Bill Text: IL HB4099 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the General Provisions, Downstate Police, Downstate Firefighter, and State Employees Articles of the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice or a security employee of the Department of Human Services subject to the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement annuity provisions, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, regardless of whether the attainment of age 55 occurs while the person is still in service. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". In the Downstate Police and Downstate Firefighter Articles, in a provision that reduces the amount of the pension for a Tier 2 firefighter or Tier 2 police officer who retires with at least 10 years of creditable service before attaining age 55, provides that the pension of a Tier 2 firefighter or Tier 2 police officer who is retiring after attaining age 50 with 20 or more years of creditable service shall not be reduced. Makes a conforming change. Provides that each annual increase for Tier 2 firefighters shall be increased on the January 1 occurring either on or after the attainment of age 55 (instead of age 60) or the first anniversary of the pension start date, whichever is later. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-19 - Rule 19(a) / Re-referred to Rules Committee [HB4099 Detail]

Download: Illinois-2023-HB4099-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4099 Introduced , by Rep. Stephanie A. Kifowit SYNOPSIS AS INTRODUCED:
40 ILCS 5/1-160
40 ILCS 5/3-111 from Ch. 108 1/2, par. 3-111
40 ILCS 5/3-111.1 from Ch. 108 1/2, par. 3-111.1
40 ILCS 5/4-109 from Ch. 108 1/2, par. 4-109
40 ILCS 5/4-109.1 from Ch. 108 1/2, par. 4-109.1
40 ILCS 5/14-152.1
30 ILCS 805/8.47 new
Amends the General Provisions, Downstate Police, Downstate Firefighter, and State Employees Articles of the Illinois Pension Code. Provides that a security employee of the Department of Corrections or the Department of Juvenile Justice or a security employee of the Department of Human Services subject to the Tier 2 provisions is entitled to an annuity calculated under the alternative retirement annuity provisions, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, regardless of whether the attainment of age 55 occurs while the person is still in service. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". In the Downstate Police and Downstate Firefighter Articles, in a provision that reduces the amount of the pension for a Tier 2 firefighter or Tier 2 police officer who retires with at least 10 years of creditable service before attaining age 55, provides that the pension of a Tier 2 firefighter or Tier 2 police officer who is retiring after attaining age 50 with 20 or more years of creditable service shall not be reduced. Makes a conforming change. Provides that each annual increase for Tier 2 firefighters shall be increased on the January 1 occurring either on or after the attainment of age 55 (instead of age 60) or the first anniversary of the pension start date, whichever is later. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB103 32596 RPS 62211 b
A BILL FOR
HB4099 LRB103 32596 RPS 62211 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 1-160, 3-111, 3-111.1, 4-109, 4-109.1, and
14-152.1 as follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,

HB4099 - 2 - LRB103 32596 RPS 62211 b
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits

HB4099 - 3 - LRB103 32596 RPS 62211 b
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".

HB4099 - 4 - LRB103 32596 RPS 62211 b
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or

HB4099 - 5 - LRB103 32596 RPS 62211 b
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.

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

HB4099 - 7 - LRB103 32596 RPS 62211 b
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection

HB4099 - 8 - LRB103 32596 RPS 62211 b
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not

HB4099 - 9 - LRB103 32596 RPS 62211 b
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be

HB4099 - 10 - LRB103 32596 RPS 62211 b
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a

HB4099 - 11 - LRB103 32596 RPS 62211 b
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are
defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is

HB4099 - 12 - LRB103 32596 RPS 62211 b
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-1) The benefits in Section 14-110 apply if the person
is a security employee of the Department of Corrections or the
Department of Juvenile Justice or a security employee of the
Department of Human Services, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an

HB4099 - 13 - LRB103 32596 RPS 62211 b
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then

HB4099 - 14 - LRB103 32596 RPS 62211 b
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension

HB4099 - 15 - LRB103 32596 RPS 62211 b
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided

HB4099 - 16 - LRB103 32596 RPS 62211 b
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under

HB4099 - 17 - LRB103 32596 RPS 62211 b
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the

HB4099 - 18 - LRB103 32596 RPS 62211 b
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the

HB4099 - 19 - LRB103 32596 RPS 62211 b
boards of the retirement systems and pension funds by November
1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written

HB4099 - 20 - LRB103 32596 RPS 62211 b
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective

HB4099 - 21 - LRB103 32596 RPS 62211 b
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or

HB4099 - 22 - LRB103 32596 RPS 62211 b
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with

HB4099 - 23 - LRB103 32596 RPS 62211 b
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are

HB4099 - 24 - LRB103 32596 RPS 62211 b
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the

HB4099 - 25 - LRB103 32596 RPS 62211 b
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(g-1) The benefits in Section 14-110 apply if the person
is a security employee of the Department of Corrections or the
Department of Juvenile Justice or a security employee of the
Department of Human Services, as those terms are defined in

HB4099 - 26 - LRB103 32596 RPS 62211 b
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a

HB4099 - 27 - LRB103 32596 RPS 62211 b
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,

HB4099 - 28 - LRB103 32596 RPS 62211 b
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161

HB4099 - 29 - LRB103 32596 RPS 62211 b
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive

HB4099 - 30 - LRB103 32596 RPS 62211 b
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or

HB4099 - 31 - LRB103 32596 RPS 62211 b
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual

HB4099 - 32 - LRB103 32596 RPS 62211 b
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other

HB4099 - 33 - LRB103 32596 RPS 62211 b
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or

HB4099 - 34 - LRB103 32596 RPS 62211 b
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be

HB4099 - 35 - LRB103 32596 RPS 62211 b
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall

HB4099 - 36 - LRB103 32596 RPS 62211 b
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).

HB4099 - 37 - LRB103 32596 RPS 62211 b
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months

HB4099 - 38 - LRB103 32596 RPS 62211 b
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(g-1) The benefits in Section 14-110 apply if the person

HB4099 - 39 - LRB103 32596 RPS 62211 b
is a security employee of the Department of Corrections or the
Department of Juvenile Justice or a security employee of the
Department of Human Services, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person
who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement

HB4099 - 40 - LRB103 32596 RPS 62211 b
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-956, eff.
5-27-22.)

HB4099 - 41 - LRB103 32596 RPS 62211 b
(40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
Sec. 3-111. Pension.
(a) A police officer age 50 or more with 20 or more years
of creditable service, who is not a participant in the
self-managed plan under Section 3-109.3 and who is no longer
in service as a police officer, shall receive a pension of 1/2
of the salary attached to the rank held by the officer on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater. The pension shall be increased by 2.5%
of such salary for each additional year of service over 20
years of service through 30 years of service, to a maximum of
75% of such salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(a-5) No pension in effect on or granted after June 30,
1973 shall be less than $200 per month. Beginning July 1, 1987,
the minimum retirement pension for a police officer having at

HB4099 - 42 - LRB103 32596 RPS 62211 b
least 20 years of creditable service shall be $400 per month,
without regard to whether or not retirement occurred prior to
that date. If the minimum pension established in Section
3-113.1 is greater than the minimum provided in this
subsection, the Section 3-113.1 minimum controls.
(b) A police officer mandatorily retired from service due
to age by operation of law, having at least 8 but less than 20
years of creditable service, shall receive a pension equal to
2 1/2% of the salary attached to the rank he or she held on the
police force for one year immediately prior to retirement or,
beginning July 1, 1987 for persons terminating service on or
after that date, the salary attached to the rank held on the
last day of service or for one year prior to the last day,
whichever is greater, for each year of creditable service.
A police officer who retires or is separated from service
having at least 8 years but less than 20 years of creditable
service, who is not mandatorily retired due to age by
operation of law, and who does not apply for a refund of
contributions at his or her last separation from police
service, shall receive a pension upon attaining age 60 equal
to 2.5% of the salary attached to the rank held by the police
officer on the police force for one year immediately prior to
retirement or, beginning July 1, 1987 for persons terminating
service on or after that date, the salary attached to the rank
held on the last day of service or for one year prior to the
last day, whichever is greater, for each year of creditable

HB4099 - 43 - LRB103 32596 RPS 62211 b
service.
(c) A police officer no longer in service who has at least
one but less than 8 years of creditable service in a police
pension fund but meets the requirements of this subsection (c)
shall be eligible to receive a pension from that fund equal to
2.5% of the salary attached to the rank held on the last day of
service under that fund or for one year prior to that last day,
whichever is greater, for each year of creditable service in
that fund. The pension shall begin no earlier than upon
attainment of age 60 (or upon mandatory retirement from the
fund by operation of law due to age, if that occurs before age
60) and in no event before the effective date of this
amendatory Act of 1997.
In order to be eligible for a pension under this
subsection (c), the police officer must have at least 8 years
of creditable service in a second police pension fund under
this Article and be receiving a pension under subsection (a)
or (b) of this Section from that second fund. The police
officer need not be in service on or after the effective date
of this amendatory Act of 1997.
(d) Notwithstanding any other provision of this Article,
the provisions of this subsection (d) apply to a person who is
not a participant in the self-managed plan under Section
3-109.3 and who first becomes a police officer under this
Article on or after January 1, 2011.
A police officer age 55 or more who has 10 or more years of

HB4099 - 44 - LRB103 32596 RPS 62211 b
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a police officer
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a police officer who is retiring after
attaining age 50 with 10 or more years but less than 20 years
of creditable service shall be reduced by one-half of 1% for
each month that the police officer's age is under age 55.
The pension of a police officer who is retiring after
attaining age 50 with 20 or more years of creditable service
shall not be reduced.
The maximum pension under this subsection (d) shall be 75%
of final average salary.
For the purposes of this subsection (d), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the police officer
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the police officer during the 96 consecutive months of
service within the last 120 months of service in which the
total salary was the highest by the number of months of service
in that period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits

HB4099 - 45 - LRB103 32596 RPS 62211 b
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/3-111.1) (from Ch. 108 1/2, par. 3-111.1)
Sec. 3-111.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a police officer who retires after July 1, 1971, and
prior to January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 60 years of age or over at
retirement date, or upon the first day of the month following
attainment of age 60 if it occurs after the first anniversary
of retirement, by 3% of the originally granted pension and by
an additional 3% of the originally granted pension in January
of each year thereafter.

HB4099 - 46 - LRB103 32596 RPS 62211 b
(b) The monthly pension of a police officer who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased in January of the year
following the year of attaining age 65 or in January of 1972,
if then over age 65, by 3% of the originally granted pension
for each year the police officer received pension payments. In
each January thereafter, he or she shall receive an additional
increase of 3% of the original pension.
(c) The monthly pension of a police officer who retires on
disability or is retired for disability shall be increased in
January of the year following the year of attaining age 60, by
3% of the original grant of pension for each year he or she
received pension payments. In each January thereafter, the
police officer shall receive an additional increase of 3% of
the original pension.
(d) The monthly pension of a police officer who retires
after January 1, 1986, shall be increased, upon either the
first of the month following the first anniversary of the date
of retirement if the officer is 55 years of age or over, or
upon the first day of the month following attainment of age 55
if it occurs after the first anniversary of retirement, by
1/12 of 3% of the originally granted pension for each full
month that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in January of
each year thereafter.
The changes made to this subsection (d) by this amendatory

HB4099 - 47 - LRB103 32596 RPS 62211 b
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a police officer who retired on or after January 1, 1977 and
on or before January 1, 1986, and did not receive an increase
under subsection (a) before July 1, 1987, shall be increased
by 3% of the originally granted monthly pension for each full
year that has elapsed since the pension began, and by an
additional 3% of the originally granted pension in each
January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) Notwithstanding the other provisions of this Section,
beginning with increases granted on or after July 1, 1993, the
second and all subsequent automatic annual increases granted
under subsection (a), (b), (d), or (e) of this Section shall be
calculated as 3% of the amount of pension payable at the time

HB4099 - 48 - LRB103 32596 RPS 62211 b
of the increase, including any increases previously granted
under this Section, rather than 3% of the originally granted
pension amount. Section 1-103.1 does not apply to this
subsection (f).
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a police
officer under this Article on or after January 1, 2011 shall be
increased on the January 1 occurring either on or after the
attainment of age 55 60 or the first anniversary of the pension
start date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
pension. If the annual unadjusted percentage change in the
consumer price index-u for a 12-month period ending in
September is zero or, when compared with the preceding period,
decreases, then the pension shall not be increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to

HB4099 - 49 - LRB103 32596 RPS 62211 b
the boards of the pension funds.
(Source: P.A. 96-1495, eff. 1-1-11.)
(40 ILCS 5/4-109) (from Ch. 108 1/2, par. 4-109)
Sec. 4-109. Pension.
(a) A firefighter age 50 or more with 20 or more years of
creditable service, who is no longer in service as a
firefighter, shall receive a monthly pension of 1/2 the
monthly salary attached to the rank held by him or her in the
fire service at the date of retirement.
The monthly pension shall be increased by 1/12 of 2.5% of
such monthly salary for each additional month over 20 years of
service through 30 years of service, to a maximum of 75% of
such monthly salary.
The changes made to this subsection (a) by this amendatory
Act of the 91st General Assembly apply to all pensions that
become payable under this subsection on or after January 1,
1999. All pensions payable under this subsection that began on
or after January 1, 1999 and before the effective date of this
amendatory Act shall be recalculated, and the amount of the
increase accruing for that period shall be payable to the
pensioner in a lump sum.
(b) A firefighter who retires or is separated from service
having at least 10 but less than 20 years of creditable
service, who is not entitled to receive a disability pension,
and who did not apply for a refund of contributions at his or

HB4099 - 50 - LRB103 32596 RPS 62211 b
her last separation from service shall receive a monthly
pension upon attainment of age 60 based on the monthly salary
attached to his or her rank in the fire service on the date of
retirement or separation from service according to the
following schedule:
For 10 years of service, 15% of salary;
For 11 years of service, 17.6% of salary;
For 12 years of service, 20.4% of salary;
For 13 years of service, 23.4% of salary;
For 14 years of service, 26.6% of salary;
For 15 years of service, 30% of salary;
For 16 years of service, 33.6% of salary;
For 17 years of service, 37.4% of salary;
For 18 years of service, 41.4% of salary;
For 19 years of service, 45.6% of salary.
(c) Notwithstanding any other provision of this Article,
the provisions of this subsection (c) apply to a person who
first becomes a firefighter under this Article on or after
January 1, 2011.
A firefighter age 55 or more who has 10 or more years of
service in that capacity shall be entitled at his option to
receive a monthly pension for his service as a firefighter
computed by multiplying 2.5% for each year of such service by
his or her final average salary.
The pension of a firefighter who is retiring after
attaining age 50 with 10 or more years but less than 20 years

HB4099 - 51 - LRB103 32596 RPS 62211 b
of creditable service shall be reduced by one-half of 1% for
each month that the firefighter's age is under age 55.
The pension of a firefighter who is retiring after
attaining age 50 with 20 or more years of creditable service
shall not be reduced.
The maximum pension under this subsection (c) shall be 75%
of final average salary.
For the purposes of this subsection (c), "final average
salary" means the greater of: (i) the average monthly salary
obtained by dividing the total salary of the firefighter
during the 48 consecutive months of service within the last 60
months of service in which the total salary was the highest by
the number of months of service in that period; or (ii) the
average monthly salary obtained by dividing the total salary
of the firefighter during the 96 consecutive months of service
within the last 120 months of service in which the total salary
was the highest by the number of months of service in that
period.
Beginning on January 1, 2011, for all purposes under this
Code (including without limitation the calculation of benefits
and employee contributions), the annual salary based on the
plan year of a member or participant to whom this Section
applies shall not exceed $106,800; however, that amount shall
annually thereafter be increased by the lesser of (i) 3% of
that amount, including all previous adjustments, or (ii) the
annual unadjusted percentage increase (but not less than zero)

HB4099 - 52 - LRB103 32596 RPS 62211 b
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments.
Nothing in this amendatory Act of the 101st General
Assembly shall cause or otherwise result in any retroactive
adjustment of any employee contributions.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age 60
if it occurs after the first anniversary of retirement, be
increased by 2% of the originally granted monthly pension and
by an additional 2% in each January thereafter. Effective
January 1976, the rate of the annual increase shall be 3% of
the originally granted monthly pension.
(b) The monthly pension of a firefighter who retired from
service with 20 or more years of service, on or before July 1,
1971, shall be increased, in January of the year following the
year of attaining age 65 or in January 1972, if then over age
65, by 2% of the originally granted monthly pension, for each

HB4099 - 53 - LRB103 32596 RPS 62211 b
year the firefighter received pension payments. In each
January thereafter, he or she shall receive an additional
increase of 2% of the original monthly pension. Effective
January 1976, the rate of the annual increase shall be 3%.
(c) The monthly pension of a firefighter who is receiving
a disability pension under this Article shall be increased, in
January of the year following the year the firefighter attains
age 60, or in January 1974, if then over age 60, by 2% of the
originally granted monthly pension for each year he or she
received pension payments. In each January thereafter, the
firefighter shall receive an additional increase of 2% of the
original monthly pension. Effective January 1976, the rate of
the annual increase shall be 3%.
(c-1) On January 1, 1998, every child's disability benefit
payable on that date under Section 4-110 or 4-110.1 shall be
increased by an amount equal to 1/12 of 3% of the amount of the
benefit, multiplied by the number of months for which the
benefit has been payable. On each January 1 thereafter, every
child's disability benefit payable under Section 4-110 or
4-110.1 shall be increased by 3% of the amount of the benefit
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-110 or 4-110.1.
(c-2) On July 1, 2004, every pension payable to or on
behalf of a minor or disabled surviving child that is payable

HB4099 - 54 - LRB103 32596 RPS 62211 b
on that date under Section 4-114 shall be increased by an
amount equal to 1/12 of 3% of the amount of the pension,
multiplied by the number of months for which the benefit has
been payable. On July 1, 2005, July 1, 2006, July 1, 2007, and
July 1, 2008, every pension payable to or on behalf of a minor
or disabled surviving child that is payable under Section
4-114 shall be increased by 3% of the amount of the pension
then being paid, including any previous increases received
under this Article. These increases are not subject to any
limitation on the maximum benefit amount included in Section
4-114.
(d) The monthly pension of a firefighter who retires after
January 1, 1986, shall, upon either the first of the month
following the first anniversary of the date of retirement if
55 years of age or over, or upon the first day of the month
following attainment of age 55 if it occurs after the first
anniversary of retirement, be increased by 1/12 of 3% of the
originally granted monthly pension for each full month that
has elapsed since the pension began, and by an additional 3% in
each January thereafter.
The changes made to this subsection (d) by this amendatory
Act of the 91st General Assembly apply to all initial
increases that become payable under this subsection on or
after January 1, 1999. All initial increases that became
payable under this subsection on or after January 1, 1999 and
before the effective date of this amendatory Act shall be

HB4099 - 55 - LRB103 32596 RPS 62211 b
recalculated and the additional amount accruing for that
period, if any, shall be payable to the pensioner in a lump
sum.
(e) Notwithstanding the provisions of subsection (a), upon
the first day of the month following (1) the first anniversary
of the date of retirement, or (2) the attainment of age 55, or
(3) July 1, 1987, whichever occurs latest, the monthly pension
of a firefighter who retired on or after January 1, 1977 and on
or before January 1, 1986 and did not receive an increase under
subsection (a) before July 1, 1987, shall be increased by 3% of
the originally granted monthly pension for each full year that
has elapsed since the pension began, and by an additional 3% in
each January thereafter. The increases provided under this
subsection are in lieu of the increases provided in subsection
(a).
(f) In July 2009, the monthly pension of a firefighter who
retired before July 1, 1977 shall be recalculated and
increased to reflect the amount that the firefighter would
have received in July 2009 had the firefighter been receiving
a 3% compounded increase for each year he or she received
pension payments after January 1, 1986, plus any increases in
pension received for each year prior to January 1, 1986. In
each January thereafter, he or she shall receive an additional
increase of 3% of the amount of the pension then being paid.
The changes made to this Section by this amendatory Act of the
96th General Assembly apply without regard to whether the

HB4099 - 56 - LRB103 32596 RPS 62211 b
firefighter was in service on or after its effective date.
(g) Notwithstanding any other provision of this Article,
the monthly pension of a person who first becomes a
firefighter under this Article on or after January 1, 2011
shall be increased on the January 1 occurring either on or
after the attainment of age 55 60 or the first anniversary of
the pension start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted pension. If the annual unadjusted
percentage change in the consumer price index-u for a 12-month
period ending in September is zero or, when compared with the
preceding period, decreases, then the pension shall not be
increased.
For the purposes of this subsection (g), "consumer price
index-u" means the index published by the Bureau of Labor
Statistics of the United States Department of Labor that
measures the average change in prices of goods and services
purchased by all urban consumers, United States city average,
all items, 1982-84 = 100. The new amount resulting from each
annual adjustment shall be determined by the Public Pension
Division of the Department of Insurance and made available to
the boards of the pension funds.
(Source: P.A. 96-775, eff. 8-28-09; 96-1495, eff. 1-1-11.)

HB4099 - 57 - LRB103 32596 RPS 62211 b
(40 ILCS 5/14-152.1)
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
96-37, Public Act 100-23, Public Act 100-587, Public Act
100-611, Public Act 101-10, Public Act 101-610, Public Act
102-210, Public Act 102-856, Public Act 102-956, or this
amendatory Act of the 103rd General Assembly this amendatory
Act of the 102nd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.

HB4099 - 58 - LRB103 32596 RPS 62211 b
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.
(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit

HB4099 - 59 - LRB103 32596 RPS 62211 b
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1-1-23; 102-956, eff. 5-27-22.)
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.