the effective date
20of Public Act 102-263).
21 For the purposes of Section 1-103.1 of this Code, the
22changes made to this Section by Public Act 100-23 are
23applicable without regard to whether the employee was in
24active service on or after July 6, 2017 (the effective date of
25Public Act 100-23).
26 (f) The initial survivor's or widow's annuity of an

HB2853- 11 -LRB103 28267 RPS 54646 b
1otherwise eligible survivor or widow of a retired member or
2participant who first became a member or participant on or
3after January 1, 2011 shall be in the amount of 66 2/3% of the
4retired member's or participant's retirement annuity at the
5date of death. In the case of the death of a member or
6participant who has not retired and who first became a member
7or participant on or after January 1, 2011, eligibility for a
8survivor's or widow's annuity shall be determined by the
9applicable Article of this Code. The initial benefit shall be
1066 2/3% of the earned annuity without a reduction due to age. A
11child's annuity of an otherwise eligible child shall be in the
12amount prescribed under each Article if applicable. Any
13survivor's or widow's annuity shall be increased (1) on each
14January 1 occurring on or after the commencement of the
15annuity if the deceased member died while receiving a
16retirement annuity or (2) in other cases, on each January 1
17occurring after the first anniversary of the commencement of
18the annuity. Each annual increase shall be calculated at 3% or
19one-half the annual unadjusted percentage increase (but not
20less than zero) in the consumer price index-u for the 12 months
21ending with the September preceding each November 1, whichever
22is less, of the originally granted survivor's annuity. If the
23annual unadjusted percentage change in the consumer price
24index-u for the 12 months ending with the September preceding
25each November 1 is zero or there is a decrease, then the
26annuity shall not be increased.

HB2853- 12 -LRB103 28267 RPS 54646 b
1 (g) The benefits in Section 14-110 apply if the person is a
2fire fighter in the fire protection service of a department, a
3security employee of the Department of Corrections or the
4Department of Juvenile Justice, or a security employee of the
5Department of Innovation and Technology, as those terms are
6defined in subsection (b) and subsection (c) of Section
714-110. A person who meets the requirements of this Section is
8entitled to an annuity calculated under the provisions of
9Section 14-110, in lieu of the regular or minimum retirement
10annuity, only if the person has withdrawn from service with
11not less than 20 years of eligible creditable service and has
12attained age 60, regardless of whether the attainment of age
1360 occurs while the person is still in service.
14 (g-5) The benefits in Section 14-110 apply if the person
15is a State policeman, investigator for the Secretary of State,
16conservation police officer, investigator for the Department
17of Revenue or the Illinois Gaming Board, investigator for the
18Office of the Attorney General, Commerce Commission police
19officer, or arson investigator, as those terms are defined in
20subsection (b) and subsection (c) of Section 14-110. A person
21who meets the requirements of this Section is entitled to an
22annuity calculated under the provisions of Section 14-110, in
23lieu of the regular or minimum retirement annuity, only if the
24person has withdrawn from service with not less than 20 years
25of eligible creditable service and has attained age 55,
26regardless of whether the attainment of age 55 occurs while

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1the person is still in service.
2 (h) If a person who first becomes a member or a participant
3of a retirement system or pension fund subject to this Section
4on or after January 1, 2011 is receiving a retirement annuity
5or retirement pension under that system or fund and becomes a
6member or participant under any other system or fund created
7by this Code and is employed on a full-time basis, except for
8those members or participants exempted from the provisions of
9this Section under subsection (a) of this Section, then the
10person's retirement annuity or retirement pension under that
11system or fund shall be suspended during that employment. Upon
12termination of that employment, the person's retirement
13annuity or retirement pension payments shall resume and be
14recalculated if recalculation is provided for under the
15applicable Article of this Code.
16 If a person who first becomes a member of a retirement
17system or pension fund subject to this Section on or after
18January 1, 2012 and is receiving a retirement annuity or
19retirement pension under that system or fund and accepts on a
20contractual basis a position to provide services to a
21governmental entity from which he or she has retired, then
22that person's annuity or retirement pension earned as an
23active employee of the employer shall be suspended during that
24contractual service. A person receiving an annuity or
25retirement pension under this Code shall notify the pension
26fund or retirement system from which he or she is receiving an

HB2853- 14 -LRB103 28267 RPS 54646 b
1annuity or retirement pension, as well as his or her
2contractual employer, of his or her retirement status before
3accepting contractual employment. A person who fails to submit
4such notification shall be guilty of a Class A misdemeanor and
5required to pay a fine of $1,000. Upon termination of that
6contractual employment, the person's retirement annuity or
7retirement pension payments shall resume and, if appropriate,
8be recalculated under the applicable provisions of this Code.
9 (i) (Blank).
10 (j) In the case of a conflict between the provisions of
11this Section and any other provision of this Code, the
12provisions of this Section shall control.
13(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
14102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
155-6-22.)
16 (Text of Section from P.A. 102-813)
17 Sec. 1-160. Provisions applicable to new hires.
18 (a) The provisions of this Section apply to a person who,
19on or after January 1, 2011, first becomes a member or a
20participant under any reciprocal retirement system or pension
21fund established under this Code, other than a retirement
22system or pension fund established under Article 2, 3, 4, 5, 6,
237, 15, or 18 of this Code, notwithstanding any other provision
24of this Code to the contrary, but do not apply to any
25self-managed plan established under this Code or to any

HB2853- 15 -LRB103 28267 RPS 54646 b
1participant of the retirement plan established under Section
222-101; except that this Section applies to a person who
3elected to establish alternative credits by electing in
4writing after January 1, 2011, but before August 8, 2011,
5under Section 7-145.1 of this Code. Notwithstanding anything
6to the contrary in this Section, for purposes of this Section,
7a person who is a Tier 1 regular employee as defined in Section
87-109.4 of this Code or who participated in a retirement
9system under Article 15 prior to January 1, 2011 shall be
10deemed a person who first became a member or participant prior
11to January 1, 2011 under any retirement system or pension fund
12subject to this Section. The changes made to this Section by
13Public Act 98-596 are a clarification of existing law and are
14intended to be retroactive to January 1, 2011 (the effective
15date of Public Act 96-889), notwithstanding the provisions of
16Section 1-103.1 of this Code.
17 This Section does not apply to a person who first becomes a
18noncovered employee under Article 14 on or after the
19implementation date of the plan created under Section 1-161
20for that Article, unless that person elects under subsection
21(b) of Section 1-161 to instead receive the benefits provided
22under this Section and the applicable provisions of that
23Article.
24 This Section does not apply to a person who first becomes a
25member or participant under Article 16 on or after the
26implementation date of the plan created under Section 1-161

HB2853- 16 -LRB103 28267 RPS 54646 b
1for that Article, unless that person elects under subsection
2(b) of Section 1-161 to instead receive the benefits provided
3under this Section and the applicable provisions of that
4Article.
5 This Section does not apply to a person who elects under
6subsection (c-5) of Section 1-161 to receive the benefits
7under Section 1-161.
8 This Section does not apply to a person who first becomes a
9member or participant of an affected pension fund on or after 6
10months after the resolution or ordinance date, as defined in
11Section 1-162, unless that person elects under subsection (c)
12of Section 1-162 to receive the benefits provided under this
13Section and the applicable provisions of the Article under
14which he or she is a member or participant.
15 (b) "Final average salary" means, except as otherwise
16provided in this subsection, the average monthly (or annual)
17salary obtained by dividing the total salary or earnings
18calculated under the Article applicable to the member or
19participant during the 96 consecutive months (or 8 consecutive
20years) of service within the last 120 months (or 10 years) of
21service in which the total salary or earnings calculated under
22the applicable Article was the highest by the number of months
23(or years) of service in that period. For the purposes of a
24person who first becomes a member or participant of any
25retirement system or pension fund to which this Section
26applies on or after January 1, 2011, in this Code, "final

HB2853- 17 -LRB103 28267 RPS 54646 b
1average salary" shall be substituted for the following:
2 (1) (Blank).
3 (2) In Articles 8, 9, 10, 11, and 12, "highest average
4 annual salary for any 4 consecutive years within the last
5 10 years of service immediately preceding the date of
6 withdrawal".
7 (3) In Article 13, "average final salary".
8 (4) In Article 14, "final average compensation".
9 (5) In Article 17, "average salary".
10 (6) In Section 22-207, "wages or salary received by
11 him at the date of retirement or discharge".
12 A member of the Teachers' Retirement System of the State
13of Illinois who retires on or after June 1, 2021 and for whom
14the 2020-2021 school year is used in the calculation of the
15member's final average salary shall use the higher of the
16following for the purpose of determining the member's final
17average salary:
18 (A) the amount otherwise calculated under the first
19 paragraph of this subsection; or
20 (B) an amount calculated by the Teachers' Retirement
21 System of the State of Illinois using the average of the
22 monthly (or annual) salary obtained by dividing the total
23 salary or earnings calculated under Article 16 applicable
24 to the member or participant during the 96 months (or 8
25 years) of service within the last 120 months (or 10 years)
26 of service in which the total salary or earnings

HB2853- 18 -LRB103 28267 RPS 54646 b
1 calculated under the Article was the highest by the number
2 of months (or years) of service in that period.
3 (b-5) Beginning on January 1, 2011, for all purposes under
4this Code (including without limitation the calculation of
5benefits and employee contributions), the annual earnings,
6salary, or wages (based on the plan year) of a member or
7participant to whom this Section applies shall not exceed
8$106,800; however, that amount shall annually thereafter be
9increased by the lesser of (i) 3% of that amount, including all
10previous adjustments, or (ii) one-half the annual unadjusted
11percentage increase (but not less than zero) in the consumer
12price index-u for the 12 months ending with the September
13preceding each November 1, including all previous adjustments.
14 For the purposes of this Section, "consumer price index-u"
15means the index published by the Bureau of Labor Statistics of
16the United States Department of Labor that measures the
17average change in prices of goods and services purchased by
18all urban consumers, United States city average, all items,
191982-84 = 100. The new amount resulting from each annual
20adjustment shall be determined by the Public Pension Division
21of the Department of Insurance and made available to the
22boards of the retirement systems and pension funds by November
231 of each year.
24 (c) A member or participant is entitled to a retirement
25annuity upon written application if he or she has attained age
2667 (age 65, with respect to service under Article 12 that is

HB2853- 19 -LRB103 28267 RPS 54646 b
1subject to this Section, for a member or participant under
2Article 12 who first becomes a member or participant under
3Article 12 on or after January 1, 2022 or who makes the
4election under item (i) of subsection (d-15) of this Section)
5and has at least 10 years of service credit and is otherwise
6eligible under the requirements of the applicable Article.
7 A member or participant who has attained age 62 (age 60,
8with respect to service under Article 12 that is subject to
9this Section, for a member or participant under Article 12 who
10first becomes a member or participant under Article 12 on or
11after January 1, 2022 or who makes the election under item (i)
12of subsection (d-15) of this Section) and has at least 10 years
13of service credit and is otherwise eligible under the
14requirements of the applicable Article may elect to receive
15the lower retirement annuity provided in subsection (d) of
16this Section.
17 (c-5) A person who first becomes a member or a participant
18subject to this Section on or after July 6, 2017 (the effective
19date of Public Act 100-23), notwithstanding any other
20provision of this Code to the contrary, is entitled to a
21retirement annuity under Article 8 or Article 11 upon written
22application if he or she has attained age 65 and has at least
2310 years of service credit and is otherwise eligible under the
24requirements of Article 8 or Article 11 of this Code,
25whichever is applicable.
26 (d) The retirement annuity of a member or participant who

HB2853- 20 -LRB103 28267 RPS 54646 b
1is retiring after attaining age 62 (age 60, with respect to
2service under Article 12 that is subject to this Section, for a
3member or participant under Article 12 who first becomes a
4member or participant under Article 12 on or after January 1,
52022 or who makes the election under item (i) of subsection
6(d-15) of this Section) with at least 10 years of service
7credit shall be reduced by one-half of 1% for each full month
8that the member's age is under age 67 (age 65, with respect to
9service under Article 12 that is subject to this Section, for a
10member or participant under Article 12 who first becomes a
11member or participant under Article 12 on or after January 1,
122022 or who makes the election under item (i) of subsection
13(d-15) of this Section). However, this reduction shall be
14waived for any member under Article 16 who has attained age 66
15and has earned service credit under Article 16 for the
162020-2021 school year. For the purposes of this subsection,
17any member under Article 16 who has not attained age 66 and has
18earned service credit under Article 16 for the 2020-2021
19school year shall be deemed to be one year older than his or
20her actual age.
21 (d-5) The retirement annuity payable under Article 8 or
22Article 11 to an eligible person subject to subsection (c-5)
23of this Section who is retiring at age 60 with at least 10
24years of service credit shall be reduced by one-half of 1% for
25each full month that the member's age is under age 65.
26 (d-10) Each person who first became a member or

HB2853- 21 -LRB103 28267 RPS 54646 b
1participant under Article 8 or Article 11 of this Code on or
2after January 1, 2011 and prior to July 6, 2017 (the effective
3date of Public Act 100-23) shall make an irrevocable election
4either:
5 (i) to be eligible for the reduced retirement age
6 provided in subsections (c-5) and (d-5) of this Section,
7 the eligibility for which is conditioned upon the member
8 or participant agreeing to the increases in employee
9 contributions for age and service annuities provided in
10 subsection (a-5) of Section 8-174 of this Code (for
11 service under Article 8) or subsection (a-5) of Section
12 11-170 of this Code (for service under Article 11); or
13 (ii) to not agree to item (i) of this subsection
14 (d-10), in which case the member or participant shall
15 continue to be subject to the retirement age provisions in
16 subsections (c) and (d) of this Section and the employee
17 contributions for age and service annuity as provided in
18 subsection (a) of Section 8-174 of this Code (for service
19 under Article 8) or subsection (a) of Section 11-170 of
20 this Code (for service under Article 11).
21 The election provided for in this subsection shall be made
22between October 1, 2017 and November 15, 2017. A person
23subject to this subsection who makes the required election
24shall remain bound by that election. A person subject to this
25subsection who fails for any reason to make the required
26election within the time specified in this subsection shall be

HB2853- 22 -LRB103 28267 RPS 54646 b
1deemed to have made the election under item (ii).
2 (d-15) Each person who first becomes a member or
3participant under Article 12 on or after January 1, 2011 and
4prior to January 1, 2022 shall make an irrevocable election
5either:
6 (i) to be eligible for the reduced retirement age
7 specified in subsections (c) and (d) of this Section, the
8 eligibility for which is conditioned upon the member or
9 participant agreeing to the increase in employee
10 contributions for service annuities specified in
11 subsection (b) of Section 12-150; or
12 (ii) to not agree to item (i) of this subsection
13 (d-15), in which case the member or participant shall not
14 be eligible for the reduced retirement age specified in
15 subsections (c) and (d) of this Section and shall not be
16 subject to the increase in employee contributions for
17 service annuities specified in subsection (b) of Section
18 12-150.
19 The election provided for in this subsection shall be made
20between January 1, 2022 and April 1, 2022. A person subject to
21this subsection who makes the required election shall remain
22bound by that election. A person subject to this subsection
23who fails for any reason to make the required election within
24the time specified in this subsection shall be deemed to have
25made the election under item (ii).
26 (e) Any retirement annuity or supplemental annuity shall

HB2853- 23 -LRB103 28267 RPS 54646 b
1be subject to annual increases on the January 1 occurring
2either on or after the attainment of age 67 (age 65, with
3respect to service under Article 12 that is subject to this
4Section, for a member or participant under Article 12 who
5first becomes a member or participant under Article 12 on or
6after January 1, 2022 or who makes the election under item (i)
7of subsection (d-15); and beginning on July 6, 2017 (the
8effective date of Public Act 100-23), age 65 with respect to
9service under Article 8 or Article 11 for eligible persons
10who: (i) are subject to subsection (c-5) of this Section; or
11(ii) made the election under item (i) of subsection (d-10) of
12this Section) or the first anniversary of the annuity start
13date, whichever is later. Each annual increase shall be
14calculated at 3% or one-half the annual unadjusted percentage
15increase (but not less than zero) in the consumer price
16index-u for the 12 months ending with the September preceding
17each November 1, whichever is less, of the originally granted
18retirement annuity. If the annual unadjusted percentage change
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1 is zero or there is a
21decrease, then the annuity shall not be increased.
22 For the purposes of Section 1-103.1 of this Code, the
23changes made to this Section by Public Act 102-263 are
24applicable without regard to whether the employee was in
25active service on or after August 6, 2021 (the effective date
26of Public Act 102-263).

HB2853- 24 -LRB103 28267 RPS 54646 b
1 For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by Public Act 100-23 are
3applicable without regard to whether the employee was in
4active service on or after July 6, 2017 (the effective date of
5Public Act 100-23).
6 (f) The initial survivor's or widow's annuity of an
7otherwise eligible survivor or widow of a retired member or
8participant who first became a member or participant on or
9after January 1, 2011 shall be in the amount of 66 2/3% of the
10retired member's or participant's retirement annuity at the
11date of death. In the case of the death of a member or
12participant who has not retired and who first became a member
13or participant on or after January 1, 2011, eligibility for a
14survivor's or widow's annuity shall be determined by the
15applicable Article of this Code. The initial benefit shall be
1666 2/3% of the earned annuity without a reduction due to age. A
17child's annuity of an otherwise eligible child shall be in the
18amount prescribed under each Article if applicable. Any
19survivor's or widow's annuity shall be increased (1) on each
20January 1 occurring on or after the commencement of the
21annuity if the deceased member died while receiving a
22retirement annuity or (2) in other cases, on each January 1
23occurring after the first anniversary of the commencement of
24the annuity. Each annual increase shall be calculated at 3% or
25one-half the annual unadjusted percentage increase (but not
26less than zero) in the consumer price index-u for the 12 months

HB2853- 25 -LRB103 28267 RPS 54646 b
1ending with the September preceding each November 1, whichever
2is less, of the originally granted survivor's annuity. If the
3annual unadjusted percentage change in the consumer price
4index-u for the 12 months ending with the September preceding
5each November 1 is zero or there is a decrease, then the
6annuity shall not be increased.
7 (g) The benefits in Section 14-110 apply only if the
8person is a State policeman, a fire fighter in the fire
9protection service of a department, a conservation police
10officer, an investigator for the Secretary of State, an arson
11investigator, a Commerce Commission police officer,
12investigator for the Department of Revenue or the Illinois
13Gaming Board, a security employee of the Department of
14Corrections or the Department of Juvenile Justice, or a
15security employee of the Department of Innovation and
16Technology, as those terms are defined in subsection (b) and
17subsection (c) of Section 14-110. A person who meets the
18requirements of this Section is entitled to an annuity
19calculated under the provisions of Section 14-110, in lieu of
20the regular or minimum retirement annuity, only if the person
21has withdrawn from service with not less than 20 years of
22eligible creditable service and has attained age 60,
23regardless of whether the attainment of age 60 occurs while
24the person is still in service.
25 (h) If a person who first becomes a member or a participant
26of a retirement system or pension fund subject to this Section

HB2853- 26 -LRB103 28267 RPS 54646 b
1on or after January 1, 2011 is receiving a retirement annuity
2or retirement pension under that system or fund and becomes a
3member or participant under any other system or fund created
4by this Code and is employed on a full-time basis, except for
5those members or participants exempted from the provisions of
6this Section under subsection (a) of this Section, then the
7person's retirement annuity or retirement pension under that
8system or fund shall be suspended during that employment. Upon
9termination of that employment, the person's retirement
10annuity or retirement pension payments shall resume and be
11recalculated if recalculation is provided for under the
12applicable Article of this Code.
13 If a person who first becomes a member of a retirement
14system or pension fund subject to this Section on or after
15January 1, 2012 and is receiving a retirement annuity or
16retirement pension under that system or fund and accepts on a
17contractual basis a position to provide services to a
18governmental entity from which he or she has retired, then
19that person's annuity or retirement pension earned as an
20active employee of the employer shall be suspended during that
21contractual service. A person receiving an annuity or
22retirement pension under this Code shall notify the pension
23fund or retirement system from which he or she is receiving an
24annuity or retirement pension, as well as his or her
25contractual employer, of his or her retirement status before
26accepting contractual employment. A person who fails to submit

HB2853- 27 -LRB103 28267 RPS 54646 b
1such notification shall be guilty of a Class A misdemeanor and
2required to pay a fine of $1,000. Upon termination of that
3contractual employment, the person's retirement annuity or
4retirement pension payments shall resume and, if appropriate,
5be recalculated under the applicable provisions of this Code.
6 (i) (Blank).
7 (j) In the case of a conflict between the provisions of
8this Section and any other provision of this Code, the
9provisions of this Section shall control.
10(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
11102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
125-13-22.)
13 (Text of Section from P.A. 102-956)
14 Sec. 1-160. Provisions applicable to new hires.
15 (a) The provisions of this Section apply to a person who,
16on or after January 1, 2011, first becomes a member or a
17participant under any reciprocal retirement system or pension
18fund established under this Code, other than a retirement
19system or pension fund established under Article 2, 3, 4, 5, 6,
207, 15, or 18 of this Code, notwithstanding any other provision
21of this Code to the contrary, but do not apply to any
22self-managed plan established under this Code or to any
23participant of the retirement plan established under Section
2422-101; except that this Section applies to a person who
25elected to establish alternative credits by electing in

HB2853- 28 -LRB103 28267 RPS 54646 b
1writing after January 1, 2011, but before August 8, 2011,
2under Section 7-145.1 of this Code. Notwithstanding anything
3to the contrary in this Section, for purposes of this Section,
4a person who is a Tier 1 regular employee as defined in Section
57-109.4 of this Code or who participated in a retirement
6system under Article 15 prior to January 1, 2011 shall be
7deemed a person who first became a member or participant prior
8to January 1, 2011 under any retirement system or pension fund
9subject to this Section. The changes made to this Section by
10Public Act 98-596 are a clarification of existing law and are
11intended to be retroactive to January 1, 2011 (the effective
12date of Public Act 96-889), notwithstanding the provisions of
13Section 1-103.1 of this Code.
14 This Section does not apply to a person who first becomes a
15noncovered employee under Article 14 on or after the
16implementation date of the plan created under Section 1-161
17for that Article, unless that person elects under subsection
18(b) of Section 1-161 to instead receive the benefits provided
19under this Section and the applicable provisions of that
20Article.
21 This Section does not apply to a person who first becomes a
22member or participant under Article 16 on or after the
23implementation date of the plan created under Section 1-161
24for that Article, unless that person elects under subsection
25(b) of Section 1-161 to instead receive the benefits provided
26under this Section and the applicable provisions of that

HB2853- 29 -LRB103 28267 RPS 54646 b
1Article.
2 This Section does not apply to a person who elects under
3subsection (c-5) of Section 1-161 to receive the benefits
4under Section 1-161.
5 This Section does not apply to a person who first becomes a
6member or participant of an affected pension fund on or after 6
7months after the resolution or ordinance date, as defined in
8Section 1-162, unless that person elects under subsection (c)
9of Section 1-162 to receive the benefits provided under this
10Section and the applicable provisions of the Article under
11which he or she is a member or participant.
12 (b) "Final average salary" means, except as otherwise
13provided in this subsection, the average monthly (or annual)
14salary obtained by dividing the total salary or earnings
15calculated under the Article applicable to the member or
16participant during the 96 consecutive months (or 8 consecutive
17years) of service within the last 120 months (or 10 years) of
18service in which the total salary or earnings calculated under
19the applicable Article was the highest by the number of months
20(or years) of service in that period. For the purposes of a
21person who first becomes a member or participant of any
22retirement system or pension fund to which this Section
23applies on or after January 1, 2011, in this Code, "final
24average salary" shall be substituted for the following:
25 (1) (Blank).
26 (2) In Articles 8, 9, 10, 11, and 12, "highest average

HB2853- 30 -LRB103 28267 RPS 54646 b
1 annual salary for any 4 consecutive years within the last
2 10 years of service immediately preceding the date of
3 withdrawal".
4 (3) In Article 13, "average final salary".
5 (4) In Article 14, "final average compensation".
6 (5) In Article 17, "average salary".
7 (6) In Section 22-207, "wages or salary received by
8 him at the date of retirement or discharge".
9 A member of the Teachers' Retirement System of the State
10of Illinois who retires on or after June 1, 2021 and for whom
11the 2020-2021 school year is used in the calculation of the
12member's final average salary shall use the higher of the
13following for the purpose of determining the member's final
14average salary:
15 (A) the amount otherwise calculated under the first
16 paragraph of this subsection; or
17 (B) an amount calculated by the Teachers' Retirement
18 System of the State of Illinois using the average of the
19 monthly (or annual) salary obtained by dividing the total
20 salary or earnings calculated under Article 16 applicable
21 to the member or participant during the 96 months (or 8
22 years) of service within the last 120 months (or 10 years)
23 of service in which the total salary or earnings
24 calculated under the Article was the highest by the number
25 of months (or years) of service in that period.
26 (b-5) Beginning on January 1, 2011, for all purposes under

HB2853- 31 -LRB103 28267 RPS 54646 b
1this Code (including without limitation the calculation of
2benefits and employee contributions), the annual earnings,
3salary, or wages (based on the plan year) of a member or
4participant to whom this Section applies shall not exceed
5$106,800; however, that amount shall annually thereafter be
6increased by the lesser of (i) 3% of that amount, including all
7previous adjustments, or (ii) one-half the annual unadjusted
8percentage increase (but not less than zero) in the consumer
9price index-u for the 12 months ending with the September
10preceding each November 1, including all previous adjustments.
11 For the purposes of this Section, "consumer price index-u"
12means the index published by the Bureau of Labor Statistics of
13the United States Department of Labor that measures the
14average change in prices of goods and services purchased by
15all urban consumers, United States city average, all items,
161982-84 = 100. The new amount resulting from each annual
17adjustment shall be determined by the Public Pension Division
18of the Department of Insurance and made available to the
19boards of the retirement systems and pension funds by November
201 of each year.
21 (c) A member or participant is entitled to a retirement
22annuity upon written application if he or she has attained age
2367 (age 65, with respect to service under Article 12 that is
24subject to this Section, for a member or participant under
25Article 12 who first becomes a member or participant under
26Article 12 on or after January 1, 2022 or who makes the

HB2853- 32 -LRB103 28267 RPS 54646 b
1election under item (i) of subsection (d-15) of this Section)
2and has at least 10 years of service credit and is otherwise
3eligible under the requirements of the applicable Article.
4 A member or participant who has attained age 62 (age 60,
5with respect to service under Article 12 that is subject to
6this Section, for a member or participant under Article 12 who
7first becomes a member or participant under Article 12 on or
8after January 1, 2022 or who makes the election under item (i)
9of subsection (d-15) of this Section) and has at least 10 years
10of service credit and is otherwise eligible under the
11requirements of the applicable Article may elect to receive
12the lower retirement annuity provided in subsection (d) of
13this Section.
14 (c-5) A person who first becomes a member or a participant
15subject to this Section on or after July 6, 2017 (the effective
16date of Public Act 100-23), notwithstanding any other
17provision of this Code to the contrary, is entitled to a
18retirement annuity under Article 8 or Article 11 upon written
19application if he or she has attained age 65 and has at least
2010 years of service credit and is otherwise eligible under the
21requirements of Article 8 or Article 11 of this Code,
22whichever is applicable.
23 (d) The retirement annuity of a member or participant who
24is retiring after attaining age 62 (age 60, with respect to
25service under Article 12 that is subject to this Section, for a
26member or participant under Article 12 who first becomes a

HB2853- 33 -LRB103 28267 RPS 54646 b
1member or participant under Article 12 on or after January 1,
22022 or who makes the election under item (i) of subsection
3(d-15) of this Section) with at least 10 years of service
4credit shall be reduced by one-half of 1% for each full month
5that the member's age is under age 67 (age 65, with respect to
6service under Article 12 that is subject to this Section, for a
7member or participant under Article 12 who first becomes a
8member or participant under Article 12 on or after January 1,
92022 or who makes the election under item (i) of subsection
10(d-15) of this Section). However, this reduction shall be
11waived for any member under Article 16 who has attained age 66
12and has earned service credit under Article 16 for the
132020-2021 school year. For the purposes of this subsection,
14any member under Article 16 who has not attained age 66 and has
15earned service credit under Article 16 for the 2020-2021
16school year shall be deemed to be one year older than his or
17her actual age.
18 (d-5) The retirement annuity payable under Article 8 or
19Article 11 to an eligible person subject to subsection (c-5)
20of this Section who is retiring at age 60 with at least 10
21years of service credit shall be reduced by one-half of 1% for
22each full month that the member's age is under age 65.
23 (d-10) Each person who first became a member or
24participant under Article 8 or Article 11 of this Code on or
25after January 1, 2011 and prior to July 6, 2017 (the effective
26date of Public Act 100-23) shall make an irrevocable election

HB2853- 34 -LRB103 28267 RPS 54646 b
1either:
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
19between October 1, 2017 and November 15, 2017. A person
20subject to this subsection who makes the required election
21shall remain bound by that election. A person subject to this
22subsection who fails for any reason to make the required
23election within the time specified in this subsection shall be
24deemed to have made the election under item (ii).
25 (d-15) Each person who first becomes a member or
26participant under Article 12 on or after January 1, 2011 and

HB2853- 35 -LRB103 28267 RPS 54646 b
1prior to January 1, 2022 shall make an irrevocable election
2either:
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
17between January 1, 2022 and April 1, 2022. A person subject to
18this subsection who makes the required election shall remain
19bound by that election. A person subject to this subsection
20who fails for any reason to make the required election within
21the time specified in this subsection shall be deemed to have
22made the election under item (ii).
23 (e) Any retirement annuity or supplemental annuity shall
24be subject to annual increases on the January 1 occurring
25either on or after the attainment of age 67 (age 65, with
26respect to service under Article 12 that is subject to this

HB2853- 36 -LRB103 28267 RPS 54646 b
1Section, for a member or participant under Article 12 who
2first becomes a member or participant under Article 12 on or
3after January 1, 2022 or who makes the election under item (i)
4of subsection (d-15); and beginning on July 6, 2017 (the
5effective date of Public Act 100-23), age 65 with respect to
6service under Article 8 or Article 11 for eligible persons
7who: (i) are subject to subsection (c-5) of this Section; or
8(ii) made the election under item (i) of subsection (d-10) of
9this Section) or the first anniversary of the annuity start
10date, whichever is later. Each annual increase shall be
11calculated at 3% or one-half the annual unadjusted percentage
12increase (but not less than zero) in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1, whichever is less, of the originally granted
15retirement annuity. If the annual unadjusted percentage change
16in the consumer price index-u for the 12 months ending with the
17September preceding each November 1 is zero or there is a
18decrease, then the annuity shall not be increased.
19 For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by Public Act 102-263 are
21applicable without regard to whether the employee was in
22active service on or after August 6, 2021 (the effective date
23of Public Act 102-263).
24 For the purposes of Section 1-103.1 of this Code, the
25changes made to this Section by Public Act 100-23 are
26applicable without regard to whether the employee was in

HB2853- 37 -LRB103 28267 RPS 54646 b
1active service on or after July 6, 2017 (the effective date of
2Public Act 100-23).
3 (f) The initial survivor's or widow's annuity of an
4otherwise eligible survivor or widow of a retired member or
5participant who first became a member or participant on or
6after January 1, 2011 shall be in the amount of 66 2/3% of the
7retired member's or participant's retirement annuity at the
8date of death. In the case of the death of a member or
9participant who has not retired and who first became a member
10or participant on or after January 1, 2011, eligibility for a
11survivor's or widow's annuity shall be determined by the
12applicable Article of this Code. The initial benefit shall be
1366 2/3% of the earned annuity without a reduction due to age. A
14child's annuity of an otherwise eligible child shall be in the
15amount prescribed under each Article if applicable. Any
16survivor's or widow's annuity shall be increased (1) on each
17January 1 occurring on or after the commencement of the
18annuity if the deceased member died while receiving a
19retirement annuity or (2) in other cases, on each January 1
20occurring after the first anniversary of the commencement of
21the annuity. Each annual increase shall be calculated at 3% or
22one-half the annual unadjusted percentage increase (but not
23less than zero) in the consumer price index-u for the 12 months
24ending with the September preceding each November 1, whichever
25is less, of the originally granted survivor's annuity. If the
26annual unadjusted percentage change in the consumer price

HB2853- 38 -LRB103 28267 RPS 54646 b
1index-u for the 12 months ending with the September preceding
2each November 1 is zero or there is a decrease, then the
3annuity shall not be increased.
4 (g) The benefits in Section 14-110 apply only if the
5person is a State policeman, a fire fighter in the fire
6protection service of a department, a conservation police
7officer, an investigator for the Secretary of State, an
8investigator for the Office of the Attorney General, an arson
9investigator, a Commerce Commission police officer,
10investigator for the Department of Revenue or the Illinois
11Gaming Board, a security employee of the Department of
12Corrections or the Department of Juvenile Justice, or a
13security employee of the Department of Innovation and
14Technology, as those terms are defined in subsection (b) and
15subsection (c) of Section 14-110. A person who meets the
16requirements of this Section is entitled to an annuity
17calculated under the provisions of Section 14-110, in lieu of
18the regular or minimum retirement annuity, only if the person
19has withdrawn from service with not less than 20 years of
20eligible creditable service and has attained age 60,
21regardless of whether the attainment of age 60 occurs while
22the person is still in service.
23 (h) If a person who first becomes a member or a participant
24of a retirement system or pension fund subject to this Section
25on or after January 1, 2011 is receiving a retirement annuity
26or retirement pension under that system or fund and becomes a

HB2853- 39 -LRB103 28267 RPS 54646 b
1member or participant under any other system or fund created
2by this Code and is employed on a full-time basis, except for
3those members or participants exempted from the provisions of
4this Section under subsection (a) of this Section, then the
5person's retirement annuity or retirement pension under that
6system or fund shall be suspended during that employment. Upon
7termination of that employment, the person's retirement
8annuity or retirement pension payments shall resume and be
9recalculated if recalculation is provided for under the
10applicable Article of this Code.
11 If a person who first becomes a member of a retirement
12system or pension fund subject to this Section on or after
13January 1, 2012 and is receiving a retirement annuity or
14retirement pension under that system or fund and accepts on a
15contractual basis a position to provide services to a
16governmental entity from which he or she has retired, then
17that person's annuity or retirement pension earned as an
18active employee of the employer shall be suspended during that
19contractual service. A person receiving an annuity or
20retirement pension under this Code shall notify the pension
21fund or retirement system from which he or she is receiving an
22annuity or retirement pension, as well as his or her
23contractual employer, of his or her retirement status before
24accepting contractual employment. A person who fails to submit
25such notification shall be guilty of a Class A misdemeanor and
26required to pay a fine of $1,000. Upon termination of that

HB2853- 40 -LRB103 28267 RPS 54646 b
1contractual employment, the person's retirement annuity or
2retirement pension payments shall resume and, if appropriate,
3be recalculated under the applicable provisions of this Code.
4 (i) (Blank).
5 (j) In the case of a conflict between the provisions of
6this Section and any other provision of this Code, the
7provisions of this Section shall control.
8(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
9102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
105-27-22.)
11 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
12 Sec. 16-127. Computation of creditable service.
13 (a) Each member shall receive regular credit for all
14service as a teacher from the date membership begins, for
15which satisfactory evidence is supplied and all contributions
16have been paid.
17 (b) The following periods of service shall earn optional
18credit and each member shall receive credit for all such
19service for which satisfactory evidence is supplied and all
20contributions have been paid as of the date specified:
21 (1) Prior service as a teacher.
22 (2) Service in a capacity essentially similar or
23 equivalent to that of a teacher, in the public common
24 schools in school districts in this State not included
25 within the provisions of this System, or of any other

HB2853- 41 -LRB103 28267 RPS 54646 b
1 State, territory, dependency or possession of the United
2 States, or in schools operated by or under the auspices of
3 the United States, or under the auspices of any agency or
4 department of any other State, and service during any
5 period of professional speech correction or special
6 education experience for a public agency within this State
7 or any other State, territory, dependency or possession of
8 the United States, and service prior to February 1, 1951
9 as a recreation worker for the Illinois Department of
10 Public Safety, for a period not exceeding the lesser of
11 2/5 of the total creditable service of the member or 10
12 years. The maximum service of 10 years which is allowable
13 under this paragraph shall be reduced by the service
14 credit which is validated by other retirement systems
15 under paragraph (i) of Section 15-113 and paragraph 1 of
16 Section 17-133. Credit granted under this paragraph may
17 not be used in determination of a retirement annuity or
18 disability benefits unless the member has at least 5 years
19 of creditable service earned subsequent to this employment
20 with one or more of the following systems: Teachers'
21 Retirement System of the State of Illinois, State
22 Universities Retirement System, and the Public School
23 Teachers' Pension and Retirement Fund of Chicago. Whenever
24 such service credit exceeds the maximum allowed for all
25 purposes of this Article, the first service rendered in
26 point of time shall be considered. The changes to this

HB2853- 42 -LRB103 28267 RPS 54646 b
1 subdivision (b)(2) made by Public Act 86-272 shall apply
2 not only to persons who on or after its effective date
3 (August 23, 1989) are in service as a teacher under the
4 System, but also to persons whose status as such a teacher
5 terminated prior to such effective date, whether or not
6 such person is an annuitant on that date.
7 (3) Any periods immediately following teaching
8 service, under this System or under Article 17, (or
9 immediately following service prior to February 1, 1951 as
10 a recreation worker for the Illinois Department of Public
11 Safety) spent in active service with the military forces
12 of the United States; periods spent in educational
13 programs that prepare for return to teaching sponsored by
14 the federal government following such active military
15 service; if a teacher returns to teaching service within
16 one calendar year after discharge or after the completion
17 of the educational program, a further period, not
18 exceeding one calendar year, between time spent in
19 military service or in such educational programs and the
20 return to employment as a teacher under this System; and a
21 period of up to 2 years of active military service not
22 immediately following employment as a teacher.
23 The changes to this Section and Section 16-128
24 relating to military service made by P.A. 87-794 shall
25 apply not only to persons who on or after its effective
26 date are in service as a teacher under the System, but also

HB2853- 43 -LRB103 28267 RPS 54646 b
1 to persons whose status as a teacher terminated prior to
2 that date, whether or not the person is an annuitant on
3 that date. In the case of an annuitant who applies for
4 credit allowable under this Section for a period of
5 military service that did not immediately follow
6 employment, and who has made the required contributions
7 for such credit, the annuity shall be recalculated to
8 include the additional service credit, with the increase
9 taking effect on the date the System received written
10 notification of the annuitant's intent to purchase the
11 credit, if payment of all the required contributions is
12 made within 60 days of such notice, or else on the first
13 annuity payment date following the date of payment of the
14 required contributions. In calculating the automatic
15 annual increase for an annuity that has been recalculated
16 under this Section, the increase attributable to the
17 additional service allowable under P.A. 87-794 shall be
18 included in the calculation of automatic annual increases
19 accruing after the effective date of the recalculation.
20 Credit for military service shall be determined as
21 follows: if entry occurs during the months of July,
22 August, or September and the member was a teacher at the
23 end of the immediately preceding school term, credit shall
24 be granted from July 1 of the year in which he or she
25 entered service; if entry occurs during the school term
26 and the teacher was in teaching service at the beginning

HB2853- 44 -LRB103 28267 RPS 54646 b
1 of the school term, credit shall be granted from July 1 of
2 such year. In all other cases where credit for military
3 service is allowed, credit shall be granted from the date
4 of entry into the service.
5 The total period of military service for which credit
6 is granted shall not exceed 5 years for any member unless
7 the service: (A) is validated before July 1, 1964, and (B)
8 does not extend beyond July 1, 1963. Credit for military
9 service shall be granted under this Section only if not
10 more than 5 years of the military service for which credit
11 is granted under this Section is used by the member to
12 qualify for a military retirement allotment from any
13 branch of the armed forces of the United States. The
14 changes to this subdivision (b)(3) made by Public Act
15 86-272 shall apply not only to persons who on or after its
16 effective date (August 23, 1989) are in service as a
17 teacher under the System, but also to persons whose status
18 as such a teacher terminated prior to such effective date,
19 whether or not such person is an annuitant on that date.
20 (4) Any periods served as a member of the General
21 Assembly.
22 (5)(i) Any periods for which a teacher, as defined in
23 Section 16-106, is granted a leave of absence, provided he
24 or she returns to teaching service creditable under this
25 System or the State Universities Retirement System
26 following the leave; (ii) periods during which a teacher

HB2853- 45 -LRB103 28267 RPS 54646 b
1 is involuntarily laid off from teaching, provided he or
2 she returns to teaching following the lay-off; (iii)
3 periods prior to July 1, 1983 during which a teacher
4 ceased covered employment due to pregnancy, provided that
5 the teacher returned to teaching service creditable under
6 this System or the State Universities Retirement System
7 following the pregnancy and submits evidence satisfactory
8 to the Board documenting that the employment ceased due to
9 pregnancy; and (iv) periods prior to July 1, 1983 during
10 which a teacher ceased covered employment for the purpose
11 of adopting an infant under 3 years of age or caring for a
12 newly adopted infant under 3 years of age, provided that
13 the teacher returned to teaching service creditable under
14 this System or the State Universities Retirement System
15 following the adoption and submits evidence satisfactory
16 to the Board documenting that the employment ceased for
17 the purpose of adopting an infant under 3 years of age or
18 caring for a newly adopted infant under 3 years of age.
19 However, total credit under this paragraph (5) may not
20 exceed 3 years.
21 Any qualified member or annuitant may apply for credit
22 under item (iii) or (iv) of this paragraph (5) without
23 regard to whether service was terminated before the
24 effective date of this amendatory Act of 1997. In the case
25 of an annuitant who establishes credit under item (iii) or
26 (iv), the annuity shall be recalculated to include the

HB2853- 46 -LRB103 28267 RPS 54646 b
1 additional service credit. The increase in annuity shall
2 take effect on the date the System receives written
3 notification of the annuitant's intent to purchase the
4 credit, if the required evidence is submitted and the
5 required contribution paid within 60 days of that
6 notification, otherwise on the first annuity payment date
7 following the System's receipt of the required evidence
8 and contribution. The increase in an annuity recalculated
9 under this provision shall be included in the calculation
10 of automatic annual increases in the annuity accruing
11 after the effective date of the recalculation.
12 Optional credit may be purchased under this subsection
13 (b)(5) for periods during which a teacher has been granted
14 a leave of absence pursuant to Section 24-13 of the School
15 Code. A teacher whose service under this Article
16 terminated prior to the effective date of P.A. 86-1488
17 shall be eligible to purchase such optional credit. If a
18 teacher who purchases this optional credit is already
19 receiving a retirement annuity under this Article, the
20 annuity shall be recalculated as if the annuitant had
21 applied for the leave of absence credit at the time of
22 retirement. The difference between the entitled annuity
23 and the actual annuity shall be credited to the purchase
24 of the optional credit. The remainder of the purchase cost
25 of the optional credit shall be paid on or before April 1,
26 1992.

HB2853- 47 -LRB103 28267 RPS 54646 b
1 The change in this paragraph made by Public Act 86-273
2 shall be applicable to teachers who retire after June 1,
3 1989, as well as to teachers who are in service on that
4 date.
5 (6) Any days of unused and uncompensated accumulated
6 sick leave earned by a teacher. The service credit granted
7 under this paragraph shall be the ratio of the number of
8 unused and uncompensated accumulated sick leave days to
9 170 days, subject to a maximum of 2 years of service
10 credit. Prior to the member's retirement, each former
11 employer shall certify to the System the number of unused
12 and uncompensated accumulated sick leave days credited to
13 the member at the time of termination of service. The
14 period of unused sick leave shall not be considered in
15 determining the effective date of retirement. A member is
16 not required to make contributions in order to obtain
17 service credit for unused sick leave.
18 Credit for sick leave shall, at retirement, be granted
19 by the System for any retiring regional or assistant
20 regional superintendent of schools at the rate of 6 days
21 per year of creditable service or portion thereof
22 established while serving as such superintendent or
23 assistant superintendent.
24 (7) Periods prior to February 1, 1987 served as an
25 employee of the Illinois Mathematics and Science Academy
26 for which credit has not been terminated under Section

HB2853- 48 -LRB103 28267 RPS 54646 b
1 15-113.9 of this Code.
2 (8) Service as a substitute teacher for work performed
3 prior to July 1, 1990.
4 (9) Service as a part-time teacher for work performed
5 prior to July 1, 1990.
6 (10) Up to 2 years of employment with Southern
7 Illinois University - Carbondale from September 1, 1959 to
8 August 31, 1961, or with Governors State University from
9 September 1, 1972 to August 31, 1974, for which the
10 teacher has no credit under Article 15. To receive credit
11 under this item (10), a teacher must apply in writing to
12 the Board and pay the required contributions before May 1,
13 1993 and have at least 12 years of service credit under
14 this Article.
15 (11) One additional day of service credit for each day
16 of service credit that was earned between March 16, 2020
17 and June 30, 2021 for any day in which the teacher provided
18 in-person instruction during that period.
19 (b-1) A member may establish optional credit for up to 2
20years of service as a teacher or administrator employed by a
21private school recognized by the Illinois State Board of
22Education, provided that the teacher (i) was certified under
23the law governing the certification of teachers at the time
24the service was rendered, (ii) applies in writing on or before
25June 30, 2023, (iii) supplies satisfactory evidence of the
26employment, (iv) completes at least 10 years of contributing

HB2853- 49 -LRB103 28267 RPS 54646 b
1service as a teacher as defined in Section 16-106, and (v) pays
2the contribution required in subsection (d-5) of Section
316-128. The member may apply for credit under this subsection
4and pay the required contribution before completing the 10
5years of contributing service required under item (iv), but
6the credit may not be used until the item (iv) contributing
7service requirement has been met.
8 (c) The service credits specified in this Section shall be
9granted only if: (1) such service credits are not used for
10credit in any other statutory tax-supported public employee
11retirement system other than the federal Social Security
12program; and (2) the member makes the required contributions
13as specified in Section 16-128. Except as provided in
14subsection (b-1) of this Section, the service credit shall be
15effective as of the date the required contributions are
16completed.
17 Any service credits granted under this Section shall
18terminate upon cessation of membership for any cause.
19 Credit may not be granted under this Section covering any
20period for which an age retirement or disability retirement
21allowance has been paid.
22 Credit may not be granted under this Section for service
23as an employee of an entity that provides substitute teaching
24services under Section 2-3.173 of the School Code and is not a
25school district.
26(Source: P.A. 102-525, eff. 8-20-21.)

HB2853- 50 -LRB103 28267 RPS 54646 b
1 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
2 Sec. 16-133. Retirement annuity; amount.
3 (a) The amount of the retirement annuity shall be (i) in
4the case of a person who first became a teacher under this
5Article before July 1, 2005, the larger of the amounts
6determined under paragraphs (A) and (B) below, or (ii) in the
7case of a person who first becomes a teacher under this Article
8on or after July 1, 2005, the amount determined under the
9applicable provisions of paragraph (B):
10 (A) An amount consisting of the sum of the following:
11 (1) An amount that can be provided on an
12 actuarially equivalent basis by the member's
13 accumulated contributions at the time of retirement;
14 and
15 (2) The sum of (i) the amount that can be provided
16 on an actuarially equivalent basis by the member's
17 accumulated contributions representing service prior
18 to July 1, 1947, and (ii) the amount that can be
19 provided on an actuarially equivalent basis by the
20 amount obtained by multiplying 1.4 times the member's
21 accumulated contributions covering service subsequent
22 to June 30, 1947; and
23 (3) If there is prior service, 2 times the amount
24 that would have been determined under subparagraph (2)
25 of paragraph (A) above on account of contributions

HB2853- 51 -LRB103 28267 RPS 54646 b
1 which would have been made during the period of prior
2 service creditable to the member had the System been
3 in operation and had the member made contributions at
4 the contribution rate in effect prior to July 1, 1947.
5 This paragraph (A) does not apply to a person who
6 first becomes a teacher under this Article on or after
7 July 1, 2005.
8 (B) An amount consisting of the greater of the
9 following:
10 (1) For creditable service earned before July 1,
11 1998 that has not been augmented under Section
12 16-129.1: 1.67% of final average salary for each of
13 the first 10 years of creditable service, 1.90% of
14 final average salary for each year in excess of 10 but
15 not exceeding 20, 2.10% of final average salary for
16 each year in excess of 20 but not exceeding 30, and
17 2.30% of final average salary for each year in excess
18 of 30; and
19 For creditable service earned on or after July 1,
20 1998 by a member who has at least 24 years of
21 creditable service on July 1, 1998 and who does not
22 elect to augment service under Section 16-129.1: 2.2%
23 of final average salary for each year of creditable
24 service earned on or after July 1, 1998 but before the
25 member reaches a total of 30 years of creditable
26 service and 2.3% of final average salary for each year

HB2853- 52 -LRB103 28267 RPS 54646 b
1 of creditable service earned on or after July 1, 1998
2 and after the member reaches a total of 30 years of
3 creditable service; and
4 For all other creditable service: 2.2% of final
5 average salary for each year of creditable service; or
6 (2) 1.5% of final average salary for each year of
7 creditable service plus the sum $7.50 for each of the
8 first 20 years of creditable service.
9 The amount of the retirement annuity determined under this
10 paragraph (B) shall be reduced by 1/2 of 1% for each month
11 that the member is less than age 60 at the time the
12 retirement annuity begins. However, this reduction shall
13 not apply (i) if the member has at least 35 years of
14 creditable service, or (ii) if the member retires on
15 account of disability under Section 16-149.2 of this
16 Article with at least 20 years of creditable service, or
17 (iii) if the member (1) has earned during the period
18 immediately preceding the last day of service at least one
19 year of contributing creditable service as an employee of
20 a department as defined in Section 14-103.04, (2) has
21 earned at least 5 years of contributing creditable service
22 as an employee of a department as defined in Section
23 14-103.04, (3) retires on or after January 1, 2001, and
24 (4) retires having attained an age which, when added to
25 the number of years of his or her total creditable
26 service, equals at least 85. Portions of years shall be

HB2853- 53 -LRB103 28267 RPS 54646 b
1 counted as decimal equivalents. The System shall waive
2 this reduction for any member who has attained age 59 and
3 has earned service credit for the 2020-2021 school year.
4 For the purposes of this paragraph, any member who has not
5 attained age 59 and has earned service credit for the
6 2020-2021 school year shall be deemed to be one year older
7 than his or her actual age.
8 (b) For purposes of this Section, except as provided in
9subsection (b-5), final average salary shall be the average
10salary for the highest 4 consecutive years within the last 10
11years of creditable service as determined under rules of the
12board.
13 The minimum final average salary shall be considered to
14be $2,400 per year.
15 In the determination of final average salary for members
16other than elected officials and their appointees when such
17appointees are allowed by statute, that part of a member's
18salary for any year beginning after June 30, 1979 which
19exceeds the member's annual full-time salary rate with the
20same employer for the preceding year by more than 20% shall be
21excluded. The exclusion shall not apply in any year in which
22the member's creditable earnings are less than 50% of the
23preceding year's mean salary for downstate teachers as
24determined by the survey of school district salaries provided
25in Section 2-3.103 of the School Code.
26 (b-5) A teacher who retires on or after June 1, 2021 and

HB2853- 54 -LRB103 28267 RPS 54646 b
1for whom the 2020-2021 school year is used in the calculation
2of the member's final average salary shall use the higher of
3the following for the purpose of determining the member's
4final average salary:
5 (A) the amount otherwise calculated under subsection
6 (b); or
7 (B) an amount calculated by the System using the
8 average salary for the 4 highest years within the last 10
9 years of creditable service as determined under the rules
10 of the board.
11 (c) In determining the amount of the retirement annuity
12under paragraph (B) of this Section, a fractional year shall
13be granted proportional credit.
14 (d) The retirement annuity determined under paragraph (B)
15of this Section shall be available only to members who render
16teaching service after July 1, 1947 for which member
17contributions are required, and to annuitants who re-enter
18under the provisions of Section 16-150.
19 (e) The maximum retirement annuity provided under
20paragraph (B) of this Section shall be 75% of final average
21salary.
22 (f) A member retiring after the effective date of this
23amendatory Act of 1998 shall receive a pension equal to 75% of
24final average salary if the member is qualified to receive a
25retirement annuity equal to at least 74.6% of final average
26salary under this Article or as proportional annuities under

HB2853- 55 -LRB103 28267 RPS 54646 b
1Article 20 of this Code.
2(Source: P.A. 102-16, eff. 6-17-21.)
3 (40 ILCS 5/16-203)
4 Sec. 16-203. Application and expiration of new benefit
5increases.
6 (a) As used in this Section, "new benefit increase" means
7an increase in the amount of any benefit provided under this
8Article, or an expansion of the conditions of eligibility for
9any benefit under this Article, that results from an amendment
10to this Code that takes effect after June 1, 2005 (the
11effective date of Public Act 94-4). "New benefit increase",
12however, does not include any benefit increase resulting from
13the changes made to Article 1 or this Article by Public Act
1495-910, Public Act 100-23, Public Act 100-587, Public Act
15100-743, Public Act 100-769, Public Act 101-10, Public Act
16101-49, Public Act 102-16, or Public Act 102-871, or this
17amendatory Act of the 103rd General Assembly Public Act 102-16
18this amendatory Act of the 102nd General Assembly.
19 (b) Notwithstanding any other provision of this Code or
20any subsequent amendment to this Code, every new benefit
21increase is subject to this Section and shall be deemed to be
22granted only in conformance with and contingent upon
23compliance with the provisions of this Section.
24 (c) The Public Act enacting a new benefit increase must
25identify and provide for payment to the System of additional

HB2853- 56 -LRB103 28267 RPS 54646 b
1funding at least sufficient to fund the resulting annual
2increase in cost to the System as it accrues.
3 Every new benefit increase is contingent upon the General
4Assembly providing the additional funding required under this
5subsection. The Commission on Government Forecasting and
6Accountability shall analyze whether adequate additional
7funding has been provided for the new benefit increase and
8shall report its analysis to the Public Pension Division of
9the Department of Insurance. A new benefit increase created by
10a Public Act that does not include the additional funding
11required under this subsection is null and void. If the Public
12Pension Division determines that the additional funding
13provided for a new benefit increase under this subsection is
14or has become inadequate, it may so certify to the Governor and
15the State Comptroller and, in the absence of corrective action
16by the General Assembly, the new benefit increase shall expire
17at the end of the fiscal year in which the certification is
18made.
19 (d) Every new benefit increase shall expire 5 years after
20its effective date or on such earlier date as may be specified
21in the language enacting the new benefit increase or provided
22under subsection (c). This does not prevent the General
23Assembly from extending or re-creating a new benefit increase
24by law.
25 (e) Except as otherwise provided in the language creating
26the new benefit increase, a new benefit increase that expires

HB2853- 57 -LRB103 28267 RPS 54646 b
1under this Section continues to apply to persons who applied
2and qualified for the affected benefit while the new benefit
3increase was in effect and to the affected beneficiaries and
4alternate payees of such persons, but does not apply to any
5other person, including, without limitation, a person who
6continues in service after the expiration date and did not
7apply and qualify for the affected benefit while the new
8benefit increase was in effect.
9(Source: P.A. 101-10, eff. 6-5-19; 101-49, eff. 7-12-19;
10101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff.
118-20-21; 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; revised
127-26-22.)
13 Section 99. Effective date. This Act takes effect upon
14becoming law.
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