103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4873

Introduced , by Rep. Stephanie A. Kifowit

SYNOPSIS AS INTRODUCED:
See Index

Amends the Illinois Pension Code. Makes changes to Tier 2 benefits for members or participants under the 5 State-funded retirement systems and the Chicago Teachers Pension Fund, including changes to automatic annual increases, age and service requirements for retirement, and limits on the amount of salary for annuity purposes. Establishes an accelerated pension benefit payment option for the General Assembly, Downstate Police, Downstate Firefighter, Chicago Teachers, and Judges Articles of the Code. Establishes a deferred retirement option plan for certain members who are otherwise eligible to retire under the Illinois Municipal Retirement Fund (IMRF), State Employees, State Universities, Downstate Teachers, or Chicago Teachers Article of the Code under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Requires the State Treasurer to administer the deferred retirement option plan for the State Employees, State Universities, Downstate Teachers, and Chicago Teachers Articles. Amends the General Obligation Bond Act. Provides that each fiscal year after certain State pension funding bonds and income tax proceed bonds are retired, the Comptroller shall order and the State Treasurer shall transfer $500,000,000 from the General Revenue Fund to the Pension Unfunded Liability Reduction Fund each fiscal year, which shall be used for making additional contributions to the 5 State-funded retirement systems. Restricts participation in the General Assembly Retirement System and Judges Retirement System to persons who become participants before January 13, 2027. Provides for participation in the State Employees Retirement System by judges and members of the General Assembly. Authorizes the transfer of service credit from those Systems to the State Employees Retirement System. Authorizes investigators for the Department of the Lottery and Tier 2 security employees of the Department of Corrections and security employees of the Department of Human Services to establish eligible creditable service under the alternative annuity provisions of the State Employees Article. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police and Downstate Firefighter Articles. Makes other changes. Effective July 1, 2025.
LRB103 35886 RPS 65971 b

A BILL FOR

HB4873LRB103 35886 RPS 65971 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
Article 1.
5 Section 1-5. The Illinois Pension Code is amended by
6changing Sections 1-160, 2-108.1, 2-119.1, 14-103.10, 15-111,
718-125, and 18-128.01 as follows:
8 (40 ILCS 5/1-160)
9 (Text of Section from P.A. 102-719)
10 Sec. 1-160. Provisions applicable to new hires.
11 (a) The provisions of this Section apply to a person who,
12on or after January 1, 2011, first becomes a member or a
13participant under any reciprocal retirement system or pension
14fund established under this Code, other than a retirement
15system or pension fund established under Article 2, 3, 4, 5, 6,
167, 15, or 18 of this Code, notwithstanding any other provision
17of this Code to the contrary, but do not apply to any
18self-managed plan established under this Code or to any
19participant of the retirement plan established under Section
2022-101; except that this Section applies to a person who
21elected to establish alternative credits by electing in
22writing after January 1, 2011, but before August 8, 2011,

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1under Section 7-145.1 of this Code. Notwithstanding anything
2to the contrary in this Section, for purposes of this Section,
3a person who is a Tier 1 regular employee as defined in Section
47-109.4 of this Code or who participated in a retirement
5system under Article 15 prior to January 1, 2011 shall be
6deemed a person who first became a member or participant prior
7to January 1, 2011 under any retirement system or pension fund
8subject to this Section. The changes made to this Section by
9Public Act 98-596 are a clarification of existing law and are
10intended to be retroactive to January 1, 2011 (the effective
11date of Public Act 96-889), notwithstanding the provisions of
12Section 1-103.1 of this Code.
13 This Section does not apply to a person who first becomes a
14noncovered employee under Article 14 on or after the
15implementation date of the plan created under Section 1-161
16for that Article, unless that person elects under subsection
17(b) of Section 1-161 to instead receive the benefits provided
18under this Section and the applicable provisions of that
19Article.
20 This Section does not apply to a person who first becomes a
21member or participant under Article 16 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

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

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

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1(including without limitation the calculation of benefits and
2employee contributions), the annual earnings, salary, or wages
3(based on the plan year) of a member or participant to whom
4this Section applies shall not exceed $106,800; however, that
5amount shall annually thereafter be increased by the lesser of
6(i) 3% of that amount, including all previous adjustments, or
7(ii) one-half the annual unadjusted percentage increase (but
8not less than zero) in the consumer price index-u for the 12
9months ending with the September preceding each November 1,
10including 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 (b-10) Beginning on January 1, 2024, for all purposes
22under this Code (including, without limitation, the
23calculation of benefits and employee contributions), the
24annual earnings, salary, or wages (based on the plan year) of a
25member or participant under Article 9 to whom this Section
26applies shall include an annual earnings, salary, or wage cap

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1that tracks the Social Security wage base. Maximum annual
2earnings, wages, or salary shall be the annual contribution
3and benefit base established for the applicable year by the
4Commissioner of the Social Security Administration under the
5federal Social Security Act.
6 However, in no event shall the annual earnings, salary, or
7wages for the purposes of this Article and Article 9 exceed any
8limitation imposed on annual earnings, salary, or wages under
9Section 1-117. Under no circumstances shall the maximum amount
10of annual earnings, salary, or wages be greater than the
11amount set forth in this subsection (b-10) as a result of
12reciprocal service or any provisions regarding reciprocal
13services, nor shall the Fund under Article 9 be required to pay
14any refund as a result of the application of this maximum
15annual earnings, salary, and wage cap.
16 Nothing in this subsection (b-10) shall cause or otherwise
17result in any retroactive adjustment of any employee
18contributions. Nothing in this subsection (b-10) shall cause
19or otherwise result in any retroactive adjustment of
20disability or other payments made between January 1, 2011 and
21January 1, 2024.
22 (b-15) Beginning January 1, 2026 and until January 1,
232029, for all purposes under this Code (including, without
24limitation, the calculation of benefits and employee
25contributions), the annual earnings, salary, or wages (based
26on the plan year) of a member or participant under Article 14,

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116, or 17 to whom this Section applies shall not exceed the
2amount determined under subsection (b-5) plus the earnings
3limitation adjustment for that year.
4 In this subsection, "earnings limitation adjustment" means
5the product that results from multiplying (i) the difference
6between the federal Social Security wage base for the coming
7calendar year and the amount calculated under subsection (b-5)
8for that calendar year by (ii) the smoothing factor for that
9calendar year. The earnings limitation adjustment shall be
10determined by the Public Pension Division of the Department of
11Insurance and made available to the boards of the retirement
12systems and pension funds by December 1 of each year. If the
13difference between the federal Social Security wage base for
14the coming calendar year and the amount calculated under
15subsection (b-5) for that calendar year is zero or less than
16zero, the earnings limitation adjustment shall be zero.
17 In this subsection, "smoothing factor" means:
18 (1) for calendar year 2026, 25%;
19 (2) for calendar year 2027, 50%; and
20 (3) for calendar year 2028, 75%.
21 In this subsection and subsection (b-20), "Social Security
22wage base" means the contribution and benefit base calculated
23for the calendar year in question by the Commissioner of
24Social Security under Section 230 of the federal Social
25Security Act (42 U.S.C. 430).
26 (b-20) Beginning January 1, 2029, for all purposes under

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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 under Article 14, 16, or 17 to whom this Section
5applies shall not exceed the federal Social Security wage base
6then in effect.
7 (c) A member or participant is entitled to a retirement
8annuity upon written application if he or she has attained age
967 (age 65, with respect to service under Article 12 that is
10subject to this Section, for a member or participant under
11Article 12 who first becomes a member or participant under
12Article 12 on or after January 1, 2022 or who makes the
13election under item (i) of subsection (d-15) of this Section)
14and has at least 10 years of service credit and is otherwise
15eligible under the requirements of the applicable Article.
16 A member or participant who has attained age 62 (age 60,
17with respect to service under Article 12 that is subject to
18this Section, for a member or participant under Article 12 who
19first becomes a member or participant under Article 12 on or
20after January 1, 2022 or who makes the election under item (i)
21of subsection (d-15) of this Section) and has at least 10 years
22of service credit and is otherwise eligible under the
23requirements of the applicable Article may elect to receive
24the lower retirement annuity provided in subsection (d) of
25this Section.
26 (c-5) A person who first becomes a member or a participant

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1subject to this Section on or after July 6, 2017 (the effective
2date of Public Act 100-23), notwithstanding any other
3provision of this Code to the contrary, is entitled to a
4retirement annuity under Article 8 or Article 11 upon written
5application if he or she has attained age 65 and has at least
610 years of service credit and is otherwise eligible under the
7requirements of Article 8 or Article 11 of this Code,
8whichever is applicable.
9 (d) The retirement annuity of a member or participant who
10is retiring after attaining age 62 (age 60, with respect to
11service under Article 12 that is subject to this Section, for a
12member or participant under Article 12 who first becomes a
13member or participant under Article 12 on or after January 1,
142022 or who makes the election under item (i) of subsection
15(d-15) of this Section) with at least 10 years of service
16credit shall be reduced by one-half of 1% for each full month
17that the member's age is under age 67 (age 65, with respect to
18service under Article 12 that is subject to this Section, for a
19member or participant under Article 12 who first becomes a
20member or participant under Article 12 on or after January 1,
212022 or who makes the election under item (i) of subsection
22(d-15) of this Section).
23 (d-5) The retirement annuity payable under Article 8 or
24Article 11 to an eligible person subject to subsection (c-5)
25of this Section who is retiring at age 60 with at least 10
26years of service credit shall be reduced by one-half of 1% for

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1each full month that the member's age is under age 65.
2 (d-10) Each person who first became a member or
3participant under Article 8 or Article 11 of this Code on or
4after January 1, 2011 and prior to July 6, 2017 (the effective
5date of Public Act 100-23) shall make an irrevocable election
6either:
7 (i) to be eligible for the reduced retirement age
8 provided in subsections (c-5) and (d-5) of this Section,
9 the eligibility for which is conditioned upon the member
10 or participant agreeing to the increases in employee
11 contributions for age and service annuities provided in
12 subsection (a-5) of Section 8-174 of this Code (for
13 service under Article 8) or subsection (a-5) of Section
14 11-170 of this Code (for service under Article 11); or
15 (ii) to not agree to item (i) of this subsection
16 (d-10), in which case the member or participant shall
17 continue to be subject to the retirement age provisions in
18 subsections (c) and (d) of this Section and the employee
19 contributions for age and service annuity as provided in
20 subsection (a) of Section 8-174 of this Code (for service
21 under Article 8) or subsection (a) of Section 11-170 of
22 this Code (for service under Article 11).
23 The election provided for in this subsection shall be made
24between October 1, 2017 and November 15, 2017. A person
25subject to this subsection who makes the required election
26shall remain bound by that election. A person subject to this

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

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

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1active service on or after August 6, 2021 (the effective date
2of Public Act 102-263).
3 For the purposes of Section 1-103.1 of this Code, the
4changes made to this Section by Public Act 100-23 are
5applicable without regard to whether the employee was in
6active service on or after July 6, 2017 (the effective date of
7Public Act 100-23).
8 (f) The initial survivor's or widow's annuity of an
9otherwise eligible survivor or widow of a retired member or
10participant who first became a member or participant on or
11after January 1, 2011 shall be in the amount of 66 2/3% of the
12retired member's or participant's retirement annuity at the
13date of death. In the case of the death of a member or
14participant who has not retired and who first became a member
15or participant on or after January 1, 2011, eligibility for a
16survivor's or widow's annuity shall be determined by the
17applicable Article of this Code. The initial benefit shall be
1866 2/3% of the earned annuity without a reduction due to age. A
19child's annuity of an otherwise eligible child shall be in the
20amount prescribed under each Article if applicable. Any
21survivor's or widow's annuity shall be increased (1) on each
22January 1 occurring on or after the commencement of the
23annuity if the deceased member died while receiving a
24retirement annuity or (2) in other cases, on each January 1
25occurring after the first anniversary of the commencement of
26the annuity. Each annual increase shall be calculated at 3% or

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1one-half the annual unadjusted percentage increase (but not
2less than zero) in the consumer price index-u for the 12 months
3ending with the September preceding each November 1, whichever
4is less, of the originally granted survivor's annuity. If the
5annual unadjusted percentage change in the consumer price
6index-u for the 12 months ending with the September preceding
7each November 1 is zero or there is a decrease, then the
8annuity shall not be increased.
9 (g) The benefits in Section 14-110 apply if the person is a
10fire fighter in the fire protection service of a department, a
11security employee of the Department of Corrections or the
12Department of Juvenile Justice, or a security employee of the
13Department of Innovation and Technology, as those terms are
14defined in subsection (b) and subsection (c) of Section
1514-110. A person who meets the requirements of this Section is
16entitled to an annuity calculated under the provisions of
17Section 14-110, in lieu of the regular or minimum retirement
18annuity, only if the person has withdrawn from service with
19not less than 20 years of eligible creditable service and has
20attained age 60, regardless of whether the attainment of age
2160 occurs while the person is still in service.
22 (g-5) The benefits in Section 14-110 apply if the person
23is a State policeman, investigator for the Secretary of State,
24conservation police officer, investigator for the Department
25of Revenue or the Illinois Gaming Board, investigator for the
26Office of the Attorney General, Commerce Commission police

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1officer, or arson investigator, as those terms are defined in
2subsection (b) and subsection (c) of Section 14-110. A person
3who meets the requirements of this Section is entitled to an
4annuity calculated under the provisions of Section 14-110, in
5lieu of the regular or minimum retirement annuity, only if the
6person has withdrawn from service with not less than 20 years
7of eligible creditable service and has attained age 55,
8regardless of whether the attainment of age 55 occurs while
9the person is still in service.
10 (h) If a person who first becomes a member or a participant
11of a retirement system or pension fund subject to this Section
12on or after January 1, 2011 is receiving a retirement annuity
13or retirement pension under that system or fund and becomes a
14member or participant under any other system or fund created
15by this Code and is employed on a full-time basis, except for
16those members or participants exempted from the provisions of
17this Section under subsection (a) of this Section, then the
18person's retirement annuity or retirement pension under that
19system or fund shall be suspended during that employment. Upon
20termination of that employment, the person's retirement
21annuity or retirement pension payments shall resume and be
22recalculated if recalculation is provided for under the
23applicable Article of this Code.
24 If a person who first becomes a member of a retirement
25system or pension fund subject to this Section on or after
26January 1, 2012 and is receiving a retirement annuity or

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1retirement pension under that system or fund and accepts on a
2contractual basis a position to provide services to a
3governmental entity from which he or she has retired, then
4that person's annuity or retirement pension earned as an
5active employee of the employer shall be suspended during that
6contractual service. A person receiving an annuity or
7retirement pension under this Code shall notify the pension
8fund or retirement system from which he or she is receiving an
9annuity or retirement pension, as well as his or her
10contractual employer, of his or her retirement status before
11accepting contractual employment. A person who fails to submit
12such notification shall be guilty of a Class A misdemeanor and
13required to pay a fine of $1,000. Upon termination of that
14contractual employment, the person's retirement annuity or
15retirement pension payments shall resume and, if appropriate,
16be recalculated under the applicable provisions of this Code.
17 (i) (Blank).
18 (j) In the case of a conflict between the provisions of
19this Section and any other provision of this Code, the
20provisions of this Section shall control.
21(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
22102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
235-6-22.)
24 (Text of Section from P.A. 102-813)
25 Sec. 1-160. Provisions applicable to new hires.

HB4873- 17 -LRB103 35886 RPS 65971 b
1 (a) The provisions of this Section apply to a person who,
2on or after January 1, 2011, first becomes a member or a
3participant under any reciprocal retirement system or pension
4fund established under this Code, other than a retirement
5system or pension fund established under Article 2, 3, 4, 5, 6,
67, 15, or 18 of this Code, notwithstanding any other provision
7of this Code to the contrary, but do not apply to any
8self-managed plan established under this Code or to any
9participant of the retirement plan established under Section
1022-101; except that this Section applies to a person who
11elected to establish alternative credits by electing in
12writing after January 1, 2011, but before August 8, 2011,
13under Section 7-145.1 of this Code. Notwithstanding anything
14to the contrary in this Section, for purposes of this Section,
15a person who is a Tier 1 regular employee as defined in Section
167-109.4 of this Code or who participated in a retirement
17system under Article 15 prior to January 1, 2011 shall be
18deemed a person who first became a member or participant prior
19to January 1, 2011 under any retirement system or pension fund
20subject to this Section. The changes made to this Section by
21Public Act 98-596 are a clarification of existing law and are
22intended to be retroactive to January 1, 2011 (the effective
23date of Public Act 96-889), notwithstanding the provisions of
24Section 1-103.1 of this Code.
25 This Section does not apply to a person who first becomes a
26noncovered employee under Article 14 on or after the

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1implementation date of the plan created under Section 1-161
2for that Article, unless that person elects under subsection
3(b) of Section 1-161 to instead receive the benefits provided
4under this Section and the applicable provisions of that
5Article.
6 This Section does not apply to a person who first becomes a
7member or participant under Article 16 on or after the
8implementation date of the plan created under Section 1-161
9for that Article, unless that person elects under subsection
10(b) of Section 1-161 to instead receive the benefits provided
11under this Section and the applicable provisions of that
12Article.
13 This Section does not apply to a person who elects under
14subsection (c-5) of Section 1-161 to receive the benefits
15under Section 1-161.
16 This Section does not apply to a person who first becomes a
17member or participant of an affected pension fund on or after 6
18months after the resolution or ordinance date, as defined in
19Section 1-162, unless that person elects under subsection (c)
20of Section 1-162 to receive the benefits provided under this
21Section and the applicable provisions of the Article under
22which he or she is a member or participant.
23 (b) "Final average salary" means, except as otherwise
24provided in this subsection, the average monthly (or annual)
25salary obtained by dividing the total salary or earnings
26calculated under the Article applicable to the member or

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1participant during the 96 consecutive months (or 8 consecutive
2years) of service within the last 120 months (or 10 years) of
3service in which the total salary or earnings calculated under
4the applicable Article was the highest by the number of months
5(or years) of service in that period. For the purposes of a
6person who first becomes a member or participant of any
7retirement system or pension fund to which this Section
8applies on or after January 1, 2011, in this Code, "final
9average salary" shall be substituted for the following:
10 (1) (Blank).
11 (2) In Articles 8, 9, 10, 11, and 12, "highest average
12 annual salary for any 4 consecutive years within the last
13 10 years of service immediately preceding the date of
14 withdrawal".
15 (3) In Article 13, "average final salary".
16 (4) In Article 14, "final average compensation".
17 (5) In Article 17, "average salary".
18 (6) In Section 22-207, "wages or salary received by
19 him at the date of retirement or discharge".
20 A member of the Teachers' Retirement System of the State
21of Illinois who retires on or after June 1, 2021 and for whom
22the 2020-2021 school year is used in the calculation of the
23member's final average salary shall use the higher of the
24following for the purpose of determining the member's final
25average salary:
26 (A) the amount otherwise calculated under the first

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1 paragraph of this subsection; or
2 (B) an amount calculated by the Teachers' Retirement
3 System of the State of Illinois using the average of the
4 monthly (or annual) salary obtained by dividing the total
5 salary or earnings calculated under Article 16 applicable
6 to the member or participant during the 96 months (or 8
7 years) of service within the last 120 months (or 10 years)
8 of service in which the total salary or earnings
9 calculated under the Article was the highest by the number
10 of months (or years) of service in that period.
11 (b-5) Except as provided in subsections (b-15) and (b-20)
12Beginning on January 1, 2011, for all purposes under this Code
13(including without limitation the calculation of benefits and
14employee contributions), the annual earnings, salary, or wages
15(based on the plan year) of a member or participant to whom
16this Section applies shall not exceed $106,800; however, that
17amount shall annually thereafter be increased by the lesser of
18(i) 3% of that amount, including all previous adjustments, or
19(ii) one-half the annual unadjusted percentage increase (but
20not less than zero) in the consumer price index-u for the 12
21months ending with the September preceding each November 1,
22including all previous adjustments.
23 For the purposes of this Section, "consumer price index-u"
24means the index published by the Bureau of Labor Statistics of
25the United States Department of Labor that measures the
26average change in prices of goods and services purchased by

HB4873- 21 -LRB103 35886 RPS 65971 b
1all urban consumers, United States city average, all items,
21982-84 = 100. The new amount resulting from each annual
3adjustment shall be determined by the Public Pension Division
4of the Department of Insurance and made available to the
5boards of the retirement systems and pension funds by November
61 of each year.
7 (b-10) Beginning on January 1, 2024, for all purposes
8under this Code (including, without limitation, the
9calculation of benefits and employee contributions), the
10annual earnings, salary, or wages (based on the plan year) of a
11member or participant under Article 9 to whom this Section
12applies shall include an annual earnings, salary, or wage cap
13that tracks the Social Security wage base. Maximum annual
14earnings, wages, or salary shall be the annual contribution
15and benefit base established for the applicable year by the
16Commissioner of the Social Security Administration under the
17federal Social Security Act.
18 However, in no event shall the annual earnings, salary, or
19wages for the purposes of this Article and Article 9 exceed any
20limitation imposed on annual earnings, salary, or wages under
21Section 1-117. Under no circumstances shall the maximum amount
22of annual earnings, salary, or wages be greater than the
23amount set forth in this subsection (b-10) as a result of
24reciprocal service or any provisions regarding reciprocal
25services, nor shall the Fund under Article 9 be required to pay
26any refund as a result of the application of this maximum

HB4873- 22 -LRB103 35886 RPS 65971 b
1annual earnings, salary, and wage cap.
2 Nothing in this subsection (b-10) shall cause or otherwise
3result in any retroactive adjustment of any employee
4contributions. Nothing in this subsection (b-10) shall cause
5or otherwise result in any retroactive adjustment of
6disability or other payments made between January 1, 2011 and
7January 1, 2024.
8 (b-15) Beginning January 1, 2026 and until January 1,
92029, for all purposes under this Code (including, without
10limitation, the calculation of benefits and employee
11contributions), the annual earnings, salary, or wages (based
12on the plan year) of a member or participant under Article 14,
1316, or 17 to whom this Section applies shall not exceed the
14amount determined under subsection (b-5) plus the earnings
15limitation adjustment for that year.
16 In this subsection, "earnings limitation adjustment" means
17the product that results from multiplying (i) the difference
18between the federal Social Security wage base for the coming
19calendar year and the amount calculated under subsection (b-5)
20for that calendar year by (ii) the smoothing factor for that
21calendar year. The earnings limitation adjustment shall be
22determined by the Public Pension Division of the Department of
23Insurance and made available to the boards of the retirement
24systems and pension funds by December 1 of each year. If the
25difference between the federal Social Security wage base for
26the coming calendar year and the amount calculated under

HB4873- 23 -LRB103 35886 RPS 65971 b
1subsection (b-5) for that calendar year is zero or less than
2zero, the earnings limitation adjustment shall be zero.
3 In this subsection, "smoothing factor" means:
4 (1) for calendar year 2026, 25%;
5 (2) for calendar year 2027, 50%; and
6 (3) for calendar year 2028, 75%.
7 In this subsection and subsection (b-20), "Social Security
8wage base" means the contribution and benefit base calculated
9for the calendar year in question by the Commissioner of
10Social Security under Section 230 of the federal Social
11Security Act (42 U.S.C. 430).
12 (b-20) Beginning January 1, 2029, for all purposes under
13this Code (including, without limitation, the calculation of
14benefits and employee contributions), the annual earnings,
15salary, or wages (based on the plan year) of a member or
16participant under Article 14, 16, or 17 to whom this Section
17applies shall not exceed the federal Social Security wage base
18then in effect.
19 (c) A member or participant is entitled to a retirement
20annuity upon written application if he or she has attained age
2167 (age 65, with respect to service under Article 12 that is
22subject to this Section, for a member or participant under
23Article 12 who first becomes a member or participant under
24Article 12 on or after January 1, 2022 or who makes the
25election under item (i) of subsection (d-15) of this Section)
26and has at least 10 years of service credit and is otherwise

HB4873- 24 -LRB103 35886 RPS 65971 b
1eligible under the requirements of the applicable Article.
2 A member or participant who has attained age 62 (age 60,
3with respect to service under Article 12 that is subject to
4this Section, 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) of this Section) and has at least 10 years
8of service credit and is otherwise eligible under the
9requirements of the applicable Article may elect to receive
10the lower retirement annuity provided in subsection (d) of
11this Section.
12 (c-5) A person who first becomes a member or a participant
13subject to this Section on or after July 6, 2017 (the effective
14date of Public Act 100-23), notwithstanding any other
15provision of this Code to the contrary, is entitled to a
16retirement annuity under Article 8 or Article 11 upon written
17application if he or she has attained age 65 and has at least
1810 years of service credit and is otherwise eligible under the
19requirements of Article 8 or Article 11 of this Code,
20whichever is applicable.
21 (d) The retirement annuity of a member or participant who
22is retiring after attaining age 62 (age 60, with respect to
23service under Article 12 that is subject to this Section, for a
24member or participant under Article 12 who first becomes a
25member or participant under Article 12 on or after January 1,
262022 or who makes the election under item (i) of subsection

HB4873- 25 -LRB103 35886 RPS 65971 b
1(d-15) of this Section) with at least 10 years of service
2credit shall be reduced by one-half of 1% for each full month
3that the member's age is under age 67 (age 65, with respect to
4service under Article 12 that is subject to this Section, for a
5member or participant under Article 12 who first becomes a
6member or participant under Article 12 on or after January 1,
72022 or who makes the election under item (i) of subsection
8(d-15) of this Section).
9 (d-5) The retirement annuity payable under Article 8 or
10Article 11 to an eligible person subject to subsection (c-5)
11of this Section who is retiring at age 60 with at least 10
12years of service credit shall be reduced by one-half of 1% for
13each full month that the member's age is under age 65.
14 (d-10) Each person who first became a member or
15participant under Article 8 or Article 11 of this Code on or
16after January 1, 2011 and prior to July 6, 2017 (the effective
17date of Public Act 100-23) shall make an irrevocable election
18either:
19 (i) to be eligible for the reduced retirement age
20 provided in subsections (c-5) and (d-5) of this Section,
21 the eligibility for which is conditioned upon the member
22 or participant agreeing to the increases in employee
23 contributions for age and service annuities provided in
24 subsection (a-5) of Section 8-174 of this Code (for
25 service under Article 8) or subsection (a-5) of Section
26 11-170 of this Code (for service under Article 11); or

HB4873- 26 -LRB103 35886 RPS 65971 b
1 (ii) to not agree to item (i) of this subsection
2 (d-10), in which case the member or participant shall
3 continue to be subject to the retirement age provisions in
4 subsections (c) and (d) of this Section and the employee
5 contributions for age and service annuity as provided in
6 subsection (a) of Section 8-174 of this Code (for service
7 under Article 8) or subsection (a) of Section 11-170 of
8 this Code (for service under Article 11).
9 The election provided for in this subsection shall be made
10between October 1, 2017 and November 15, 2017. A person
11subject to this subsection who makes the required election
12shall remain bound by that election. A person subject to this
13subsection who fails for any reason to make the required
14election within the time specified in this subsection shall be
15deemed to have made the election under item (ii).
16 (d-15) Each person who first becomes a member or
17participant under Article 12 on or after January 1, 2011 and
18prior to January 1, 2022 shall make an irrevocable election
19either:
20 (i) to be eligible for the reduced retirement age
21 specified in subsections (c) and (d) of this Section, the
22 eligibility for which is conditioned upon the member or
23 participant agreeing to the increase in employee
24 contributions for service annuities specified in
25 subsection (b) of Section 12-150; or
26 (ii) to not agree to item (i) of this subsection

HB4873- 27 -LRB103 35886 RPS 65971 b
1 (d-15), in which case the member or participant shall not
2 be eligible for the reduced retirement age specified in
3 subsections (c) and (d) of this Section and shall not be
4 subject to the increase in employee contributions for
5 service annuities specified in subsection (b) of Section
6 12-150.
7 The election provided for in this subsection shall be made
8between January 1, 2022 and April 1, 2022. A person subject to
9this subsection who makes the required election shall remain
10bound by that election. A person subject to this subsection
11who fails for any reason to make the required election within
12the time specified in this subsection shall be deemed to have
13made the election under item (ii).
14 (e) Any retirement annuity or supplemental annuity shall
15be subject to annual increases on the January 1 occurring
16either on or after the attainment of age 67 (age 65, with
17respect to service under Article 12 that is subject to this
18Section, for a member or participant under Article 12 who
19first becomes a member or participant under Article 12 on or
20after January 1, 2022 or who makes the election under item (i)
21of subsection (d-15); and beginning on July 6, 2017 (the
22effective date of Public Act 100-23), age 65 with respect to
23service under Article 8 or Article 11 for eligible persons
24who: (i) are subject to subsection (c-5) of this Section; or
25(ii) made the election under item (i) of subsection (d-10) of
26this Section) or the first anniversary of the annuity start

HB4873- 28 -LRB103 35886 RPS 65971 b
1date, whichever is later. Each annual increase shall be
2calculated at 3% or one-half the annual unadjusted percentage
3increase (but not less than zero) in the consumer price
4index-u for the 12 months ending with the September preceding
5each November 1, whichever is less, of the originally granted
6retirement annuity. If the annual unadjusted percentage change
7in the consumer price index-u for the 12 months ending with the
8September preceding each November 1 is zero or there is a
9decrease, then the annuity shall not be increased.
10 For the purposes of Section 1-103.1 of this Code, the
11changes made to this Section by Public Act 102-263 are
12applicable without regard to whether the employee was in
13active service on or after August 6, 2021 (the effective date
14of Public Act 102-263).
15 For the purposes of Section 1-103.1 of this Code, the
16changes made to this Section by Public Act 100-23 are
17applicable without regard to whether the employee was in
18active service on or after July 6, 2017 (the effective date of
19Public Act 100-23).
20 (f) The initial survivor's or widow's annuity of an
21otherwise eligible survivor or widow of a retired member or
22participant who first became a member or participant on or
23after January 1, 2011 shall be in the amount of 66 2/3% of the
24retired member's or participant's retirement annuity at the
25date of death. In the case of the death of a member or
26participant who has not retired and who first became a member

HB4873- 29 -LRB103 35886 RPS 65971 b
1or participant on or after January 1, 2011, eligibility for a
2survivor's or widow's annuity shall be determined by the
3applicable Article of this Code. The initial benefit shall be
466 2/3% of the earned annuity without a reduction due to age. A
5child's annuity of an otherwise eligible child shall be in the
6amount prescribed under each Article if applicable. Any
7survivor's or widow's annuity shall be increased (1) on each
8January 1 occurring on or after the commencement of the
9annuity if the deceased member died while receiving a
10retirement annuity or (2) in other cases, on each January 1
11occurring after the first anniversary of the commencement of
12the annuity. Each annual increase shall be calculated at 3% or
13one-half the annual unadjusted percentage increase (but not
14less than zero) in the consumer price index-u for the 12 months
15ending with the September preceding each November 1, whichever
16is less, of the originally granted survivor's annuity. If the
17annual unadjusted percentage change in the consumer price
18index-u for the 12 months ending with the September preceding
19each November 1 is zero or there is a decrease, then the
20annuity shall not be increased.
21 (g) The benefits in Section 14-110 apply only if the
22person is a State policeman, a fire fighter in the fire
23protection service of a department, a conservation police
24officer, an investigator for the Secretary of State, an arson
25investigator, a Commerce Commission police officer,
26investigator for the Department of Revenue or the Illinois

HB4873- 30 -LRB103 35886 RPS 65971 b
1Gaming Board, a security employee of the Department of
2Corrections or the Department of Juvenile Justice, or a
3security employee of the Department of Innovation and
4Technology, as those terms are defined in subsection (b) and
5subsection (c) of Section 14-110. A person who meets the
6requirements of this Section is entitled to an annuity
7calculated under the provisions of Section 14-110, in lieu of
8the regular or minimum retirement annuity, only if the person
9has withdrawn from service with not less than 20 years of
10eligible creditable service and has attained age 60,
11regardless of whether the attainment of age 60 occurs while
12the person is still in service.
13 (h) If a person who first becomes a member or a participant
14of a retirement system or pension fund subject to this Section
15on or after January 1, 2011 is receiving a retirement annuity
16or retirement pension under that system or fund and becomes a
17member or participant under any other system or fund created
18by this Code and is employed on a full-time basis, except for
19those members or participants exempted from the provisions of
20this Section under subsection (a) of this Section, then the
21person's retirement annuity or retirement pension under that
22system or fund shall be suspended during that employment. Upon
23termination of that employment, the person's retirement
24annuity or retirement pension payments shall resume and be
25recalculated if recalculation is provided for under the
26applicable Article of this Code.

HB4873- 31 -LRB103 35886 RPS 65971 b
1 If a person who first becomes a member of a retirement
2system or pension fund subject to this Section on or after
3January 1, 2012 and is receiving a retirement annuity or
4retirement pension under that system or fund and accepts on a
5contractual basis a position to provide services to a
6governmental entity from which he or she has retired, then
7that person's annuity or retirement pension earned as an
8active employee of the employer shall be suspended during that
9contractual service. A person receiving an annuity or
10retirement pension under this Code shall notify the pension
11fund or retirement system from which he or she is receiving an
12annuity or retirement pension, as well as his or her
13contractual employer, of his or her retirement status before
14accepting contractual employment. A person who fails to submit
15such notification shall be guilty of a Class A misdemeanor and
16required to pay a fine of $1,000. Upon termination of that
17contractual employment, the person's retirement annuity or
18retirement pension payments shall resume and, if appropriate,
19be recalculated under the applicable provisions of this Code.
20 (i) (Blank).
21 (j) In the case of a conflict between the provisions of
22this Section and any other provision of this Code, the
23provisions of this Section shall control.
24(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
25102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
265-13-22.)

HB4873- 32 -LRB103 35886 RPS 65971 b
1 (Text of Section from P.A. 102-956)
2 Sec. 1-160. Provisions applicable to new hires.
3 (a) The provisions of this Section apply to a person who,
4on or after January 1, 2011, first becomes a member or a
5participant under any reciprocal retirement system or pension
6fund established under this Code, other than a retirement
7system or pension fund established under Article 2, 3, 4, 5, 6,
87, 15, or 18 of this Code, notwithstanding any other provision
9of this Code to the contrary, but do not apply to any
10self-managed plan established under this Code or to any
11participant of the retirement plan established under Section
1222-101; except that this Section applies to a person who
13elected to establish alternative credits by electing in
14writing after January 1, 2011, but before August 8, 2011,
15under Section 7-145.1 of this Code. Notwithstanding anything
16to the contrary in this Section, for purposes of this Section,
17a person who is a Tier 1 regular employee as defined in Section
187-109.4 of this Code or who participated in a retirement
19system under Article 15 prior to January 1, 2011 shall be
20deemed a person who first became a member or participant prior
21to January 1, 2011 under any retirement system or pension fund
22subject to this Section. The changes made to this Section by
23Public Act 98-596 are a clarification of existing law and are
24intended to be retroactive to January 1, 2011 (the effective
25date of Public Act 96-889), notwithstanding the provisions of

HB4873- 33 -LRB103 35886 RPS 65971 b
1Section 1-103.1 of this Code.
2 This Section does not apply to a person who first becomes a
3noncovered employee under Article 14 on or after the
4implementation date of the plan created under Section 1-161
5for that Article, unless that person elects under subsection
6(b) of Section 1-161 to instead receive the benefits provided
7under this Section and the applicable provisions of that
8Article.
9 This Section does not apply to a person who first becomes a
10member or participant under Article 16 on or after the
11implementation date of the plan created under Section 1-161
12for that Article, unless that person elects under subsection
13(b) of Section 1-161 to instead receive the benefits provided
14under this Section and the applicable provisions of that
15Article.
16 This Section does not apply to a person who elects under
17subsection (c-5) of Section 1-161 to receive the benefits
18under Section 1-161.
19 This Section does not apply to a person who first becomes a
20member or participant of an affected pension fund on or after 6
21months after the resolution or ordinance date, as defined in
22Section 1-162, unless that person elects under subsection (c)
23of Section 1-162 to receive the benefits provided under this
24Section and the applicable provisions of the Article under
25which he or she is a member or participant.
26 (b) "Final average salary" means, except as otherwise

HB4873- 34 -LRB103 35886 RPS 65971 b
1provided in this subsection, the average monthly (or annual)
2salary obtained by dividing the total salary or earnings
3calculated under the Article applicable to the member or
4participant during the 96 consecutive months (or 8 consecutive
5years) of service within the last 120 months (or 10 years) of
6service in which the total salary or earnings calculated under
7the applicable Article was the highest by the number of months
8(or years) of service in that period. For the purposes of a
9person who first becomes a member or participant of any
10retirement system or pension fund to which this Section
11applies on or after January 1, 2011, in this Code, "final
12average salary" shall be substituted for the following:
13 (1) (Blank).
14 (2) In Articles 8, 9, 10, 11, and 12, "highest average
15 annual salary for any 4 consecutive years within the last
16 10 years of service immediately preceding the date of
17 withdrawal".
18 (3) In Article 13, "average final salary".
19 (4) In Article 14, "final average compensation".
20 (5) In Article 17, "average salary".
21 (6) In Section 22-207, "wages or salary received by
22 him at the date of retirement or discharge".
23 A member of the Teachers' Retirement System of the State
24of Illinois who retires on or after June 1, 2021 and for whom
25the 2020-2021 school year is used in the calculation of the
26member's final average salary shall use the higher of the

HB4873- 35 -LRB103 35886 RPS 65971 b
1following for the purpose of determining the member's final
2average salary:
3 (A) the amount otherwise calculated under the first
4 paragraph of this subsection; or
5 (B) an amount calculated by the Teachers' Retirement
6 System of the State of Illinois using the average of the
7 monthly (or annual) salary obtained by dividing the total
8 salary or earnings calculated under Article 16 applicable
9 to the member or participant during the 96 months (or 8
10 years) of service within the last 120 months (or 10 years)
11 of service in which the total salary or earnings
12 calculated under the Article was the highest by the number
13 of months (or years) of service in that period.
14 (b-5) Except as provided in subsections (b-15) and (b-20)
15Beginning on January 1, 2011, for all purposes under this Code
16(including without limitation the calculation of benefits and
17employee contributions), the annual earnings, salary, or wages
18(based on the plan year) of a member or participant to whom
19this Section applies shall not exceed $106,800; however, that
20amount shall annually thereafter be increased by the lesser of
21(i) 3% of that amount, including all previous adjustments, or
22(ii) one-half the annual unadjusted percentage increase (but
23not less than zero) in the consumer price index-u for the 12
24months ending with the September preceding each November 1,
25including all previous adjustments.
26 For the purposes of this Section, "consumer price index-u"

HB4873- 36 -LRB103 35886 RPS 65971 b
1means the index published by the Bureau of Labor Statistics of
2the United States Department of Labor that measures the
3average change in prices of goods and services purchased by
4all urban consumers, United States city average, all items,
51982-84 = 100. The new amount resulting from each annual
6adjustment shall be determined by the Public Pension Division
7of the Department of Insurance and made available to the
8boards of the retirement systems and pension funds by November
91 of each year.
10 (b-10) Beginning on January 1, 2024, for all purposes
11under this Code (including, without limitation, the
12calculation of benefits and employee contributions), the
13annual earnings, salary, or wages (based on the plan year) of a
14member or participant under Article 9 to whom this Section
15applies shall include an annual earnings, salary, or wage cap
16that tracks the Social Security wage base. Maximum annual
17earnings, wages, or salary shall be the annual contribution
18and benefit base established for the applicable year by the
19Commissioner of the Social Security Administration under the
20federal Social Security Act.
21 However, in no event shall the annual earnings, salary, or
22wages for the purposes of this Article and Article 9 exceed any
23limitation imposed on annual earnings, salary, or wages under
24Section 1-117. Under no circumstances shall the maximum amount
25of annual earnings, salary, or wages be greater than the
26amount set forth in this subsection (b-10) as a result of

HB4873- 37 -LRB103 35886 RPS 65971 b
1reciprocal service or any provisions regarding reciprocal
2services, nor shall the Fund under Article 9 be required to pay
3any refund as a result of the application of this maximum
4annual earnings, salary, and wage cap.
5 Nothing in this subsection (b-10) shall cause or otherwise
6result in any retroactive adjustment of any employee
7contributions. Nothing in this subsection (b-10) shall cause
8or otherwise result in any retroactive adjustment of
9disability or other payments made between January 1, 2011 and
10January 1, 2024.
11 (b-15) Beginning January 1, 2026 and until January 1,
122029, for all purposes under this Code (including, without
13limitation, the calculation of benefits and employee
14contributions), the annual earnings, salary, or wages (based
15on the plan year) of a member or participant under Article 14,
1616, or 17 to whom this Section applies shall not exceed the
17amount determined under subsection (b-5) plus the earnings
18limitation adjustment for that year.
19 In this subsection, "earnings limitation adjustment" means
20the product that results from multiplying (i) the difference
21between the federal Social Security wage base for the coming
22calendar year and the amount calculated under subsection (b-5)
23for that calendar year by (ii) the smoothing factor for that
24calendar year. The earnings limitation adjustment shall be
25determined by the Public Pension Division of the Department of
26Insurance and made available to the boards of the retirement

HB4873- 38 -LRB103 35886 RPS 65971 b
1systems and pension funds by December 1 of each year. If the
2difference between the federal Social Security wage base for
3the coming calendar year and the amount calculated under
4subsection (b-5) for that calendar year is zero or less than
5zero, the earnings limitation adjustment shall be zero.
6 In this subsection, "smoothing factor" means:
7 (1) for calendar year 2026, 25%;
8 (2) for calendar year 2027, 50%; and
9 (3) for calendar year 2028, 75%.
10 In this subsection and subsection (b-20), "Social Security
11wage base" means the contribution and benefit base calculated
12for the calendar year in question by the Commissioner of
13Social Security under Section 230 of the federal Social
14Security Act (42 U.S.C. 430).
15 (b-20) Beginning January 1, 2029, for all purposes under
16this Code (including, without limitation, the calculation of
17benefits and employee contributions), the annual earnings,
18salary, or wages (based on the plan year) of a member or
19participant under Article 14, 16, or 17 to whom this Section
20applies shall not exceed the federal Social Security wage base
21then in effect.
22 (c) A member or participant is entitled to a retirement
23annuity upon written application if he or she has attained age
2467 (age 65, with respect to service under Article 12 that is
25subject to this Section, for a member or participant under
26Article 12 who first becomes a member or participant under

HB4873- 39 -LRB103 35886 RPS 65971 b
1Article 12 on or after January 1, 2022 or who makes the
2election under item (i) of subsection (d-15) of this Section)
3and has at least 10 years of service credit and is otherwise
4eligible under the requirements of the applicable Article.
5 A member or participant who has attained age 62 (age 60,
6with respect to service under Article 12 that is subject to
7this Section, for a member or participant under Article 12 who
8first becomes a member or participant under Article 12 on or
9after January 1, 2022 or who makes the election under item (i)
10of subsection (d-15) of this Section) and has at least 10 years
11of service credit and is otherwise eligible under the
12requirements of the applicable Article may elect to receive
13the lower retirement annuity provided in subsection (d) of
14this Section.
15 (c-5) A person who first becomes a member or a participant
16subject to this Section on or after July 6, 2017 (the effective
17date of Public Act 100-23), notwithstanding any other
18provision of this Code to the contrary, is entitled to a
19retirement annuity under Article 8 or Article 11 upon written
20application if he or she has attained age 65 and has at least
2110 years of service credit and is otherwise eligible under the
22requirements of Article 8 or Article 11 of this Code,
23whichever is applicable.
24 (d) The retirement annuity of a member or participant who
25is retiring after attaining age 62 (age 60, with respect to
26service under Article 12 that is subject to this Section, for a

HB4873- 40 -LRB103 35886 RPS 65971 b
1member or participant under Article 12 who first becomes a
2member or participant under Article 12 on or after January 1,
32022 or who makes the election under item (i) of subsection
4(d-15) of this Section) with at least 10 years of service
5credit shall be reduced by one-half of 1% for each full month
6that the member's age is under age 67 (age 65, with respect to
7service under Article 12 that is subject to this Section, for a
8member or participant under Article 12 who first becomes a
9member or participant under Article 12 on or after January 1,
102022 or who makes the election under item (i) of subsection
11(d-15) of this Section).
12 (d-5) The retirement annuity payable under Article 8 or
13Article 11 to an eligible person subject to subsection (c-5)
14of this Section who is retiring at age 60 with at least 10
15years of service credit shall be reduced by one-half of 1% for
16each full month that the member's age is under age 65.
17 (d-10) Each person who first became a member or
18participant under Article 8 or Article 11 of this Code on or
19after January 1, 2011 and prior to July 6, 2017 (the effective
20date of Public Act 100-23) shall make an irrevocable election
21either:
22 (i) to be eligible for the reduced retirement age
23 provided in subsections (c-5) and (d-5) of this Section,
24 the eligibility for which is conditioned upon the member
25 or participant agreeing to the increases in employee
26 contributions for age and service annuities provided in

HB4873- 41 -LRB103 35886 RPS 65971 b
1 subsection (a-5) of Section 8-174 of this Code (for
2 service under Article 8) or subsection (a-5) of Section
3 11-170 of this Code (for service under Article 11); or
4 (ii) to not agree to item (i) of this subsection
5 (d-10), in which case the member or participant shall
6 continue to be subject to the retirement age provisions in
7 subsections (c) and (d) of this Section and the employee
8 contributions for age and service annuity as provided in
9 subsection (a) of Section 8-174 of this Code (for service
10 under Article 8) or subsection (a) of Section 11-170 of
11 this Code (for service under Article 11).
12 The election provided for in this subsection shall be made
13between October 1, 2017 and November 15, 2017. A person
14subject to this subsection who makes the required election
15shall remain bound by that election. A person subject to this
16subsection who fails for any reason to make the required
17election within the time specified in this subsection shall be
18deemed to have made the election under item (ii).
19 (d-15) Each person who first becomes a member or
20participant under Article 12 on or after January 1, 2011 and
21prior to January 1, 2022 shall make an irrevocable election
22either:
23 (i) to be eligible for the reduced retirement age
24 specified in subsections (c) and (d) of this Section, the
25 eligibility for which is conditioned upon the member or
26 participant agreeing to the increase in employee

HB4873- 42 -LRB103 35886 RPS 65971 b
1 contributions for service annuities specified in
2 subsection (b) of Section 12-150; or
3 (ii) to not agree to item (i) of this subsection
4 (d-15), in which case the member or participant shall not
5 be eligible for the reduced retirement age specified in
6 subsections (c) and (d) of this Section and shall not be
7 subject to the increase in employee contributions for
8 service annuities specified in subsection (b) of Section
9 12-150.
10 The election provided for in this subsection shall be made
11between January 1, 2022 and April 1, 2022. A person subject to
12this subsection who makes the required election shall remain
13bound by that election. A person subject to this subsection
14who fails for any reason to make the required election within
15the time specified in this subsection shall be deemed to have
16made the election under item (ii).
17 (e) Any retirement annuity or supplemental annuity shall
18be subject to annual increases on the January 1 occurring
19either on or after the attainment of age 67 (age 65, with
20respect to service under Article 12 that is subject to this
21Section, for a member or participant under Article 12 who
22first becomes a member or participant under Article 12 on or
23after January 1, 2022 or who makes the election under item (i)
24of subsection (d-15); and beginning on July 6, 2017 (the
25effective date of Public Act 100-23), age 65 with respect to
26service under Article 8 or Article 11 for eligible persons

HB4873- 43 -LRB103 35886 RPS 65971 b
1who: (i) are subject to subsection (c-5) of this Section; or
2(ii) made the election under item (i) of subsection (d-10) of
3this Section) or the first anniversary of the annuity start
4date, whichever is later. Each annual increase shall be
5calculated at 3% or one-half the annual unadjusted percentage
6increase (but not less than zero) in the consumer price
7index-u for the 12 months ending with the September preceding
8each November 1, whichever is less, of the originally granted
9retirement annuity. If the annual unadjusted percentage change
10in the consumer price index-u for the 12 months ending with the
11September preceding each November 1 is zero or there is a
12decrease, then the annuity shall not be increased.
13 For the purposes of Section 1-103.1 of this Code, the
14changes made to this Section by Public Act 102-263 are
15applicable without regard to whether the employee was in
16active service on or after August 6, 2021 (the effective date
17of Public Act 102-263).
18 For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by Public Act 100-23 are
20applicable without regard to whether the employee was in
21active service on or after July 6, 2017 (the effective date of
22Public Act 100-23).
23 (f) The initial survivor's or widow's annuity of an
24otherwise eligible survivor or widow of a retired member or
25participant who first became a member or participant on or
26after January 1, 2011 shall be in the amount of 66 2/3% of the

HB4873- 44 -LRB103 35886 RPS 65971 b
1retired member's or participant's retirement annuity at the
2date of death. In the case of the death of a member or
3participant who has not retired and who first became a member
4or participant on or after January 1, 2011, eligibility for a
5survivor's or widow's annuity shall be determined by the
6applicable Article of this Code. The initial benefit shall be
766 2/3% of the earned annuity without a reduction due to age. A
8child's annuity of an otherwise eligible child shall be in the
9amount prescribed under each Article if applicable. Any
10survivor's or widow's annuity shall be increased (1) on each
11January 1 occurring on or after the commencement of the
12annuity if the deceased member died while receiving a
13retirement annuity or (2) in other cases, on each January 1
14occurring after the first anniversary of the commencement of
15the annuity. Each annual increase shall be calculated at 3% or
16one-half the annual unadjusted percentage increase (but not
17less than zero) in the consumer price index-u for the 12 months
18ending with the September preceding each November 1, whichever
19is less, of the originally granted survivor's annuity. If the
20annual unadjusted percentage change in the consumer price
21index-u for the 12 months ending with the September preceding
22each November 1 is zero or there is a decrease, then the
23annuity shall not be increased.
24 (g) The benefits in Section 14-110 apply only if the
25person is a State policeman, a fire fighter in the fire
26protection service of a department, a conservation police

HB4873- 45 -LRB103 35886 RPS 65971 b
1officer, an investigator for the Secretary of State, an
2investigator for the Office of the Attorney General, an arson
3investigator, a Commerce Commission police officer,
4investigator for the Department of Revenue or the Illinois
5Gaming Board, a security employee of the Department of
6Corrections or the Department of Juvenile Justice, or a
7security employee of the Department of Innovation and
8Technology, as those terms are defined in subsection (b) and
9subsection (c) of Section 14-110. A person who meets the
10requirements of this Section is entitled to an annuity
11calculated under the provisions of Section 14-110, in lieu of
12the regular or minimum retirement annuity, only if the person
13has withdrawn from service with not less than 20 years of
14eligible creditable service and has attained age 60,
15regardless of whether the attainment of age 60 occurs while
16the person is still in service.
17 (h) If a person who first becomes a member or a participant
18of a retirement system or pension fund subject to this Section
19on or after January 1, 2011 is receiving a retirement annuity
20or retirement pension under that system or fund and becomes a
21member or participant under any other system or fund created
22by this Code and is employed on a full-time basis, except for
23those members or participants exempted from the provisions of
24this Section under subsection (a) of this Section, then the
25person's retirement annuity or retirement pension under that
26system or fund shall be suspended during that employment. Upon

HB4873- 46 -LRB103 35886 RPS 65971 b
1termination of that employment, the person's retirement
2annuity or retirement pension payments shall resume and be
3recalculated if recalculation is provided for under the
4applicable Article of this Code.
5 If a person who first becomes a member of a retirement
6system or pension fund subject to this Section on or after
7January 1, 2012 and is receiving a retirement annuity or
8retirement pension under that system or fund and accepts on a
9contractual basis a position to provide services to a
10governmental entity from which he or she has retired, then
11that person's annuity or retirement pension earned as an
12active employee of the employer shall be suspended during that
13contractual service. A person receiving an annuity or
14retirement pension under this Code shall notify the pension
15fund or retirement system from which he or she is receiving an
16annuity or retirement pension, as well as his or her
17contractual employer, of his or her retirement status before
18accepting contractual employment. A person who fails to submit
19such notification shall be guilty of a Class A misdemeanor and
20required to pay a fine of $1,000. Upon termination of that
21contractual employment, the person's retirement annuity or
22retirement pension payments shall resume and, if appropriate,
23be recalculated under the applicable provisions of this Code.
24 (i) (Blank).
25 (j) In the case of a conflict between the provisions of
26this Section and any other provision of this Code, the

HB4873- 47 -LRB103 35886 RPS 65971 b
1provisions of this Section shall control.
2(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
3102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
48-11-23.)
5 (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
6 (Text of Section WITHOUT the changes made by P.A. 98-599,
7which has been held unconstitutional)
8 Sec. 2-108.1. Highest salary for annuity purposes.
9 (a) "Highest salary for annuity purposes" means whichever
10of the following is applicable to the participant:
11 For a participant who first becomes a participant of this
12System before August 10, 2009 (the effective date of Public
13Act 96-207):
14 (1) For a participant who is a member of the General
15 Assembly on his or her last day of service: the highest
16 salary that is prescribed by law, on the participant's
17 last day of service, for a member of the General Assembly
18 who is not an officer; plus, if the participant was
19 elected or appointed to serve as an officer of the General
20 Assembly for 2 or more years and has made contributions as
21 required under subsection (d) of Section 2-126, the
22 highest additional amount of compensation prescribed by
23 law, at the time of the participant's service as an
24 officer, for members of the General Assembly who serve in
25 that office.

HB4873- 48 -LRB103 35886 RPS 65971 b
1 (2) For a participant who holds one of the State
2 executive offices specified in Section 2-105 on his or her
3 last day of service: the highest salary prescribed by law
4 for service in that office on the participant's last day
5 of service.
6 (3) For a participant who is Clerk or Assistant Clerk
7 of the House of Representatives or Secretary or Assistant
8 Secretary of the Senate on his or her last day of service:
9 the salary received for service in that capacity on the
10 last day of service, but not to exceed the highest salary
11 (including additional compensation for service as an
12 officer) that is prescribed by law on the participant's
13 last day of service for the highest paid officer of the
14 General Assembly.
15 (4) For a participant who is a continuing participant
16 under Section 2-117.1 on his or her last day of service:
17 the salary received for service in that capacity on the
18 last day of service, but not to exceed the highest salary
19 (including additional compensation for service as an
20 officer) that is prescribed by law on the participant's
21 last day of service for the highest paid officer of the
22 General Assembly.
23 For a participant who first becomes a participant of this
24System on or after August 10, 2009 (the effective date of
25Public Act 96-207) and before January 1, 2011 (the effective
26date of Public Act 96-889), the average monthly salary

HB4873- 49 -LRB103 35886 RPS 65971 b
1obtained by dividing the total salary of the participant
2during the period of: (1) the 48 consecutive months of service
3within the last 120 months of service in which the total
4compensation was the highest, or (2) the total period of
5service, if less than 48 months, by the number of months of
6service in that period.
7 For a participant who first becomes a participant of this
8System on or after January 1, 2011 (the effective date of
9Public Act 96-889), the average monthly salary obtained by
10dividing the total salary of the participant during the 96
11consecutive months of service within the last 120 months of
12service in which the total compensation was the highest by the
13number of months of service in that period; however, except as
14provided in subsection (a-5) or (a-10), beginning January 1,
152011, the highest salary for annuity purposes may not exceed
16$106,800, except that that amount shall annually thereafter be
17increased by the lesser of (i) 3% of that amount, including all
18previous adjustments, or (ii) the annual unadjusted percentage
19increase (but not less than zero) in the consumer price
20index-u for the 12 months ending with the September preceding
21each November 1. "Consumer price index-u" means the index
22published by the Bureau of Labor Statistics of the United
23States Department of Labor that measures the average change in
24prices of goods and services purchased by all urban consumers,
25United States city average, all items, 1982-84 = 100. The new
26amount resulting from each annual adjustment shall be

HB4873- 50 -LRB103 35886 RPS 65971 b
1determined by the Public Pension Division of the Department of
2Insurance and made available to the Board by November 1 of each
3year.
4 (a-5) Beginning January 1, 2026 and until January 1, 2029,
5for a participant who first becomes a participant of this
6System on or after January 1, 2011, the highest salary for
7annuity purposes may not exceed the amount determined under
8subsection (a) plus the earnings limitation adjustment for
9that year.
10 In this subsection, "earnings limitation adjustment" means
11the product that results from multiplying (i) the difference
12between the federal Social Security wage base for the coming
13calendar year and the amount calculated under subsection (a)
14for that calendar year by (ii) the smoothing factor for that
15calendar year. The earnings limitation adjustment shall be
16determined by the Public Pension Division of the Department of
17Insurance and made available to the boards of the retirement
18systems and pension funds by December 1 of each year. If the
19difference between the federal Social Security wage base for
20the coming calendar year and the amount calculated under
21subsection (a) for that calendar year is zero or less than
22zero, the earnings limitation adjustment shall be zero.
23 In this subsection, "smoothing factor" means:
24 (1) for calendar year 2026, 25%;
25 (2) for calendar year 2027, 50%; and
26 (3) for calendar year 2028, 75%.

HB4873- 51 -LRB103 35886 RPS 65971 b
1 In this subsection and subsection (a-10), "Social Security
2wage base" means the contribution and benefit base calculated
3for the calendar year in question by the Commissioner of
4Social Security under Section 230 of the federal Social
5Security Act (42 U.S.C. 430).
6 (a-10) Beginning January 1, 2029, the highest salary for
7annuity purposes may not exceed the federal Social Security
8wage base then in effect.
9 (b) The earnings limitations of subsection (a), (a-5), and
10(a-10), whichever is applicable, apply to earnings under any
11other participating system under the Retirement Systems
12Reciprocal Act that are considered in calculating a
13proportional annuity under this Article, except in the case of
14a person who first became a member of this System before August
1522, 1994 and has not, on or after the effective date of this
16amendatory Act of the 97th General Assembly, irrevocably
17elected to have those limitations apply. The limitations of
18subsection (a), (a-5), and (a-10), whichever is applicable,
19shall apply, however, to earnings under any other
20participating system under the Retirement Systems Reciprocal
21Act that are considered in calculating the proportional
22annuity of a person who first became a member of this System
23before August 22, 1994 if, on or after the effective date of
24this amendatory Act of the 97th General Assembly, that member
25irrevocably elects to have those limitations apply.
26 (c) In calculating the subsection (a), (a-5), or (a-10),

HB4873- 52 -LRB103 35886 RPS 65971 b
1whichever is applicable, earnings limitation to be applied to
2earnings under any other participating system under the
3Retirement Systems Reciprocal Act for the purpose of
4calculating a proportional annuity under this Article, the
5participant's last day of service shall be deemed to mean the
6last day of service in any participating system from which the
7person has applied for a proportional annuity under the
8Retirement Systems Reciprocal Act.
9(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
1096-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
11 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
12 (Text of Section WITHOUT the changes made by P.A. 98-599,
13which has been held unconstitutional)
14 Sec. 2-119.1. Automatic increase in retirement annuity.
15 (a) A participant who retires after June 30, 1967, and who
16has not received an initial increase under this Section before
17the effective date of this amendatory Act of 1991, shall, in
18January or July next following the first anniversary of
19retirement, whichever occurs first, and in the same month of
20each year thereafter, but in no event prior to age 60, have the
21amount of the originally granted retirement annuity increased
22as follows: for each year through 1971, 1 1/2%; for each year
23from 1972 through 1979, 2%; and for 1980 and each year
24thereafter, 3%. Annuitants who have received an initial
25increase under this subsection prior to the effective date of

HB4873- 53 -LRB103 35886 RPS 65971 b
1this amendatory Act of 1991 shall continue to receive their
2annual increases in the same month as the initial increase.
3 (b) Beginning January 1, 1990, for eligible participants
4who remain in service after attaining 20 years of creditable
5service, the 3% increases provided under subsection (a) shall
6begin to accrue on the January 1 next following the date upon
7which the participant (1) attains age 55, or (2) attains 20
8years of creditable service, whichever occurs later, and shall
9continue to accrue while the participant remains in service;
10such increases shall become payable on January 1 or July 1,
11whichever occurs first, next following the first anniversary
12of retirement. For any person who has service credit in the
13System for the entire period from January 15, 1969 through
14December 31, 1992, regardless of the date of termination of
15service, the reference to age 55 in clause (1) of this
16subsection (b) shall be deemed to mean age 50.
17 This subsection (b) does not apply to any person who first
18becomes a member of the System after the effective date of this
19amendatory Act of the 93rd General Assembly.
20 (b-5) Notwithstanding any other provision of this Article,
21a participant who first becomes a participant on or after
22January 1, 2011 (the effective date of Public Act 96-889)
23shall, in January or July next following the first anniversary
24of retirement, whichever occurs first, and in the same month
25of each year thereafter, but in no event prior to age 67, have
26the amount of the retirement annuity then being paid increased

HB4873- 54 -LRB103 35886 RPS 65971 b
1by 3% or the annual unadjusted percentage increase in the
2Consumer Price Index for All Urban Consumers as determined by
3the Public Pension Division of the Department of Insurance
4under subsection (a) of Section 2-108.1, whichever is less.
5 In this subsection, "consumer price index-u" means the
6index published by the Bureau of Labor Statistics of the
7United States Department of Labor that measures the average
8change in prices of goods and services purchased by all urban
9consumers, United States city average, all items, 1982-84 =
10100. The new amount resulting from each annual adjustment
11shall be determined by the Public Pension Division of the
12Department of Insurance and made available to the Board by
13November 1 of each year.
14 (c) The foregoing provisions relating to automatic
15increases are not applicable to a participant who retires
16before having made contributions (at the rate prescribed in
17Section 2-126) for automatic increases for less than the
18equivalent of one full year. However, in order to be eligible
19for the automatic increases, such a participant may make
20arrangements to pay to the system the amount required to bring
21the total contributions for the automatic increase to the
22equivalent of one year's contributions based upon his or her
23last salary.
24 (d) A participant who terminated service prior to July 1,
251967, with at least 14 years of service is entitled to an
26increase in retirement annuity beginning January, 1976, and to

HB4873- 55 -LRB103 35886 RPS 65971 b
1additional increases in January of each year thereafter.
2 The initial increase shall be 1 1/2% of the originally
3granted retirement annuity multiplied by the number of full
4years that the annuitant was in receipt of such annuity prior
5to January 1, 1972, plus 2% of the originally granted
6retirement annuity for each year after that date. The
7subsequent annual increases shall be at the rate of 2% of the
8originally granted retirement annuity for each year through
91979 and at the rate of 3% for 1980 and thereafter.
10 (e) Beginning January 1, 1990, all automatic annual
11increases payable under this Section shall be calculated as a
12percentage of the total annuity payable at the time of the
13increase, including previous increases granted under this
14Article.
15(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
16 (40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10)
17 (Text of Section WITHOUT the changes made by P.A. 98-599,
18which has been held unconstitutional)
19 Sec. 14-103.10. Compensation.
20 (a) For periods of service prior to January 1, 1978, the
21full rate of salary or wages payable to an employee for
22personal services performed if he worked the full normal
23working period for his position, subject to the following
24maximum amounts: (1) prior to July 1, 1951, $400 per month or
25$4,800 per year; (2) between July 1, 1951 and June 30, 1957

HB4873- 56 -LRB103 35886 RPS 65971 b
1inclusive, $625 per month or $7,500 per year; (3) beginning
2July 1, 1957, no limitation.
3 In the case of service of an employee in a position
4involving part-time employment, compensation shall be
5determined according to the employees' earnings record.
6 (b) For periods of service on and after January 1, 1978,
7all remuneration for personal services performed defined as
8"wages" under the Social Security Enabling Act, including that
9part of such remuneration which is in excess of any maximum
10limitation provided in such Act, and including any benefits
11received by an employee under a sick pay plan in effect before
12January 1, 1981, but excluding lump sum salary payments:
13 (1) for vacation,
14 (2) for accumulated unused sick leave,
15 (3) upon discharge or dismissal,
16 (4) for approved holidays.
17 (c) For periods of service on or after December 16, 1978,
18compensation also includes any benefits, other than lump sum
19salary payments made at termination of employment, which an
20employee receives or is eligible to receive under a sick pay
21plan authorized by law.
22 (d) For periods of service after September 30, 1985,
23compensation also includes any remuneration for personal
24services not included as "wages" under the Social Security
25Enabling Act, which is deducted for purposes of participation
26in a program established pursuant to Section 125 of the

HB4873- 57 -LRB103 35886 RPS 65971 b
1Internal Revenue Code or its successor laws.
2 (e) For members for which Section 1-160 applies for
3periods of service on and after January 1, 2011, all
4remuneration for personal services performed defined as
5"wages" under the Social Security Enabling Act, excluding
6remuneration that is in excess of the annual earnings, salary,
7or wages of a member or participant, as provided in subsection
8(b-5) of Section 1-160, but including any benefits received by
9an employee under a sick pay plan in effect before January 1,
101981. Compensation shall exclude lump sum salary payments:
11 (1) for vacation;
12 (2) for accumulated unused sick leave;
13 (3) upon discharge or dismissal; and
14 (4) for approved holidays.
15 (f) Notwithstanding the other provisions of this Section,
16for service on or after July 1, 2013, "compensation" does not
17include any stipend payable to an employee for service on a
18board or commission.
19(Source: P.A. 98-449, eff. 8-16-13.)
20 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
21 Sec. 15-111. Earnings.
22 (a) "Earnings": Subject to Section 15-111.5, an amount
23paid for personal services equal to the sum of the basic
24compensation plus extra compensation for summer teaching,
25overtime or other extra service. For periods for which an

HB4873- 58 -LRB103 35886 RPS 65971 b
1employee receives service credit under subsection (c) of
2Section 15-113.1 or Section 15-113.2, earnings are equal to
3the basic compensation on which contributions are paid by the
4employee during such periods. Compensation for employment
5which is irregular, intermittent and temporary shall not be
6considered earnings, unless the participant is also receiving
7earnings from the employer as an employee under Section
815-107.
9 With respect to transition pay paid by the University of
10Illinois to a person who was a participating employee employed
11in the fire department of the University of Illinois's
12Champaign-Urbana campus immediately prior to the elimination
13of that fire department:
14 (1) "Earnings" includes transition pay paid to the
15 employee on or after the effective date of this amendatory
16 Act of the 91st General Assembly.
17 (2) "Earnings" includes transition pay paid to the
18 employee before the effective date of this amendatory Act
19 of the 91st General Assembly only if (i) employee
20 contributions under Section 15-157 have been withheld from
21 that transition pay or (ii) the employee pays to the
22 System before January 1, 2001 an amount representing
23 employee contributions under Section 15-157 on that
24 transition pay. Employee contributions under item (ii) may
25 be paid in a lump sum, by withholding from additional
26 transition pay accruing before January 1, 2001, or in any

HB4873- 59 -LRB103 35886 RPS 65971 b
1 other manner approved by the System. Upon payment of the
2 employee contributions on transition pay, the
3 corresponding employer contributions become an obligation
4 of the State.
5 (b) For a Tier 2 member, the annual earnings shall not
6exceed $106,800; however, except as provided in subsection
7(b-5) and (b-10), that amount shall annually thereafter be
8increased by the lesser of (i) 3% of that amount, including all
9previous adjustments, or (ii) one half the annual unadjusted
10percentage increase (but not less than zero) in the consumer
11price index-u for the 12 months ending with the September
12preceding each November 1, including all previous adjustments.
13 For the purposes of this Section, "consumer price index-u
14index u" means the index published by the Bureau of Labor
15Statistics of the United States Department of Labor that
16measures the average change in prices of goods and services
17purchased by all urban consumers, United States city average,
18all items, 1982-84 = 100. The new amount resulting from each
19annual adjustment shall be determined by the Public Pension
20Division of the Department of Insurance and made available to
21the boards of the retirement systems and pension funds by
22November 1 of each year.
23 (b-5) Beginning January 1, 2026 and until January 1, 2029,
24for a participant who first becomes a participant of this
25System on or after January 1, 2011, the annual earnings may not
26exceed the amount determined under subsection (b) plus the

HB4873- 60 -LRB103 35886 RPS 65971 b
1earnings limitation adjustment for that year.
2 In this subsection, "earnings limitation adjustment" means
3the product that results from multiplying (i) the difference
4between the federal Social Security wage base for the coming
5calendar year and the amount calculated under subsection (b)
6for that calendar year by (ii) the smoothing factor for that
7calendar year. The earnings limitation adjustment shall be
8determined by the Public Pension Division of the Department of
9Insurance and made available to the boards of the retirement
10systems and pension funds by December 1 of each year. If the
11difference between the federal Social Security wage base for
12the coming calendar year and the amount calculated under
13subsection (b) for that calendar year is zero or less than
14zero, the earnings limitation adjustment shall be zero.
15 In this subsection, "smoothing factor" means:
16 (1) for calendar year 2026, 25%;
17 (2) for calendar year 2027, 50%; and
18 (3) for calendar year 2028, 75%.
19 In this subsection and subsection (b-10), "Social Security
20wage base" means the contribution and benefit base calculated
21for the calendar year in question by the Commissioner of
22Social Security under Section 230 of the federal Social
23Security Act (42 U.S.C. 430).
24 (b-10) Beginning January 1, 2029, the annual earnings may
25not exceed the federal Social Security wage base then in
26effect.

HB4873- 61 -LRB103 35886 RPS 65971 b
1 (c) With each submission of payroll information in the
2manner prescribed by the System, the employer shall certify
3that the payroll information is correct and complies with all
4applicable State and federal laws.
5(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
6 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
7 Sec. 18-125. Retirement annuity amount.
8 (a) The annual retirement annuity for a participant who
9terminated service as a judge prior to July 1, 1971 shall be
10based on the law in effect at the time of termination of
11service.
12 (b) Except as provided in subsection (b-5), effective July
131, 1971, the retirement annuity for any participant in service
14on or after such date shall be 3 1/2% of final average salary,
15as defined in this Section, for each of the first 10 years of
16service, and 5% of such final average salary for each year of
17service in excess of 10.
18 For purposes of this Section, final average salary for a
19participant who first serves as a judge before August 10, 2009
20(the effective date of Public Act 96-207) shall be:
21 (1) the average salary for the last 4 years of
22 credited service as a judge for a participant who
23 terminates service before July 1, 1975.
24 (2) for a participant who terminates service after
25 June 30, 1975 and before July 1, 1982, the salary on the

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1 last day of employment as a judge.
2 (3) for any participant who terminates service after
3 June 30, 1982 and before January 1, 1990, the average
4 salary for the final year of service as a judge.
5 (4) for a participant who terminates service on or
6 after January 1, 1990 but before July 14, 1995 (the
7 effective date of Public Act 89-136), the salary on the
8 last day of employment as a judge.
9 (5) for a participant who terminates service on or
10 after July 14, 1995 (the effective date of Public Act
11 89-136), the salary on the last day of employment as a
12 judge, or the highest salary received by the participant
13 for employment as a judge in a position held by the
14 participant for at least 4 consecutive years, whichever is
15 greater.
16 However, in the case of a participant who elects to
17discontinue contributions as provided in subdivision (a)(2) of
18Section 18-133, the time of such election shall be considered
19the last day of employment in the determination of final
20average salary under this subsection.
21 For a participant who first serves as a judge on or after
22August 10, 2009 (the effective date of Public Act 96-207) and
23before January 1, 2011 (the effective date of Public Act
2496-889), final average salary shall be the average monthly
25salary obtained by dividing the total salary of the
26participant during the period of: (1) the 48 consecutive

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1months of service within the last 120 months of service in
2which the total compensation was the highest, or (2) the total
3period of service, if less than 48 months, by the number of
4months of service in that period.
5 The maximum retirement annuity for any participant shall
6be 85% of final average salary.
7 (b-5) Notwithstanding any other provision of this Article,
8for a participant who first serves as a judge on or after
9January 1, 2011 (the effective date of Public Act 96-889), the
10annual retirement annuity is 3% of the participant's final
11average salary for each year of service. The maximum
12retirement annuity payable shall be 60% of the participant's
13final average salary.
14 For a participant who first serves as a judge on or after
15January 1, 2011 (the effective date of Public Act 96-889),
16final average salary shall be the average monthly salary
17obtained by dividing the total salary of the judge during the
1896 consecutive months of service within the last 120 months of
19service in which the total salary was the highest by the number
20of months of service in that period; however, except as
21provided in subsection (b-10) and (b-15), beginning January 1,
222011, the annual salary may not exceed $106,800, except that
23that amount shall annually thereafter be increased by the
24lesser of (i) 3% of that amount, including all previous
25adjustments, or (ii) the annual unadjusted percentage increase
26(but not less than zero) in the consumer price index-u for the

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112 months ending with the September preceding each November 1.
2"Consumer price index-u" means the index published by the
3Bureau of Labor Statistics of the United States Department of
4Labor that measures the average change in prices of goods and
5services purchased by all urban consumers, United States city
6average, all items, 1982-84 = 100. The new amount resulting
7from each annual adjustment shall be determined by the Public
8Pension Division of the Department of Insurance and made
9available to the Board by November 1st of each year.
10 (b-10) Beginning January 1, 2026 and until January 1,
112029, for a participant who first serves as a judge on or after
12January 1, 2011, the annual salary may not exceed the amount
13determined under subsection (b-5) plus the earnings limitation
14adjustment for that year.
15 In this subsection, "earnings limitation adjustment" means
16the product that results from multiplying (i) the difference
17between the federal Social Security wage base for the coming
18calendar year and the amount calculated under subsection (b-5)
19for that calendar year by (ii) the smoothing factor for that
20calendar year. The earnings limitation adjustment shall be
21determined by the Public Pension Division of the Department of
22Insurance and made available to the boards of the retirement
23systems and pension funds by December 1 of each year. If the
24difference between the federal Social Security wage base for
25the coming calendar year and the amount calculated under
26subsection (b-5) for that calendar year is zero or less than

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1zero, the earnings limitation adjustment shall be zero.
2 In this subsection, "smoothing factor" means:
3 (1) for calendar year 2026, 25%;
4 (2) for calendar year 2027, 50%; and
5 (3) for calendar year 2028, 75%.
6 In this subsection and subsection (b-15), "Social Security
7wage base" means the contribution and benefit base calculated
8for the calendar year in question by the Commissioner of
9Social Security under Section 230 of the federal Social
10Security Act (42 U.S.C. 430).
11 (b-15) Beginning January 1, 2029, the annual salary may
12not exceed the federal Social Security wage base then in
13effect.
14 (c) The retirement annuity for a participant who retires
15prior to age 60 with less than 28 years of service in the
16System shall be reduced 1/2 of 1% for each month that the
17participant's age is under 60 years at the time the annuity
18commences. However, for a participant who retires on or after
19December 10, 1999 (the effective date of Public Act 91-653),
20the percentage reduction in retirement annuity imposed under
21this subsection shall be reduced by 5/12 of 1% for every month
22of service in this System in excess of 20 years, and therefore
23a participant with at least 26 years of service in this System
24may retire at age 55 without any reduction in annuity.
25 The reduction in retirement annuity imposed by this
26subsection shall not apply in the case of retirement on

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1account of disability.
2 (d) Notwithstanding any other provision of this Article,
3for a participant who first serves as a judge on or after
4January 1, 2011 (the effective date of Public Act 96-889) and
5who is retiring after attaining age 62, the retirement annuity
6shall be reduced by 1/2 of 1% for each month that the
7participant's age is under age 67 at the time the annuity
8commences.
9(Source: P.A. 100-201, eff. 8-18-17.)
10 (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
11 Sec. 18-128.01. Amount of survivor's annuity.
12 (a) Upon the death of an annuitant, his or her surviving
13spouse shall be entitled to a survivor's annuity of 66 2/3% of
14the annuity the annuitant was receiving immediately prior to
15his or her death, inclusive of annual increases in the
16retirement annuity to the date of death.
17 (b) Upon the death of an active participant, his or her
18surviving spouse shall receive a survivor's annuity of 66 2/3%
19of the annuity earned by the participant as of the date of his
20or her death, determined without regard to whether the
21participant had attained age 60 as of that time, or 7 1/2% of
22the last salary of the decedent, whichever is greater.
23 (c) Upon the death of a participant who had terminated
24service with at least 10 years of service, his or her surviving
25spouse shall be entitled to a survivor's annuity of 66 2/3% of

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1the annuity earned by the deceased participant at the date of
2death.
3 (d) Upon the death of an annuitant, active participant, or
4participant who had terminated service with at least 10 years
5of service, each surviving child under the age of 18 or
6disabled as defined in Section 18-128 shall be entitled to a
7child's annuity in an amount equal to 5% of the decedent's
8final salary, not to exceed in total for all such children the
9greater of 20% of the decedent's last salary or 66 2/3% of the
10annuity received or earned by the decedent as provided under
11subsections (a) and (b) of this Section. This child's annuity
12shall be paid whether or not a survivor's annuity was elected
13under Section 18-123.
14 (e) The changes made in the survivor's annuity provisions
15by Public Act 82-306 shall apply to the survivors of a deceased
16participant or annuitant whose death occurs on or after August
1721, 1981.
18 (f) Beginning January 1, 1990, every survivor's annuity
19shall be increased (1) on each January 1 occurring on or after
20the commencement of the annuity if the deceased member died
21while receiving a retirement annuity, or (2) in other cases,
22on each January 1 occurring on or after the first anniversary
23of the commencement of the annuity, by an amount equal to 3% of
24the current amount of the annuity, including any previous
25increases under this Article. Such increases shall apply
26without regard to whether the deceased member was in service

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1on or after the effective date of this amendatory Act of 1991,
2but shall not accrue for any period prior to January 1, 1990.
3 (g) Notwithstanding any other provision of this Article,
4the initial survivor's annuity for a survivor of a participant
5who first serves as a judge after January 1, 2011 (the
6effective date of Public Act 96-889) shall be in the amount of
766 2/3% of the annuity received or earned by the decedent, and
8shall be increased (1) on each January 1 occurring on or after
9the commencement of the annuity if the deceased participant
10died while receiving a retirement annuity, or (2) in other
11cases, on each January 1 occurring on or after the first
12anniversary of the commencement of the annuity, but in no
13event prior to age 67, by an amount equal to 3% or the annual
14unadjusted percentage increase in the consumer price index-u
15as determined by the Public Pension Division of the Department
16of Insurance under subsection (b-5) of Section 18-125,
17whichever is less, of the survivor's annuity then being paid.
18 In this subsection, "consumer price index-u" means the
19index published by the Bureau of Labor Statistics of the
20United States Department of Labor that measures the average
21change in prices of goods and services purchased by all urban
22consumers, United States city average, all items, 1982-84 =
23100. The new amount resulting from each annual adjustment
24shall be determined by the Public Pension Division of the
25Department of Insurance and made available to the Board by
26November 1 of each year.

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1(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
2
Article 2.
3 Section 2-5. The Illinois Pension Code is amended by
4changing Sections 1-160, 2-119.1, 15-136, and 18-125.1 as
5follows:
6 (40 ILCS 5/1-160)
7 (Text of Section from P.A. 102-719)
8 Sec. 1-160. Provisions applicable to new hires.
9 (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
147, 15, or 18 of this Code, notwithstanding any other provision
15of this Code to the contrary, but do not apply to any
16self-managed plan established under this Code or to any
17participant of the retirement plan established under Section
1822-101; except that this Section applies to a person who
19elected to establish alternative credits by electing in
20writing after January 1, 2011, but before August 8, 2011,
21under Section 7-145.1 of this Code. Notwithstanding anything
22to the contrary in this Section, for purposes of this Section,
23a person who is a Tier 1 regular employee as defined in Section

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

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

HB4873- 72 -LRB103 35886 RPS 65971 b
1 (4) In Article 14, "final average compensation".
2 (5) In Article 17, "average salary".
3 (6) In Section 22-207, "wages or salary received by
4 him at the date of retirement or discharge".
5 A member of the Teachers' Retirement System of the State
6of Illinois who retires on or after June 1, 2021 and for whom
7the 2020-2021 school year is used in the calculation of the
8member's final average salary shall use the higher of the
9following for the purpose of determining the member's final
10average salary:
11 (A) the amount otherwise calculated under the first
12 paragraph of this subsection; or
13 (B) an amount calculated by the Teachers' Retirement
14 System of the State of Illinois using the average of the
15 monthly (or annual) salary obtained by dividing the total
16 salary or earnings calculated under Article 16 applicable
17 to the member or participant during the 96 months (or 8
18 years) of service within the last 120 months (or 10 years)
19 of service in which the total salary or earnings
20 calculated under the Article was the highest by the number
21 of months (or years) of service in that period.
22 (b-5) Beginning on January 1, 2011, for all purposes under
23this Code (including without limitation the calculation of
24benefits and employee contributions), the annual earnings,
25salary, or wages (based on the plan year) of a member or
26participant to whom this Section applies shall not exceed

HB4873- 73 -LRB103 35886 RPS 65971 b
1$106,800; however, that amount shall annually thereafter be
2increased by the lesser of (i) 3% of that amount, including all
3previous adjustments, or (ii) one-half the annual unadjusted
4percentage increase (but not less than zero) in the consumer
5price index-u for the 12 months ending with the September
6preceding each November 1, including all previous adjustments.
7 For the purposes of this Section, "consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the
10average change in prices of goods and services purchased by
11all urban consumers, United States city average, all items,
121982-84 = 100. The new amount resulting from each annual
13adjustment shall be determined by the Public Pension Division
14of the Department of Insurance and made available to the
15boards of the retirement systems and pension funds by November
161 of each year.
17 (b-10) Beginning on January 1, 2024, for all purposes
18under this Code (including, without limitation, the
19calculation of benefits and employee contributions), the
20annual earnings, salary, or wages (based on the plan year) of a
21member or participant under Article 9 to whom this Section
22applies shall include an annual earnings, salary, or wage cap
23that tracks the Social Security wage base. Maximum annual
24earnings, wages, or salary shall be the annual contribution
25and benefit base established for the applicable year by the
26Commissioner of the Social Security Administration under the

HB4873- 74 -LRB103 35886 RPS 65971 b
1federal Social Security Act.
2 However, in no event shall the annual earnings, salary, or
3wages for the purposes of this Article and Article 9 exceed any
4limitation imposed on annual earnings, salary, or wages under
5Section 1-117. Under no circumstances shall the maximum amount
6of annual earnings, salary, or wages be greater than the
7amount set forth in this subsection (b-10) as a result of
8reciprocal service or any provisions regarding reciprocal
9services, nor shall the Fund under Article 9 be required to pay
10any refund as a result of the application of this maximum
11annual earnings, salary, and wage cap.
12 Nothing in this subsection (b-10) shall cause or otherwise
13result in any retroactive adjustment of any employee
14contributions. Nothing in this subsection (b-10) shall cause
15or otherwise result in any retroactive adjustment of
16disability or other payments made between January 1, 2011 and
17January 1, 2024.
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.

HB4873- 75 -LRB103 35886 RPS 65971 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

HB4873- 76 -LRB103 35886 RPS 65971 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).
8 (d-5) The retirement annuity payable under Article 8 or
9Article 11 to an eligible person subject to subsection (c-5)
10of this Section who is retiring at age 60 with at least 10
11years of service credit shall be reduced by one-half of 1% for
12each full month that the member's age is under age 65.
13 (d-10) Each person who first became a member or
14participant under Article 8 or Article 11 of this Code on or
15after January 1, 2011 and prior to July 6, 2017 (the effective
16date of Public Act 100-23) shall make an irrevocable election
17either:
18 (i) to be eligible for the reduced retirement age
19 provided in subsections (c-5) and (d-5) of this Section,
20 the eligibility for which is conditioned upon the member
21 or participant agreeing to the increases in employee
22 contributions for age and service annuities provided in
23 subsection (a-5) of Section 8-174 of this Code (for
24 service under Article 8) or subsection (a-5) of Section
25 11-170 of this Code (for service under Article 11); or
26 (ii) to not agree to item (i) of this subsection

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1 (d-10), in which case the member or participant shall
2 continue to be subject to the retirement age provisions in
3 subsections (c) and (d) of this Section and the employee
4 contributions for age and service annuity as provided in
5 subsection (a) of Section 8-174 of this Code (for service
6 under Article 8) or subsection (a) of Section 11-170 of
7 this Code (for service under Article 11).
8 The election provided for in this subsection shall be made
9between October 1, 2017 and November 15, 2017. A person
10subject to this subsection who makes the required election
11shall remain bound by that election. A person subject to this
12subsection who fails for any reason to make the required
13election within the time specified in this subsection shall be
14deemed to have made the election under item (ii).
15 (d-15) Each person who first becomes a member or
16participant under Article 12 on or after January 1, 2011 and
17prior to January 1, 2022 shall make an irrevocable election
18either:
19 (i) to be eligible for the reduced retirement age
20 specified in subsections (c) and (d) of this Section, the
21 eligibility for which is conditioned upon the member or
22 participant agreeing to the increase in employee
23 contributions for service annuities specified in
24 subsection (b) of Section 12-150; or
25 (ii) to not agree to item (i) of this subsection
26 (d-15), in which case the member or participant shall not

HB4873- 78 -LRB103 35886 RPS 65971 b
1 be eligible for the reduced retirement age specified in
2 subsections (c) and (d) of this Section and shall not be
3 subject to the increase in employee contributions for
4 service annuities specified in subsection (b) of Section
5 12-150.
6 The election provided for in this subsection shall be made
7between January 1, 2022 and April 1, 2022. A person subject to
8this subsection who makes the required election shall remain
9bound by that election. A person subject to this subsection
10who fails for any reason to make the required election within
11the time specified in this subsection shall be deemed to have
12made the election under item (ii).
13 (e) Except as otherwise provided in this subsection, any
14Any retirement annuity or supplemental annuity shall be
15subject to annual increases on the January 1 occurring either
16on or after the attainment of age 67 (age 65, with respect to
17service under Article 12 that is subject to this Section, for a
18member or participant under Article 12 who first becomes a
19member or participant under Article 12 on or after January 1,
202022 or who makes the election under item (i) of subsection
21(d-15); and beginning on July 6, 2017 (the effective date of
22Public Act 100-23), age 65 with respect to service under
23Article 8 or Article 11 for eligible persons who: (i) are
24subject to subsection (c-5) of this Section; or (ii) made the
25election under item (i) of subsection (d-10) of this Section)
26or the first anniversary of the annuity start date, whichever

HB4873- 79 -LRB103 35886 RPS 65971 b
1is later. Except as otherwise provided in this subsection,
2each Each annual increase shall be calculated at 3% or
3one-half the annual unadjusted percentage increase (but not
4less than zero) in the consumer price index-u for the 12 months
5ending with the September preceding each November 1, whichever
6is less, of the originally granted retirement annuity. If the
7annual unadjusted percentage change in the consumer price
8index-u for the 12 months ending with the September preceding
9each November 1 is zero or there is a decrease, then the
10annuity shall not be increased.
11 Beginning January 1, 2026, any retirement annuity or
12supplemental annuity of a member or participant under Article
1314, 16, or 17 who is subject to this Section shall be subject
14to annual increases on the January 1 occurring after the first
15anniversary of the annuity start date. Each annual increase
16for a member or participant of a retirement system or pension
17fund established under Article 14, 16, or 17 who is subject to
18this Section shall be calculated at 3% of the originally
19granted retirement annuity.
20 For the purposes of Section 1-103.1 of this Code, the
21changes made to this Section by this amendatory Act of the
22103rd General Assembly are applicable without regard to
23whether the employee was in active service on or after the
24effective date of this amendatory Act of the 103rd General
25Assembly.
26 For the purposes of Section 1-103.1 of this Code, the

HB4873- 80 -LRB103 35886 RPS 65971 b
1changes made to this Section by Public Act 102-263 are
2applicable without regard to whether the employee was in
3active service on or after August 6, 2021 (the effective date
4of Public Act 102-263).
5 For the purposes of Section 1-103.1 of this Code, the
6changes made to this Section by Public Act 100-23 are
7applicable without regard to whether the employee was in
8active service on or after July 6, 2017 (the effective date of
9Public Act 100-23).
10 (f) The initial survivor's or widow's annuity of an
11otherwise eligible survivor or widow of a retired member or
12participant who first became a member or participant on or
13after January 1, 2011 shall be in the amount of 66 2/3% of the
14retired member's or participant's retirement annuity at the
15date of death. In the case of the death of a member or
16participant who has not retired and who first became a member
17or participant on or after January 1, 2011, eligibility for a
18survivor's or widow's annuity shall be determined by the
19applicable Article of this Code. The initial benefit shall be
2066 2/3% of the earned annuity without a reduction due to age. A
21child's annuity of an otherwise eligible child shall be in the
22amount prescribed under each Article if applicable. Any
23survivor's or widow's annuity shall be increased (1) on each
24January 1 occurring on or after the commencement of the
25annuity if the deceased member died while receiving a
26retirement annuity or (2) in other cases, on each January 1

HB4873- 81 -LRB103 35886 RPS 65971 b
1occurring after the first anniversary of the commencement of
2the annuity. Each annual increase shall be calculated at 3% or
3one-half the annual unadjusted percentage increase (but not
4less than zero) in the consumer price index-u for the 12 months
5ending with the September preceding each November 1, whichever
6is less, of the originally granted survivor's annuity. If the
7annual unadjusted percentage change in the consumer price
8index-u for the 12 months ending with the September preceding
9each November 1 is zero or there is a decrease, then the
10annuity shall not be increased.
11 (g) The benefits in Section 14-110 apply if the person is a
12fire fighter in the fire protection service of a department, a
13security employee of the Department of Corrections or the
14Department of Juvenile Justice, or a security employee of the
15Department of Innovation and Technology, as those terms are
16defined in subsection (b) and subsection (c) of Section
1714-110. A person who meets the requirements of this Section is
18entitled to an annuity calculated under the provisions of
19Section 14-110, in lieu of the regular or minimum retirement
20annuity, only if the person has withdrawn from service with
21not less than 20 years of eligible creditable service and has
22attained age 60, regardless of whether the attainment of age
2360 occurs while the person is still in service.
24 (g-5) The benefits in Section 14-110 apply if the person
25is a State policeman, investigator for the Secretary of State,
26conservation police officer, investigator for the Department

HB4873- 82 -LRB103 35886 RPS 65971 b
1of Revenue or the Illinois Gaming Board, investigator for the
2Office of the Attorney General, Commerce Commission police
3officer, or arson investigator, as those terms are defined in
4subsection (b) and subsection (c) of Section 14-110. A person
5who meets the requirements of this Section is entitled to an
6annuity calculated under the provisions of Section 14-110, in
7lieu of the regular or minimum retirement annuity, only if the
8person has withdrawn from service with not less than 20 years
9of eligible creditable service and has attained age 55,
10regardless of whether the attainment of age 55 occurs while
11the person is still in service.
12 (h) If a person who first becomes a member or a participant
13of a retirement system or pension fund subject to this Section
14on or after January 1, 2011 is receiving a retirement annuity
15or retirement pension under that system or fund and becomes a
16member or participant under any other system or fund created
17by this Code and is employed on a full-time basis, except for
18those members or participants exempted from the provisions of
19this Section under subsection (a) of this Section, then the
20person's retirement annuity or retirement pension under that
21system or fund shall be suspended during that employment. Upon
22termination of that employment, the person's retirement
23annuity or retirement pension payments shall resume and be
24recalculated if recalculation is provided for under the
25applicable Article of this Code.
26 If a person who first becomes a member of a retirement

HB4873- 83 -LRB103 35886 RPS 65971 b
1system or pension fund subject to this Section on or after
2January 1, 2012 and is receiving a retirement annuity or
3retirement pension under that system or fund and accepts on a
4contractual basis a position to provide services to a
5governmental entity from which he or she has retired, then
6that person's annuity or retirement pension earned as an
7active employee of the employer shall be suspended during that
8contractual service. A person receiving an annuity or
9retirement pension under this Code shall notify the pension
10fund or retirement system from which he or she is receiving an
11annuity or retirement pension, as well as his or her
12contractual employer, of his or her retirement status before
13accepting contractual employment. A person who fails to submit
14such notification shall be guilty of a Class A misdemeanor and
15required to pay a fine of $1,000. Upon termination of that
16contractual employment, the person's retirement annuity or
17retirement pension payments shall resume and, if appropriate,
18be recalculated under the applicable provisions of this Code.
19 (i) (Blank).
20 (j) In the case of a conflict between the provisions of
21this Section and any other provision of this Code, the
22provisions of this Section shall control.
23(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
24102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
255-6-22.)

HB4873- 84 -LRB103 35886 RPS 65971 b
1 (Text of Section from P.A. 102-813)
2 Sec. 1-160. Provisions applicable to new hires.
3 (a) The provisions of this Section apply to a person who,
4on or after January 1, 2011, first becomes a member or a
5participant under any reciprocal retirement system or pension
6fund established under this Code, other than a retirement
7system or pension fund established under Article 2, 3, 4, 5, 6,
87, 15, or 18 of this Code, notwithstanding any other provision
9of this Code to the contrary, but do not apply to any
10self-managed plan established under this Code or to any
11participant of the retirement plan established under Section
1222-101; except that this Section applies to a person who
13elected to establish alternative credits by electing in
14writing after January 1, 2011, but before August 8, 2011,
15under Section 7-145.1 of this Code. Notwithstanding anything
16to the contrary in this Section, for purposes of this Section,
17a person who is a Tier 1 regular employee as defined in Section
187-109.4 of this Code or who participated in a retirement
19system under Article 15 prior to January 1, 2011 shall be
20deemed a person who first became a member or participant prior
21to January 1, 2011 under any retirement system or pension fund
22subject to this Section. The changes made to this Section by
23Public Act 98-596 are a clarification of existing law and are
24intended to be retroactive to January 1, 2011 (the effective
25date of Public Act 96-889), notwithstanding the provisions of
26Section 1-103.1 of this Code.

HB4873- 85 -LRB103 35886 RPS 65971 b
1 This Section does not apply to a person who first becomes a
2noncovered employee under Article 14 on or after the
3implementation date of the plan created under Section 1-161
4for that Article, unless that person elects under subsection
5(b) of Section 1-161 to instead receive the benefits provided
6under this Section and the applicable provisions of that
7Article.
8 This Section does not apply to a person who first becomes a
9member or participant under Article 16 on or after the
10implementation date of the plan created under Section 1-161
11for that Article, unless that person elects under subsection
12(b) of Section 1-161 to instead receive the benefits provided
13under this Section and the applicable provisions of that
14Article.
15 This Section does not apply to a person who elects under
16subsection (c-5) of Section 1-161 to receive the benefits
17under Section 1-161.
18 This Section does not apply to a person who first becomes a
19member or participant of an affected pension fund on or after 6
20months after the resolution or ordinance date, as defined in
21Section 1-162, unless that person elects under subsection (c)
22of Section 1-162 to receive the benefits provided under this
23Section and the applicable provisions of the Article under
24which he or she is a member or participant.
25 (b) "Final average salary" means, except as otherwise
26provided in this subsection, the average monthly (or annual)

HB4873- 86 -LRB103 35886 RPS 65971 b
1salary obtained by dividing the total salary or earnings
2calculated under the Article applicable to the member or
3participant during the 96 consecutive months (or 8 consecutive
4years) of service within the last 120 months (or 10 years) of
5service in which the total salary or earnings calculated under
6the applicable Article was the highest by the number of months
7(or years) of service in that period. For the purposes of a
8person who first becomes a member or participant of any
9retirement system or pension fund to which this Section
10applies on or after January 1, 2011, in this Code, "final
11average salary" shall be substituted for the following:
12 (1) (Blank).
13 (2) In Articles 8, 9, 10, 11, and 12, "highest average
14 annual salary for any 4 consecutive years within the last
15 10 years of service immediately preceding the date of
16 withdrawal".
17 (3) In Article 13, "average final salary".
18 (4) In Article 14, "final average compensation".
19 (5) In Article 17, "average salary".
20 (6) In Section 22-207, "wages or salary received by
21 him at the date of retirement or discharge".
22 A member of the Teachers' Retirement System of the State
23of Illinois who retires on or after June 1, 2021 and for whom
24the 2020-2021 school year is used in the calculation of the
25member's final average salary shall use the higher of the
26following for the purpose of determining the member's final

HB4873- 87 -LRB103 35886 RPS 65971 b
1average salary:
2 (A) the amount otherwise calculated under the first
3 paragraph of this subsection; or
4 (B) an amount calculated by the Teachers' Retirement
5 System of the State of Illinois using the average of the
6 monthly (or annual) salary obtained by dividing the total
7 salary or earnings calculated under Article 16 applicable
8 to the member or participant during the 96 months (or 8
9 years) of service within the last 120 months (or 10 years)
10 of service in which the total salary or earnings
11 calculated under the Article was the highest by the number
12 of months (or years) of service in that period.
13 (b-5) Beginning on January 1, 2011, for all purposes under
14this Code (including without limitation the calculation of
15benefits and employee contributions), the annual earnings,
16salary, or wages (based on the plan year) of a member or
17participant to whom this Section applies shall not exceed
18$106,800; however, that amount shall annually thereafter be
19increased by the lesser of (i) 3% of that amount, including all
20previous adjustments, or (ii) one-half the annual unadjusted
21percentage increase (but not less than zero) in the consumer
22price index-u for the 12 months ending with the September
23preceding each November 1, including all previous adjustments.
24 For the purposes of this Section, "consumer price index-u"
25means the index published by the Bureau of Labor Statistics of
26the United States Department of Labor that measures the

HB4873- 88 -LRB103 35886 RPS 65971 b
1average change in prices of goods and services purchased by
2all urban consumers, United States city average, all items,
31982-84 = 100. The new amount resulting from each annual
4adjustment shall be determined by the Public Pension Division
5of the Department of Insurance and made available to the
6boards of the retirement systems and pension funds by November
71 of each year.
8 (b-10) Beginning on January 1, 2024, for all purposes
9under this Code (including, without limitation, the
10calculation of benefits and employee contributions), the
11annual earnings, salary, or wages (based on the plan year) of a
12member or participant under Article 9 to whom this Section
13applies shall include an annual earnings, salary, or wage cap
14that tracks the Social Security wage base. Maximum annual
15earnings, wages, or salary shall be the annual contribution
16and benefit base established for the applicable year by the
17Commissioner of the Social Security Administration under the
18federal Social Security Act.
19 However, in no event shall the annual earnings, salary, or
20wages for the purposes of this Article and Article 9 exceed any
21limitation imposed on annual earnings, salary, or wages under
22Section 1-117. Under no circumstances shall the maximum amount
23of annual earnings, salary, or wages be greater than the
24amount set forth in this subsection (b-10) as a result of
25reciprocal service or any provisions regarding reciprocal
26services, nor shall the Fund under Article 9 be required to pay

HB4873- 89 -LRB103 35886 RPS 65971 b
1any refund as a result of the application of this maximum
2annual earnings, salary, and wage cap.
3 Nothing in this subsection (b-10) shall cause or otherwise
4result in any retroactive adjustment of any employee
5contributions. Nothing in this subsection (b-10) shall cause
6or otherwise result in any retroactive adjustment of
7disability or other payments made between January 1, 2011 and
8January 1, 2024.
9 (c) A member or participant is entitled to a retirement
10annuity upon written application if he or she has attained age
1167 (age 65, with respect to service under Article 12 that is
12subject to this Section, for a member or participant under
13Article 12 who first becomes a member or participant under
14Article 12 on or after January 1, 2022 or who makes the
15election under item (i) of subsection (d-15) of this Section)
16and has at least 10 years of service credit and is otherwise
17eligible under the requirements of the applicable Article.
18 A member or participant who has attained age 62 (age 60,
19with respect to service under Article 12 that is subject to
20this Section, for a member or participant under Article 12 who
21first becomes a member or participant under Article 12 on or
22after January 1, 2022 or who makes the election under item (i)
23of subsection (d-15) of this Section) and has at least 10 years
24of service credit and is otherwise eligible under the
25requirements of the applicable Article may elect to receive
26the lower retirement annuity provided in subsection (d) of

HB4873- 90 -LRB103 35886 RPS 65971 b
1this Section.
2 (c-5) A person who first becomes a member or a participant
3subject to this Section on or after July 6, 2017 (the effective
4date of Public Act 100-23), notwithstanding any other
5provision of this Code to the contrary, is entitled to a
6retirement annuity under Article 8 or Article 11 upon written
7application if he or she has attained age 65 and has at least
810 years of service credit and is otherwise eligible under the
9requirements of Article 8 or Article 11 of this Code,
10whichever is applicable.
11 (d) The retirement annuity of a member or participant who
12is retiring after attaining age 62 (age 60, with respect to
13service under Article 12 that is subject to this Section, for a
14member or participant under Article 12 who first becomes a
15member or participant under Article 12 on or after January 1,
162022 or who makes the election under item (i) of subsection
17(d-15) of this Section) with at least 10 years of service
18credit shall be reduced by one-half of 1% for each full month
19that the member's age is under age 67 (age 65, with respect to
20service under Article 12 that is subject to this Section, for a
21member or participant under Article 12 who first becomes a
22member or participant under Article 12 on or after January 1,
232022 or who makes the election under item (i) of subsection
24(d-15) of this Section).
25 (d-5) The retirement annuity payable under Article 8 or
26Article 11 to an eligible person subject to subsection (c-5)

HB4873- 91 -LRB103 35886 RPS 65971 b
1of this Section who is retiring at age 60 with at least 10
2years of service credit shall be reduced by one-half of 1% for
3each full month that the member's age is under age 65.
4 (d-10) Each person who first became a member or
5participant under Article 8 or Article 11 of this Code on or
6after January 1, 2011 and prior to July 6, 2017 (the effective
7date of Public Act 100-23) shall make an irrevocable election
8either:
9 (i) to be eligible for the reduced retirement age
10 provided in subsections (c-5) and (d-5) of this Section,
11 the eligibility for which is conditioned upon the member
12 or participant agreeing to the increases in employee
13 contributions for age and service annuities provided in
14 subsection (a-5) of Section 8-174 of this Code (for
15 service under Article 8) or subsection (a-5) of Section
16 11-170 of this Code (for service under Article 11); or
17 (ii) to not agree to item (i) of this subsection
18 (d-10), in which case the member or participant shall
19 continue to be subject to the retirement age provisions in
20 subsections (c) and (d) of this Section and the employee
21 contributions for age and service annuity as provided in
22 subsection (a) of Section 8-174 of this Code (for service
23 under Article 8) or subsection (a) of Section 11-170 of
24 this Code (for service under Article 11).
25 The election provided for in this subsection shall be made
26between October 1, 2017 and November 15, 2017. A person

HB4873- 92 -LRB103 35886 RPS 65971 b
1subject to this subsection who makes the required election
2shall remain bound by that election. A person subject to this
3subsection who fails for any reason to make the required
4election within the time specified in this subsection shall be
5deemed to have made the election under item (ii).
6 (d-15) Each person who first becomes a member or
7participant under Article 12 on or after January 1, 2011 and
8prior to January 1, 2022 shall make an irrevocable election
9either:
10 (i) to be eligible for the reduced retirement age
11 specified in subsections (c) and (d) of this Section, the
12 eligibility for which is conditioned upon the member or
13 participant agreeing to the increase in employee
14 contributions for service annuities specified in
15 subsection (b) of Section 12-150; or
16 (ii) to not agree to item (i) of this subsection
17 (d-15), in which case the member or participant shall not
18 be eligible for the reduced retirement age specified in
19 subsections (c) and (d) of this Section and shall not be
20 subject to the increase in employee contributions for
21 service annuities specified in subsection (b) of Section
22 12-150.
23 The election provided for in this subsection shall be made
24between January 1, 2022 and April 1, 2022. A person subject to
25this subsection who makes the required election shall remain
26bound by that election. A person subject to this subsection

HB4873- 93 -LRB103 35886 RPS 65971 b
1who fails for any reason to make the required election within
2the time specified in this subsection shall be deemed to have
3made the election under item (ii).
4 (e) Except as otherwise provided in this subsection, any
5Any retirement annuity or supplemental annuity shall be
6subject to annual increases on the January 1 occurring either
7on or after the attainment of age 67 (age 65, with respect to
8service under Article 12 that is subject to this Section, for a
9member or participant under Article 12 who first becomes a
10member or participant under Article 12 on or after January 1,
112022 or who makes the election under item (i) of subsection
12(d-15); and beginning on July 6, 2017 (the effective date of
13Public Act 100-23), age 65 with respect to service under
14Article 8 or Article 11 for eligible persons who: (i) are
15subject to subsection (c-5) of this Section; or (ii) made the
16election under item (i) of subsection (d-10) of this Section)
17or the first anniversary of the annuity start date, whichever
18is later. Except as otherwise provided in this subsection,
19each Each annual increase shall be calculated at 3% or
20one-half the annual unadjusted percentage increase (but not
21less than zero) in the consumer price index-u for the 12 months
22ending with the September preceding each November 1, whichever
23is less, of the originally granted retirement annuity. If the
24annual unadjusted percentage change in the consumer price
25index-u for the 12 months ending with the September preceding
26each November 1 is zero or there is a decrease, then the

HB4873- 94 -LRB103 35886 RPS 65971 b
1annuity shall not be increased.
2 Beginning January 1, 2026, any retirement annuity or
3supplemental annuity of a member or participant under Article
414, 16, or 17 who is subject to this Section shall be subject
5to annual increases on the January 1 occurring after the first
6anniversary of the annuity start date. Each annual increase
7for a member or participant of a retirement system or pension
8fund established under Article 14, 16, or 17 who is subject to
9this Section shall be calculated at 3% of the originally
10granted retirement annuity.
11 For the purposes of Section 1-103.1 of this Code, the
12changes made to this Section by this amendatory Act of the
13103rd General Assembly are applicable without regard to
14whether the employee was in active service on or after the
15effective date of this amendatory Act of the 103rd General
16Assembly.
17 For the purposes of Section 1-103.1 of this Code, the
18changes made to this Section by Public Act 102-263 are
19applicable without regard to whether the employee was in
20active service on or after August 6, 2021 (the effective date
21of Public Act 102-263).
22 For the purposes of Section 1-103.1 of this Code, the
23changes made to this Section by Public Act 100-23 are
24applicable without regard to whether the employee was in
25active service on or after July 6, 2017 (the effective date of
26Public Act 100-23).

HB4873- 95 -LRB103 35886 RPS 65971 b
1 (f) The initial survivor's or widow's annuity of an
2otherwise eligible survivor or widow of a retired member or
3participant who first became a member or participant on or
4after January 1, 2011 shall be in the amount of 66 2/3% of the
5retired member's or participant's retirement annuity at the
6date of death. In the case of the death of a member or
7participant who has not retired and who first became a member
8or participant on or after January 1, 2011, eligibility for a
9survivor's or widow's annuity shall be determined by the
10applicable Article of this Code. The initial benefit shall be
1166 2/3% of the earned annuity without a reduction due to age. A
12child's annuity of an otherwise eligible child shall be in the
13amount prescribed under each Article if applicable. Any
14survivor's or widow's annuity shall be increased (1) on each
15January 1 occurring on or after the commencement of the
16annuity if the deceased member died while receiving a
17retirement annuity or (2) in other cases, on each January 1
18occurring after the first anniversary of the commencement of
19the annuity. Each annual increase shall be calculated at 3% or
20one-half the annual unadjusted percentage increase (but not
21less than zero) in the consumer price index-u for the 12 months
22ending with the September preceding each November 1, whichever
23is less, of the originally granted survivor's annuity. If the
24annual unadjusted percentage change in the consumer price
25index-u for the 12 months ending with the September preceding
26each November 1 is zero or there is a decrease, then the

HB4873- 96 -LRB103 35886 RPS 65971 b
1annuity shall not be increased.
2 (g) The benefits in Section 14-110 apply only if the
3person is a State policeman, a fire fighter in the fire
4protection service of a department, a conservation police
5officer, an investigator for the Secretary of State, an arson
6investigator, a Commerce Commission police officer,
7investigator for the Department of Revenue or the Illinois
8Gaming Board, a security employee of the Department of
9Corrections or the Department of Juvenile Justice, or a
10security employee of the Department of Innovation and
11Technology, as those terms are defined in subsection (b) and
12subsection (c) of Section 14-110. A person who meets the
13requirements of this Section is entitled to an annuity
14calculated under the provisions of Section 14-110, in lieu of
15the regular or minimum retirement annuity, only if the person
16has withdrawn from service with not less than 20 years of
17eligible creditable service and has attained age 60,
18regardless of whether the attainment of age 60 occurs while
19the person is still in service.
20 (h) If a person who first becomes a member or a participant
21of a retirement system or pension fund subject to this Section
22on or after January 1, 2011 is receiving a retirement annuity
23or retirement pension under that system or fund and becomes a
24member or participant under any other system or fund created
25by this Code and is employed on a full-time basis, except for
26those members or participants exempted from the provisions of

HB4873- 97 -LRB103 35886 RPS 65971 b
1this Section under subsection (a) of this Section, then the
2person's retirement annuity or retirement pension under that
3system or fund shall be suspended during that employment. Upon
4termination of that employment, the person's retirement
5annuity or retirement pension payments shall resume and be
6recalculated if recalculation is provided for under the
7applicable Article of this Code.
8 If a person who first becomes a member of a retirement
9system or pension fund subject to this Section on or after
10January 1, 2012 and is receiving a retirement annuity or
11retirement pension under that system or fund and accepts on a
12contractual basis a position to provide services to a
13governmental entity from which he or she has retired, then
14that person's annuity or retirement pension earned as an
15active employee of the employer shall be suspended during that
16contractual service. A person receiving an annuity or
17retirement pension under this Code shall notify the pension
18fund or retirement system from which he or she is receiving an
19annuity or retirement pension, as well as his or her
20contractual employer, of his or her retirement status before
21accepting contractual employment. A person who fails to submit
22such notification shall be guilty of a Class A misdemeanor and
23required to pay a fine of $1,000. Upon termination of that
24contractual employment, the person's retirement annuity or
25retirement pension payments shall resume and, if appropriate,
26be recalculated under the applicable provisions of this Code.

HB4873- 98 -LRB103 35886 RPS 65971 b
1 (i) (Blank).
2 (j) In the case of a conflict between the provisions of
3this Section and any other provision of this Code, the
4provisions of this Section shall control.
5(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
6102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
75-13-22.)
8 (Text of Section from P.A. 102-956)
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,
24a person who is a Tier 1 regular employee as defined in Section
257-109.4 of this Code or who participated in a retirement

HB4873- 99 -LRB103 35886 RPS 65971 b
1system under Article 15 prior to January 1, 2011 shall be
2deemed a person who first became a member or participant prior
3to January 1, 2011 under any retirement system or pension fund
4subject to this Section. The changes made to this Section by
5Public Act 98-596 are a clarification of existing law and are
6intended to be retroactive to January 1, 2011 (the effective
7date of Public Act 96-889), notwithstanding the provisions of
8Section 1-103.1 of this Code.
9 This Section does not apply to a person who first becomes a
10noncovered employee under Article 14 on or after the
11implementation date of the plan created under Section 1-161
12for that Article, unless that person elects under subsection
13(b) of Section 1-161 to instead receive the benefits provided
14under this Section and the applicable provisions of that
15Article.
16 This Section does not apply to a person who first becomes a
17member or participant under Article 16 on or after the
18implementation date of the plan created under Section 1-161
19for that Article, unless that person elects under subsection
20(b) of Section 1-161 to instead receive the benefits provided
21under this Section and the applicable provisions of that
22Article.
23 This Section does not apply to a person who elects under
24subsection (c-5) of Section 1-161 to receive the benefits
25under Section 1-161.
26 This Section does not apply to a person who first becomes a

HB4873- 100 -LRB103 35886 RPS 65971 b
1member or participant of an affected pension fund on or after 6
2months after the resolution or ordinance date, as defined in
3Section 1-162, unless that person elects under subsection (c)
4of Section 1-162 to receive the benefits provided under this
5Section and the applicable provisions of the Article under
6which he or she is a member or participant.
7 (b) "Final average salary" means, except as otherwise
8provided in this subsection, the average monthly (or annual)
9salary obtained by dividing the total salary or earnings
10calculated under the Article applicable to the member or
11participant during the 96 consecutive months (or 8 consecutive
12years) of service within the last 120 months (or 10 years) of
13service in which the total salary or earnings calculated under
14the applicable Article was the highest by the number of months
15(or years) of service in that period. For the purposes of a
16person who first becomes a member or participant of any
17retirement system or pension fund to which this Section
18applies on or after January 1, 2011, in this Code, "final
19average salary" shall be substituted for the following:
20 (1) (Blank).
21 (2) In Articles 8, 9, 10, 11, and 12, "highest average
22 annual salary for any 4 consecutive years within the last
23 10 years of service immediately preceding the date of
24 withdrawal".
25 (3) In Article 13, "average final salary".
26 (4) In Article 14, "final average compensation".

HB4873- 101 -LRB103 35886 RPS 65971 b
1 (5) In Article 17, "average salary".
2 (6) In Section 22-207, "wages or salary received by
3 him at the date of retirement or discharge".
4 A member of the Teachers' Retirement System of the State
5of Illinois who retires on or after June 1, 2021 and for whom
6the 2020-2021 school year is used in the calculation of the
7member's final average salary shall use the higher of the
8following for the purpose of determining the member's final
9average salary:
10 (A) the amount otherwise calculated under the first
11 paragraph of this subsection; or
12 (B) an amount calculated by the Teachers' Retirement
13 System of the State of Illinois using the average of the
14 monthly (or annual) salary obtained by dividing the total
15 salary or earnings calculated under Article 16 applicable
16 to the member or participant during the 96 months (or 8
17 years) of service within the last 120 months (or 10 years)
18 of service in which the total salary or earnings
19 calculated under the Article was the highest by the number
20 of months (or years) of service in that period.
21 (b-5) Beginning on January 1, 2011, for all purposes under
22this Code (including without limitation the calculation of
23benefits and employee contributions), the annual earnings,
24salary, or wages (based on the plan year) of a member or
25participant to whom this Section applies shall not exceed
26$106,800; however, that amount shall annually thereafter be

HB4873- 102 -LRB103 35886 RPS 65971 b
1increased by the lesser of (i) 3% of that amount, including all
2previous adjustments, or (ii) one-half the annual unadjusted
3percentage increase (but not less than zero) in the consumer
4price index-u for the 12 months ending with the September
5preceding each November 1, including all previous adjustments.
6 For the purposes of this Section, "consumer price index-u"
7means the index published by the Bureau of Labor Statistics of
8the United States Department of Labor that measures the
9average change in prices of goods and services purchased by
10all urban consumers, United States city average, all items,
111982-84 = 100. The new amount resulting from each annual
12adjustment shall be determined by the Public Pension Division
13of the Department of Insurance and made available to the
14boards of the retirement systems and pension funds by November
151 of each year.
16 (b-10) Beginning on January 1, 2024, for all purposes
17under this Code (including, without limitation, the
18calculation of benefits and employee contributions), the
19annual earnings, salary, or wages (based on the plan year) of a
20member or participant under Article 9 to whom this Section
21applies shall include an annual earnings, salary, or wage cap
22that tracks the Social Security wage base. Maximum annual
23earnings, wages, or salary shall be the annual contribution
24and benefit base established for the applicable year by the
25Commissioner of the Social Security Administration under the
26federal Social Security Act.

HB4873- 103 -LRB103 35886 RPS 65971 b
1 However, in no event shall the annual earnings, salary, or
2wages for the purposes of this Article and Article 9 exceed any
3limitation imposed on annual earnings, salary, or wages under
4Section 1-117. Under no circumstances shall the maximum amount
5of annual earnings, salary, or wages be greater than the
6amount set forth in this subsection (b-10) as a result of
7reciprocal service or any provisions regarding reciprocal
8services, nor shall the Fund under Article 9 be required to pay
9any refund as a result of the application of this maximum
10annual earnings, salary, and wage cap.
11 Nothing in this subsection (b-10) shall cause or otherwise
12result in any retroactive adjustment of any employee
13contributions. Nothing in this subsection (b-10) shall cause
14or otherwise result in any retroactive adjustment of
15disability or other payments made between January 1, 2011 and
16January 1, 2024.
17 (c) A member or participant is entitled to a retirement
18annuity upon written application if he or she has attained age
1967 (age 65, with respect to service under Article 12 that is
20subject to this Section, for a member or participant under
21Article 12 who first becomes a member or participant under
22Article 12 on or after January 1, 2022 or who makes the
23election under item (i) of subsection (d-15) of this Section)
24and has at least 10 years of service credit and is otherwise
25eligible under the requirements of the applicable Article.
26 A member or participant who has attained age 62 (age 60,

HB4873- 104 -LRB103 35886 RPS 65971 b
1with respect to service under Article 12 that is subject to
2this Section, for a member or participant under Article 12 who
3first becomes a member or participant under Article 12 on or
4after January 1, 2022 or who makes the election under item (i)
5of subsection (d-15) of this Section) and has at least 10 years
6of service credit and is otherwise eligible under the
7requirements of the applicable Article may elect to receive
8the lower retirement annuity provided in subsection (d) of
9this Section.
10 (c-5) A person who first becomes a member or a participant
11subject to this Section on or after July 6, 2017 (the effective
12date of Public Act 100-23), notwithstanding any other
13provision of this Code to the contrary, is entitled to a
14retirement annuity under Article 8 or Article 11 upon written
15application if he or she has attained age 65 and has at least
1610 years of service credit and is otherwise eligible under the
17requirements of Article 8 or Article 11 of this Code,
18whichever is applicable.
19 (d) The retirement annuity of a member or participant who
20is retiring after attaining age 62 (age 60, with respect to
21service under Article 12 that is subject to this Section, for a
22member or participant under Article 12 who first becomes a
23member or participant under Article 12 on or after January 1,
242022 or who makes the election under item (i) of subsection
25(d-15) of this Section) with at least 10 years of service
26credit shall be reduced by one-half of 1% for each full month

HB4873- 105 -LRB103 35886 RPS 65971 b
1that the member's age is under age 67 (age 65, 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).
7 (d-5) The retirement annuity payable under Article 8 or
8Article 11 to an eligible person subject to subsection (c-5)
9of this Section who is retiring at age 60 with at least 10
10years of service credit shall be reduced by one-half of 1% for
11each full month that the member's age is under age 65.
12 (d-10) Each person who first became a member or
13participant under Article 8 or Article 11 of this Code on or
14after January 1, 2011 and prior to July 6, 2017 (the effective
15date of Public Act 100-23) shall make an irrevocable election
16either:
17 (i) to be eligible for the reduced retirement age
18 provided in subsections (c-5) and (d-5) of this Section,
19 the eligibility for which is conditioned upon the member
20 or participant agreeing to the increases in employee
21 contributions for age and service annuities provided in
22 subsection (a-5) of Section 8-174 of this Code (for
23 service under Article 8) or subsection (a-5) of Section
24 11-170 of this Code (for service under Article 11); or
25 (ii) to not agree to item (i) of this subsection
26 (d-10), in which case the member or participant shall

HB4873- 106 -LRB103 35886 RPS 65971 b
1 continue to be subject to the retirement age provisions in
2 subsections (c) and (d) of this Section and the employee
3 contributions for age and service annuity as provided in
4 subsection (a) of Section 8-174 of this Code (for service
5 under Article 8) or subsection (a) of Section 11-170 of
6 this Code (for service under Article 11).
7 The election provided for in this subsection shall be made
8between October 1, 2017 and November 15, 2017. A person
9subject to this subsection who makes the required election
10shall remain bound by that election. A person subject to this
11subsection who fails for any reason to make the required
12election within the time specified in this subsection shall be
13deemed to have made the election under item (ii).
14 (d-15) Each person who first becomes a member or
15participant under Article 12 on or after January 1, 2011 and
16prior to January 1, 2022 shall make an irrevocable election
17either:
18 (i) to be eligible for the reduced retirement age
19 specified in subsections (c) and (d) of this Section, the
20 eligibility for which is conditioned upon the member or
21 participant agreeing to the increase in employee
22 contributions for service annuities specified in
23 subsection (b) of Section 12-150; or
24 (ii) to not agree to item (i) of this subsection
25 (d-15), in which case the member or participant shall not
26 be eligible for the reduced retirement age specified in

HB4873- 107 -LRB103 35886 RPS 65971 b
1 subsections (c) and (d) of this Section and shall not be
2 subject to the increase in employee contributions for
3 service annuities specified in subsection (b) of Section
4 12-150.
5 The election provided for in this subsection shall be made
6between January 1, 2022 and April 1, 2022. A person subject to
7this subsection who makes the required election shall remain
8bound by that election. A person subject to this subsection
9who fails for any reason to make the required election within
10the time specified in this subsection shall be deemed to have
11made the election under item (ii).
12 (e) Except as otherwise provided in this subsection, any
13Any retirement annuity or supplemental annuity shall be
14subject to annual increases on the January 1 occurring either
15on or after the attainment of age 67 (age 65, with respect to
16service under Article 12 that is subject to this Section, for a
17member or participant under Article 12 who first becomes a
18member or participant under Article 12 on or after January 1,
192022 or who makes the election under item (i) of subsection
20(d-15); and beginning on July 6, 2017 (the effective date of
21Public Act 100-23), age 65 with respect to service under
22Article 8 or Article 11 for eligible persons who: (i) are
23subject to subsection (c-5) of this Section; or (ii) made the
24election under item (i) of subsection (d-10) of this Section)
25or the first anniversary of the annuity start date, whichever
26is later. Except as otherwise provided in this subsection,

HB4873- 108 -LRB103 35886 RPS 65971 b
1each Each annual increase shall be calculated at 3% or
2one-half the annual unadjusted percentage increase (but not
3less than zero) in the consumer price index-u for the 12 months
4ending with the September preceding each November 1, whichever
5is less, of the originally granted retirement annuity. If the
6annual unadjusted percentage change in the consumer price
7index-u for the 12 months ending with the September preceding
8each November 1 is zero or there is a decrease, then the
9annuity shall not be increased.
10 Beginning January 1, 2026, any retirement annuity or
11supplemental annuity of a member or participant under Article
1214, 16, or 17 who is subject to this Section shall be subject
13to annual increases on the January 1 occurring after the first
14anniversary of the annuity start date. Each annual increase
15for a member or participant of a retirement system or pension
16fund established under Article 14, 16, or 17 who is subject to
17this Section shall be calculated at 3% of the originally
18granted retirement annuity.
19 For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by this amendatory Act of the
21103rd General Assembly are applicable without regard to
22whether the employee was in active service on or after the
23effective date of this amendatory Act of the 103rd General
24Assembly.
25 For the purposes of Section 1-103.1 of this Code, the
26changes made to this Section by Public Act 102-263 are

HB4873- 109 -LRB103 35886 RPS 65971 b
1applicable without regard to whether the employee was in
2active service on or after August 6, 2021 (the effective date
3of Public Act 102-263).
4 For the purposes of Section 1-103.1 of this Code, the
5changes made to this Section by Public Act 100-23 are
6applicable without regard to whether the employee was in
7active service on or after July 6, 2017 (the effective date of
8Public Act 100-23).
9 (f) The initial survivor's or widow's annuity of an
10otherwise eligible survivor or widow of a retired member or
11participant who first became a member or participant on or
12after January 1, 2011 shall be in the amount of 66 2/3% of the
13retired member's or participant's retirement annuity at the
14date of death. In the case of the death of a member or
15participant who has not retired and who first became a member
16or participant on or after January 1, 2011, eligibility for a
17survivor's or widow's annuity shall be determined by the
18applicable Article of this Code. The initial benefit shall be
1966 2/3% of the earned annuity without a reduction due to age. A
20child's annuity of an otherwise eligible child shall be in the
21amount prescribed under each Article if applicable. Any
22survivor's or widow's annuity shall be increased (1) on each
23January 1 occurring on or after the commencement of the
24annuity if the deceased member died while receiving a
25retirement annuity or (2) in other cases, on each January 1
26occurring after the first anniversary of the commencement of

HB4873- 110 -LRB103 35886 RPS 65971 b
1the annuity. Each annual increase shall be calculated at 3% or
2one-half the annual unadjusted percentage increase (but not
3less than zero) in the consumer price index-u for the 12 months
4ending with the September preceding each November 1, whichever
5is less, of the originally granted survivor's annuity. If the
6annual unadjusted percentage change in the consumer price
7index-u for the 12 months ending with the September preceding
8each November 1 is zero or there is a decrease, then the
9annuity shall not be increased.
10 (g) The benefits in Section 14-110 apply only if the
11person is a State policeman, a fire fighter in the fire
12protection service of a department, a conservation police
13officer, an investigator for the Secretary of State, an
14investigator for the Office of the Attorney General, an arson
15investigator, a Commerce Commission police officer,
16investigator for the Department of Revenue or the Illinois
17Gaming Board, a security employee of the Department of
18Corrections or the Department of Juvenile Justice, or a
19security employee of the Department of Innovation and
20Technology, as those terms are defined in subsection (b) and
21subsection (c) of Section 14-110. A person who meets the
22requirements of this Section is entitled to an annuity
23calculated under the provisions of Section 14-110, in lieu of
24the regular or minimum retirement annuity, only if the person
25has withdrawn from service with not less than 20 years of
26eligible creditable service and has attained age 60,

HB4873- 111 -LRB103 35886 RPS 65971 b
1regardless of whether the attainment of age 60 occurs while
2the person is still in service.
3 (h) If a person who first becomes a member or a participant
4of a retirement system or pension fund subject to this Section
5on or after January 1, 2011 is receiving a retirement annuity
6or retirement pension under that system or fund and becomes a
7member or participant under any other system or fund created
8by this Code and is employed on a full-time basis, except for
9those members or participants exempted from the provisions of
10this Section under subsection (a) of this Section, then the
11person's retirement annuity or retirement pension under that
12system or fund shall be suspended during that employment. Upon
13termination of that employment, the person's retirement
14annuity or retirement pension payments shall resume and be
15recalculated if recalculation is provided for under the
16applicable Article of this Code.
17 If a person who first becomes a member of a retirement
18system or pension fund subject to this Section on or after
19January 1, 2012 and is receiving a retirement annuity or
20retirement pension under that system or fund and accepts on a
21contractual basis a position to provide services to a
22governmental entity from which he or she has retired, then
23that person's annuity or retirement pension earned as an
24active employee of the employer shall be suspended during that
25contractual service. A person receiving an annuity or
26retirement pension under this Code shall notify the pension

HB4873- 112 -LRB103 35886 RPS 65971 b
1fund or retirement system from which he or she is receiving an
2annuity or retirement pension, as well as his or her
3contractual employer, of his or her retirement status before
4accepting contractual employment. A person who fails to submit
5such notification shall be guilty of a Class A misdemeanor and
6required to pay a fine of $1,000. Upon termination of that
7contractual employment, the person's retirement annuity or
8retirement pension payments shall resume and, if appropriate,
9be recalculated under the applicable provisions of this Code.
10 (i) (Blank).
11 (j) In the case of a conflict between the provisions of
12this Section and any other provision of this Code, the
13provisions of this Section shall control.
14(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
15102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
168-11-23.)
17 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
18 (Text of Section WITHOUT the changes made by P.A. 98-599,
19which has been held unconstitutional)
20 Sec. 2-119.1. Automatic increase in retirement annuity.
21 (a) A participant who retires after June 30, 1967, and who
22has not received an initial increase under this Section before
23the effective date of this amendatory Act of 1991, shall, in
24January or July next following the first anniversary of
25retirement, whichever occurs first, and in the same month of

HB4873- 113 -LRB103 35886 RPS 65971 b
1each year thereafter, but in no event prior to age 60, have the
2amount of the originally granted retirement annuity increased
3as follows: for each year through 1971, 1 1/2%; for each year
4from 1972 through 1979, 2%; and for 1980 and each year
5thereafter, 3%. Annuitants who have received an initial
6increase under this subsection prior to the effective date of
7this amendatory Act of 1991 shall continue to receive their
8annual increases in the same month as the initial increase.
9 (b) Beginning January 1, 1990, for eligible participants
10who remain in service after attaining 20 years of creditable
11service, the 3% increases provided under subsection (a) shall
12begin to accrue on the January 1 next following the date upon
13which the participant (1) attains age 55, or (2) attains 20
14years of creditable service, whichever occurs later, and shall
15continue to accrue while the participant remains in service;
16such increases shall become payable on January 1 or July 1,
17whichever occurs first, next following the first anniversary
18of retirement. For any person who has service credit in the
19System for the entire period from January 15, 1969 through
20December 31, 1992, regardless of the date of termination of
21service, the reference to age 55 in clause (1) of this
22subsection (b) shall be deemed to mean age 50.
23 This subsection (b) does not apply to any person who first
24becomes a member of the System after the effective date of this
25amendatory Act of the 93rd General Assembly.
26 (b-5) Notwithstanding any other provision of this Article

HB4873- 114 -LRB103 35886 RPS 65971 b
1and except as otherwise provided in this subsection, a
2participant who first becomes a participant on or after
3January 1, 2011 (the effective date of Public Act 96-889)
4shall, in January or July next following the first anniversary
5of retirement, whichever occurs first, and in the same month
6of each year thereafter, but in no event prior to age 67, have
7the amount of the retirement annuity then being paid increased
8by 3% or the annual unadjusted percentage increase in the
9Consumer Price Index for All Urban Consumers as determined by
10the Public Pension Division of the Department of Insurance
11under subsection (a) of Section 2-108.1, whichever is less.
12 Notwithstanding any other provision of this Article,
13beginning January 1, 2026, a participant who first becomes a
14participant on or after January 1, 2011 (the effective date of
15Public Act 96-889) shall, in January or July next following
16the first anniversary of retirement, whichever occurs first,
17and in the same month of each year thereafter, have the amount
18of the retirement annuity then being paid increased by 3%.
19 In this subsection, "consumer price index-u" means the
20index published by the Bureau of Labor Statistics of the
21United States Department of Labor that measures the average
22change in prices of goods and services purchased by all urban
23consumers, United States city average, all items, 1982-84 =
24100. The new amount resulting from each annual adjustment
25shall be determined by the Public Pension Division of the
26Department of Insurance and made available to the Board by

HB4873- 115 -LRB103 35886 RPS 65971 b
1November 1 of each year.
2 For the purposes of Section 1-103.1 of this Code, the
3changes made to this Section by this amendatory Act of the
4103rd General Assembly are applicable without regard to
5whether the employee was in active service on or after the
6effective date of this amendatory Act of the 103rd General
7Assembly.
8 (c) The foregoing provisions relating to automatic
9increases are not applicable to a participant who retires
10before having made contributions (at the rate prescribed in
11Section 2-126) for automatic increases for less than the
12equivalent of one full year. However, in order to be eligible
13for the automatic increases, such a participant may make
14arrangements to pay to the system the amount required to bring
15the total contributions for the automatic increase to the
16equivalent of one year's contributions based upon his or her
17last salary.
18 (d) A participant who terminated service prior to July 1,
191967, with at least 14 years of service is entitled to an
20increase in retirement annuity beginning January, 1976, and to
21additional increases in January of each year thereafter.
22 The initial increase shall be 1 1/2% of the originally
23granted retirement annuity multiplied by the number of full
24years that the annuitant was in receipt of such annuity prior
25to January 1, 1972, plus 2% of the originally granted
26retirement annuity for each year after that date. The

HB4873- 116 -LRB103 35886 RPS 65971 b
1subsequent annual increases shall be at the rate of 2% of the
2originally granted retirement annuity for each year through
31979 and at the rate of 3% for 1980 and thereafter.
4 (e) Beginning January 1, 1990, all automatic annual
5increases payable under this Section shall be calculated as a
6percentage of the total annuity payable at the time of the
7increase, including previous increases granted under this
8Article.
9(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
10 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
11 Sec. 15-136. Retirement annuities; amount annuities -
12Amount. The provisions of this Section 15-136 apply only to
13those participants who are participating in the traditional
14benefit package or the portable benefit package and do not
15apply to participants who are participating in the
16self-managed plan.
17 (a) The amount of a participant's retirement annuity,
18expressed in the form of a single-life annuity, shall be
19determined by whichever of the following rules is applicable
20and provides the largest annuity:
21 Rule 1: The retirement annuity shall be 1.67% of final
22rate of earnings for each of the first 10 years of service,
231.90% for each of the next 10 years of service, 2.10% for each
24year of service in excess of 20 but not exceeding 30, and 2.30%
25for each year in excess of 30; or for persons who retire on or

HB4873- 117 -LRB103 35886 RPS 65971 b
1after January 1, 1998, 2.2% of the final rate of earnings for
2each year of service.
3 Rule 2: The retirement annuity shall be the sum of the
4following, determined from amounts credited to the participant
5in accordance with the actuarial tables and the effective rate
6of interest in effect at the time the retirement annuity
7begins:
8 (i) the normal annuity which can be provided on an
9 actuarially equivalent basis, by the accumulated normal
10 contributions as of the date the annuity begins;
11 (ii) an annuity from employer contributions of an
12 amount equal to that which can be provided on an
13 actuarially equivalent basis from the accumulated normal
14 contributions made by the participant under Section
15 15-113.6 and Section 15-113.7 plus 1.4 times all other
16 accumulated normal contributions made by the participant;
17 and
18 (iii) the annuity that can be provided on an
19 actuarially equivalent basis from the entire contribution
20 made by the participant under Section 15-113.3.
21 With respect to a police officer or firefighter who
22retires on or after August 14, 1998, the accumulated normal
23contributions taken into account under clauses (i) and (ii) of
24this Rule 2 shall include the additional normal contributions
25made by the police officer or firefighter under Section
2615-157(a).

HB4873- 118 -LRB103 35886 RPS 65971 b
1 The amount of a retirement annuity calculated under this
2Rule 2 shall be computed solely on the basis of the
3participant's accumulated normal contributions, as specified
4in this Rule and defined in Section 15-116. Neither an
5employee or employer contribution for early retirement under
6Section 15-136.2 nor any other employer contribution shall be
7used in the calculation of the amount of a retirement annuity
8under this Rule 2.
9 This amendatory Act of the 91st General Assembly is a
10clarification of existing law and applies to every participant
11and annuitant without regard to whether status as an employee
12terminates before the effective date of this amendatory Act.
13 This Rule 2 does not apply to a person who first becomes an
14employee under this Article on or after July 1, 2005.
15 Rule 3: The retirement annuity of a participant who is
16employed at least one-half time during the period on which his
17or her final rate of earnings is based, shall be equal to the
18participant's years of service not to exceed 30, multiplied by
19(1) $96 if the participant's final rate of earnings is less
20than $3,500, (2) $108 if the final rate of earnings is at least
21$3,500 but less than $4,500, (3) $120 if the final rate of
22earnings is at least $4,500 but less than $5,500, (4) $132 if
23the final rate of earnings is at least $5,500 but less than
24$6,500, (5) $144 if the final rate of earnings is at least
25$6,500 but less than $7,500, (6) $156 if the final rate of
26earnings is at least $7,500 but less than $8,500, (7) $168 if

HB4873- 119 -LRB103 35886 RPS 65971 b
1the final rate of earnings is at least $8,500 but less than
2$9,500, and (8) $180 if the final rate of earnings is $9,500 or
3more, except that the annuity for those persons having made an
4election under Section 15-154(a-1) shall be calculated and
5payable under the portable retirement benefit program pursuant
6to the provisions of Section 15-136.4.
7 Rule 4: A participant who is at least age 50 and has 25 or
8more years of service as a police officer or firefighter, and a
9participant who is age 55 or over and has at least 20 but less
10than 25 years of service as a police officer or firefighter,
11shall be entitled to a retirement annuity of 2 1/4% of the
12final rate of earnings for each of the first 10 years of
13service as a police officer or firefighter, 2 1/2% for each of
14the next 10 years of service as a police officer or
15firefighter, and 2 3/4% for each year of service as a police
16officer or firefighter in excess of 20. The retirement annuity
17for all other service shall be computed under Rule 1. A Tier 2
18member is eligible for a retirement annuity calculated under
19Rule 4 only if that Tier 2 member meets the service
20requirements for that benefit calculation as prescribed under
21this Rule 4 in addition to the applicable age requirement
22under subsection (a-10) of Section 15-135.
23 For purposes of this Rule 4, a participant's service as a
24firefighter shall also include the following:
25 (i) service that is performed while the person is an
26 employee under subsection (h) of Section 15-107; and

HB4873- 120 -LRB103 35886 RPS 65971 b
1 (ii) in the case of an individual who was a
2 participating employee employed in the fire department of
3 the University of Illinois's Champaign-Urbana campus
4 immediately prior to the elimination of that fire
5 department and who immediately after the elimination of
6 that fire department transferred to another job with the
7 University of Illinois, service performed as an employee
8 of the University of Illinois in a position other than
9 police officer or firefighter, from the date of that
10 transfer until the employee's next termination of service
11 with the University of Illinois.
12 (b) For a Tier 1 member, the retirement annuity provided
13under Rules 1 and 3 above shall be reduced by 1/2 of 1% for
14each month the participant is under age 60 at the time of
15retirement. However, this reduction shall not apply in the
16following cases:
17 (1) For a disabled participant whose disability
18 benefits have been discontinued because he or she has
19 exhausted eligibility for disability benefits under clause
20 (6) of Section 15-152;
21 (2) For a participant who has at least the number of
22 years of service required to retire at any age under
23 subsection (a) of Section 15-135; or
24 (3) For that portion of a retirement annuity which has
25 been provided on account of service of the participant
26 during periods when he or she performed the duties of a

HB4873- 121 -LRB103 35886 RPS 65971 b
1 police officer or firefighter, if these duties were
2 performed for at least 5 years immediately preceding the
3 date the retirement annuity is to begin.
4 (b-5) The retirement annuity of a Tier 2 member who is
5retiring under Rule 1 or 3 after attaining age 62 with at least
610 years of service credit shall be reduced by 1/2 of 1% for
7each full month that the member's age is under age 67.
8 (c) The maximum retirement annuity provided under Rules 1,
92, 4, and 5 shall be the lesser of (1) the annual limit of
10benefits as specified in Section 415 of the Internal Revenue
11Code of 1986, as such Section may be amended from time to time
12and as such benefit limits shall be adjusted by the
13Commissioner of Internal Revenue, and (2) 80% of final rate of
14earnings.
15 (d) A Tier 1 member whose status as an employee terminates
16after August 14, 1969 shall receive automatic increases in his
17or her retirement annuity as follows:
18 Effective January 1 immediately following the date the
19retirement annuity begins, the annuitant shall receive an
20increase in his or her monthly retirement annuity of 0.125% of
21the monthly retirement annuity provided under Rule 1, Rule 2,
22Rule 3, or Rule 4 contained in this Section, multiplied by the
23number of full months which elapsed from the date the
24retirement annuity payments began to January 1, 1972, plus
250.1667% of such annuity, multiplied by the number of full
26months which elapsed from January 1, 1972, or the date the

HB4873- 122 -LRB103 35886 RPS 65971 b
1retirement annuity payments began, whichever is later, to
2January 1, 1978, plus 0.25% of such annuity multiplied by the
3number of full months which elapsed from January 1, 1978, or
4the date the retirement annuity payments began, whichever is
5later, to the effective date of the increase.
6 The annuitant shall receive an increase in his or her
7monthly retirement annuity on each January 1 thereafter during
8the annuitant's life of 3% of the monthly annuity provided
9under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
10Section. The change made under this subsection by P.A. 81-970
11is effective January 1, 1980 and applies to each annuitant
12whose status as an employee terminates before or after that
13date.
14 Beginning January 1, 1990, all automatic annual increases
15payable under this Section shall be calculated as a percentage
16of the total annuity payable at the time of the increase,
17including all increases previously granted under this Article.
18 The change made in this subsection by P.A. 85-1008 is
19effective January 26, 1988, and is applicable without regard
20to whether status as an employee terminated before that date.
21 (d-5) Except as otherwise provided in this subsection, a A
22retirement annuity of a Tier 2 member shall receive annual
23increases on the January 1 occurring either on or after the
24attainment of age 67 or the first anniversary of the annuity
25start date, whichever is later. Each annual increase shall be
26calculated at 3% or one half the annual unadjusted percentage

HB4873- 123 -LRB103 35886 RPS 65971 b
1increase (but not less than zero) in the consumer price
2index-u for the 12 months ending with the September preceding
3each November 1, whichever is less, of the originally granted
4retirement annuity. If the annual unadjusted percentage change
5in the consumer price index-u for the 12 months ending with the
6September preceding each November 1 is zero or there is a
7decrease, then the annuity shall not be increased.
8 Beginning January 1, 2026, a retirement annuity of a Tier
92 member shall receive annual increases on the January 1
10occurring either on or after the first anniversary of the
11annuity start date. Each annual increase shall be calculated
12at 3% of the originally granted retirement annuity.
13 (e) If, on January 1, 1987, or the date the retirement
14annuity payment period begins, whichever is later, the sum of
15the retirement annuity provided under Rule 1 or Rule 2 of this
16Section and the automatic annual increases provided under the
17preceding subsection or Section 15-136.1, amounts to less than
18the retirement annuity which would be provided by Rule 3, the
19retirement annuity shall be increased as of January 1, 1987,
20or the date the retirement annuity payment period begins,
21whichever is later, to the amount which would be provided by
22Rule 3 of this Section. Such increased amount shall be
23considered as the retirement annuity in determining benefits
24provided under other Sections of this Article. This paragraph
25applies without regard to whether status as an employee
26terminated before the effective date of this amendatory Act of

HB4873- 124 -LRB103 35886 RPS 65971 b
11987, provided that the annuitant was employed at least
2one-half time during the period on which the final rate of
3earnings was based.
4 (f) A participant is entitled to such additional annuity
5as may be provided on an actuarially equivalent basis, by any
6accumulated additional contributions to his or her credit.
7However, the additional contributions made by the participant
8toward the automatic increases in annuity provided under this
9Section shall not be taken into account in determining the
10amount of such additional annuity.
11 (g) If, (1) by law, a function of a governmental unit, as
12defined by Section 20-107 of this Code, is transferred in
13whole or in part to an employer, and (2) a participant
14transfers employment from such governmental unit to such
15employer within 6 months after the transfer of the function,
16and (3) the sum of (A) the annuity payable to the participant
17under Rule 1, 2, or 3 of this Section (B) all proportional
18annuities payable to the participant by all other retirement
19systems covered by Article 20, and (C) the initial primary
20insurance amount to which the participant is entitled under
21the Social Security Act, is less than the retirement annuity
22which would have been payable if all of the participant's
23pension credits validated under Section 20-109 had been
24validated under this system, a supplemental annuity equal to
25the difference in such amounts shall be payable to the
26participant.

HB4873- 125 -LRB103 35886 RPS 65971 b
1 (h) On January 1, 1981, an annuitant who was receiving a
2retirement annuity on or before January 1, 1971 shall have his
3or her retirement annuity then being paid increased $1 per
4month for each year of creditable service. On January 1, 1982,
5an annuitant whose retirement annuity began on or before
6January 1, 1977, shall have his or her retirement annuity then
7being paid increased $1 per month for each year of creditable
8service.
9 (i) On January 1, 1987, any annuitant whose retirement
10annuity began on or before January 1, 1977, shall have the
11monthly retirement annuity increased by an amount equal to 8¢
12per year of creditable service times the number of years that
13have elapsed since the annuity began.
14 (j) The changes made to this Section by this amendatory
15Act of the 101st General Assembly apply retroactively to
16January 1, 2011.
17(Source: P.A. 101-610, eff. 1-1-20.)
18 (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
19 Sec. 18-125.1. Automatic increase in retirement annuity. A
20participant who retires from service after June 30, 1969,
21shall, in January of the year next following the year in which
22the first anniversary of retirement occurs, and in January of
23each year thereafter, have the amount of his or her originally
24granted retirement annuity increased as follows: for each year
25up to and including 1971, 1 1/2%; for each year from 1972

HB4873- 126 -LRB103 35886 RPS 65971 b
1through 1979 inclusive, 2%; and for 1980 and each year
2thereafter, 3%.
3 Notwithstanding any other provision of this Article and
4except as otherwise provided in this Section, a retirement
5annuity for a participant who first serves as a judge on or
6after January 1, 2011 (the effective date of Public Act
796-889) shall be increased in January of the year next
8following the year in which the first anniversary of
9retirement occurs, but in no event prior to age 67, and in
10January of each year thereafter, by an amount equal to 3% or
11the annual percentage increase in the consumer price index-u
12as determined by the Public Pension Division of the Department
13of Insurance under subsection (b-5) of Section 18-125,
14whichever is less, of the retirement annuity then being paid.
15 Notwithstanding any other provision of this Article,
16beginning January 1, 2026, a retirement annuity for a
17participant who first serves as a judge on or after January 1,
182011 (the effective date of Public Act 96-889) shall be
19increased in January of the year next following the year in
20which the first anniversary of retirement occurs, and in
21January of each year thereafter, by an amount equal to 3% of
22the retirement annuity then being paid.
23 In this Section, "consumer price index-u" means the index
24published by the Bureau of Labor Statistics of the United
25States Department of Labor that measures the average change in
26prices of goods and services purchased by all urban consumers,

HB4873- 127 -LRB103 35886 RPS 65971 b
1United States city average, all items, 1982-84 = 100. The new
2amount resulting from each annual adjustment shall be
3determined by the Public Pension Division of the Department of
4Insurance and made available to the Board by November 1 of each
5year.
6 For the purposes of Section 1-103.1 of this Code, the
7changes made to this Section by this amendatory Act of the
8103rd General Assembly are applicable without regard to
9whether the employee was in active service on or after the
10effective date of this amendatory Act of the 103rd General
11Assembly.
12 This Section is not applicable to a participant who
13retires before he or she has made contributions at the rate
14prescribed in Section 18-133 for automatic increases for not
15less than the equivalent of one full year, unless such a
16participant arranges to pay the system the amount required to
17bring the total contributions for the automatic increase to
18the equivalent of one year's contribution based upon his or
19her last year's salary.
20 This Section is applicable to all participants in service
21after June 30, 1969 unless a participant has elected, prior to
22September 1, 1969, in a written direction filed with the board
23not to be subject to the provisions of this Section. Any
24participant in service on or after July 1, 1992 shall have the
25option of electing prior to April 1, 1993, in a written
26direction filed with the board, to be covered by the

HB4873- 128 -LRB103 35886 RPS 65971 b
1provisions of the 1969 amendatory Act. Such participant shall
2be required to make the aforesaid additional contributions
3with compound interest at 4% per annum.
4 Any participant who has become eligible to receive the
5maximum rate of annuity and who resumes service as a judge
6after receiving a retirement annuity under this Article shall
7have the amount of his or her retirement annuity increased by
83% of the originally granted annuity amount for each year of
9such resumed service, beginning in January of the year next
10following the date of such resumed service, upon subsequent
11termination of such resumed service.
12 Beginning January 1, 1990, all automatic annual increases
13payable under this Section shall be calculated as a percentage
14of the total annuity payable at the time of the increase,
15including previous increases granted under this Article.
16(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
17
Article 3.
18 Section 3-5. The Illinois Administrative Procedure Act is
19amended by adding Section 5-45.55 as follows:
20 (5 ILCS 100/5-45.55 new)
21 Sec. 5-45.55. Emergency rulemaking; accelerated pension
22benefit payments. To provide for the expeditious and timely
23implementation of accelerated pension benefit payments under

HB4873- 129 -LRB103 35886 RPS 65971 b
1Articles 2 and 18 of the Illinois Pension Code, emergency
2rules implementing the accelerated pension benefit payments
3under Article 2 may be adopted in accordance with Section 5-45
4by the Board of Trustees established under Article 2 of the
5Illinois Pension Code and emergency rules implementing the
6accelerated pension benefit payments under Article 18 may be
7adopted in accordance with Section 5-45 by the Board of
8Trustees established under Article 18 of the Illinois Pension
9Code. The adoption of emergency rules authorized by Section
105-45 and this Section is deemed to be necessary for the public
11interest, safety, and welfare.
12 This Section is repealed one year after the effective date
13of this amendatory Act of the 103rd General Assembly.
14 Section 3-10. The Illinois Pension Code is amended by
15adding Sections 2-154.5, 2-154.6, 17-156.10, 17-156.11,
1618-161.5, and 18-161.6 as follows:
17 (40 ILCS 5/2-154.5 new)
18 Sec. 2-154.5. Accelerated pension benefit payment in lieu
19of any pension benefit.
20 (a) As used in this Section:
21 "Eligible person" means a person who:
22 (1) has terminated service;
23 (2) has accrued sufficient service credit to be
24 eligible to receive a retirement annuity under this

HB4873- 130 -LRB103 35886 RPS 65971 b
1 Article;
2 (3) has not received any retirement annuity under this
3 Article; and
4 (4) has not made the election under Section 2-154.6.
5 "Pension benefit" means the benefits under this Article,
6including any anticipated annual increases, that an eligible
7person is entitled to upon attainment of the applicable
8retirement age. "Pension benefit" also includes applicable
9survivor's or disability benefits.
10 (b) As soon as practical after the effective date of this
11amendatory Act of the 103rd General Assembly, the System shall
12calculate, using actuarial tables and other assumptions
13adopted by the Board, the present value of pension benefits
14for each eligible person who requests that information and
15shall offer each eligible person the opportunity to
16irrevocably elect to receive an amount determined by the
17System to be equal to 60% of the present value of his or her
18pension benefits in lieu of receiving any pension benefit. The
19offer shall specify the dollar amount that the eligible person
20will receive if he or she so elects and shall expire when a
21subsequent offer is made to an eligible person. An eligible
22person is limited to one calculation and offer per calendar
23year. The System shall make a good faith effort to contact
24every eligible person to notify him or her of the election.
25Until June 30, 2027, an eligible person may irrevocably elect
26to receive an accelerated pension benefit payment in the

HB4873- 131 -LRB103 35886 RPS 65971 b
1amount that the System offers under this subsection in lieu of
2receiving any pension benefit. A person who elects to receive
3an accelerated pension benefit payment under this Section may
4not elect to proceed under the Retirement Systems Reciprocal
5Act with respect to service under this Article.
6 (c) A person's creditable service under this Article shall
7be terminated upon the person's receipt of an accelerated
8pension benefit payment under this Section, and no other
9benefit shall be paid under this Article based on the
10terminated creditable service, including any retirement,
11survivor, or other benefit; except that to the extent that
12participation, benefits, or premiums under the State Employees
13Group Insurance Act of 1971 are based on the amount of service
14credit, the terminated service credit shall be used for that
15purpose.
16 (d) If a person who has received an accelerated pension
17benefit payment under this Section returns to active service
18under this Article, then:
19 (1) Any benefits under the System earned as a result
20 of that return to active service shall be based solely on
21 the person's creditable service arising from the return to
22 active service.
23 (2) The accelerated pension benefit payment may not be
24 repaid to the System, and the terminated creditable
25 service may not under any circumstances be reinstated.
26 (e) As a condition of receiving an accelerated pension

HB4873- 132 -LRB103 35886 RPS 65971 b
1benefit payment, the accelerated pension benefit payment must
2be transferred into a tax qualified retirement plan or
3account. The accelerated pension benefit payment under this
4Section may be subject to withholding or payment of applicable
5taxes, but to the extent permitted by federal law, a person who
6receives an accelerated pension benefit payment under this
7Section must direct the System to pay all of that payment as a
8rollover into another retirement plan or account qualified
9under the Internal Revenue Code of 1986, as amended.
10 (f) Upon receipt of a member's irrevocable election to
11receive an accelerated pension benefit payment under this
12Section, the System shall submit a voucher to the Comptroller
13for payment of the member's accelerated pension benefit
14payment. The Comptroller shall transfer the amount of the
15voucher from the General Revenue Fund to the System, and the
16System shall transfer the amount into the member's eligible
17retirement plan or qualified account.
18 (g) The Board shall adopt any rules, including emergency
19rules, necessary to implement this Section.
20 (h) No provision of this Section shall be interpreted in a
21way that would cause the applicable System to cease to be a
22qualified plan under the Internal Revenue Code of 1986.
23 (40 ILCS 5/2-154.6 new)
24 Sec. 2-154.6. Accelerated pension benefit payment for a
25reduction in annual retirement annuity and survivor's annuity

HB4873- 133 -LRB103 35886 RPS 65971 b
1increases.
2 (a) As used in this Section:
3 "Accelerated pension benefit payment" means a lump sum
4payment equal to 70% of the difference of the present value of
5the automatic annual increases to a Tier 1 participant's
6retirement annuity and survivor's annuity using the formula
7applicable to the Tier 1 participant and the present value of
8the automatic annual increases to the Tier 1 participant's
9retirement annuity using the formula provided under subsection
10(b-5) and survivor's annuity using the formula provided under
11subsection (b-6).
12 "Eligible person" means a person who:
13 (1) is a Tier 1 participant;
14 (2) has submitted an application for a retirement
15 annuity under this Article;
16 (3) meets the age and service requirements for
17 receiving a retirement annuity under this Article;
18 (4) has not received any retirement annuity under this
19 Article; and
20 (5) has not made the election under Section 2-154.5.
21 (b) As soon as practical after the effective date of this
22amendatory Act of the 103rd General Assembly and until June
2330, 2027, the System shall implement an accelerated pension
24benefit payment option for eligible persons. Upon the request
25of an eligible person, the System shall calculate, using
26actuarial tables and other assumptions adopted by the Board,

HB4873- 134 -LRB103 35886 RPS 65971 b
1an accelerated pension benefit payment amount and shall offer
2that eligible person the opportunity to irrevocably elect to
3have his or her automatic annual increases in retirement
4annuity calculated in accordance with the formula provided
5under subsection (b-5) and any increases in survivor's annuity
6payable to his or her survivor's annuity beneficiary
7calculated in accordance with the formula provided under
8subsection (b-6) in exchange for the accelerated pension
9benefit payment. The election under this subsection must be
10made before the eligible person receives the first payment of
11a retirement annuity otherwise payable under this Article.
12 (b-5) Notwithstanding any other provision of law, the
13retirement annuity of a person who made the election under
14subsection (b) shall be subject to annual increases on the
15January 1 occurring either on or after the attainment of age 67
16or the first anniversary of the annuity start date, whichever
17is later. Each annual increase shall be calculated at 1.5% of
18the originally granted retirement annuity.
19 (b-6) Notwithstanding any other provision of law, a
20survivor's annuity payable to a survivor's annuity beneficiary
21of a person who made the election under subsection (b) shall be
22subject to annual increases on the January 1 occurring on or
23after the first anniversary of the commencement of the
24annuity. Each annual increase shall be calculated at 1.5% of
25the originally granted survivor's annuity.
26 (c) If a person who has received an accelerated pension

HB4873- 135 -LRB103 35886 RPS 65971 b
1benefit payment returns to active service under this Article,
2then:
3 (1) the calculation of any future automatic annual
4 increase in retirement annuity shall be calculated in
5 accordance with the formula provided under subsection
6 (b-5); and
7 (2) the accelerated pension benefit payment may not be
8 repaid to the System.
9 (d) As a condition of receiving an accelerated pension
10benefit payment, the accelerated pension benefit payment must
11be transferred into a tax qualified retirement plan or
12account. The accelerated pension benefit payment under this
13Section may be subject to withholding or payment of applicable
14taxes, but to the extent permitted by federal law, a person who
15receives an accelerated pension benefit payment under this
16Section must direct the System to pay all of that payment as a
17rollover into another retirement plan or account qualified
18under the Internal Revenue Code of 1986, as amended.
19 (d-5) Upon receipt of a participant's irrevocable election
20to receive an accelerated pension benefit payment under this
21Section, the System shall submit a voucher to the Comptroller
22for payment of the participant's accelerated pension benefit
23payment. The Comptroller shall transfer the amount of the
24voucher from the General Revenue Fund to the System, and the
25System shall transfer the amount into the member's eligible
26retirement plan or qualified account.

HB4873- 136 -LRB103 35886 RPS 65971 b
1 (e) The Board shall adopt any rules, including emergency
2rules, necessary to implement this Section.
3 (f) No provision of this Section shall be interpreted in a
4way that would cause the applicable System to cease to be a
5qualified plan under the Internal Revenue Code of 1986.
6 (40 ILCS 5/17-156.10 new)
7 Sec. 17-156.10. Accelerated pension benefit payment in
8lieu of any pension benefit.
9 (a) As used in this Section:
10 "Eligible person" means a person who:
11 (1) has terminated service;
12 (2) has accrued sufficient service credit to be
13 eligible to receive a service retirement pension under
14 this Article;
15 (3) has not received any service retirement pension
16 under this Article; and
17 (4) has not made the election under Section 17-156.11.
18 "Pension benefit" means the benefits under this Article,
19including any anticipated annual increases, that an eligible
20person is entitled to upon attainment of the applicable
21retirement age. "Pension benefit" also includes applicable
22survivor's pensions, duty disability pensions, and disability
23retirement pensions.
24 (b) As soon as practical after the effective date of this
25amendatory Act of the 103rd General Assembly, the Fund shall

HB4873- 137 -LRB103 35886 RPS 65971 b
1calculate, using actuarial tables and other assumptions
2adopted by the Board, the present value of pension benefits
3for each eligible person who requests that information and
4shall offer each eligible person the opportunity to
5irrevocably elect to receive an amount determined by the Fund
6to be equal to 60% of the present value of his or her pension
7benefits in lieu of receiving any pension benefit. The offer
8shall specify the dollar amount that the eligible person will
9receive if he or she so elects and shall expire when a
10subsequent offer is made to an eligible person. An eligible
11person is limited to one calculation and offer per calendar
12year. The Fund shall make a good faith effort to contact every
13eligible person to notify him or her of the election. Until
14June 30, 2027, an eligible person may irrevocably elect to
15receive an accelerated pension benefit payment in the amount
16that the Fund offers under this subsection in lieu of
17receiving any pension benefit. A person who elects to receive
18an accelerated pension benefit payment under this Section may
19not elect to proceed under the Retirement Systems Reciprocal
20Act with respect to service under this Article.
21 (c) A person's creditable service under this Article shall
22be terminated upon the person's receipt of an accelerated
23pension benefit payment under this Section, and no other
24benefit shall be paid under this Article based on the
25terminated creditable service, including any retirement,
26survivor, or other pension benefit; except that to the extent

HB4873- 138 -LRB103 35886 RPS 65971 b
1that participation, benefits, or premiums under the State
2Employees Group Insurance Act of 1971 are based on the amount
3of service credit, the terminated service credit shall be used
4for that purpose.
5 (d) If a person who has received an accelerated pension
6benefit payment under this Section returns to active service
7under this Article, then:
8 (1) Any benefits under the Fund earned as a result of
9 that return to active service shall be based solely on the
10 person's creditable service arising from the return to
11 active service.
12 (2) The accelerated pension benefit payment may not be
13 repaid to the Fund, and the terminated creditable service
14 may not under any circumstances be reinstated.
15 (e) As a condition of receiving an accelerated pension
16benefit payment, the accelerated pension benefit payment must
17be transferred into a tax qualified retirement plan or
18account. The accelerated pension benefit payment under this
19Section may be subject to withholding or payment of applicable
20taxes, but to the extent permitted by federal law, a person who
21receives an accelerated pension benefit payment under this
22Section must direct the Fund to pay all of that payment as a
23rollover into another retirement plan or account qualified
24under the Internal Revenue Code of 1986, as amended.
25 (f) Upon receipt of a member's irrevocable election to
26receive an accelerated pension benefit payment under this

HB4873- 139 -LRB103 35886 RPS 65971 b
1Section, the Fund shall submit a voucher to the Comptroller
2for payment of the member's accelerated pension benefit
3payment. The Comptroller shall transfer the amount of the
4voucher from the General Revenue Fund to the Fund, and the Fund
5shall transfer the amount into the member's eligible
6retirement plan or qualified account.
7 (g) The Board shall adopt any rules necessary to implement
8this Section.
9 (h) No provision of this Section shall be interpreted in a
10way that would cause the Fund to cease to be a qualified plan
11under the Internal Revenue Code of 1986.
12 (40 ILCS 5/17-156.11 new)
13 Sec. 17-156.11. Accelerated pension benefit payment for a
14reduction in annual service retirement pension and survivor's
15pension increases.
16 (a) As used in this Section:
17 "Accelerated pension benefit payment" means a lump sum
18payment equal to 70% of the difference of the present value of
19the automatic annual increases to a Tier 1 member's service
20retirement pension and survivor's pension using the formula
21applicable to the Tier 1 member and the present value of the
22automatic annual increases to the Tier 1 member's service
23retirement pension using the formula provided under subsection
24(b-5) and survivor's pension using the formula provided under
25subsection (b-6).

HB4873- 140 -LRB103 35886 RPS 65971 b
1 "Eligible person" means a person who:
2 (1) is a Tier 1 member;
3 (2) has submitted an application for a service
4 retirement pension under this Article;
5 (3) meets the age and service requirements for
6 receiving a service retirement pension under this Article;
7 (4) has not received any service retirement pension
8 under this Article; and
9 (5) has not made the election under Section 17-156.10.
10 "Tier 1 member" means a person who first became a member
11before January 1, 2011.
12 (b) As soon as practical after the effective date of this
13amendatory Act of the 103rd General Assembly and until June
1430, 2027, the Fund shall implement an accelerated pension
15benefit payment option for eligible persons. Upon the request
16of an eligible person, the Fund shall calculate, using
17actuarial tables and other assumptions adopted by the Board,
18an accelerated pension benefit payment amount and shall offer
19that eligible person the opportunity to irrevocably elect to
20have his or her automatic annual increases in service
21retirement pension calculated in accordance with the formula
22provided under subsection (b-5) and any increases in
23survivor's pension payable to his or her survivor's pension
24beneficiary calculated in accordance with the formula provided
25under subsection (b-6) in exchange for the accelerated pension
26benefit payment. The election under this subsection must be

HB4873- 141 -LRB103 35886 RPS 65971 b
1made before the eligible person receives the first payment of
2a service retirement pension otherwise payable under this
3Article.
4 (b-5) Notwithstanding any other provision of law, the
5service retirement pension of a person who made the election
6under subsection (b) shall be subject to annual increases on
7the January 1 occurring either on or after the attainment of
8age 67 or the first anniversary of the pension start date,
9whichever is later. Each annual increase shall be calculated
10at 1.5% of the originally granted service retirement pension.
11 (b-6) Notwithstanding any other provision of law, a
12survivor's pension payable to a survivor's pension beneficiary
13of a person who made the election under subsection (b) shall be
14subject to annual increases on the January 1 occurring on or
15after the first anniversary of the commencement of the
16pension. Each annual increase shall be calculated at 1.5% of
17the originally granted survivor's pension.
18 (c) If a person who has received an accelerated pension
19benefit payment returns to active service under this Article,
20then:
21 (1) the calculation of any future automatic annual
22 increase in service retirement pension shall be calculated
23 in accordance with the formula provided under subsection
24 (b-5); and
25 (2) the accelerated pension benefit payment may not be
26 repaid to the Fund.

HB4873- 142 -LRB103 35886 RPS 65971 b
1 (d) As a condition of receiving an accelerated pension
2benefit payment, the accelerated pension benefit payment must
3be transferred into a tax qualified retirement plan or
4account. The accelerated pension benefit payment under this
5Section may be subject to withholding or payment of applicable
6taxes, but to the extent permitted by federal law, a person who
7receives an accelerated pension benefit payment under this
8Section must direct the Fund to pay all of that payment as a
9rollover into another retirement plan or account qualified
10under the Internal Revenue Code of 1986, as amended.
11 (d-5) Upon receipt of a member's irrevocable election to
12receive an accelerated pension benefit payment under this
13Section, the Fund shall submit a voucher to the Comptroller
14for payment of the member's accelerated pension benefit
15payment. The Comptroller shall transfer the amount of the
16voucher from the General Revenue Fund to the Fund, and the Fund
17shall transfer the amount into the member's eligible
18retirement plan or qualified account.
19 (e) The Board shall adopt any rules, including emergency
20rules, necessary to implement this Section.
21 (f) No provision of this Section shall be interpreted in a
22way that would cause the Fund to cease to be a qualified plan
23under the Internal Revenue Code of 1986.
24 (40 ILCS 5/18-161.5 new)
25 Sec. 18-161.5. Accelerated pension benefit payment in lieu

HB4873- 143 -LRB103 35886 RPS 65971 b
1of any pension benefit.
2 (a) As used in this Section:
3 "Eligible person" means a person who:
4 (1) has terminated service;
5 (2) has accrued sufficient service credit to be
6 eligible to receive a retirement annuity under this
7 Article;
8 (3) has not received any retirement annuity under this
9 Article; and
10 (4) has not made the election under Section 18-161.6.
11 "Pension benefit" means the benefits under this Article,
12including any anticipated annual increases, that an eligible
13person is entitled to upon attainment of the applicable
14retirement age. "Pension benefit" also includes applicable
15survivor's or disability benefits.
16 (b) As soon as practical after the effective date of this
17amendatory Act of the 103rd General Assembly, the System shall
18calculate, using actuarial tables and other assumptions
19adopted by the Board, the present value of pension benefits
20for each eligible person who requests that information and
21shall offer each eligible person the opportunity to
22irrevocably elect to receive an amount determined by the
23System to be equal to 60% of the present value of his or her
24pension benefits in lieu of receiving any pension benefit. The
25offer shall specify the dollar amount that the eligible person
26will receive if he or she so elects and shall expire when a

HB4873- 144 -LRB103 35886 RPS 65971 b
1subsequent offer is made to an eligible person. An eligible
2person is limited to one calculation and offer per calendar
3year. The System shall make a good faith effort to contact
4every eligible person to notify him or her of the election.
5Until June 30, 2027, an eligible person may irrevocably elect
6to receive an accelerated pension benefit payment in the
7amount that the System offers under this subsection in lieu of
8receiving any pension benefit. A person who elects to receive
9an accelerated pension benefit payment under this Section may
10not elect to proceed under the Retirement Systems Reciprocal
11Act with respect to service under this Article.
12 (c) A person's creditable service under this Article shall
13be terminated upon the person's receipt of an accelerated
14pension benefit payment under this Section, and no other
15benefit shall be paid under this Article based on the
16terminated creditable service, including any retirement,
17survivor, or other benefit; except that to the extent that
18participation, benefits, or premiums under the State Employees
19Group Insurance Act of 1971 are based on the amount of service
20credit, the terminated service credit shall be used for that
21purpose.
22 (d) If a person who has received an accelerated pension
23benefit payment under this Section returns to active service
24under this Article, then:
25 (1) Any benefits under the System earned as a result
26 of that return to active service shall be based solely on

HB4873- 145 -LRB103 35886 RPS 65971 b
1 the person's creditable service arising from the return to
2 active service.
3 (2) The accelerated pension benefit payment may not be
4 repaid to the System, and the terminated creditable
5 service may not under any circumstances be reinstated.
6 (e) As a condition of receiving an accelerated pension
7benefit payment, the accelerated pension benefit payment must
8be transferred into a tax qualified retirement plan or
9account. The accelerated pension benefit payment under this
10Section may be subject to withholding or payment of applicable
11taxes, but to the extent permitted by federal law, a person who
12receives an accelerated pension benefit payment under this
13Section must direct the System to pay all of that payment as a
14rollover into another retirement plan or account qualified
15under the Internal Revenue Code of 1986, as amended.
16 (f) Upon receipt of a member's irrevocable election to
17receive an accelerated pension benefit payment under this
18Section, the System shall submit a voucher to the Comptroller
19for payment of the member's accelerated pension benefit
20payment. The Comptroller shall transfer the amount of the
21voucher from the General Revenue Fund to the System, and the
22System shall transfer the amount into the member's eligible
23retirement plan or qualified account.
24 (g) The Board shall adopt any rules, including emergency
25rules, necessary to implement this Section.
26 (h) No provision of this Section shall be interpreted in a

HB4873- 146 -LRB103 35886 RPS 65971 b
1way that would cause the applicable System to cease to be a
2qualified plan under the Internal Revenue Code of 1986.
3 (40 ILCS 5/18-161.6 new)
4 Sec. 18-161.6. Accelerated pension benefit payment for a
5reduction in annual retirement annuity and survivor's annuity
6increases.
7 (a) As used in this Section:
8 "Accelerated pension benefit payment" means a lump sum
9payment equal to 70% of the difference of the present value of
10the automatic annual increases to a Tier 1 participant's
11retirement annuity and survivor's annuity using the formula
12applicable to the Tier 1 participant and the present value of
13the automatic annual increases to the Tier 1 participant's
14retirement annuity using the formula provided under subsection
15(b-5) and survivor's annuity using the formula provided under
16subsection (b-6).
17 "Eligible person" means a person who:
18 (1) is a Tier 1 participant;
19 (2) has submitted an application for a retirement
20 annuity under this Article;
21 (3) meets the age and service requirements for
22 receiving a retirement annuity under this Article;
23 (4) has not received any retirement annuity under this
24 Article; and
25 (5) has not made the election under Section 18-161.5.

HB4873- 147 -LRB103 35886 RPS 65971 b
1 "Tier 1 participant" means a person who first became a
2participant before January 1, 2011.
3 (b) As soon as practical after the effective date of this
4amendatory Act of the 103rd General Assembly and until June
530, 2027, the System shall implement an accelerated pension
6benefit payment option for eligible persons. Upon the request
7of an eligible person, the System shall calculate, using
8actuarial tables and other assumptions adopted by the Board,
9an accelerated pension benefit payment amount and shall offer
10that eligible person the opportunity to irrevocably elect to
11have his or her automatic annual increases in retirement
12annuity calculated in accordance with the formula provided
13under subsection (b-5) and any increases in survivor's annuity
14payable to his or her survivor's annuity beneficiary
15calculated in accordance with the formula provided under
16subsection (b-6) in exchange for the accelerated pension
17benefit payment. The election under this subsection must be
18made before the eligible person receives the first payment of
19a retirement annuity otherwise payable under this Article.
20 (b-5) Notwithstanding any other provision of law, the
21retirement annuity of a person who made the election under
22subsection (b) shall be subject to annual increases on the
23January 1 occurring either on or after the attainment of age 67
24or the first anniversary of the annuity start date, whichever
25is later. Each annual increase shall be calculated at 1.5% of
26the originally granted retirement annuity.

HB4873- 148 -LRB103 35886 RPS 65971 b
1 (b-6) Notwithstanding any other provision of law, a
2survivor's annuity payable to a survivor's annuity beneficiary
3of a person who made the election under subsection (b) shall be
4subject to annual increases on the January 1 occurring on or
5after the first anniversary of the commencement of the
6annuity. Each annual increase shall be calculated at 1.5% of
7the originally granted survivor's annuity.
8 (c) If a person who has received an accelerated pension
9benefit payment returns to active service under this Article,
10then:
11 (1) the calculation of any future automatic annual
12 increase in retirement annuity shall be calculated in
13 accordance with the formula provided under subsection
14 (b-5); and
15 (2) the accelerated pension benefit payment may not be
16 repaid to the System.
17 (d) As a condition of receiving an accelerated pension
18benefit payment, the accelerated pension benefit payment must
19be transferred into a tax qualified retirement plan or
20account. The accelerated pension benefit payment under this
21Section may be subject to withholding or payment of applicable
22taxes, but to the extent permitted by federal law, a person who
23receives an accelerated pension benefit payment under this
24Section must direct the System to pay all of that payment as a
25rollover into another retirement plan or account qualified
26under the Internal Revenue Code of 1986, as amended.

HB4873- 149 -LRB103 35886 RPS 65971 b
1 (d-5) Upon receipt of a participant's irrevocable election
2to receive an accelerated pension benefit payment under this
3Section, the System shall submit a voucher to the Comptroller
4for payment of the participant's accelerated pension benefit
5payment. The Comptroller shall transfer the amount of the
6voucher from the General Revenue Fund to the System, and the
7System shall transfer the amount into the member's eligible
8retirement plan or qualified account.
9 (e) The Board shall adopt any rules, including emergency
10rules, necessary to implement this Section.
11 (f) No provision of this Section shall be interpreted in a
12way that would cause the applicable System to cease to be a
13qualified plan under the Internal Revenue Code of 1986.
14
Article 4.
15 Section 4-5. The Illinois Pension Code is amended by
16adding Sections 1-168, 3-118, 4-136, and 7-142.2 as follows:
17 (40 ILCS 5/1-168 new)
18 Sec. 1-168. Deferred retirement option plan.
19 (a) In this Section:
20 "Deferred retirement option plan" or "DROP" means the plan
21created under this Section that provides an alternative method
22of benefit accrual in the pension fund or retirement system.
23 "DROP member" means an eligible member who makes an

HB4873- 150 -LRB103 35886 RPS 65971 b
1election to participate in the DROP no later than January 1,
22029.
3 "Eligible member" means a participating member under a
4pension fund or retirement system established under Article
514, 15, 16, or 17 who, at the time of the member's election to
6participate in the DROP:
7 (1) is otherwise eligible to retire under the
8 applicable Article with a full and unreduced pension as
9 determined by the retirement system or pension fund of
10 which the member is an active member at the time of the
11 election to participate in the DROP;
12 (2) is not in receipt of a disability or retirement
13 annuity from the applicable retirement system or pension
14 fund at the time of his or her election to participate in
15 the DROP; and
16 (3) is actively employed in a position that is covered
17 under a collective bargaining agreement.
18 (b) The DROP shall be made available to eligible members
19no later than January 1, 2026.
20 (c) Eligible members must make their election to
21participate in the DROP in writing with the State Treasurer in
22a form acceptable to the State Treasurer. The State Treasurer
23must process the election and begin crediting an account on
24behalf of the DROP member as soon as is practicable after the
25election has been received.
26 At the time of or prior to electing to participate in the

HB4873- 151 -LRB103 35886 RPS 65971 b
1DROP, a member must, unless otherwise provided by law, make
2all other elections required to be made at or before the date
3of retirement, including, but not limited to, purchase of
4optional service, election of an accelerated pension benefit
5payment, or any other election identified by the retirement
6system or pension fund.
7 (d) An eligible member may participate in the DROP for a
8period not to exceed 5 years from the date of the eligible
9member's election.
10 (e) During the period of the DROP member's participation
11in the DROP, the applicable pension fund or retirement system
12shall transfer, and the State Treasurer shall credit into a
13notional account on behalf of the DROP member, an amount equal
14to the monthly amount of retirement annuity the DROP member
15would otherwise be eligible to receive if the DROP member had
16retired on the date of the election under this Section. A DROP
17member who is entitled to a benefit from a participating
18system under the Retirement Systems Reciprocal Act shall be
19eligible to have the benefit the DROP member would have
20otherwise been eligible to receive if the DROP member retired
21on the date of the election under this Section deposited with
22the State Treasurer in the DROP member's DROP account and
23administered in a manner consistent with the requirements of
24this Section. The applicable pension fund or retirement
25system, prior to forwarding any funds to the State Treasurer,
26shall deduct any amounts required to be deducted under State

HB4873- 152 -LRB103 35886 RPS 65971 b
1or federal law, including, but not limited to, payments
2required under a Qualified Illinois Domestic Relations Order
3under Section 1-119. Any automatic annual increases that would
4have otherwise been applied to the DROP member's benefit if
5the DROP member had elected to retire instead of participate
6in the DROP shall accrue to the DROP member's monthly payment
7placed into the account prior to the expiration of the DROP and
8shall otherwise apply to the DROP member's annuity upon
9expiration of the DROP. The account shall be held on behalf of
10the DROP member.
11 (f) DROP members shall make contributions to the pension
12fund or retirement system during their participation in the
13DROP in an amount equal to the employee contributions under
14the applicable Article that would otherwise be required if the
15DROP member were an active participant of the pension fund or
16retirement system. Those amounts shall be forwarded to the
17State Treasurer and credited to the member's DROP account,
18minus any administrative costs determined by the pension fund
19or retirement system to be attributable to the administration
20of the DROP benefits experienced by the pension fund or
21retirement system.
22 (g) The amounts credited to the DROP account shall be held
23in notional accounts by the State Treasurer. The amounts in
24the DROP account shall not accrue interest. The State
25Treasurer shall reduce the amounts in the DROP account on a
26schedule set by the State Treasurer to cover all of the

HB4873- 153 -LRB103 35886 RPS 65971 b
1administrative costs of the State Treasurer that are deemed to
2be attributable to the administration of the DROP account and
3any duties required under this Section.
4 (h) Upon expiration or termination of the DROP member's
5participation in the DROP, the account balance shall be paid
6to the DROP member as a lump sum. The State Treasurer shall
7provide options for the transfer of the account consistent
8with its fiduciary duty and any applicable State or federal
9law. The expiration or termination of a DROP member's
10participation in the DROP may not occur after January 1, 2034.
11 (i) The DROP election is irrevocable, and the DROP member
12may not, except as otherwise provided in this Section, access
13the account prior to the date established as the last day of
14the DROP when the DROP member made the initial election to
15participate in the DROP. The DROP member must terminate
16employment with the employer upon expiration of his or her
17participation in the DROP. The DROP member's participation in
18the DROP shall terminate prior to the expiration date:
19 (1) if the DROP member terminates employment with the
20 employer prior to the expiration of the designated DROP
21 period;
22 (2) if the DROP member becomes eligible for and begins
23 collecting a disability benefit from the pension fund or
24 retirement system; or
25 (3) upon the death of the DROP member.
26 Upon termination from the DROP, the member shall commence

HB4873- 154 -LRB103 35886 RPS 65971 b
1his or her retirement annuity from the pension fund or
2retirement system. After termination or expiration of a
3member's participation in the DROP, the member may not
4participate in employment in any way that would require the
5member to become an active contributing member of the
6retirement system or pension fund.
7 The State Treasurer may allow for the payment of the
8balance of the DROP account prior to the last date of
9participation in the DROP established by the DROP member when
10the DROP member made the initial election to participate in
11the DROP if (i) the member's participation in the DROP
12terminated and (ii) the State Treasurer determines the DROP
13member should have access to the DROP account balance due to
14hardship or necessity as determined by the State Treasurer.
15 (j) A DROP member shall be considered in active service
16for purposes of eligibility for death and disability benefits
17and access to any health care benefits provided for by the
18employer and shall retain all rights of employment as
19established under the DROP member's collective bargaining
20agreement.
21 The DROP member shall not accrue additional service credit
22in the pension fund or retirement system while participating
23in the DROP, regardless of any service accruals, future pay
24increases, active cost of living adjustments, or promotions.
25Additionally, the DROP member shall not be eligible to
26purchase any optional service credit or to repay any refunds.

HB4873- 155 -LRB103 35886 RPS 65971 b
1 Eligibility for a surviving spouse benefit shall be
2determined at the time of the DROP election.
3 Any amounts due to an alternate payee under a Qualified
4Illinois Domestic Relations Order under Section 1-119 shall be
5calculated at the time of the DROP election and such amounts
6shall be payable at the time of election.
7 If the DROP member's designated beneficiary predeceases
8the DROP member and the DROP member dies before designating a
9new beneficiary, the DROP member's DROP account shall be paid
10to the DROP member's estate.
11 When determining if a member is owed a refund of
12contributions due to the member's death prior to collecting an
13amount equal to or greater than the member's contributions,
14the proceeds of the DROP account shall be considered part of
15the total payment made to the member or the member's estate.
16 (k) It is intended that the DROP shall not jeopardize the
17tax qualified status of the pension fund or retirement system.
18The State Treasurer shall have the authority to adopt rules
19necessary or appropriate for the DROP to maintain compliance
20with applicable federal laws and regulations. Notwithstanding
21any other provision of this Code, all benefits provided under
22the DROP shall be subject to the requirements and limits of the
23Internal Revenue Code of 1986, as amended.
24 (l) The State Treasurer shall be the administrator of the
25DROP plan created in this Section. The administration shall be
26subject to any applicable laws, and the State Treasurer shall

HB4873- 156 -LRB103 35886 RPS 65971 b
1administer the program in the best interest of the DROP
2members in a way that a prudent person in a similar
3circumstance would. The executive director of each pension
4fund and retirement system created under Articles 14, 15, 16,
5and 17, or the executive directors' designees, shall
6participate in the DROP Advisory Board, which shall meet
7quarterly. The State Treasurer, or the State Treasurer's
8designee, shall chair the DROP Advisory Board. The State
9Treasurer may solicit advice and information from the members
10of the DROP Advisory Board or from the DROP Advisory Board as a
11whole while administering the DROP. Except as otherwise
12provided by law, the State Treasurer shall be the sole
13decision maker governing the DROP.
14 (40 ILCS 5/3-118 new)
15 Sec. 3-118. Deferred retirement option plan.
16 (a) As used in this Section:
17 "Deferred retirement option plan" or "DROP" means a plan
18created under this Section that provides an alternative method
19of benefit accrual in the fund.
20 "DROP member" means an eligible member who makes an
21election to participate in the DROP no later than January 1,
222029.
23 "DROP period" means the period during which a DROP member
24participates in the DROP.
25 "Eligible member" means a police officer who, at the time

HB4873- 157 -LRB103 35886 RPS 65971 b
1of electing to participate in the DROP:
2 (1) is otherwise eligible to retire under this Article
3 with a benefit under Section 3-111;
4 (2) has never received a retirement annuity from the
5 fund;
6 (3) is in active service under this Article; and
7 (4) is not subject to mandatory retirement under the
8 law and will not become subject to mandatory retirement
9 under the law during participation in the DROP.
10 (b) The DROP shall be made available to eligible members
11no later than January 1, 2026.
12 (c) Eligible members must make their election to
13participate in the DROP in writing with the fund in a form
14acceptable to the fund. The fund must process the election and
15begin crediting an account on behalf of the member as soon as
16is practicable after the election has been received by the
17fund.
18 At the time of or prior to electing to participate in the
19DROP, a member must, unless otherwise provided by law, make
20all other elections required to be made at or before the date
21of retirement, including, but not limited to, purchase of
22optional service, conversion of any annuity benefit into an
23up-front or lump sum payment, or any other election identified
24by the retirement system or pension fund.
25 (d) An eligible member may participate in the DROP for a
26period not to exceed 5 years from the date of the eligible

HB4873- 158 -LRB103 35886 RPS 65971 b
1member's election to participate.
2 (e) During the DROP period, the fund shall credit, to a
3notional account on behalf of the DROP member, an amount equal
4to the monthly amount of retirement annuity the DROP member
5would otherwise be eligible to receive if the DROP member had
6retired on the date of the election under this Section, minus
7any amounts required to be deducted under State or federal
8law, including, but not limited to, payments required under a
9Qualified Illinois Domestic Relations Order under Section
101-119. A DROP member who is entitled to a benefit from a
11participating system under the Retirement Systems Reciprocal
12Act shall be eligible to have the benefit the DROP member would
13have otherwise been eligible to receive if the DROP member
14retired on the date of the election under this Section
15deposited with the fund in the DROP member's DROP account and
16administered in a manner consistent with the requirements of
17this Section. Any automatic annual increases that would have
18otherwise been applied to the DROP member's retirement annuity
19if the DROP member had elected to retire instead of
20participate in the DROP shall accrue to the DROP member's
21monthly payment credited to the account prior to the
22expiration of the DROP and shall otherwise apply to the DROP
23member's annuity upon expiration of the DROP. The account
24shall be held on behalf of the DROP member.
25 (f) DROP members shall make contributions to the fund
26during their participation in the DROP in an amount equal to

HB4873- 159 -LRB103 35886 RPS 65971 b
1the employee contributions that would otherwise be required if
2the DROP member were an active participant of the fund. Those
3amounts shall be credited to the DROP account.
4 (g) The amounts credited to the DROP account shall be held
5in notional accounts by the fund. The amounts credited to the
6DROP account shall not accrue interest.
7 (h) Upon the expiration or termination of the DROP
8member's participation in the DROP, the account balance shall
9be paid to the DROP member as a lump sum. The fund shall
10provide options for the transfer of the account consistent
11with its fiduciary duty and any applicable State or federal
12law. The expiration or termination of a DROP member's
13participation in the DROP may not occur after January 1, 2034.
14 (i) The DROP election is irrevocable, and the DROP member
15may not access the account prior to termination or expiration
16of the DROP member's participation in the DROP. The DROP
17member must terminate employment with the employer upon
18expiration of his or her participation in the DROP. The DROP
19member's participation in the DROP shall terminate prior to
20the expiration date:
21 (1) if the DROP member terminates employment with the
22 employer prior to the expiration of the designated DROP
23 period;
24 (2) if the DROP member becomes eligible for and begins
25 collecting a disability benefit from the fund; or
26 (3) upon the death of the DROP member.

HB4873- 160 -LRB103 35886 RPS 65971 b
1 Upon termination or expiration of the DROP period, the
2DROP member's retirement annuity from the fund shall commence.
3After termination or expiration of a member's participation in
4the DROP, the member may not participate in employment in any
5way that would require the member to become an active
6contributing member of the fund.
7 (j) The DROP member shall be considered in active service
8for purposes of eligibility for death and disability benefits
9and shall retain all rights of employment as established under
10the DROP member's collective bargaining agreement, if
11applicable.
12 While participating in the DROP, the DROP member shall not
13accrue additional service credit, including any service
14accruals, in the fund, and earnings paid to the DROP member
15while participating in the DROP shall not be included in the
16calculation of final average salary, regardless of future pay
17increases, active cost of living adjustments, or promotions.
18Additionally, the DROP member shall not be eligible to
19purchase service credit under this Article.
20 Any amounts due to an alternate payee under a Qualified
21Illinois Domestic Relations Order under Section 1-119 shall be
22calculated at the time of the DROP election, and such amounts
23shall be payable at the time of election.
24 If the DROP member's designated beneficiary predeceases
25the DROP member and the DROP member dies before designating a
26new beneficiary, the DROP member's DROP account shall be paid

HB4873- 161 -LRB103 35886 RPS 65971 b
1to the DROP member's estate.
2 When determining if a police officer is owed a refund of
3contributions due to the police officer's death prior to
4collecting an amount equal to or greater than the member's
5contributions, the proceeds of the DROP account shall be
6considered part of the total payment made to the police
7officer or the police officer's estate.
8 (k) It is intended that the DROP shall not jeopardize the
9tax qualified status of the fund. The board of trustees of the
10fund shall have the authority to adopt rules necessary or
11appropriate for the DROP to maintain compliance with
12applicable federal laws and regulations. Notwithstanding any
13other provision of this Article, all benefits provided under
14the DROP shall be subject to the requirements and limits of the
15Internal Revenue Code of 1986, as amended.
16 (l) The costs of administering the DROP account shall be
17the exclusive responsibility of the DROP member. The fund
18shall pay any reasonable administrative cost of the account
19and shall reduce the balance of the DROP account in an amount
20determined by the fund to meet all costs of the DROP account.
21 (m) The Board may transfer the administrative
22responsibility of the DROP program to the State Treasurer
23under Section 1-168 after an affirmative vote of the Board.
24 (40 ILCS 5/4-136 new)
25 Sec. 4-136. Deferred retirement option plan.

HB4873- 162 -LRB103 35886 RPS 65971 b
1 (a) As used in this Section:
2 "Deferred retirement option plan" or "DROP" means the plan
3created under this Section that provides an alternative method
4of benefit accrual in the fund.
5 "DROP member" means an eligible member who makes an
6election to participate in the DROP no later than January 1,
72029.
8 "DROP period" means the period during which a DROP member
9participates in the DROP.
10 "Eligible member" means a firefighter who, at the time of
11electing to participate in the DROP:
12 (1) is otherwise eligible to retire under this Article
13 with a benefit under Section 4-109;
14 (2) has never received a retirement annuity from the
15 fund;
16 (3) is in active service under this Article; and
17 (4) is not subject to mandatory retirement under the
18 law and will not become subject to mandatory retirement
19 under the law during participation in the DROP.
20 (b) The DROP shall be made available to eligible members
21no later than January 1, 2026.
22 (c) Eligible members must make their election to
23participate in the DROP in writing with the fund in a form
24acceptable to the fund. The fund must process the election and
25begin crediting an account on behalf of the member as soon as
26is practicable after the election has been received by the

HB4873- 163 -LRB103 35886 RPS 65971 b
1fund.
2 At the time of or prior to electing to participate in the
3DROP, a member must, unless otherwise provided by law, make
4all other elections required to be made at or before the date
5of retirement, including, but not limited to, purchase of
6optional service, conversion of any annuity benefit into an
7up-front or lump sum payment, or any other election identified
8by the retirement system or pension fund.
9 (d) An eligible member may participate in the DROP for a
10period not to exceed 5 years from the date of the eligible
11member's election to participate in the DROP.
12 (e) During the DROP period, the fund shall credit, to a
13notional account on behalf of the DROP member, an amount equal
14to the monthly amount of retirement annuity the DROP member
15would otherwise be eligible to receive if the DROP member had
16retired on the date of the election under this Section, minus
17any amounts required to be deducted under State or federal
18law, including, but not limited to, payments required under a
19Qualified Illinois Domestic Relations Order under Section
201-119. A DROP member who is entitled to a benefit from a
21participating system under the Retirement Systems Reciprocal
22Act shall be eligible to have the benefit the DROP member would
23have otherwise been eligible to receive if the DROP member
24retired on the date of the election under this Section
25deposited with the fund in the DROP member's DROP account and
26administered in a manner consistent with the requirements of

HB4873- 164 -LRB103 35886 RPS 65971 b
1this Section. Any automatic annual increases that would have
2otherwise been applied to the DROP member's retirement annuity
3if the DROP member had elected to retire instead of
4participate in the DROP shall accrue to the DROP member's
5monthly payment credited to the account prior to the
6expiration of the DROP and shall otherwise apply to the DROP
7member's annuity upon expiration of the DROP. The account
8shall be held on behalf of the DROP member.
9 (f) DROP members shall make contributions to the fund
10during their participation in the DROP in an amount equal to
11the employee contributions that would otherwise be required if
12the DROP member were an active participant of the fund. Those
13amounts shall be credited to the DROP account.
14 (g) The amounts credited to the DROP account shall be held
15in notional accounts by the fund. The amounts credited to the
16DROP account shall not accrue interest.
17 (h) Upon the expiration or termination of the DROP
18member's participation in the DROP, the account balance shall
19be paid to the DROP member as a lump sum. The fund shall
20provide options for the transfer of the account consistent
21with its fiduciary duty and any applicable State or federal
22law. The expiration or termination of a DROP member's
23participation in the DROP may not occur after January 1, 2034.
24 (i) The DROP election is irrevocable, and the DROP member
25may not access the account prior to termination or expiration
26of the DROP member's participation in the DROP. The DROP

HB4873- 165 -LRB103 35886 RPS 65971 b
1member must terminate employment with the employer upon
2expiration of his or her participation in the DROP. The DROP
3member's participation in the DROP shall terminate prior to
4the expiration date:
5 (1) if the DROP member terminates employment with the
6 employer prior to the expiration of the designated DROP
7 period;
8 (2) if the DROP member becomes eligible for and begins
9 collecting a disability benefit from the fund; or
10 (3) upon the death of the DROP member.
11 Upon termination or expiration of the DROP period, the
12DROP member's retirement annuity from the fund shall commence.
13After termination or expiration of a member's participation in
14the DROP, the member may not participate in employment in any
15way that would require the member to become an active
16contributing member of the fund.
17 (j) The DROP member shall be considered in active service
18for purposes of eligibility for death and disability benefits
19and shall retain all rights of employment as established under
20the DROP member's collective bargaining agreement, if
21applicable.
22 While participating in the DROP, the DROP member shall not
23accrue additional service credit, including any service
24accruals, in the fund, and earnings paid to the DROP member
25while participating in the DROP shall not be included in the
26calculation of final average salary, regardless of future pay

HB4873- 166 -LRB103 35886 RPS 65971 b
1increases, active cost of living adjustments, or promotions.
2Additionally, the DROP member shall not be eligible to
3purchase service credit under this Article.
4 Any amounts due to an alternate payee under a Qualified
5Illinois Domestic Relations Order under Section 1-119 shall be
6calculated at the time of the DROP election, and such amounts
7shall be payable at the time of election.
8 If the DROP member's designated beneficiary predeceases
9the DROP member and the DROP member dies before designating a
10new beneficiary, the DROP member's DROP account shall be paid
11to the DROP member's estate.
12 When determining if a firefighter is owed a refund of
13contributions due to the firefighter's death prior to
14collecting an amount equal to or greater than the
15firefighter's contributions, the proceeds of the DROP account
16shall be considered part of the total payment made to the
17firefighter or the firefighter's estate.
18 (k) It is intended that the DROP shall not jeopardize the
19tax qualified status of the fund. The board of trustees of the
20fund shall have the authority to adopt rules necessary or
21appropriate for the DROP to maintain compliance with
22applicable federal laws and regulations. Notwithstanding any
23other provision of this Article, all benefits provided under
24the DROP shall be subject to the requirements and limits of the
25Internal Revenue Code of 1986, as amended.
26 (l) The costs of administering the DROP account shall be

HB4873- 167 -LRB103 35886 RPS 65971 b
1the exclusive responsibility of the DROP member. The fund
2shall pay any reasonable administrative cost of the account
3and shall reduce the balance of the DROP account in an amount
4determined by the fund to meet all costs of the DROP account.
5 (m) The Board may transfer the administrative
6responsibility of the DROP program to the State Treasurer
7under Section 1-168 after an affirmative vote of the Board.
8 (40 ILCS 5/7-142.2 new)
9 Sec. 7-142.2. Deferred retirement option plan.
10 (a) As used in this Section:
11 "Deferred retirement option plan" or "DROP" means the plan
12created under this Section that provides an alternative method
13of benefit accrual in the Fund.
14 "DROP member" means an eligible member who makes an
15election to participate in the DROP no later than January 1,
162029.
17 "DROP period" means the period during which a DROP member
18participates in the DROP.
19 "Eligible member" means a participating employee of the
20Fund who, at the time of electing to participate in the DROP:
21 (1) is otherwise eligible to retire under this Article
22 with a benefit under Section 7-142.1;
23 (2) has never received a retirement annuity from the
24 Fund;
25 (3) is in active service as a sheriff's law

HB4873- 168 -LRB103 35886 RPS 65971 b
1 enforcement employee; and
2 (4) has terminated participation with respect to any
3 employer other than the employer for which the member is a
4 sheriff's law enforcement employee.
5 (b) The DROP shall be made available to eligible members
6no later than January 1, 2026.
7 (c) Eligible members must make their election to
8participate in the DROP in writing with the Fund in a form
9acceptable to the Fund. The Fund must process the election and
10begin crediting an account on behalf of the member as soon as
11is practicable after the election has been received by the
12Fund.
13 Unless otherwise provided for by law, any election that a
14member may elect at or before the time of retirement must be
15made at or before the time of electing to participate in the
16DROP, including, but not limited to, purchase of optional
17service, election of an accelerated pension benefit payment,
18conversion of any annuity benefit into an up-front or lump sum
19payment, or any other elections identified by the Fund.
20 (d) An eligible member may elect to participate in the
21DROP for a period not to exceed 5 years from the date of
22election.
23 (e) During the DROP period, the Fund shall credit a
24notional account on behalf of the DROP member an amount equal
25to the monthly amount of retirement annuity the DROP member
26would otherwise be eligible to receive had the DROP member

HB4873- 169 -LRB103 35886 RPS 65971 b
1retired on the date of the election under this Section, minus
2any amounts required to be deducted under State or federal
3law, including, but not limited to, payments required under a
4Qualified Illinois Domestic Relations Order under Section
51-119. A DROP member who is entitled to a benefit from a
6participating system under the Retirement Systems Reciprocal
7Act shall be eligible to have the benefit the DROP member would
8have otherwise been eligible to receive if the DROP member
9retired on the date of the election under this Section
10deposited with the Fund in the DROP member's DROP account and
11administered in a manner consistent with the requirements of
12this Section. Any automatic annual increases that would have
13otherwise been applied to the DROP member's retirement annuity
14had the DROP member elected to retire instead of participate
15in the DROP shall accrue to the DROP member's monthly payment
16credited to the account prior to the expiration of the DROP and
17shall otherwise apply to the DROP member's annuity upon
18expiration of the DROP. The account shall be held on behalf of
19the DROP member.
20 (f) DROP members shall make contributions to the Fund
21during their participation in the DROP in an amount equal to
22the employee contributions under paragraph (1) of subsection
23(a) of Section 7-173 and subsection (a) of Section 7-173.1
24that would otherwise be required if the DROP member were an
25active participant of the Fund. Those amounts shall be
26credited to the general account of the Fund. Earnings paid to

HB4873- 170 -LRB103 35886 RPS 65971 b
1DROP members during their participation in the DROP shall be
2included in the calculation of employer contributions as
3required in Section 7-172.
4 (g) The amounts credited to the DROP account shall be held
5in notional accounts by the Fund. The amounts credited to the
6DROP account shall not accrue interest.
7 (h) Upon the expiration or termination of the DROP
8member's participation in the DROP, the account balance shall
9be paid to the DROP member as a lump sum. The Fund shall
10provide options for the transfer of the account consistent
11with its fiduciary duty and any applicable State or federal
12law. The expiration or termination of a DROP member's
13participation in the DROP may not occur after January 1, 2034.
14 (i) The DROP election is irrevocable, and the DROP member
15may not access the account prior to termination or expiration
16of the DROP member's participation in the DROP. The DROP
17member must terminate employment with the employer upon
18expiration of his or her participation in the DROP. The DROP
19member's participation in the DROP shall terminate prior to
20the expiration date:
21 (1) if the DROP member terminates employment with the
22 employer prior to the expiration of the designated DROP
23 period;
24 (2) if the DROP member becomes eligible for and begins
25 collecting a disability benefit from the Fund; or
26 (3) upon the death of the DROP member.

HB4873- 171 -LRB103 35886 RPS 65971 b
1 Upon termination or expiration of the DROP period, the
2DROP member must separate from the service of all employers
3under this Article for a period of not less than 60 days. Upon
4termination of the DROP, the DROP member's retirement annuity
5from the Fund shall commence. After termination or expiration
6of a member's participation in the DROP, the member may not
7participate in employment in any way that would require the
8member to become an active contributing member of the Fund.
9 (j) The DROP member shall be considered in active service
10for purposes of eligibility for death and disability benefits
11and shall retain all rights of employment as established under
12the DROP member's collective bargaining agreement, if
13applicable.
14 While participating in the DROP, the DROP member shall not
15accrue additional service credit, including any service
16accruals, in the Fund and earnings paid to the DROP member
17while participating in the DROP shall not be included in the
18calculation of final rate of earnings, regardless of future
19pay increases, active cost of living adjustments, or
20promotions. Additionally, the DROP member shall not be
21eligible to make additional contributions under paragraph (2)
22of subsection (a) of Section 7-173. During the DROP period,
23the DROP member shall not be eligible for a distribution of any
24amounts accrued from previous contributions made under
25paragraph (2) of subsection (a) of Section 7-173.
26 Eligibility for a surviving spouse benefit under Section

HB4873- 172 -LRB103 35886 RPS 65971 b
17-154 shall be determined at the time of the DROP election.
2 The pickup of employee contribution requirements in
3Section 7-173.2 shall be applicable to amounts paid by the
4DROP member under subsection (f).
5 Any amounts due to an alternate payee under a Qualified
6Illinois Domestic Relations Order under Section 1-119 shall be
7calculated at the time of the DROP election, and such amounts
8shall be payable at the time of election.
9 If the DROP member's designated beneficiary predeceases
10the DROP member and the DROP member dies before designating a
11new beneficiary, the DROP member's DROP account shall be paid
12to the DROP member's estate.
13 When determining if a participating employee is owed a
14refund of contributions due to the participating employee's
15death prior to collecting an amount equal to or greater than
16the participating employee's contributions, the proceeds of
17the DROP account shall be considered part of the total payment
18made to the participating employee or the participating
19employee's estate.
20 (k) It is intended that the DROP shall not jeopardize the
21tax-qualified status of the Fund. The Board shall have the
22authority to adopt rules necessary or appropriate for the DROP
23to maintain compliance with applicable federal laws and
24regulations. Notwithstanding any other provision of this
25Article, all benefits provided under the DROP shall be subject
26to the requirements and limitations of the Internal Revenue

HB4873- 173 -LRB103 35886 RPS 65971 b
1Code of 1986, as amended.
2 (l) The Board may transfer the administrative
3responsibility of the DROP program to the State Treasurer
4under Section 1-168 after an affirmative vote of the Board.
5
Article 5.
6 Section 5-5. The General Obligation Bond Act is amended by
7changing Sections 7.2 and 7.6 as follows:
8 (30 ILCS 330/7.2)
9 Sec. 7.2. State pension funding.
10 (a) The amount of $10,000,000,000 is authorized to be used
11for the purpose of making contributions to the designated
12retirement systems. For the purposes of this Section,
13"designated retirement systems" means the State Employees'
14Retirement System of Illinois; the Teachers' Retirement System
15of the State of Illinois; the State Universities Retirement
16System; the Judges Retirement System of Illinois; and the
17General Assembly Retirement System.
18 The amount of $3,466,000,000 of Bonds authorized by Public
19Act 96-43 is authorized to be used for the purpose of making a
20portion of the State's Fiscal Year 2010 required contributions
21to the designated retirement systems.
22 The amount of $4,096,348,300 of Bonds authorized by this
23amendatory Act of the 96th General Assembly is authorized to

HB4873- 174 -LRB103 35886 RPS 65971 b
1be used for the purpose of making a portion of the State's
2Fiscal Year 2011 required contributions to the designated
3retirement systems.
4 (b) The Pension Contribution Fund is created as a special
5fund in the State treasury Treasury.
6 The proceeds of the additional $10,000,000,000 of Bonds
7authorized by Public Act 93-2, less the amounts authorized in
8the Bond Sale Order to be deposited directly into the
9capitalized interest account of the General Obligation Bond
10Retirement and Interest Fund or otherwise directly paid out
11for bond sale expenses under Section 8, shall be deposited
12into the Pension Contribution Fund and used as provided in
13this Section.
14 The proceeds of the additional $3,466,000,000 of Bonds
15authorized by Public Act 96-43, less the amounts directly paid
16out for bond sale expenses under Section 8, shall be deposited
17into the Pension Contribution Fund, and the Comptroller and
18the Treasurer shall, as soon as practical, (i) first, transfer
19from the Pension Contribution Fund to the General Revenue Fund
20or Common School Fund an amount equal to the amount of
21payments, if any, made to the designated retirement systems
22from the General Revenue Fund or Common School Fund in State
23fiscal year 2010 and (ii) second, make transfers from the
24Pension Contribution Fund to the designated retirement systems
25pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
26of the Illinois Pension Code.

HB4873- 175 -LRB103 35886 RPS 65971 b
1 The proceeds of the additional $4,096,348,300 of Bonds
2authorized by this amendatory Act of the 96th General
3Assembly, less the amounts directly paid out for bond sale
4expenses under Section 8, shall be deposited into the Pension
5Contribution Fund, and the Comptroller and the Treasurer
6shall, as soon as practical, (i) first, transfer from the
7Pension Contribution Fund to the General Revenue Fund or
8Common School Fund an amount equal to the amount of payments,
9if any, made to the designated retirement systems from the
10General Revenue Fund or Common School Fund in State fiscal
11year 2011 and (ii) second, make transfers from the Pension
12Contribution Fund to the designated retirement systems
13pursuant to Sections 2-124, 14-131, 15-155, 16-158, and 18-131
14of the Illinois Pension Code.
15 (c) Of the amount of Bond proceeds from the bond sale
16authorized by Public Act 93-2 first deposited into the Pension
17Contribution Fund, there shall be reserved for transfers under
18this subsection the sum of $300,000,000, representing the
19required State contributions to the designated retirement
20systems for the last quarter of State fiscal year 2003, plus
21the sum of $1,860,000,000, representing the required State
22contributions to the designated retirement systems for State
23fiscal year 2004.
24 Upon the deposit of sufficient moneys from the bond sale
25authorized by Public Act 93-2 into the Pension Contribution
26Fund, the Comptroller and Treasurer shall immediately transfer

HB4873- 176 -LRB103 35886 RPS 65971 b
1the sum of $300,000,000 from the Pension Contribution Fund to
2the General Revenue Fund.
3 Whenever any payment of required State contributions for
4State fiscal year 2004 is made to one of the designated
5retirement systems, the Comptroller and Treasurer shall, as
6soon as practicable, transfer from the Pension Contribution
7Fund to the General Revenue Fund an amount equal to the amount
8of that payment to the designated retirement system. Beginning
9on the effective date of this amendatory Act of the 93rd
10General Assembly, the transfers from the Pension Contribution
11Fund to the General Revenue Fund shall be suspended until June
1230, 2004, and the remaining balance in the Pension
13Contribution Fund shall be transferred directly to the
14designated retirement systems as provided in Section 6z-61 of
15the State Finance Act. On and after July 1, 2004, in the event
16that any amount is on deposit in the Pension Contribution Fund
17from time to time, the Comptroller and Treasurer shall
18continue to make such transfers based on fiscal year 2005
19payments until the entire amount on deposit has been
20transferred.
21 (d) All amounts deposited into the Pension Contribution
22Fund, other than the amounts reserved for the transfers under
23subsection (c) from the bond sale authorized by Public Act
2493-2, other than amounts deposited into the Pension
25Contribution Fund from the bond sale authorized by Public Act
2696-43 and other than amounts deposited into the Pension

HB4873- 177 -LRB103 35886 RPS 65971 b
1Contribution Fund from the bond sale authorized by this
2amendatory Act of the 96th General Assembly, shall be
3appropriated to the designated retirement systems to reduce
4their actuarial reserve deficiencies. The amount of the
5appropriation to each designated retirement system shall
6constitute a portion of the total appropriation under this
7subsection that is the same as that retirement system's
8portion of the total actuarial reserve deficiency of the
9systems, as most recently determined by the Governor's Office
10of Management and Budget under Section 8.12 of the State
11Finance Act.
12 With respect to proceeds from the bond sale authorized by
13Public Act 93-2 only, within 15 days after any Bond proceeds in
14excess of the amounts initially reserved under subsection (c)
15are deposited into the Pension Contribution Fund, the
16Governor's Office of Management and Budget shall (i) allocate
17those proceeds among the designated retirement systems in
18proportion to their respective actuarial reserve deficiencies,
19as most recently determined under Section 8.12 of the State
20Finance Act, and (ii) certify those allocations to the
21designated retirement systems and the Comptroller.
22 Upon receiving certification of an allocation under this
23subsection, a designated retirement system shall submit to the
24Comptroller a voucher for the amount of its allocation. The
25voucher shall be paid out of the amount appropriated to that
26designated retirement system from the Pension Contribution

HB4873- 178 -LRB103 35886 RPS 65971 b
1Fund pursuant to this subsection.
2 (e) Each fiscal year after all the bonds authorized by
3Public Act 93-2 are retired, the Comptroller shall order and
4the State Treasurer shall transfer the sum of $500,000,000
5from the General Revenue Fund to the Pension Unfunded
6Liability Reduction Fund, which shall be used to make
7additional contributions to eligible pension funds in
8accordance with Section 8s of the State Finance Act.
9(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11.)
10 (30 ILCS 330/7.6)
11 Sec. 7.6. Income Tax Proceed Bonds.
12 (a) As used in this Act, "Income Tax Proceed Bonds" means
13Bonds (i) authorized by Public Act 100-23 or any other Public
14Act of the 100th or 101st General Assembly authorizing the
15issuance of Income Tax Proceed Bonds and (ii) used for the
16payment of unpaid obligations of the State as incurred from
17time to time and as authorized by the General Assembly.
18 (b) Income Tax Proceed Bonds in the amount of
19$6,000,000,000 are hereby authorized to be used for the
20purpose of paying vouchers incurred by the State prior to July
211, 2017. Additional Income Tax Proceed Bonds in the amount of
22$1,200,000,000 are hereby authorized to be used for the
23purpose of paying vouchers incurred by the State and accruing
24interest payable by the State prior to the date on which the
25Income Tax Proceed Bonds are issued.

HB4873- 179 -LRB103 35886 RPS 65971 b
1 (c) The Income Tax Bond Fund is hereby created as a special
2fund in the State treasury. All moneys from the proceeds of the
3sale of the Income Tax Proceed Bonds, less the amounts
4authorized in the Bond Sale Order to be directly paid out for
5bond sale expenses under Section 8, shall be deposited into
6the Income Tax Bond Fund. All moneys in the Income Tax Bond
7Fund shall be used for the purpose of paying vouchers incurred
8by the State prior to July 1, 2017 or for paying vouchers
9incurred by the State more than 90 days prior to the date on
10which the Income Tax Proceed Bonds are issued. For the purpose
11of paying such vouchers, the Comptroller has the authority to
12transfer moneys from the Income Tax Bond Fund to general funds
13and the Health Insurance Reserve Fund. "General funds" has the
14meaning provided in Section 50-40 of the State Budget Law.
15 (d) Each fiscal year after all the bonds authorized under
16this Section are retired, the Comptroller shall order and the
17State Treasurer shall transfer the sum of $500,000,000 from
18the General Revenue Fund to the Pension Unfunded Liability
19Reduction Fund, which shall be used to make additional
20contributions to eligible pension funds in accordance with
21Section 8s of the State Finance Act.
22(Source: P.A. 103-7, eff. 7-1-23.)
23 Section 5-10. The State Finance Act is amended by adding
24Section 8s as follows:

HB4873- 180 -LRB103 35886 RPS 65971 b
1 (30 ILCS 105/8s new)
2 Sec. 8s. Pension Unfunded Liability Reduction Fund.
3 (a) In this Section, "eligible pension fund" means a
4pension fund or retirement system established under Article 2,
514, 15, 16, 17, or 18 of the Illinois Pension Code that has a
6total actuarial liability in excess of its total actuarial
7assets.
8 (b) The Pension Unfunded Liability Reduction Fund is
9created as a special fund in the State treasury. Moneys in the
10Fund may be used only to make annual additional contributions
11to eligible pension funds.
12 (c) Moneys in the Fund shall be disbursed every fiscal
13year to each eligible pension fund based on the pro rata share
14of the State's required annual contribution to that eligible
15pension fund for that fiscal year relative to the State's
16total required annual contribution to all eligible pension
17funds for that fiscal year.
18
Article 7.
19 Section 7-5. The Illinois Pension Code is amended by
20changing Sections 2-101, 2-105, 2-107, 2-117, 8-120,
2114-103.05, 14-104, 14-104.14, 14-105.4, 18-101, 18-108,
2218-109, 18-110, and 18-120 as follows:
23 (40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)

HB4873- 181 -LRB103 35886 RPS 65971 b
1 Sec. 2-101. Creation of system. A retirement system is
2created to provide retirement annuities, survivor's annuities
3and other benefits for certain members of the General
4Assembly, certain elected state officials, and their
5beneficiaries.
6 The system shall be known as the "General Assembly
7Retirement System". All its funds and property shall be a
8trust separate from all other entities, maintained for the
9purpose of securing payment of annuities and benefits under
10this Article.
11 Participation in the retirement system created under this
12Article is restricted to persons who became participants
13before January 13, 2027. Beginning on that date, the System
14shall not accept any new participants.
15(Source: P.A. 83-1440.)
16 (40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)
17 Sec. 2-105. Member. "Member": Members of the General
18Assembly of this State, including persons who enter military
19service while a member of the General Assembly, and any person
20serving as Governor, Lieutenant Governor, Secretary of State,
21Treasurer, Comptroller, or Attorney General for the period of
22service in such office.
23 Any person who has served for 10 or more years as Clerk or
24Assistant Clerk of the House of Representatives, Secretary or
25Assistant Secretary of the Senate, or any combination thereof,

HB4873- 182 -LRB103 35886 RPS 65971 b
1may elect to become a member of this system while thenceforth
2engaged in such service by filing a written election with the
3board. Any person so electing shall be deemed an active member
4of the General Assembly for the purpose of validating and
5transferring any service credits earned under any of the funds
6and systems established under Articles 3 through 18 of this
7Code.
8 Notwithstanding any other provision of this Article, a
9person shall not be deemed a member for the purposes of this
10Article unless he or she became a participant of the System
11before January 13, 2027.
12(Source: P.A. 85-1008.)
13 (40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
14 Sec. 2-107. Participant. "Participant": Any member who
15elects to participate; and any former member who elects to
16continue participation under Section 2-117.1, for the duration
17of such continued participation. Notwithstanding any other
18provision of this Article, a person shall not be deemed a
19participant for the purposes of this Article unless he or she
20became a participant of the System before January 13, 2027.
21(Source: P.A. 86-1488.)
22 (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
23 Sec. 2-117. Participants; election not to participate or
24to terminate participation Participants - Election not to

HB4873- 183 -LRB103 35886 RPS 65971 b
1participate.
2 (a) Every person who was a member on November 1, 1947, or
3in military service on such date, is subject to the provisions
4of this system beginning upon such date, unless prior to such
5date he or she filed with the board a written notice of
6election not to participate.
7 Every person who becomes a member after November 1, 1947,
8and who is then not a participant becomes a participant
9beginning upon the date of becoming a member unless, within 24
10months from that date, he or she has filed with the board a
11written notice of election not to participate.
12 (b) A member who has filed notice of an election not to
13participate (and a former member who has not yet begun to
14receive a retirement annuity under this Article) may become a
15participant with respect to the period for which the member
16elected not to participate upon filing with the board, before
17April 1, 1993, a written rescission of the election not to
18participate. Upon contributing an amount equal to the
19contributions he or she would have made as a participant from
20November 1, 1947, or the date of becoming a member, whichever
21is later, to the date of becoming a participant, with interest
22at the rate of 4% per annum until the contributions are paid,
23the participant shall receive credit for service as a member
24prior to the date of the rescission, both before and after
25November 1, 1947. The required contributions shall be made
26before commencement of the retirement annuity; otherwise no

HB4873- 184 -LRB103 35886 RPS 65971 b
1credit for service prior to the date of participation shall be
2granted.
3 (c) Notwithstanding any other provision of this Article,
4an active participant may irrevocably elect, in writing and in
5a form and manner prescribed by the board, to terminate
6participation in the System and instead participate in the
7retirement system established under Article 14. Upon making
8the election under this subsection (c), all credits and
9creditable service shall be transferred to the retirement
10system under Article 14 in accordance with Section 14-105.4
11and all participation in this System is terminated.
12(Source: P.A. 86-273; 87-1265.)
13 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
14 Sec. 14-103.05. Employee.
15 (a) Any person employed by a Department who receives
16salary for personal services rendered to the Department on a
17warrant issued pursuant to a payroll voucher certified by a
18Department and drawn by the State Comptroller upon the State
19Treasurer, including an elected official described in
20subparagraph (d) of Section 14-104, shall become an employee
21for purpose of membership in the Retirement System on the
22first day of such employment.
23 A person entering service on or after January 1, 1972 and
24prior to January 1, 1984 shall become a member as a condition
25of employment and shall begin making contributions as of the

HB4873- 185 -LRB103 35886 RPS 65971 b
1first day of employment.
2 A person entering service on or after January 1, 1984
3shall, upon completion of 6 months of continuous service which
4is not interrupted by a break of more than 2 months, become a
5member as a condition of employment. Contributions shall begin
6the first of the month after completion of the qualifying
7period.
8 A person employed by the Chicago Metropolitan Agency for
9Planning on the effective date of this amendatory Act of the
1095th General Assembly who was a member of this System as an
11employee of the Chicago Area Transportation Study and makes an
12election under Section 14-104.13 to participate in this System
13for his or her employment with the Chicago Metropolitan Agency
14for Planning.
15 The qualifying period of 6 months of service is not
16applicable to: (1) a person who has been granted credit for
17service in a position covered by the State Universities
18Retirement System, the Teachers' Retirement System of the
19State of Illinois, the General Assembly Retirement System, or
20the Judges Retirement System of Illinois unless that service
21has been forfeited under the laws of those systems; (2) a
22person entering service on or after July 1, 1991 in a
23noncovered position; (3) a person to whom Section 14-108.2a or
2414-108.2b applies; or (4) a person to whom subsection (a-5) of
25this Section applies.
26 (a-5) A person entering service on or after December 1,

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12010 shall become a member as a condition of employment and
2shall begin making contributions as of the first day of
3employment. A person serving in the qualifying period on
4December 1, 2010 will become a member on December 1, 2010 and
5shall begin making contributions as of December 1, 2010.
6 (b) The term "employee" does not include the following:
7 (1) members of the State Legislature, and persons
8 electing to become members of the General Assembly
9 Retirement System pursuant to Section 2-105;
10 (2) incumbents of offices normally filled by vote of
11 the people;
12 (3) except as otherwise provided in this Section, any
13 person appointed by the Governor with the advice and
14 consent of the Senate unless that person elects to
15 participate in this system;
16 (3.1) any person serving as a commissioner of an
17 ethics commission created under the State Officials and
18 Employees Ethics Act unless that person elects to
19 participate in this system with respect to that service as
20 a commissioner;
21 (3.2) any person serving as a part-time employee in
22 any of the following positions: Legislative Inspector
23 General, Special Legislative Inspector General, employee
24 of the Office of the Legislative Inspector General,
25 Executive Director of the Legislative Ethics Commission,
26 or staff of the Legislative Ethics Commission, regardless

HB4873- 187 -LRB103 35886 RPS 65971 b
1 of whether he or she is in active service on or after July
2 8, 2004 (the effective date of Public Act 93-685), unless
3 that person elects to participate in this System with
4 respect to that service; in this item (3.2), a "part-time
5 employee" is a person who is not required to work at least
6 35 hours per week;
7 (3.3) any person who has made an election under
8 Section 1-123 and who is serving either as legal counsel
9 in the Office of the Governor or as Chief Deputy Attorney
10 General;
11 (4) except as provided in Section 14-108.2 or
12 14-108.2c, any person who is covered or eligible to be
13 covered by the Teachers' Retirement System of the State of
14 Illinois, the State Universities Retirement System, or the
15 Judges Retirement System of Illinois;
16 (5) an employee of a municipality or any other
17 political subdivision of the State;
18 (6) any person who becomes an employee after June 30,
19 1979 as a public service employment program participant
20 under the Federal Comprehensive Employment and Training
21 Act and whose wages or fringe benefits are paid in whole or
22 in part by funds provided under such Act;
23 (7) enrollees of the Illinois Young Adult Conservation
24 Corps program, administered by the Department of Natural
25 Resources, authorized grantee pursuant to Title VIII of
26 the "Comprehensive Employment and Training Act of 1973",

HB4873- 188 -LRB103 35886 RPS 65971 b
1 29 USC 993, as now or hereafter amended;
2 (8) enrollees and temporary staff of programs
3 administered by the Department of Natural Resources under
4 the Youth Conservation Corps Act of 1970;
5 (9) any person who is a member of any professional
6 licensing or disciplinary board created under an Act
7 administered by the Department of Professional Regulation
8 or a successor agency or created or re-created after the
9 effective date of this amendatory Act of 1997, and who
10 receives per diem compensation rather than a salary,
11 notwithstanding that such per diem compensation is paid by
12 warrant issued pursuant to a payroll voucher; such persons
13 have never been included in the membership of this System,
14 and this amendatory Act of 1987 (P.A. 84-1472) is not
15 intended to effect any change in the status of such
16 persons;
17 (10) any person who is a member of the Illinois Health
18 Care Cost Containment Council, and receives per diem
19 compensation rather than a salary, notwithstanding that
20 such per diem compensation is paid by warrant issued
21 pursuant to a payroll voucher; such persons have never
22 been included in the membership of this System, and this
23 amendatory Act of 1987 is not intended to effect any
24 change in the status of such persons;
25 (11) any person who is a member of the Oil and Gas
26 Board created by Section 1.2 of the Illinois Oil and Gas

HB4873- 189 -LRB103 35886 RPS 65971 b
1 Act, and receives per diem compensation rather than a
2 salary, notwithstanding that such per diem compensation is
3 paid by warrant issued pursuant to a payroll voucher;
4 (12) a person employed by the State Board of Higher
5 Education in a position with the Illinois Century Network
6 as of June 30, 2004, who remains continuously employed
7 after that date by the Department of Central Management
8 Services in a position with the Illinois Century Network
9 and participates in the Article 15 system with respect to
10 that employment;
11 (13) any person who first becomes a member of the
12 Civil Service Commission on or after January 1, 2012;
13 (14) any person, other than the Director of Employment
14 Security, who first becomes a member of the Board of
15 Review of the Department of Employment Security on or
16 after January 1, 2012;
17 (15) any person who first becomes a member of the
18 Civil Service Commission on or after January 1, 2012;
19 (16) any person who first becomes a member of the
20 Illinois Liquor Control Commission on or after January 1,
21 2012;
22 (17) any person who first becomes a member of the
23 Secretary of State Merit Commission on or after January 1,
24 2012;
25 (18) any person who first becomes a member of the
26 Human Rights Commission on or after January 1, 2012 unless

HB4873- 190 -LRB103 35886 RPS 65971 b
1 he or she is eligible to participate in accordance with
2 subsection (d) of this Section;
3 (19) any person who first becomes a member of the
4 State Mining Board on or after January 1, 2012;
5 (20) any person who first becomes a member of the
6 Property Tax Appeal Board on or after January 1, 2012;
7 (21) any person who first becomes a member of the
8 Illinois Racing Board on or after January 1, 2012;
9 (22) any person who first becomes a member of the
10 Illinois State Police Merit Board on or after January 1,
11 2012;
12 (23) any person who first becomes a member of the
13 Illinois State Toll Highway Authority on or after January
14 1, 2012; or
15 (24) any person who first becomes a member of the
16 Illinois State Board of Elections on or after January 1,
17 2012.
18 (c) An individual who represents or is employed as an
19officer or employee of a statewide labor organization that
20represents members of this System may participate in the
21System and shall be deemed an employee, provided that (1) the
22individual has previously earned creditable service under this
23Article, (2) the individual files with the System an
24irrevocable election to become a participant within 6 months
25after the effective date of this amendatory Act of the 94th
26General Assembly, and (3) the individual does not receive

HB4873- 191 -LRB103 35886 RPS 65971 b
1credit for that employment under any other provisions of this
2Code. An employee under this subsection (c) is responsible for
3paying to the System both (i) employee contributions based on
4the actual compensation received for service with the labor
5organization and (ii) employer contributions based on the
6percentage of payroll certified by the board; all or any part
7of these contributions may be paid on the employee's behalf or
8picked up for tax purposes (if authorized under federal law)
9by the labor organization.
10 A person who is an employee as defined in this subsection
11(c) may establish service credit for similar employment prior
12to becoming an employee under this subsection by paying to the
13System for that employment the contributions specified in this
14subsection, plus interest at the effective rate from the date
15of service to the date of payment. However, credit shall not be
16granted under this subsection (c) for any such prior
17employment for which the applicant received credit under any
18other provision of this Code or during which the applicant was
19on a leave of absence.
20 (d) A person appointed as a member of the Human Rights
21Commission on or after June 1, 2019 may elect to participate in
22the System and shall be deemed an employee. Service and
23contributions shall begin on the first payroll period
24immediately following the employee's election to participate
25in the System.
26 A person who is an employee as described in this

HB4873- 192 -LRB103 35886 RPS 65971 b
1subsection (d) may establish service credit for employment as
2a Human Rights Commissioner that occurred on or after June 1,
32019 and before establishing service under this subsection by
4paying to the System for that employment the contributions
5specified in paragraph (1) of subsection (a) of Section
614-133, plus regular interest from the date of service to the
7date of payment.
8(Source: P.A. 101-10, eff. 6-5-19; 102-538, eff. 8-20-21.)
9 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
10 Sec. 14-104. Service for which contributions permitted.
11Contributions provided for in this Section shall cover the
12period of service granted. Except as otherwise provided in
13this Section, the contributions shall be based upon the
14employee's compensation and contribution rate in effect on the
15date he last became a member of the System; provided that for
16all employment prior to January 1, 1969 the contribution rate
17shall be that in effect for a noncovered employee on the date
18he last became a member of the System. Except as otherwise
19provided in this Section, contributions permitted under this
20Section shall include regular interest from the date an
21employee last became a member of the System to the date of
22payment.
23 These contributions must be paid in full before retirement
24either in a lump sum or in installment payments in accordance
25with such rules as may be adopted by the board.

HB4873- 193 -LRB103 35886 RPS 65971 b
1 (a) Any member may make contributions as required in this
2Section for any period of service, subsequent to the date of
3establishment, but prior to the date of membership.
4 (b) Any employee who had been previously excluded from
5membership because of age at entry and subsequently became
6eligible may elect to make contributions as required in this
7Section for the period of service during which he was
8ineligible.
9 (c) An employee of the Department of Insurance who, after
10January 1, 1944 but prior to becoming eligible for membership,
11received salary from funds of insurance companies in the
12process of rehabilitation, liquidation, conservation or
13dissolution, may elect to make contributions as required in
14this Section for such service.
15 (d) Any employee who rendered service in a State office to
16which he was elected, or rendered service in the elective
17office of Clerk of the Appellate Court prior to the date he
18became a member, may make contributions for such service as
19required in this Section. Any member who served by appointment
20of the Governor under the Civil Administrative Code of
21Illinois and did not participate in this System may make
22contributions as required in this Section for such service.
23 (e) Any person employed by the United States government or
24any instrumentality or agency thereof from January 1, 1942
25through November 15, 1946 as the result of a transfer from
26State service by executive order of the President of the

HB4873- 194 -LRB103 35886 RPS 65971 b
1United States shall be entitled to prior service credit
2covering the period from January 1, 1942 through December 31,
31943 as provided for in this Article and to membership service
4credit for the period from January 1, 1944 through November
515, 1946 by making the contributions required in this Section.
6A person so employed on January 1, 1944 but whose employment
7began after January 1, 1942 may qualify for prior service and
8membership service credit under the same conditions.
9 (f) An employee of the Department of Labor of the State of
10Illinois who performed services for and under the supervision
11of that Department prior to January 1, 1944 but who was
12compensated for those services directly by federal funds and
13not by a warrant of the Auditor of Public Accounts paid by the
14State Treasurer may establish credit for such employment by
15making the contributions required in this Section. An employee
16of the Department of Agriculture of the State of Illinois, who
17performed services for and under the supervision of that
18Department prior to June 1, 1963, but was compensated for
19those services directly by federal funds and not paid by a
20warrant of the Auditor of Public Accounts paid by the State
21Treasurer, and who did not contribute to any other public
22employee retirement system for such service, may establish
23credit for such employment by making the contributions
24required in this Section.
25 (g) Any employee who executed a waiver of membership
26within 60 days prior to January 1, 1944 may, at any time while

HB4873- 195 -LRB103 35886 RPS 65971 b
1in the service of a department, file with the board a
2rescission of such waiver. Upon making the contributions
3required by this Section, the member shall be granted the
4creditable service that would have been received if the waiver
5had not been executed.
6 (h) Until May 1, 1990, an employee who was employed on a
7full-time basis by a regional planning commission for at least
85 continuous years may establish creditable service for such
9employment by making the contributions required under this
10Section, provided that any credits earned by the employee in
11the commission's retirement plan have been terminated.
12 (i) Any person who rendered full time contractual services
13to the General Assembly as a member of a legislative staff may
14establish service credit for up to 8 years of such services by
15making the contributions required under this Section, provided
16that application therefor is made not later than July 1, 1991.
17 (j) By paying the contributions otherwise required under
18this Section, plus an amount determined by the Board to be
19equal to the employer's normal cost of the benefit plus
20interest, but with all of the interest calculated from the
21date the employee last became a member of the System or
22November 19, 1991, whichever is later, to the date of payment,
23an employee may establish service credit for a period of up to
244 years spent in active military service for which he does not
25qualify for credit under Section 14-105, provided that (1) he
26was not dishonorably discharged from such military service,

HB4873- 196 -LRB103 35886 RPS 65971 b
1and (2) the amount of service credit established by a member
2under this subsection (j), when added to the amount of
3military service credit granted to the member under subsection
4(b) of Section 14-105, shall not exceed 5 years. The change in
5the manner of calculating interest under this subsection (j)
6made by this amendatory Act of the 92nd General Assembly
7applies to credit purchased by an employee on or after its
8effective date and does not entitle any person to a refund of
9contributions or interest already paid. In compliance with
10Section 14-152.1 of this Act concerning new benefit increases,
11any new benefit increase as a result of the changes to this
12subsection (j) made by Public Act 95-483 is funded through the
13employee contributions provided for in this subsection (j).
14Any new benefit increase as a result of the changes made to
15this subsection (j) by Public Act 95-483 is exempt from the
16provisions of subsection (d) of Section 14-152.1.
17 (k) An employee who was employed on a full-time basis by
18the Illinois State's Attorneys Association Statewide Appellate
19Assistance Service LEAA-ILEC grant project prior to the time
20that project became the State's Attorneys Appellate Service
21Commission, now the Office of the State's Attorneys Appellate
22Prosecutor, an agency of State government, may establish
23creditable service for not more than 60 months service for
24such employment by making contributions required under this
25Section.
26 (l) By paying the contributions otherwise required under

HB4873- 197 -LRB103 35886 RPS 65971 b
1this Section, plus an amount determined by the Board to be
2equal to the employer's normal cost of the benefit plus
3interest, a member may establish service credit for periods of
4less than one year spent on authorized leave of absence from
5service, provided that (1) the period of leave began on or
6after January 1, 1982 and (2) any credit established by the
7member for the period of leave in any other public employee
8retirement system has been terminated. A member may establish
9service credit under this subsection for more than one period
10of authorized leave, and in that case the total period of
11service credit established by the member under this subsection
12may exceed one year. In determining the contributions required
13for establishing service credit under this subsection, the
14interest shall be calculated from the beginning of the leave
15of absence to the date of payment.
16 (l-5) By paying the contributions otherwise required under
17this Section, plus an amount determined by the Board to be
18equal to the employer's normal cost of the benefit plus
19interest, a member may establish service credit for periods of
20up to 2 years spent on authorized leave of absence from
21service, provided that during that leave the member
22represented or was employed as an officer or employee of a
23statewide labor organization that represents members of this
24System. In determining the contributions required for
25establishing service credit under this subsection, the
26interest shall be calculated from the beginning of the leave

HB4873- 198 -LRB103 35886 RPS 65971 b
1of absence to the date of payment.
2 (m) Any person who rendered contractual services to a
3member of the General Assembly as a worker in the member's
4district office may establish creditable service for up to 3
5years of those contractual services by making the
6contributions required under this Section. The System shall
7determine a full-time salary equivalent for the purpose of
8calculating the required contribution. To establish credit
9under this subsection, the applicant must apply to the System
10by March 1, 1998.
11 (n) Any person who rendered contractual services to a
12member of the General Assembly as a worker providing
13constituent services to persons in the member's district may
14establish creditable service for up to 8 years of those
15contractual services by making the contributions required
16under this Section. The System shall determine a full-time
17salary equivalent for the purpose of calculating the required
18contribution. To establish credit under this subsection, the
19applicant must apply to the System by March 1, 1998.
20 (o) A member who participated in the Illinois Legislative
21Staff Internship Program may establish creditable service for
22up to one year of that participation by making the
23contribution required under this Section. The System shall
24determine a full-time salary equivalent for the purpose of
25calculating the required contribution. Credit may not be
26established under this subsection for any period for which

HB4873- 199 -LRB103 35886 RPS 65971 b
1service credit is established under any other provision of
2this Code.
3 (p) By paying the contributions otherwise required under
4this Section, plus an amount determined by the Board to be
5equal to the employer's normal cost of the benefit plus
6interest, a member may establish service credit for a period
7of up to 8 years during which he or she was employed by the
8Visually Handicapped Managers of Illinois in a vending program
9operated under a contractual agreement with the Department of
10Rehabilitation Services or its successor agency.
11 This subsection (p) applies without regard to whether the
12person was in service on or after the effective date of this
13amendatory Act of the 94th General Assembly. In the case of a
14person who is receiving a retirement annuity on that effective
15date, the increase, if any, shall begin to accrue on the first
16annuity payment date following receipt by the System of the
17contributions required under this subsection (p).
18 (q) By paying the required contributions under this
19Section, plus an amount determined by the Board to be equal to
20the employer's normal cost of the benefit plus interest, an
21employee who was laid off but returned to any State employment
22may establish creditable service for the period of the layoff,
23provided that (1) the applicant applies for the creditable
24service under this subsection (q) within 6 months after July
2527, 2010 (the effective date of Public Act 96-1320), (2) the
26applicant does not receive credit for that period under any

HB4873- 200 -LRB103 35886 RPS 65971 b
1other provision of this Code, (3) at the time of the layoff,
2the applicant is not in an initial probationary status
3consistent with the rules of the Department of Central
4Management Services, and (4) the total amount of creditable
5service established by the applicant under this subsection (q)
6does not exceed 3 years. For service established under this
7subsection (q), the required employee contribution shall be
8based on the rate of compensation earned by the employee on the
9date of returning to employment after the layoff and the
10contribution rate then in effect, and the required interest
11shall be calculated at the actuarially assumed rate from the
12date of returning to employment after the layoff to the date of
13payment. Funding for any new benefit increase, as defined in
14Section 14-152.1 of this Act, that is created under this
15subsection (q) will be provided by the employee contributions
16required under this subsection (q).
17 (r) A member who participated in the University of
18Illinois Government Public Service Internship Program (GPSI)
19may establish creditable service for up to 2 years of that
20participation by making the contribution required under this
21Section, plus an amount determined by the Board to be equal to
22the employer's normal cost of the benefit plus interest. The
23System shall determine a full-time salary equivalent for the
24purpose of calculating the required contribution. Credit may
25not be established under this subsection for any period for
26which service credit is established under any other provision

HB4873- 201 -LRB103 35886 RPS 65971 b
1of this Code.
2 (s) A member who worked as a nurse under a contractual
3agreement for the Department of Public Aid, or its successor
4agency, the Department of Human Services, in the Client
5Assessment Unit and was subsequently determined to be a State
6employee by the United States Internal Revenue Service and the
7Illinois Labor Relations Board may establish creditable
8service for those contractual services by making the
9contributions required under this Section. To establish credit
10under this subsection, the applicant must apply to the System
11by July 1, 2008.
12 The Department of Human Services shall pay an employer
13contribution based upon an amount determined by the Board to
14be equal to the employer's normal cost of the benefit, plus
15interest.
16 In compliance with Section 14-152.1 added by Public Act
1794-4, the cost of the benefits provided by Public Act 95-583
18are offset by the required employee and employer
19contributions.
20 (t) Any person who rendered contractual services on a
21full-time basis to the Illinois Institute of Natural Resources
22and the Illinois Department of Energy and Natural Resources
23may establish creditable service for up to 4 years of those
24contractual services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit plus

HB4873- 202 -LRB103 35886 RPS 65971 b
1interest at the actuarially assumed rate from the first day of
2the service for which credit is being established to the date
3of payment. To establish credit under this subsection (t), the
4applicant must apply to the System within 6 months after July
527, 2010 (the effective date of Public Act 96-1320).
6 (u) By paying the required contributions under this
7Section, plus an amount determined by the Board to be equal to
8the employer's normal cost of the benefit, plus interest, a
9member may establish creditable service and earnings credit
10for periods of furlough beginning on or after July 1, 2008. To
11receive this credit, the participant must (i) apply in writing
12to the System before December 31, 2011 and (ii) not receive
13compensation for the furlough period. For service established
14under this subsection, the required employee contribution
15shall be based on the rate of compensation earned by the
16employee immediately following the date of the first furlough
17day in the time period specified in this subsection (u), and
18the required interest shall be calculated at the actuarially
19assumed rate from the date of the furlough to the date of
20payment.
21 (v) Any member who rendered full-time contractual services
22to an Illinois Veterans Home operated by the Department of
23Veterans' Affairs may establish service credit for up to 8
24years of such services by making the contributions required
25under this Section, plus an amount determined by the Board to
26be equal to the employer's normal cost of the benefit, plus

HB4873- 203 -LRB103 35886 RPS 65971 b
1interest at the actuarially assumed rate. To establish credit
2under this subsection, the applicant must apply to the System
3no later than 6 months after July 27, 2010 (the effective date
4of Public Act 96-1320).
5 (w) Any employee who served as a member of the General
6Assembly and did not contribute to any other public employee
7retirement system for such service may establish service
8credit for up to 10 years of that service by making the
9contributions required under this Section, plus an amount
10determined by the Board to be equal to the employer's normal
11cost of the benefit, plus interest at the actuarially assumed
12rate. To establish credit under this subsection, the applicant
13must make the contributions required under this subsection no
14later than 10 years after making application to the System.
15 (x) Any employee who served as a judge, as defined in
16Section 18-108, and did not contribute to any other public
17employee retirement system for such service may establish
18service credit for up to 10 years of that service by making the
19contributions required under this Section, plus an amount
20determined by the Board to be equal to the employer's normal
21cost of the benefit, plus interest at the actuarially assumed
22rate. To establish credit under this subsection, the applicant
23must make the contributions required under this subsection no
24later than 10 years after making application to the System.
25(Source: P.A. 96-97, eff. 7-27-09; 96-718, eff. 8-25-09;
2696-775, eff. 8-28-09; 96-961, eff. 7-2-10; 96-1000, eff.

HB4873- 204 -LRB103 35886 RPS 65971 b
17-2-10; 96-1320, eff. 7-27-10; 96-1535, eff. 3-4-11; 97-333,
28-12-11.)
3 (40 ILCS 5/14-104.14 new)
4 Sec. 14-104.14. Transfer of service from the Judges
5Retirement System of Illinois. An active participant in the
6Judges Retirement System of Illinois may elect to terminate
7participation in the Judges Retirement System of Illinois in
8accordance with subsection (b) of Section 18-120. All credits
9and creditable service accumulated under Article 18 shall be
10transferred to this System upon payment to this System of (1)
11the amount by which the employer and employee contributions
12that would have been required if he or she had participated in
13this System during the period for which credit is being
14transferred, plus regular interest, exceeds the amounts
15actually transferred under that Section to this System, plus
16(2) regular interest thereon from the date of such
17participation to the date of payment.
18 (40 ILCS 5/14-105.4) (from Ch. 108 1/2, par. 14-105.4)
19 Sec. 14-105.4. Transfer of service from the General
20Assembly Retirement System.
21 (a) Persons otherwise required or eligible to participate
22in this System who elect to continue participation in the
23General Assembly Retirement System under Section 2-117.1 may
24not participate in this System for the duration of such

HB4873- 205 -LRB103 35886 RPS 65971 b
1continued participation under Section 2-117.1.
2 (b) Upon terminating such continued participation, a
3person may transfer credits and creditable service accumulated
4under Section 2-117.1 to this System, upon payment to this
5System of (1) the amount by which the employer and employee
6contributions that would have been required if he had
7participated in this System during the period for which credit
8under Section 2-117.1 is being transferred, plus regular
9interest, exceeds the amounts actually transferred under that
10Section to this System, plus (2) regular interest thereon from
11the date of such participation to the date of payment.
12 (c) An active participant in the General Assembly
13Retirement System may elect to terminate participation in the
14General Assembly Retirement System in accordance with
15subsection (c) of Section 2-117. All credits and creditable
16service accumulated under Article 2 shall be transferred to
17this System upon payment to this System of (1) the amount by
18which the employer and employee contributions that would have
19been required if he or she had participated in this System
20during the period for which credit is being transferred, plus
21regular interest, exceeds the amounts actually transferred
22under that Section to this System, plus (2) regular interest
23thereon from the date of such participation to the date of
24payment.
25(Source: P.A. 83-430.)

HB4873- 206 -LRB103 35886 RPS 65971 b
1 (40 ILCS 5/18-101) (from Ch. 108 1/2, par. 18-101)
2 Sec. 18-101. Creation of fund. A retirement system is
3created to be known as the "Judges Retirement System of
4Illinois". It shall be a trust separate and distinct from all
5other entities, maintained for the purpose of securing the
6payment of annuities and benefits as prescribed herein.
7 Participation in the retirement system created under this
8Article is restricted to persons who became participants of
9the System before January 13, 2027. Beginning on that date,
10the System shall not accept any new participants.
11(Source: Laws 1963, p. 161.)
12 (40 ILCS 5/18-108) (from Ch. 108 1/2, par. 18-108)
13 Sec. 18-108. Judge. "Judge": Any person who receives
14payment for personal services as a judge or associate judge of
15a court; and any person, previously a participant, who
16receives payment for personal services as the administrative
17director appointed by the Supreme Court.
18 Notwithstanding any other provision of this Article, a
19person shall not be deemed a judge for the purposes of this
20Article unless he or she became a participant of the System
21before January 13, 2027.
22(Source: P.A. 83-1440.)
23 (40 ILCS 5/18-109) (from Ch. 108 1/2, par. 18-109)
24 Sec. 18-109. Eligible judge. "Eligible judge": Any judge

HB4873- 207 -LRB103 35886 RPS 65971 b
1except one who has elected not to participate in this system.
2 Notwithstanding any other provision of this Article, a
3person shall not be deemed an eligible judge for the purposes
4of this Article unless he or she became a participant of the
5System before January 13, 2027.
6(Source: P.A. 83-1440.)
7 (40 ILCS 5/18-110) (from Ch. 108 1/2, par. 18-110)
8 Sec. 18-110. Participant. "Participant": Any judge
9participating in this system as specified in Sections 18-120
10and 18-121.
11 Notwithstanding any other provision of this Article, a
12person shall not be deemed a participant for the purposes of
13this Article unless he or she became a participant of the
14System before January 13, 2027.
15(Source: P.A. 83-1440.)
16 (40 ILCS 5/18-120) (from Ch. 108 1/2, par. 18-120)
17 Sec. 18-120. Employee participation; election not to
18participate or terminate participation.
19 (a) An eligible judge who is not a participant shall
20become a participant beginning on the date he or she becomes an
21eligible judge, unless the judge files with the board a
22written notice of election not to participate within 30 days
23of the date of being notified of the option.
24 A person electing not to participate shall thereafter be

HB4873- 208 -LRB103 35886 RPS 65971 b
1ineligible to become a participant unless the election is
2revoked as provided in Section 18-121.
3 (b) Notwithstanding any other provision of this Article,
4an active participant may irrevocably elect, in writing and in
5a form and manner prescribed by the board, to terminate
6participation in the System and instead participate in the
7retirement system established under Article 14. Upon making
8the election under this subsection (b), all credits and
9creditable service shall be transferred to the retirement
10system under Article 14 in accordance with Section 14-104.14
11and all participation in this System is terminated.
12(Source: P.A. 83-1440.)
13
Article 9.
14 Section 9-5. The Illinois Pension Code is amended by
15changing Sections 1-160 and 15-135 as follows:
16 (40 ILCS 5/1-160)
17 (Text of Section from P.A. 102-719)
18 Sec. 1-160. Provisions applicable to new hires.
19 (a) The provisions of this Section apply to a person who,
20on or after January 1, 2011, first becomes a member or a
21participant under any reciprocal retirement system or pension
22fund established under this Code, other than a retirement
23system or pension fund established under Article 2, 3, 4, 5, 6,

HB4873- 209 -LRB103 35886 RPS 65971 b
17, 15, or 18 of this Code, notwithstanding any other provision
2of this Code to the contrary, but do not apply to any
3self-managed plan established under this Code or to any
4participant of the retirement plan established under Section
522-101; except that this Section applies to a person who
6elected to establish alternative credits by electing in
7writing after January 1, 2011, but before August 8, 2011,
8under Section 7-145.1 of this Code. Notwithstanding anything
9to the contrary in this Section, for purposes of this Section,
10a person who is a Tier 1 regular employee as defined in Section
117-109.4 of this Code or who participated in a retirement
12system under Article 15 prior to January 1, 2011 shall be
13deemed a person who first became a member or participant prior
14to January 1, 2011 under any retirement system or pension fund
15subject to this Section. The changes made to this Section by
16Public Act 98-596 are a clarification of existing law and are
17intended to be retroactive to January 1, 2011 (the effective
18date of Public Act 96-889), notwithstanding the provisions of
19Section 1-103.1 of this Code.
20 This Section does not apply to a person who first becomes a
21noncovered employee under Article 14 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

HB4873- 210 -LRB103 35886 RPS 65971 b
1 This Section does not apply to a person who first becomes a
2member or participant under Article 16 on or after the
3implementation date of the plan created under Section 1-161
4for that Article, unless that person elects under subsection
5(b) of Section 1-161 to instead receive the benefits provided
6under this Section and the applicable provisions of that
7Article.
8 This Section does not apply to a person who elects under
9subsection (c-5) of Section 1-161 to receive the benefits
10under Section 1-161.
11 This Section does not apply to a person who first becomes a
12member or participant of an affected pension fund on or after 6
13months after the resolution or ordinance date, as defined in
14Section 1-162, unless that person elects under subsection (c)
15of Section 1-162 to receive the benefits provided under this
16Section and the applicable provisions of the Article under
17which he or she is a member or participant.
18 (b) "Final average salary" means, except as otherwise
19provided in this subsection, the average monthly (or annual)
20salary obtained by dividing the total salary or earnings
21calculated under the Article applicable to the member or
22participant during the 96 consecutive months (or 8 consecutive
23years) of service within the last 120 months (or 10 years) of
24service in which the total salary or earnings calculated under
25the applicable Article was the highest by the number of months
26(or years) of service in that period. For the purposes of a

HB4873- 211 -LRB103 35886 RPS 65971 b
1person who first becomes a member or participant of any
2retirement system or pension fund to which this Section
3applies on or after January 1, 2011, in this Code, "final
4average salary" shall be substituted for the following:
5 (1) (Blank).
6 (2) In Articles 8, 9, 10, 11, and 12, "highest average
7 annual salary for any 4 consecutive years within the last
8 10 years of service immediately preceding the date of
9 withdrawal".
10 (3) In Article 13, "average final salary".
11 (4) In Article 14, "final average compensation".
12 (5) In Article 17, "average salary".
13 (6) In Section 22-207, "wages or salary received by
14 him at the date of retirement or discharge".
15 A member of the Teachers' Retirement System of the State
16of Illinois who retires on or after June 1, 2021 and for whom
17the 2020-2021 school year is used in the calculation of the
18member's final average salary shall use the higher of the
19following for the purpose of determining the member's final
20average salary:
21 (A) the amount otherwise calculated under the first
22 paragraph of this subsection; or
23 (B) an amount calculated by the Teachers' Retirement
24 System of the State of Illinois using the average of the
25 monthly (or annual) salary obtained by dividing the total
26 salary or earnings calculated under Article 16 applicable

HB4873- 212 -LRB103 35886 RPS 65971 b
1 to the member or participant during the 96 months (or 8
2 years) of service within the last 120 months (or 10 years)
3 of service in which the total salary or earnings
4 calculated under the Article was the highest by the number
5 of months (or years) of service in that period.
6 (b-5) Beginning on January 1, 2011, for all purposes under
7this Code (including without limitation the calculation of
8benefits and employee contributions), the annual earnings,
9salary, or wages (based on the plan year) of a member or
10participant to whom this Section applies shall not exceed
11$106,800; however, that amount shall annually thereafter be
12increased by the lesser of (i) 3% of that amount, including all
13previous adjustments, or (ii) one-half the annual unadjusted
14percentage increase (but not less than zero) in the consumer
15price index-u for the 12 months ending with the September
16preceding each November 1, including all previous adjustments.
17 For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the
20average change in prices of goods and services purchased by
21all urban consumers, United States city average, all items,
221982-84 = 100. The new amount resulting from each annual
23adjustment shall be determined by the Public Pension Division
24of the Department of Insurance and made available to the
25boards of the retirement systems and pension funds by November
261 of each year.

HB4873- 213 -LRB103 35886 RPS 65971 b
1 (b-10) Beginning on January 1, 2024, for all purposes
2under this Code (including, without limitation, the
3calculation of benefits and employee contributions), the
4annual earnings, salary, or wages (based on the plan year) of a
5member or participant under Article 9 to whom this Section
6applies shall include an annual earnings, salary, or wage cap
7that tracks the Social Security wage base. Maximum annual
8earnings, wages, or salary shall be the annual contribution
9and benefit base established for the applicable year by the
10Commissioner of the Social Security Administration under the
11federal Social Security Act.
12 However, in no event shall the annual earnings, salary, or
13wages for the purposes of this Article and Article 9 exceed any
14limitation imposed on annual earnings, salary, or wages under
15Section 1-117. Under no circumstances shall the maximum amount
16of annual earnings, salary, or wages be greater than the
17amount set forth in this subsection (b-10) as a result of
18reciprocal service or any provisions regarding reciprocal
19services, nor shall the Fund under Article 9 be required to pay
20any refund as a result of the application of this maximum
21annual earnings, salary, and wage cap.
22 Nothing in this subsection (b-10) shall cause or otherwise
23result in any retroactive adjustment of any employee
24contributions. Nothing in this subsection (b-10) shall cause
25or otherwise result in any retroactive adjustment of
26disability or other payments made between January 1, 2011 and

HB4873- 214 -LRB103 35886 RPS 65971 b
1January 1, 2024.
2 (c) A member or participant is entitled to a retirement
3annuity upon written application if he or she has attained age
467 (age 65, with respect to service under Article 12 that is
5subject to this Section, for a member or participant under
6Article 12 who first becomes a member or participant under
7Article 12 on or after January 1, 2022 or who makes the
8election under item (i) of subsection (d-15) of this Section)
9and has at least 10 years of service credit and is otherwise
10eligible under the requirements of the applicable Article.
11 A member or participant who has attained age 62 (age 60,
12with respect to service under Article 12 that is subject to
13this Section, for a member or participant under Article 12 who
14first becomes a member or participant under Article 12 on or
15after January 1, 2022 or who makes the election under item (i)
16of subsection (d-15) of this Section) and has at least 10 years
17of service credit and is otherwise eligible under the
18requirements of the applicable Article may elect to receive
19the lower retirement annuity provided in subsection (d) of
20this Section.
21 (c-5) A person who first becomes a member or a participant
22subject to this Section on or after July 6, 2017 (the effective
23date of Public Act 100-23), notwithstanding any other
24provision of this Code to the contrary, is entitled to a
25retirement annuity under Article 8 or Article 11 upon written
26application if he or she has attained age 65 and has at least

HB4873- 215 -LRB103 35886 RPS 65971 b
110 years of service credit and is otherwise eligible under the
2requirements of Article 8 or Article 11 of this Code,
3whichever is applicable.
4 (c-10) Notwithstanding subsection (c), beginning July 1,
52025, a member or participant under Article 14, 16, or 17
6subject to this Section is entitled to a retirement annuity
7upon written application if he or she:
8 (1) has attained age 62, has at least 35 years of
9 service credit, and is otherwise eligible under the
10 requirements of the applicable Article;
11 (2) has attained age 64, has at least 20 years of
12 service credit, and is otherwise eligible under the
13 requirements of the applicable Article; or
14 (3) has attained age 67, has at least 10 years of
15 service credit, and is otherwise eligible under the
16 requirements of the applicable Article.
17 For the purposes of Section 1-103.1 of this Code, the
18changes made to this Section by this amendatory Act of the
19103rd General Assembly are applicable without regard to
20whether the employee was in active service on or after the
21effective date of this amendatory Act of the 103rd General
22Assembly.
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

HB4873- 216 -LRB103 35886 RPS 65971 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).
11 (d-5) The retirement annuity payable under Article 8 or
12Article 11 to an eligible person subject to subsection (c-5)
13of this Section who is retiring at age 60 with at least 10
14years of service credit shall be reduced by one-half of 1% for
15each full month that the member's age is under age 65.
16 (d-10) Each person who first became a member or
17participant under Article 8 or Article 11 of this Code on or
18after January 1, 2011 and prior to July 6, 2017 (the effective
19date of Public Act 100-23) shall make an irrevocable election
20either:
21 (i) to be eligible for the reduced retirement age
22 provided in subsections (c-5) and (d-5) of this Section,
23 the eligibility for which is conditioned upon the member
24 or participant agreeing to the increases in employee
25 contributions for age and service annuities provided in
26 subsection (a-5) of Section 8-174 of this Code (for

HB4873- 217 -LRB103 35886 RPS 65971 b
1 service under Article 8) or subsection (a-5) of Section
2 11-170 of this Code (for service under Article 11); or
3 (ii) to not agree to item (i) of this subsection
4 (d-10), in which case the member or participant shall
5 continue to be subject to the retirement age provisions in
6 subsections (c) and (d) of this Section and the employee
7 contributions for age and service annuity as provided in
8 subsection (a) of Section 8-174 of this Code (for service
9 under Article 8) or subsection (a) of Section 11-170 of
10 this Code (for service under Article 11).
11 The election provided for in this subsection shall be made
12between October 1, 2017 and November 15, 2017. A person
13subject to this subsection who makes the required election
14shall remain bound by that election. A person subject to this
15subsection who fails for any reason to make the required
16election within the time specified in this subsection shall be
17deemed to have made the election under item (ii).
18 (d-15) Each person who first becomes a member or
19participant under Article 12 on or after January 1, 2011 and
20prior to January 1, 2022 shall make an irrevocable election
21either:
22 (i) to be eligible for the reduced retirement age
23 specified in subsections (c) and (d) of this Section, the
24 eligibility for which is conditioned upon the member or
25 participant agreeing to the increase in employee
26 contributions for service annuities specified in

HB4873- 218 -LRB103 35886 RPS 65971 b
1 subsection (b) of Section 12-150; or
2 (ii) to not agree to item (i) of this subsection
3 (d-15), in which case the member or participant shall not
4 be eligible for the reduced retirement age specified in
5 subsections (c) and (d) of this Section and shall not be
6 subject to the increase in employee contributions for
7 service annuities specified in subsection (b) of Section
8 12-150.
9 The election provided for in this subsection shall be made
10between January 1, 2022 and April 1, 2022. A person subject to
11this subsection who makes the required election shall remain
12bound by that election. A person subject to this subsection
13who fails for any reason to make the required election within
14the time specified in this subsection shall be deemed to have
15made the election under item (ii).
16 (e) Any retirement annuity or supplemental annuity shall
17be subject to annual increases on the January 1 occurring
18either on or after the attainment of age 67 (age 65, with
19respect to service under Article 12 that is subject to this
20Section, for a member or participant under Article 12 who
21first becomes a member or participant under Article 12 on or
22after January 1, 2022 or who makes the election under item (i)
23of subsection (d-15); and beginning on July 6, 2017 (the
24effective date of Public Act 100-23), age 65 with respect to
25service under Article 8 or Article 11 for eligible persons
26who: (i) are subject to subsection (c-5) of this Section; or

HB4873- 219 -LRB103 35886 RPS 65971 b
1(ii) made the election under item (i) of subsection (d-10) of
2this Section) or the first anniversary of the annuity start
3date, whichever is later. Each annual increase shall be
4calculated at 3% or one-half the annual unadjusted percentage
5increase (but not less than zero) in the consumer price
6index-u for the 12 months ending with the September preceding
7each November 1, whichever is less, of the originally granted
8retirement annuity. If the annual unadjusted percentage change
9in the consumer price index-u for the 12 months ending with the
10September preceding each November 1 is zero or there is a
11decrease, then the annuity shall not be increased.
12 For the purposes of Section 1-103.1 of this Code, the
13changes made to this Section by Public Act 102-263 are
14applicable without regard to whether the employee was in
15active service on or after August 6, 2021 (the effective date
16of Public Act 102-263).
17 For the purposes of Section 1-103.1 of this Code, the
18changes made to this Section by Public Act 100-23 are
19applicable without regard to whether the employee was in
20active service on or after July 6, 2017 (the effective date of
21Public Act 100-23).
22 (f) The initial survivor's or widow's annuity of an
23otherwise eligible survivor or widow of a retired member or
24participant who first became a member or participant on or
25after January 1, 2011 shall be in the amount of 66 2/3% of the
26retired member's or participant's retirement annuity at the

HB4873- 220 -LRB103 35886 RPS 65971 b
1date of death. In the case of the death of a member or
2participant who has not retired and who first became a member
3or participant on or after January 1, 2011, eligibility for a
4survivor's or widow's annuity shall be determined by the
5applicable Article of this Code. The initial benefit shall be
666 2/3% of the earned annuity without a reduction due to age. A
7child's annuity of an otherwise eligible child shall be in the
8amount prescribed under each Article if applicable. Any
9survivor's or widow's annuity shall be increased (1) on each
10January 1 occurring on or after the commencement of the
11annuity if the deceased member died while receiving a
12retirement annuity or (2) in other cases, on each January 1
13occurring after the first anniversary of the commencement of
14the annuity. Each annual increase shall be calculated at 3% or
15one-half the annual unadjusted percentage increase (but not
16less than zero) in the consumer price index-u for the 12 months
17ending with the September preceding each November 1, whichever
18is less, of the originally granted survivor's annuity. If the
19annual unadjusted percentage change in the consumer price
20index-u for the 12 months ending with the September preceding
21each November 1 is zero or there is a decrease, then the
22annuity shall not be increased.
23 (g) The benefits in Section 14-110 apply if the person is a
24fire fighter in the fire protection service of a department, a
25security employee of the Department of Corrections or the
26Department of Juvenile Justice, or a security employee of the

HB4873- 221 -LRB103 35886 RPS 65971 b
1Department of Innovation and Technology, as those terms are
2defined in subsection (b) and subsection (c) of Section
314-110. A person who meets the requirements of this Section is
4entitled to an annuity calculated under the provisions of
5Section 14-110, in lieu of the regular or minimum retirement
6annuity, only if the person has withdrawn from service with
7not less than 20 years of eligible creditable service and has
8attained age 60, regardless of whether the attainment of age
960 occurs while the person is still in service.
10 (g-5) The benefits in Section 14-110 apply if the person
11is a State policeman, investigator for the Secretary of State,
12conservation police officer, investigator for the Department
13of Revenue or the Illinois Gaming Board, investigator for the
14Office of the Attorney General, Commerce Commission police
15officer, or arson investigator, as those terms are defined in
16subsection (b) and subsection (c) of Section 14-110. A person
17who meets the requirements of this Section is entitled to an
18annuity calculated under the provisions of Section 14-110, in
19lieu of the regular or minimum retirement annuity, only if the
20person has withdrawn from service with not less than 20 years
21of eligible creditable service and has attained age 55,
22regardless of whether the attainment of age 55 occurs while
23the person is still in service.
24 (h) If a person who first becomes a member or a participant
25of a retirement system or pension fund subject to this Section
26on or after January 1, 2011 is receiving a retirement annuity

HB4873- 222 -LRB103 35886 RPS 65971 b
1or retirement pension under that system or fund and becomes a
2member or participant under any other system or fund created
3by this Code and is employed on a full-time basis, except for
4those members or participants exempted from the provisions of
5this Section under subsection (a) of this Section, then the
6person's retirement annuity or retirement pension under that
7system or fund shall be suspended during that employment. Upon
8termination of that employment, the person's retirement
9annuity or retirement pension payments shall resume and be
10recalculated if recalculation is provided for under the
11applicable Article of this Code.
12 If a person who first becomes a member of a retirement
13system or pension fund subject to this Section on or after
14January 1, 2012 and is receiving a retirement annuity or
15retirement pension under that system or fund and accepts on a
16contractual basis a position to provide services to a
17governmental entity from which he or she has retired, then
18that person's annuity or retirement pension earned as an
19active employee of the employer shall be suspended during that
20contractual service. A person receiving an annuity or
21retirement pension under this Code shall notify the pension
22fund or retirement system from which he or she is receiving an
23annuity or retirement pension, as well as his or her
24contractual employer, of his or her retirement status before
25accepting contractual employment. A person who fails to submit
26such notification shall be guilty of a Class A misdemeanor and

HB4873- 223 -LRB103 35886 RPS 65971 b
1required to pay a fine of $1,000. Upon termination of that
2contractual employment, the person's retirement annuity or
3retirement pension payments shall resume and, if appropriate,
4be recalculated under the applicable provisions of this Code.
5 (i) (Blank).
6 (j) In the case of a conflict between the provisions of
7this Section and any other provision of this Code, the
8provisions of this Section shall control.
9(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
10102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
115-6-22.)
12 (Text of Section from P.A. 102-813)
13 Sec. 1-160. Provisions applicable to new hires.
14 (a) The provisions of this Section apply to a person who,
15on or after January 1, 2011, first becomes a member or a
16participant under any reciprocal retirement system or pension
17fund established under this Code, other than a retirement
18system or pension fund established under Article 2, 3, 4, 5, 6,
197, 15, or 18 of this Code, notwithstanding any other provision
20of this Code to the contrary, but do not apply to any
21self-managed plan established under this Code or to any
22participant of the retirement plan established under Section
2322-101; except that this Section applies to a person who
24elected to establish alternative credits by electing in
25writing after January 1, 2011, but before August 8, 2011,

HB4873- 224 -LRB103 35886 RPS 65971 b
1under Section 7-145.1 of this Code. Notwithstanding anything
2to the contrary in this Section, for purposes of this Section,
3a person who is a Tier 1 regular employee as defined in Section
47-109.4 of this Code or who participated in a retirement
5system under Article 15 prior to January 1, 2011 shall be
6deemed a person who first became a member or participant prior
7to January 1, 2011 under any retirement system or pension fund
8subject to this Section. The changes made to this Section by
9Public Act 98-596 are a clarification of existing law and are
10intended to be retroactive to January 1, 2011 (the effective
11date of Public Act 96-889), notwithstanding the provisions of
12Section 1-103.1 of this Code.
13 This Section does not apply to a person who first becomes a
14noncovered employee under Article 14 on or after the
15implementation date of the plan created under Section 1-161
16for that Article, unless that person elects under subsection
17(b) of Section 1-161 to instead receive the benefits provided
18under this Section and the applicable provisions of that
19Article.
20 This Section does not apply to a person who first becomes a
21member or participant under Article 16 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

HB4873- 225 -LRB103 35886 RPS 65971 b
1 This Section does not apply to a person who elects under
2subsection (c-5) of Section 1-161 to receive the benefits
3under Section 1-161.
4 This Section does not apply to a person who first becomes a
5member or participant of an affected pension fund on or after 6
6months after the resolution or ordinance date, as defined in
7Section 1-162, unless that person elects under subsection (c)
8of Section 1-162 to receive the benefits provided under this
9Section and the applicable provisions of the Article under
10which he or she is a member or participant.
11 (b) "Final average salary" means, except as otherwise
12provided in this subsection, the average monthly (or annual)
13salary obtained by dividing the total salary or earnings
14calculated under the Article applicable to the member or
15participant during the 96 consecutive months (or 8 consecutive
16years) of service within the last 120 months (or 10 years) of
17service in which the total salary or earnings calculated under
18the applicable Article was the highest by the number of months
19(or years) of service in that period. For the purposes of a
20person who first becomes a member or participant of any
21retirement system or pension fund to which this Section
22applies on or after January 1, 2011, in this Code, "final
23average salary" shall be substituted for the following:
24 (1) (Blank).
25 (2) In Articles 8, 9, 10, 11, and 12, "highest average
26 annual salary for any 4 consecutive years within the last

HB4873- 226 -LRB103 35886 RPS 65971 b
1 10 years of service immediately preceding the date of
2 withdrawal".
3 (3) In Article 13, "average final salary".
4 (4) In Article 14, "final average compensation".
5 (5) In Article 17, "average salary".
6 (6) In Section 22-207, "wages or salary received by
7 him at the date of retirement or discharge".
8 A member of the Teachers' Retirement System of the State
9of Illinois who retires on or after June 1, 2021 and for whom
10the 2020-2021 school year is used in the calculation of the
11member's final average salary shall use the higher of the
12following for the purpose of determining the member's final
13average salary:
14 (A) the amount otherwise calculated under the first
15 paragraph of this subsection; or
16 (B) an amount calculated by the Teachers' Retirement
17 System of the State of Illinois using the average of the
18 monthly (or annual) salary obtained by dividing the total
19 salary or earnings calculated under Article 16 applicable
20 to the member or participant during the 96 months (or 8
21 years) of service within the last 120 months (or 10 years)
22 of service in which the total salary or earnings
23 calculated under the Article was the highest by the number
24 of months (or years) of service in that period.
25 (b-5) Beginning on January 1, 2011, for all purposes under
26this Code (including without limitation the calculation of

HB4873- 227 -LRB103 35886 RPS 65971 b
1benefits and employee contributions), the annual earnings,
2salary, or wages (based on the plan year) of a member or
3participant to whom this Section applies shall not exceed
4$106,800; however, that amount shall annually thereafter be
5increased by the lesser of (i) 3% of that amount, including all
6previous adjustments, or (ii) one-half the annual unadjusted
7percentage increase (but not less than zero) in the consumer
8price index-u for the 12 months ending with the September
9preceding each November 1, including all previous adjustments.
10 For the purposes of this Section, "consumer price index-u"
11means the index published by the Bureau of Labor Statistics of
12the United States Department of Labor that measures the
13average change in prices of goods and services purchased by
14all urban consumers, United States city average, all items,
151982-84 = 100. The new amount resulting from each annual
16adjustment shall be determined by the Public Pension Division
17of the Department of Insurance and made available to the
18boards of the retirement systems and pension funds by November
191 of each year.
20 (b-10) Beginning on January 1, 2024, for all purposes
21under this Code (including, without limitation, the
22calculation of benefits and employee contributions), the
23annual earnings, salary, or wages (based on the plan year) of a
24member or participant under Article 9 to whom this Section
25applies shall include an annual earnings, salary, or wage cap
26that tracks the Social Security wage base. Maximum annual

HB4873- 228 -LRB103 35886 RPS 65971 b
1earnings, wages, or salary shall be the annual contribution
2and benefit base established for the applicable year by the
3Commissioner of the Social Security Administration under the
4federal Social Security Act.
5 However, in no event shall the annual earnings, salary, or
6wages for the purposes of this Article and Article 9 exceed any
7limitation imposed on annual earnings, salary, or wages under
8Section 1-117. Under no circumstances shall the maximum amount
9of annual earnings, salary, or wages be greater than the
10amount set forth in this subsection (b-10) as a result of
11reciprocal service or any provisions regarding reciprocal
12services, nor shall the Fund under Article 9 be required to pay
13any refund as a result of the application of this maximum
14annual earnings, salary, and wage cap.
15 Nothing in this subsection (b-10) shall cause or otherwise
16result in any retroactive adjustment of any employee
17contributions. Nothing in this subsection (b-10) shall cause
18or otherwise result in any retroactive adjustment of
19disability or other payments made between January 1, 2011 and
20January 1, 2024.
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

HB4873- 229 -LRB103 35886 RPS 65971 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 (c-10) Notwithstanding subsection (c), beginning July 1,
242025, a member or participant under Article 14, 16, or 17
25subject to this Section is entitled to a retirement annuity
26upon written application if he or she:

HB4873- 230 -LRB103 35886 RPS 65971 b
1 (1) has attained age 62, has at least 35 years of
2 service credit, and is otherwise eligible under the
3 requirements of the applicable Article;
4 (2) has attained age 64, has at least 20 years of
5 service credit, and is otherwise eligible under the
6 requirements of the applicable Article; or
7 (3) has attained age 67, has at least 10 years of
8 service credit, and is otherwise eligible under the
9 requirements of the applicable Article.
10 For the purposes of Section 1-103.1 of this Code, the
11changes made to this Section by this amendatory Act of the
12103rd General Assembly are applicable without regard to
13whether the employee was in active service on or after the
14effective date of this amendatory Act of the 103rd General
15Assembly.
16 (d) The retirement annuity of a member or participant who
17is retiring after attaining age 62 (age 60, with respect to
18service under Article 12 that is subject to this Section, for a
19member or participant under Article 12 who first becomes a
20member or participant under Article 12 on or after January 1,
212022 or who makes the election under item (i) of subsection
22(d-15) of this Section) with at least 10 years of service
23credit shall be reduced by one-half of 1% for each full month
24that the member's age is under age 67 (age 65, 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

HB4873- 231 -LRB103 35886 RPS 65971 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).
4 (d-5) The retirement annuity payable under Article 8 or
5Article 11 to an eligible person subject to subsection (c-5)
6of this Section who is retiring at age 60 with at least 10
7years of service credit shall be reduced by one-half of 1% for
8each full month that the member's age is under age 65.
9 (d-10) Each person who first became a member or
10participant under Article 8 or Article 11 of this Code on or
11after January 1, 2011 and prior to July 6, 2017 (the effective
12date of Public Act 100-23) shall make an irrevocable election
13either:
14 (i) to be eligible for the reduced retirement age
15 provided in subsections (c-5) and (d-5) of this Section,
16 the eligibility for which is conditioned upon the member
17 or participant agreeing to the increases in employee
18 contributions for age and service annuities provided in
19 subsection (a-5) of Section 8-174 of this Code (for
20 service under Article 8) or subsection (a-5) of Section
21 11-170 of this Code (for service under Article 11); or
22 (ii) to not agree to item (i) of this subsection
23 (d-10), in which case the member or participant shall
24 continue to be subject to the retirement age provisions in
25 subsections (c) and (d) of this Section and the employee
26 contributions for age and service annuity as provided in

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1 subsection (a) of Section 8-174 of this Code (for service
2 under Article 8) or subsection (a) of Section 11-170 of
3 this Code (for service under Article 11).
4 The election provided for in this subsection shall be made
5between October 1, 2017 and November 15, 2017. A person
6subject to this subsection who makes the required election
7shall remain bound by that election. A person subject to this
8subsection who fails for any reason to make the required
9election within the time specified in this subsection shall be
10deemed to have made the election under item (ii).
11 (d-15) Each person who first becomes a member or
12participant under Article 12 on or after January 1, 2011 and
13prior to January 1, 2022 shall make an irrevocable election
14either:
15 (i) to be eligible for the reduced retirement age
16 specified in subsections (c) and (d) of this Section, the
17 eligibility for which is conditioned upon the member or
18 participant agreeing to the increase in employee
19 contributions for service annuities specified in
20 subsection (b) of Section 12-150; or
21 (ii) to not agree to item (i) of this subsection
22 (d-15), in which case the member or participant shall not
23 be eligible for the reduced retirement age specified in
24 subsections (c) and (d) of this Section and shall not be
25 subject to the increase in employee contributions for
26 service annuities specified in subsection (b) of Section

HB4873- 233 -LRB103 35886 RPS 65971 b
1 12-150.
2 The election provided for in this subsection shall be made
3between January 1, 2022 and April 1, 2022. A person subject to
4this subsection who makes the required election shall remain
5bound by that election. A person subject to this subsection
6who fails for any reason to make the required election within
7the time specified in this subsection shall be deemed to have
8made the election under item (ii).
9 (e) Any retirement annuity or supplemental annuity shall
10be subject to annual increases on the January 1 occurring
11either on or after the attainment of age 67 (age 65, with
12respect to service under Article 12 that is subject to this
13Section, for a member or participant under Article 12 who
14first becomes a member or participant under Article 12 on or
15after January 1, 2022 or who makes the election under item (i)
16of subsection (d-15); and beginning on July 6, 2017 (the
17effective date of Public Act 100-23), age 65 with respect to
18service under Article 8 or Article 11 for eligible persons
19who: (i) are subject to subsection (c-5) of this Section; or
20(ii) made the election under item (i) of subsection (d-10) of
21this Section) or the first anniversary of the annuity start
22date, whichever is later. Each annual increase shall be
23calculated at 3% or one-half the annual unadjusted percentage
24increase (but not less than zero) in the consumer price
25index-u for the 12 months ending with the September preceding
26each November 1, whichever is less, of the originally granted

HB4873- 234 -LRB103 35886 RPS 65971 b
1retirement annuity. If the annual unadjusted percentage change
2in the consumer price index-u for the 12 months ending with the
3September preceding each November 1 is zero or there is a
4decrease, then the annuity shall not be increased.
5 For the purposes of Section 1-103.1 of this Code, the
6changes made to this Section by Public Act 102-263 are
7applicable without regard to whether the employee was in
8active service on or after August 6, 2021 (the effective date
9of Public Act 102-263).
10 For the purposes of Section 1-103.1 of this Code, the
11changes made to this Section by Public Act 100-23 are
12applicable without regard to whether the employee was in
13active service on or after July 6, 2017 (the effective date of
14Public Act 100-23).
15 (f) The initial survivor's or widow's annuity of an
16otherwise eligible survivor or widow of a retired member or
17participant who first became a member or participant on or
18after January 1, 2011 shall be in the amount of 66 2/3% of the
19retired member's or participant's retirement annuity at the
20date of death. In the case of the death of a member or
21participant who has not retired and who first became a member
22or participant on or after January 1, 2011, eligibility for a
23survivor's or widow's annuity shall be determined by the
24applicable Article of this Code. The initial benefit shall be
2566 2/3% of the earned annuity without a reduction due to age. A
26child's annuity of an otherwise eligible child shall be in the

HB4873- 235 -LRB103 35886 RPS 65971 b
1amount prescribed under each Article if applicable. Any
2survivor's or widow's annuity shall be increased (1) on each
3January 1 occurring on or after the commencement of the
4annuity if the deceased member died while receiving a
5retirement annuity or (2) in other cases, on each January 1
6occurring after the first anniversary of the commencement of
7the annuity. Each annual increase shall be calculated at 3% or
8one-half the annual unadjusted percentage increase (but not
9less than zero) in the consumer price index-u for the 12 months
10ending with the September preceding each November 1, whichever
11is less, of the originally granted survivor's annuity. If the
12annual unadjusted percentage change in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1 is zero or there is a decrease, then the
15annuity shall not be increased.
16 (g) The benefits in Section 14-110 apply only if the
17person is a State policeman, a fire fighter in the fire
18protection service of a department, a conservation police
19officer, an investigator for the Secretary of State, an arson
20investigator, a Commerce Commission police officer,
21investigator for the Department of Revenue or the Illinois
22Gaming Board, a security employee of the Department of
23Corrections or the Department of Juvenile Justice, or a
24security employee of the Department of Innovation and
25Technology, as those terms are defined in subsection (b) and
26subsection (c) of Section 14-110. A person who meets the

HB4873- 236 -LRB103 35886 RPS 65971 b
1requirements of this Section is entitled to an annuity
2calculated under the provisions of Section 14-110, in lieu of
3the regular or minimum retirement annuity, only if the person
4has withdrawn from service with not less than 20 years of
5eligible creditable service and has attained age 60,
6regardless of whether the attainment of age 60 occurs while
7the person is still in service.
8 (h) If a person who first becomes a member or a participant
9of a retirement system or pension fund subject to this Section
10on or after January 1, 2011 is receiving a retirement annuity
11or retirement pension under that system or fund and becomes a
12member or participant under any other system or fund created
13by this Code and is employed on a full-time basis, except for
14those members or participants exempted from the provisions of
15this Section under subsection (a) of this Section, then the
16person's retirement annuity or retirement pension under that
17system or fund shall be suspended during that employment. Upon
18termination of that employment, the person's retirement
19annuity or retirement pension payments shall resume and be
20recalculated if recalculation is provided for under the
21applicable Article of this Code.
22 If a person who first becomes a member of a retirement
23system or pension fund subject to this Section on or after
24January 1, 2012 and is receiving a retirement annuity or
25retirement pension under that system or fund and accepts on a
26contractual basis a position to provide services to a

HB4873- 237 -LRB103 35886 RPS 65971 b
1governmental entity from which he or she has retired, then
2that person's annuity or retirement pension earned as an
3active employee of the employer shall be suspended during that
4contractual service. A person receiving an annuity or
5retirement pension under this Code shall notify the pension
6fund or retirement system from which he or she is receiving an
7annuity or retirement pension, as well as his or her
8contractual employer, of his or her retirement status before
9accepting contractual employment. A person who fails to submit
10such notification shall be guilty of a Class A misdemeanor and
11required to pay a fine of $1,000. Upon termination of that
12contractual employment, the person's retirement annuity or
13retirement pension payments shall resume and, if appropriate,
14be recalculated under the applicable provisions of this Code.
15 (i) (Blank).
16 (j) In the case of a conflict between the provisions of
17this Section and any other provision of this Code, the
18provisions of this Section shall control.
19(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
20102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
215-13-22.)
22 (Text of Section from P.A. 102-956)
23 Sec. 1-160. Provisions applicable to new hires.
24 (a) The provisions of this Section apply to a person who,
25on or after January 1, 2011, first becomes a member or a

HB4873- 238 -LRB103 35886 RPS 65971 b
1participant under any reciprocal retirement system or pension
2fund established under this Code, other than a retirement
3system or pension fund established under Article 2, 3, 4, 5, 6,
47, 15, or 18 of this Code, notwithstanding any other provision
5of this Code to the contrary, but do not apply to any
6self-managed plan established under this Code or to any
7participant of the retirement plan established under Section
822-101; except that this Section applies to a person who
9elected to establish alternative credits by electing in
10writing after January 1, 2011, but before August 8, 2011,
11under Section 7-145.1 of this Code. Notwithstanding anything
12to the contrary in this Section, for purposes of this Section,
13a person who is a Tier 1 regular employee as defined in Section
147-109.4 of this Code or who participated in a retirement
15system under Article 15 prior to January 1, 2011 shall be
16deemed a person who first became a member or participant prior
17to January 1, 2011 under any retirement system or pension fund
18subject to this Section. The changes made to this Section by
19Public Act 98-596 are a clarification of existing law and are
20intended to be retroactive to January 1, 2011 (the effective
21date of Public Act 96-889), notwithstanding the provisions of
22Section 1-103.1 of this Code.
23 This Section does not apply to a person who first becomes a
24noncovered employee under Article 14 on or after the
25implementation date of the plan created under Section 1-161
26for that Article, unless that person elects under subsection

HB4873- 239 -LRB103 35886 RPS 65971 b
1(b) of Section 1-161 to instead receive the benefits provided
2under this Section and the applicable provisions of that
3Article.
4 This Section does not apply to a person who first becomes a
5member or participant under Article 16 on or after the
6implementation date of the plan created under Section 1-161
7for that Article, unless that person elects under subsection
8(b) of Section 1-161 to instead receive the benefits provided
9under this Section and the applicable provisions of that
10Article.
11 This Section does not apply to a person who elects under
12subsection (c-5) of Section 1-161 to receive the benefits
13under Section 1-161.
14 This Section does not apply to a person who first becomes a
15member or participant of an affected pension fund on or after 6
16months after the resolution or ordinance date, as defined in
17Section 1-162, unless that person elects under subsection (c)
18of Section 1-162 to receive the benefits provided under this
19Section and the applicable provisions of the Article under
20which he or she is a member or participant.
21 (b) "Final average salary" means, except as otherwise
22provided in this subsection, the average monthly (or annual)
23salary obtained by dividing the total salary or earnings
24calculated under the Article applicable to the member or
25participant during the 96 consecutive months (or 8 consecutive
26years) of service within the last 120 months (or 10 years) of

HB4873- 240 -LRB103 35886 RPS 65971 b
1service in which the total salary or earnings calculated under
2the applicable Article was the highest by the number of months
3(or years) of service in that period. For the purposes of a
4person who first becomes a member or participant of any
5retirement system or pension fund to which this Section
6applies on or after January 1, 2011, in this Code, "final
7average salary" shall be substituted for the following:
8 (1) (Blank).
9 (2) In Articles 8, 9, 10, 11, and 12, "highest average
10 annual salary for any 4 consecutive years within the last
11 10 years of service immediately preceding the date of
12 withdrawal".
13 (3) In Article 13, "average final salary".
14 (4) In Article 14, "final average compensation".
15 (5) In Article 17, "average salary".
16 (6) In Section 22-207, "wages or salary received by
17 him at the date of retirement or discharge".
18 A member of the Teachers' Retirement System of the State
19of Illinois who retires on or after June 1, 2021 and for whom
20the 2020-2021 school year is used in the calculation of the
21member's final average salary shall use the higher of the
22following for the purpose of determining the member's final
23average salary:
24 (A) the amount otherwise calculated under the first
25 paragraph of this subsection; or
26 (B) an amount calculated by the Teachers' Retirement

HB4873- 241 -LRB103 35886 RPS 65971 b
1 System of the State of Illinois using the average of the
2 monthly (or annual) salary obtained by dividing the total
3 salary or earnings calculated under Article 16 applicable
4 to the member or participant during the 96 months (or 8
5 years) of service within the last 120 months (or 10 years)
6 of service in which the total salary or earnings
7 calculated under the Article was the highest by the number
8 of months (or years) of service in that period.
9 (b-5) Beginning on January 1, 2011, for all purposes under
10this Code (including without limitation the calculation of
11benefits and employee contributions), the annual earnings,
12salary, or wages (based on the plan year) of a member or
13participant to whom this Section applies shall not exceed
14$106,800; however, that amount shall annually thereafter be
15increased by the lesser of (i) 3% of that amount, including all
16previous adjustments, or (ii) one-half the annual unadjusted
17percentage increase (but not less than zero) in the consumer
18price index-u for the 12 months ending with the September
19preceding each November 1, including all previous adjustments.
20 For the purposes of this Section, "consumer price index-u"
21means the index published by the Bureau of Labor Statistics of
22the United States Department of Labor that measures the
23average change in prices of goods and services purchased by
24all urban consumers, United States city average, all items,
251982-84 = 100. The new amount resulting from each annual
26adjustment shall be determined by the Public Pension Division

HB4873- 242 -LRB103 35886 RPS 65971 b
1of the Department of Insurance and made available to the
2boards of the retirement systems and pension funds by November
31 of each year.
4 (b-10) Beginning on January 1, 2024, for all purposes
5under this Code (including, without limitation, the
6calculation of benefits and employee contributions), the
7annual earnings, salary, or wages (based on the plan year) of a
8member or participant under Article 9 to whom this Section
9applies shall include an annual earnings, salary, or wage cap
10that tracks the Social Security wage base. Maximum annual
11earnings, wages, or salary shall be the annual contribution
12and benefit base established for the applicable year by the
13Commissioner of the Social Security Administration under the
14federal Social Security Act.
15 However, in no event shall the annual earnings, salary, or
16wages for the purposes of this Article and Article 9 exceed any
17limitation imposed on annual earnings, salary, or wages under
18Section 1-117. Under no circumstances shall the maximum amount
19of annual earnings, salary, or wages be greater than the
20amount set forth in this subsection (b-10) as a result of
21reciprocal service or any provisions regarding reciprocal
22services, nor shall the Fund under Article 9 be required to pay
23any refund as a result of the application of this maximum
24annual earnings, salary, and wage cap.
25 Nothing in this subsection (b-10) shall cause or otherwise
26result in any retroactive adjustment of any employee

HB4873- 243 -LRB103 35886 RPS 65971 b
1contributions. Nothing in this subsection (b-10) shall cause
2or otherwise result in any retroactive adjustment of
3disability or other payments made between January 1, 2011 and
4January 1, 2024.
5 (c) A member or participant is entitled to a retirement
6annuity upon written application if he or she has attained age
767 (age 65, with respect to service under Article 12 that is
8subject to this Section, for a member or participant under
9Article 12 who first becomes a member or participant under
10Article 12 on or after January 1, 2022 or who makes the
11election under item (i) of subsection (d-15) of this Section)
12and has at least 10 years of service credit and is otherwise
13eligible under the requirements of the applicable Article.
14 A member or participant who has attained age 62 (age 60,
15with respect to service under Article 12 that is subject to
16this Section, for a member or participant under Article 12 who
17first becomes a member or participant under Article 12 on or
18after January 1, 2022 or who makes the election under item (i)
19of subsection (d-15) of this Section) and has at least 10 years
20of service credit and is otherwise eligible under the
21requirements of the applicable Article may elect to receive
22the lower retirement annuity provided in subsection (d) of
23this Section.
24 (c-5) A person who first becomes a member or a participant
25subject to this Section on or after July 6, 2017 (the effective
26date of Public Act 100-23), notwithstanding any other

HB4873- 244 -LRB103 35886 RPS 65971 b
1provision of this Code to the contrary, is entitled to a
2retirement annuity under Article 8 or Article 11 upon written
3application if he or she has attained age 65 and has at least
410 years of service credit and is otherwise eligible under the
5requirements of Article 8 or Article 11 of this Code,
6whichever is applicable.
7 (c-10) Notwithstanding subsection (c), beginning July 1,
82025, a member or participant under Article 14, 16, or 17
9subject to this Section is entitled to a retirement annuity
10upon written application if he or she:
11 (1) has attained age 62, has at least 35 years of
12 service credit, and is otherwise eligible under the
13 requirements of the applicable Article;
14 (2) has attained age 64, has at least 20 years of
15 service credit, and is otherwise eligible under the
16 requirements of the applicable Article; or
17 (3) has attained age 67, has at least 10 years of
18 service credit, and is otherwise eligible under the
19 requirements of the applicable Article.
20 For the purposes of Section 1-103.1 of this Code, the
21changes made to this Section by this amendatory Act of the
22103rd General Assembly are applicable without regard to
23whether the employee was in active service on or after the
24effective date of this amendatory Act of the 103rd General
25Assembly.
26 (d) The retirement annuity of a member or participant who

HB4873- 245 -LRB103 35886 RPS 65971 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).
14 (d-5) The retirement annuity payable under Article 8 or
15Article 11 to an eligible person subject to subsection (c-5)
16of this Section who is retiring at age 60 with at least 10
17years of service credit shall be reduced by one-half of 1% for
18each full month that the member's age is under age 65.
19 (d-10) Each person who first became a member or
20participant under Article 8 or Article 11 of this Code on or
21after January 1, 2011 and prior to July 6, 2017 (the effective
22date of Public Act 100-23) shall make an irrevocable election
23either:
24 (i) to be eligible for the reduced retirement age
25 provided in subsections (c-5) and (d-5) of this Section,
26 the eligibility for which is conditioned upon the member

HB4873- 246 -LRB103 35886 RPS 65971 b
1 or participant agreeing to the increases in employee
2 contributions for age and service annuities provided in
3 subsection (a-5) of Section 8-174 of this Code (for
4 service under Article 8) or subsection (a-5) of Section
5 11-170 of this Code (for service under Article 11); or
6 (ii) to not agree to item (i) of this subsection
7 (d-10), in which case the member or participant shall
8 continue to be subject to the retirement age provisions in
9 subsections (c) and (d) of this Section and the employee
10 contributions for age and service annuity as provided in
11 subsection (a) of Section 8-174 of this Code (for service
12 under Article 8) or subsection (a) of Section 11-170 of
13 this Code (for service under Article 11).
14 The election provided for in this subsection shall be made
15between October 1, 2017 and November 15, 2017. A person
16subject to this subsection who makes the required election
17shall remain bound by that election. A person subject to this
18subsection who fails for any reason to make the required
19election within the time specified in this subsection shall be
20deemed to have made the election under item (ii).
21 (d-15) Each person who first becomes a member or
22participant under Article 12 on or after January 1, 2011 and
23prior to January 1, 2022 shall make an irrevocable election
24either:
25 (i) to be eligible for the reduced retirement age
26 specified in subsections (c) and (d) of this Section, the

HB4873- 247 -LRB103 35886 RPS 65971 b
1 eligibility for which is conditioned upon the member or
2 participant agreeing to the increase in employee
3 contributions for service annuities specified in
4 subsection (b) of Section 12-150; or
5 (ii) to not agree to item (i) of this subsection
6 (d-15), in which case the member or participant shall not
7 be eligible for the reduced retirement age specified in
8 subsections (c) and (d) of this Section and shall not be
9 subject to the increase in employee contributions for
10 service annuities specified in subsection (b) of Section
11 12-150.
12 The election provided for in this subsection shall be made
13between January 1, 2022 and April 1, 2022. A person subject to
14this subsection who makes the required election shall remain
15bound by that election. A person subject to this subsection
16who fails for any reason to make the required election within
17the time specified in this subsection shall be deemed to have
18made the election under item (ii).
19 (e) Any retirement annuity or supplemental annuity shall
20be subject to annual increases on the January 1 occurring
21either on or after the attainment of age 67 (age 65, with
22respect to service under Article 12 that is subject to this
23Section, for a member or participant under Article 12 who
24first becomes a member or participant under Article 12 on or
25after January 1, 2022 or who makes the election under item (i)
26of subsection (d-15); and beginning on July 6, 2017 (the

HB4873- 248 -LRB103 35886 RPS 65971 b
1effective date of Public Act 100-23), age 65 with respect to
2service under Article 8 or Article 11 for eligible persons
3who: (i) are subject to subsection (c-5) of this Section; or
4(ii) made the election under item (i) of subsection (d-10) of
5this Section) or the first anniversary of the annuity start
6date, whichever is later. Each annual increase shall be
7calculated at 3% or one-half the annual unadjusted percentage
8increase (but not less than zero) in the consumer price
9index-u for the 12 months ending with the September preceding
10each November 1, whichever is less, of the originally granted
11retirement annuity. If the annual unadjusted percentage change
12in the consumer price index-u for the 12 months ending with the
13September preceding each November 1 is zero or there is a
14decrease, then the annuity shall not be increased.
15 For the purposes of Section 1-103.1 of this Code, the
16changes made to this Section by Public Act 102-263 are
17applicable without regard to whether the employee was in
18active service on or after August 6, 2021 (the effective date
19of Public Act 102-263).
20 For the purposes of Section 1-103.1 of this Code, the
21changes made to this Section by Public Act 100-23 are
22applicable without regard to whether the employee was in
23active service on or after July 6, 2017 (the effective date of
24Public Act 100-23).
25 (f) The initial survivor's or widow's annuity of an
26otherwise eligible survivor or widow of a retired member or

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1participant who first became a member or participant on or
2after January 1, 2011 shall be in the amount of 66 2/3% of the
3retired member's or participant's retirement annuity at the
4date of death. In the case of the death of a member or
5participant who has not retired and who first became a member
6or participant on or after January 1, 2011, eligibility for a
7survivor's or widow's annuity shall be determined by the
8applicable Article of this Code. The initial benefit shall be
966 2/3% of the earned annuity without a reduction due to age. A
10child's annuity of an otherwise eligible child shall be in the
11amount prescribed under each Article if applicable. Any
12survivor's or widow's annuity shall be increased (1) on each
13January 1 occurring on or after the commencement of the
14annuity if the deceased member died while receiving a
15retirement annuity or (2) in other cases, on each January 1
16occurring after the first anniversary of the commencement of
17the annuity. Each annual increase shall be calculated at 3% or
18one-half the annual unadjusted percentage increase (but not
19less than zero) in the consumer price index-u for the 12 months
20ending with the September preceding each November 1, whichever
21is less, of the originally granted survivor's annuity. If the
22annual unadjusted percentage change in the consumer price
23index-u for the 12 months ending with the September preceding
24each November 1 is zero or there is a decrease, then the
25annuity shall not be increased.
26 (g) The benefits in Section 14-110 apply only if the

HB4873- 250 -LRB103 35886 RPS 65971 b
1person is a State policeman, a fire fighter in the fire
2protection service of a department, a conservation police
3officer, an investigator for the Secretary of State, an
4investigator for the Office of the Attorney General, an arson
5investigator, a Commerce Commission police officer,
6investigator for the Department of Revenue or the Illinois
7Gaming Board, a security employee of the Department of
8Corrections or the Department of Juvenile Justice, or a
9security employee of the Department of Innovation and
10Technology, as those terms are defined in subsection (b) and
11subsection (c) of Section 14-110. A person who meets the
12requirements of this Section is entitled to an annuity
13calculated under the provisions of Section 14-110, in lieu of
14the regular or minimum retirement annuity, only if the person
15has withdrawn from service with not less than 20 years of
16eligible creditable service and has attained age 60,
17regardless of whether the attainment of age 60 occurs while
18the person is still in service.
19 (h) If a person who first becomes a member or a participant
20of a retirement system or pension fund subject to this Section
21on or after January 1, 2011 is receiving a retirement annuity
22or retirement pension under that system or fund and becomes a
23member or participant under any other system or fund created
24by this Code and is employed on a full-time basis, except for
25those members or participants exempted from the provisions of
26this Section under subsection (a) of this Section, then the

HB4873- 251 -LRB103 35886 RPS 65971 b
1person's retirement annuity or retirement pension under that
2system or fund shall be suspended during that employment. Upon
3termination of that employment, the person's retirement
4annuity or retirement pension payments shall resume and be
5recalculated if recalculation is provided for under the
6applicable Article of this Code.
7 If a person who first becomes a member of a retirement
8system or pension fund subject to this Section on or after
9January 1, 2012 and is receiving a retirement annuity or
10retirement pension under that system or fund and accepts on a
11contractual basis a position to provide services to a
12governmental entity from which he or she has retired, then
13that person's annuity or retirement pension earned as an
14active employee of the employer shall be suspended during that
15contractual service. A person receiving an annuity or
16retirement pension under this Code shall notify the pension
17fund or retirement system from which he or she is receiving an
18annuity or retirement pension, as well as his or her
19contractual employer, of his or her retirement status before
20accepting contractual employment. A person who fails to submit
21such notification shall be guilty of a Class A misdemeanor and
22required to pay a fine of $1,000. Upon termination of that
23contractual employment, the person's retirement annuity or
24retirement pension payments shall resume and, if appropriate,
25be recalculated under the applicable provisions of this Code.
26 (i) (Blank).

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1 (j) In the case of a conflict between the provisions of
2this Section and any other provision of this Code, the
3provisions of this Section shall control.
4(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
5102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
68-11-23.)
7 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
8 Sec. 15-135. Retirement annuities; conditions.
9 (a) This subsection (a) applies only to a Tier 1 member. A
10participant who retires in one of the following specified
11years with the specified amount of service is entitled to a
12retirement annuity at any age under the retirement program
13applicable to the participant:
14 35 years if retirement is in 1997 or before;
15 34 years if retirement is in 1998;
16 33 years if retirement is in 1999;
17 32 years if retirement is in 2000;
18 31 years if retirement is in 2001;
19 30 years if retirement is in 2002 or later.
20 A participant with 8 or more years of service after
21September 1, 1941, is entitled to a retirement annuity on or
22after attainment of age 55.
23 A participant with at least 5 but less than 8 years of
24service after September 1, 1941, is entitled to a retirement
25annuity on or after attainment of age 62.

HB4873- 253 -LRB103 35886 RPS 65971 b
1 A participant who has at least 25 years of service in this
2system as a police officer or firefighter is entitled to a
3retirement annuity on or after the attainment of age 50, if
4Rule 4 of Section 15-136 is applicable to the participant.
5 (a-5) Beginning July 1, 2025, a Tier 2 member is entitled
6to a retirement annuity upon written application if he or she:
7 (1) has attained age 62, has at least 35 years of
8 service credit, and is otherwise eligible under the
9 requirements of this Article;
10 (2) has attained age 64, has at least 20 years of
11 service credit, and is otherwise eligible under the
12 requirements of this Article; or
13 (3) has attained age 67, has at least 10 years of
14 service credit, and is otherwise eligible under the
15 requirements of this Article.
16 For the purposes of Section 1-103.1 of this Code, the
17changes made to this Section by this amendatory Act of the
18103rd General Assembly are applicable without regard to
19whether the employee was in active service on or after the
20effective date of this amendatory Act of the 103rd General
21Assembly.
22 Before July 1, 2025, a A Tier 2 member is entitled to a
23retirement annuity upon written application if he or she has
24attained age 67 and has at least 10 years of service credit and
25is otherwise eligible under the requirements of this Article.
26A Tier 2 member who has attained age 62 and has at least 10

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1years of service credit and is otherwise eligible under the
2requirements of this Article may elect to receive the lower
3retirement annuity provided in subsection (b-5) of Section
415-136 of this Article.
5 (a-10) Before July 1, 2025, a A Tier 2 member who has at
6least 20 years of service in this system as a police officer or
7firefighter is entitled to a retirement annuity upon written
8application on or after the attainment of age 60 if Rule 4 of
9Section 15-136 is applicable to the participant. Beginning
10July 1, 2025, a Tier 2 member who has at least 20 years of
11service in this system as a police officer or firefighter is
12entitled to a retirement annuity upon written application on
13or after the attainment of age 55 if Rule 4 of Section 15-136
14is applicable to the participant. The changes made to this
15subsection by this amendatory Act of the 101st General
16Assembly apply retroactively to January 1, 2011.
17 (b) The annuity payment period shall begin on the date
18specified by the participant or the recipient of a disability
19retirement annuity submitting a written application. For a
20participant, the date on which the annuity payment period
21begins shall not be prior to termination of employment or more
22than one year before the application is received by the board;
23however, if the participant is not an employee of an employer
24participating in this System or in a participating system as
25defined in Article 20 of this Code on April 1 of the calendar
26year next following the calendar year in which the participant

HB4873- 255 -LRB103 35886 RPS 65971 b
1attains the age specified under Section 401(a)(9) of the
2Internal Revenue Code of 1986, as amended, the annuity payment
3period shall begin on that date regardless of whether an
4application has been filed. For a recipient of a disability
5retirement annuity, the date on which the annuity payment
6period begins shall not be prior to the discontinuation of the
7disability retirement annuity under Section 15-153.2.
8 (c) An annuity is not payable if the amount provided under
9Section 15-136 is less than $10 per month.
10(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
11
Article 10.
12 Section 10-5. The Illinois Pension Code is amended by
13changing Sections 1-160, 15-108.2, 15-155, and 16-158.3 as
14follows:
15 (40 ILCS 5/1-160)
16 (Text of Section from P.A. 102-719)
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

HB4873- 256 -LRB103 35886 RPS 65971 b
1of this Code to the contrary, but do not apply to any
2self-managed plan established under this Code or to any
3participant of the retirement plan established under Section
422-101; except that this Section applies to a person who
5elected to establish alternative credits by electing in
6writing after January 1, 2011, but before August 8, 2011,
7under Section 7-145.1 of this Code. Notwithstanding anything
8to the contrary in this Section, for purposes of this Section,
9a person who is a Tier 1 regular employee as defined in Section
107-109.4 of this Code or who participated in a retirement
11system under Article 15 prior to January 1, 2011 shall be
12deemed a person who first became a member or participant prior
13to January 1, 2011 under any retirement system or pension fund
14subject to this Section. The changes made to this Section by
15Public Act 98-596 are a clarification of existing law and are
16intended to be retroactive to January 1, 2011 (the effective
17date of Public Act 96-889), notwithstanding the provisions of
18Section 1-103.1 of this Code.
19 This Section does not apply to a person who first becomes a
20noncovered employee under Article 14 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26 This Section does not apply to a person who first becomes a

HB4873- 257 -LRB103 35886 RPS 65971 b
1member or participant under Article 16 on or after the
2implementation date of the plan created under Section 1-161
3for that Article, unless that person elects under subsection
4(b) of Section 1-161 to instead receive the benefits provided
5under this Section and the applicable provisions of that
6Article.
7 This Section does not apply to a person who elects under
8subsection (c-5) of Section 1-161 to receive the benefits
9under Section 1-161.
10 This Section does not apply to a person who first becomes a
11member or participant of an affected pension fund on or after 6
12months after the resolution or ordinance date, as defined in
13Section 1-162, unless that person elects under subsection (c)
14of Section 1-162 to receive the benefits provided under this
15Section and the applicable provisions of the Article under
16which he or she is a member or participant.
17 (b) "Final average salary" means, except as otherwise
18provided in this subsection, the average monthly (or annual)
19salary obtained by dividing the total salary or earnings
20calculated under the Article applicable to the member or
21participant during the 96 consecutive months (or 8 consecutive
22years) of service within the last 120 months (or 10 years) of
23service in which the total salary or earnings calculated under
24the applicable Article was the highest by the number of months
25(or years) of service in that period. For the purposes of a
26person who first becomes a member or participant of any

HB4873- 258 -LRB103 35886 RPS 65971 b
1retirement system or pension fund to which this Section
2applies on or after January 1, 2011, in this Code, "final
3average salary" shall be substituted for the following:
4 (1) (Blank).
5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
6 annual salary for any 4 consecutive years within the last
7 10 years of service immediately preceding the date of
8 withdrawal".
9 (3) In Article 13, "average final salary".
10 (4) In Article 14, "final average compensation".
11 (5) In Article 17, "average salary".
12 (6) In Section 22-207, "wages or salary received by
13 him at the date of retirement or discharge".
14 A member of the Teachers' Retirement System of the State
15of Illinois who retires on or after June 1, 2021 and for whom
16the 2020-2021 school year is used in the calculation of the
17member's final average salary shall use the higher of the
18following for the purpose of determining the member's final
19average salary:
20 (A) the amount otherwise calculated under the first
21 paragraph of this subsection; or
22 (B) an amount calculated by the Teachers' Retirement
23 System of the State of Illinois using the average of the
24 monthly (or annual) salary obtained by dividing the total
25 salary or earnings calculated under Article 16 applicable
26 to the member or participant during the 96 months (or 8

HB4873- 259 -LRB103 35886 RPS 65971 b
1 years) of service within the last 120 months (or 10 years)
2 of service in which the total salary or earnings
3 calculated under the Article was the highest by the number
4 of months (or years) of service in that period.
5 (b-5) Beginning on January 1, 2011, for all purposes under
6this Code (including without limitation the calculation of
7benefits and employee contributions), the annual earnings,
8salary, or wages (based on the plan year) of a member or
9participant to whom this Section applies shall not exceed
10$106,800; however, that amount shall annually thereafter be
11increased by the lesser of (i) 3% of that amount, including all
12previous adjustments, or (ii) one-half the annual unadjusted
13percentage increase (but not less than zero) in the consumer
14price index-u for the 12 months ending with the September
15preceding each November 1, including all previous adjustments.
16 For the purposes of this Section, "consumer price index-u"
17means the index published by the Bureau of Labor Statistics of
18the United States Department of Labor that measures the
19average change in prices of goods and services purchased by
20all urban consumers, United States city average, all items,
211982-84 = 100. The new amount resulting from each annual
22adjustment shall be determined by the Public Pension Division
23of the Department of Insurance and made available to the
24boards of the retirement systems and pension funds by November
251 of each year.
26 (b-10) Beginning on January 1, 2024, for all purposes

HB4873- 260 -LRB103 35886 RPS 65971 b
1under this Code (including, without limitation, the
2calculation of benefits and employee contributions), the
3annual earnings, salary, or wages (based on the plan year) of a
4member or participant under Article 9 to whom this Section
5applies shall include an annual earnings, salary, or wage cap
6that tracks the Social Security wage base. Maximum annual
7earnings, wages, or salary shall be the annual contribution
8and benefit base established for the applicable year by the
9Commissioner of the Social Security Administration under the
10federal Social Security Act.
11 However, in no event shall the annual earnings, salary, or
12wages for the purposes of this Article and Article 9 exceed any
13limitation imposed on annual earnings, salary, or wages under
14Section 1-117. Under no circumstances shall the maximum amount
15of annual earnings, salary, or wages be greater than the
16amount set forth in this subsection (b-10) as a result of
17reciprocal service or any provisions regarding reciprocal
18services, nor shall the Fund under Article 9 be required to pay
19any refund as a result of the application of this maximum
20annual earnings, salary, and wage cap.
21 Nothing in this subsection (b-10) shall cause or otherwise
22result in any retroactive adjustment of any employee
23contributions. Nothing in this subsection (b-10) shall cause
24or otherwise result in any retroactive adjustment of
25disability or other payments made between January 1, 2011 and
26January 1, 2024.

HB4873- 261 -LRB103 35886 RPS 65971 b
1 (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (age 65, with respect to service under Article 12 that is
4subject to this Section, for a member or participant under
5Article 12 who first becomes a member or participant under
6Article 12 on or after January 1, 2022 or who makes the
7election under item (i) of subsection (d-15) of this Section)
8and has at least 10 years of service credit and is otherwise
9eligible under the requirements of the applicable Article.
10 A member or participant who has attained age 62 (age 60,
11with respect to service under Article 12 that is subject to
12this Section, for a member or participant under Article 12 who
13first becomes a member or participant under Article 12 on or
14after January 1, 2022 or who makes the election under item (i)
15of subsection (d-15) of this Section) and has at least 10 years
16of service credit and is otherwise eligible under the
17requirements of the applicable Article may elect to receive
18the lower retirement annuity provided in subsection (d) of
19this Section.
20 (c-5) A person who first becomes a member or a participant
21subject to this Section on or after July 6, 2017 (the effective
22date of Public Act 100-23), notwithstanding any other
23provision of this Code to the contrary, is entitled to a
24retirement annuity under Article 8 or Article 11 upon written
25application if he or she has attained age 65 and has at least
2610 years of service credit and is otherwise eligible under the

HB4873- 262 -LRB103 35886 RPS 65971 b
1requirements of Article 8 or Article 11 of this Code,
2whichever is applicable.
3 (d) The retirement annuity of a member or participant who
4is retiring after attaining age 62 (age 60, with respect to
5service under Article 12 that is subject to this Section, for a
6member or participant under Article 12 who first becomes a
7member or participant under Article 12 on or after January 1,
82022 or who makes the election under item (i) of subsection
9(d-15) of this Section) with at least 10 years of service
10credit shall be reduced by one-half of 1% for each full month
11that the member's age is under age 67 (age 65, with respect to
12service under Article 12 that is subject to this Section, for a
13member or participant under Article 12 who first becomes a
14member or participant under Article 12 on or after January 1,
152022 or who makes the election under item (i) of subsection
16(d-15) of this Section).
17 (d-5) The retirement annuity payable under Article 8 or
18Article 11 to an eligible person subject to subsection (c-5)
19of this Section who is retiring at age 60 with at least 10
20years of service credit shall be reduced by one-half of 1% for
21each full month that the member's age is under age 65.
22 (d-10) Each person who first became a member or
23participant under Article 8 or Article 11 of this Code on or
24after January 1, 2011 and prior to July 6, 2017 (the effective
25date of Public Act 100-23) shall make an irrevocable election
26either:

HB4873- 263 -LRB103 35886 RPS 65971 b
1 (i) to be eligible for the reduced retirement age
2 provided in subsections (c-5) and (d-5) of this Section,
3 the eligibility for which is conditioned upon the member
4 or participant agreeing to the increases in employee
5 contributions for age and service annuities provided in
6 subsection (a-5) of Section 8-174 of this Code (for
7 service under Article 8) or subsection (a-5) of Section
8 11-170 of this Code (for service under Article 11); or
9 (ii) to not agree to item (i) of this subsection
10 (d-10), in which case the member or participant shall
11 continue to be subject to the retirement age provisions in
12 subsections (c) and (d) of this Section and the employee
13 contributions for age and service annuity as provided in
14 subsection (a) of Section 8-174 of this Code (for service
15 under Article 8) or subsection (a) of Section 11-170 of
16 this Code (for service under Article 11).
17 The election provided for in this subsection shall be made
18between October 1, 2017 and November 15, 2017. A person
19subject to this subsection who makes the required election
20shall remain bound by that election. A person subject to this
21subsection who fails for any reason to make the required
22election within the time specified in this subsection shall be
23deemed to have made the election under item (ii).
24 (d-15) Each person who first becomes a member or
25participant under Article 12 on or after January 1, 2011 and
26prior to January 1, 2022 shall make an irrevocable election

HB4873- 264 -LRB103 35886 RPS 65971 b
1either:
2 (i) to be eligible for the reduced retirement age
3 specified in subsections (c) and (d) of this Section, the
4 eligibility for which is conditioned upon the member or
5 participant agreeing to the increase in employee
6 contributions for service annuities specified in
7 subsection (b) of Section 12-150; or
8 (ii) to not agree to item (i) of this subsection
9 (d-15), in which case the member or participant shall not
10 be eligible for the reduced retirement age specified in
11 subsections (c) and (d) of this Section and shall not be
12 subject to the increase in employee contributions for
13 service annuities specified in subsection (b) of Section
14 12-150.
15 The election provided for in this subsection shall be made
16between January 1, 2022 and April 1, 2022. A person subject to
17this subsection who makes the required election shall remain
18bound by that election. A person subject to this subsection
19who fails for any reason to make the required election within
20the time specified in this subsection shall be deemed to have
21made the election under item (ii).
22 (e) Any retirement annuity or supplemental annuity shall
23be subject to annual increases on the January 1 occurring
24either on or after the attainment of age 67 (age 65, with
25respect to service under Article 12 that is subject to this
26Section, for a member or participant under Article 12 who

HB4873- 265 -LRB103 35886 RPS 65971 b
1first becomes a member or participant under Article 12 on or
2after January 1, 2022 or who makes the election under item (i)
3of subsection (d-15); and beginning on July 6, 2017 (the
4effective date of Public Act 100-23), age 65 with respect to
5service under Article 8 or Article 11 for eligible persons
6who: (i) are subject to subsection (c-5) of this Section; or
7(ii) made the election under item (i) of subsection (d-10) of
8this Section) or the first anniversary of the annuity start
9date, whichever is later. Each annual increase shall be
10calculated at 3% or one-half the annual unadjusted percentage
11increase (but not less than zero) in the consumer price
12index-u for the 12 months ending with the September preceding
13each November 1, whichever is less, of the originally granted
14retirement annuity. If the annual unadjusted percentage change
15in the consumer price index-u for the 12 months ending with the
16September preceding each November 1 is zero or there is a
17decrease, then the annuity shall not be increased.
18 For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by Public Act 102-263 are
20applicable without regard to whether the employee was in
21active service on or after August 6, 2021 (the effective date
22of Public Act 102-263).
23 For the purposes of Section 1-103.1 of this Code, the
24changes made to this Section by Public Act 100-23 are
25applicable without regard to whether the employee was in
26active service on or after July 6, 2017 (the effective date of

HB4873- 266 -LRB103 35886 RPS 65971 b
1Public Act 100-23).
2 (f) The initial survivor's or widow's annuity of an
3otherwise eligible survivor or widow of a retired member or
4participant who first became a member or participant on or
5after January 1, 2011 shall be in the amount of 66 2/3% of the
6retired member's or participant's retirement annuity at the
7date of death. In the case of the death of a member or
8participant who has not retired and who first became a member
9or participant on or after January 1, 2011, eligibility for a
10survivor's or widow's annuity shall be determined by the
11applicable Article of this Code. The initial benefit shall be
1266 2/3% of the earned annuity without a reduction due to age. A
13child's annuity of an otherwise eligible child shall be in the
14amount prescribed under each Article if applicable. Any
15survivor's or widow's annuity shall be increased (1) on each
16January 1 occurring on or after the commencement of the
17annuity if the deceased member died while receiving a
18retirement annuity or (2) in other cases, on each January 1
19occurring after the first anniversary of the commencement of
20the annuity. Each annual increase shall be calculated at 3% or
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1, whichever
24is less, of the originally granted survivor's annuity. If the
25annual unadjusted percentage change in the consumer price
26index-u for the 12 months ending with the September preceding

HB4873- 267 -LRB103 35886 RPS 65971 b
1each November 1 is zero or there is a decrease, then the
2annuity shall not be increased.
3 (g) The benefits in Section 14-110 apply if the person is a
4fire fighter in the fire protection service of a department, a
5security employee of the Department of Corrections or the
6Department of Juvenile Justice, or a security employee of the
7Department of Innovation and Technology, as those terms are
8defined in subsection (b) and subsection (c) of Section
914-110. A person who meets the requirements of this Section is
10entitled to an annuity calculated under the provisions of
11Section 14-110, in lieu of the regular or minimum retirement
12annuity, only if the person has withdrawn from service with
13not less than 20 years of eligible creditable service and has
14attained age 60, regardless of whether the attainment of age
1560 occurs while the person is still in service.
16 (g-5) The benefits in Section 14-110 apply if the person
17is a State policeman, investigator for the Secretary of State,
18conservation police officer, investigator for the Department
19of Revenue or the Illinois Gaming Board, investigator for the
20Office of the Attorney General, Commerce Commission police
21officer, or arson investigator, as those terms are defined in
22subsection (b) and subsection (c) of Section 14-110. A person
23who meets the requirements of this Section is entitled to an
24annuity calculated under the provisions of Section 14-110, in
25lieu of the regular or minimum retirement annuity, only if the
26person has withdrawn from service with not less than 20 years

HB4873- 268 -LRB103 35886 RPS 65971 b
1of eligible creditable service and has attained age 55,
2regardless of whether the attainment of age 55 occurs while
3the person is still in service.
4 (h) If a person who first becomes a member or a participant
5of a retirement system or pension fund subject to this Section
6on or after January 1, 2011 is receiving a retirement annuity
7or retirement pension under that system or fund and becomes a
8member or participant under any other system or fund created
9by this Code and is employed on a full-time basis, except for
10those members or participants exempted from the provisions of
11this Section under subsection (a) of this Section, then the
12person's retirement annuity or retirement pension under that
13system or fund shall be suspended during that employment. Upon
14termination of that employment, the person's retirement
15annuity or retirement pension payments shall resume and be
16recalculated if recalculation is provided for under the
17applicable Article of this Code.
18 If a person who first becomes a member of a retirement
19system or pension fund subject to this Section on or after
20January 1, 2012 and is receiving a retirement annuity or
21retirement pension under that system or fund and accepts on a
22contractual basis a position to provide services to a
23governmental entity from which he or she has retired, then
24that person's annuity or retirement pension earned as an
25active employee of the employer shall be suspended during that
26contractual service. A person receiving an annuity or

HB4873- 269 -LRB103 35886 RPS 65971 b
1retirement pension under this Code shall notify the pension
2fund or retirement system from which he or she is receiving an
3annuity or retirement pension, as well as his or her
4contractual employer, of his or her retirement status before
5accepting contractual employment. A person who fails to submit
6such notification shall be guilty of a Class A misdemeanor and
7required to pay a fine of $1,000. Upon termination of that
8contractual employment, the person's retirement annuity or
9retirement pension payments shall resume and, if appropriate,
10be recalculated under the applicable provisions of this Code.
11 (i) (Blank).
12 (j) In the case of a conflict between the provisions of
13this Section and any other provision of this Code, the
14provisions of this Section shall control.
15(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
16102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
175-6-22.)
18 (Text of Section from P.A. 102-813)
19 Sec. 1-160. Provisions applicable to new hires.
20 (a) The provisions of this Section apply to a person who,
21on or after January 1, 2011, first becomes a member or a
22participant under any reciprocal retirement system or pension
23fund established under this Code, other than a retirement
24system or pension fund established under Article 2, 3, 4, 5, 6,
257, 15, or 18 of this Code, notwithstanding any other provision

HB4873- 270 -LRB103 35886 RPS 65971 b
1of this Code to the contrary, but do not apply to any
2self-managed plan established under this Code or to any
3participant of the retirement plan established under Section
422-101; except that this Section applies to a person who
5elected to establish alternative credits by electing in
6writing after January 1, 2011, but before August 8, 2011,
7under Section 7-145.1 of this Code. Notwithstanding anything
8to the contrary in this Section, for purposes of this Section,
9a person who is a Tier 1 regular employee as defined in Section
107-109.4 of this Code or who participated in a retirement
11system under Article 15 prior to January 1, 2011 shall be
12deemed a person who first became a member or participant prior
13to January 1, 2011 under any retirement system or pension fund
14subject to this Section. The changes made to this Section by
15Public Act 98-596 are a clarification of existing law and are
16intended to be retroactive to January 1, 2011 (the effective
17date of Public Act 96-889), notwithstanding the provisions of
18Section 1-103.1 of this Code.
19 This Section does not apply to a person who first becomes a
20noncovered employee under Article 14 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26 This Section does not apply to a person who first becomes a

HB4873- 271 -LRB103 35886 RPS 65971 b
1member or participant under Article 16 on or after the
2implementation date of the plan created under Section 1-161
3for that Article, unless that person elects under subsection
4(b) of Section 1-161 to instead receive the benefits provided
5under this Section and the applicable provisions of that
6Article.
7 This Section does not apply to a person who elects under
8subsection (c-5) of Section 1-161 to receive the benefits
9under Section 1-161.
10 This Section does not apply to a person who first becomes a
11member or participant of an affected pension fund on or after 6
12months after the resolution or ordinance date, as defined in
13Section 1-162, unless that person elects under subsection (c)
14of Section 1-162 to receive the benefits provided under this
15Section and the applicable provisions of the Article under
16which he or she is a member or participant.
17 (b) "Final average salary" means, except as otherwise
18provided in this subsection, the average monthly (or annual)
19salary obtained by dividing the total salary or earnings
20calculated under the Article applicable to the member or
21participant during the 96 consecutive months (or 8 consecutive
22years) of service within the last 120 months (or 10 years) of
23service in which the total salary or earnings calculated under
24the applicable Article was the highest by the number of months
25(or years) of service in that period. For the purposes of a
26person who first becomes a member or participant of any

HB4873- 272 -LRB103 35886 RPS 65971 b
1retirement system or pension fund to which this Section
2applies on or after January 1, 2011, in this Code, "final
3average salary" shall be substituted for the following:
4 (1) (Blank).
5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
6 annual salary for any 4 consecutive years within the last
7 10 years of service immediately preceding the date of
8 withdrawal".
9 (3) In Article 13, "average final salary".
10 (4) In Article 14, "final average compensation".
11 (5) In Article 17, "average salary".
12 (6) In Section 22-207, "wages or salary received by
13 him at the date of retirement or discharge".
14 A member of the Teachers' Retirement System of the State
15of Illinois who retires on or after June 1, 2021 and for whom
16the 2020-2021 school year is used in the calculation of the
17member's final average salary shall use the higher of the
18following for the purpose of determining the member's final
19average salary:
20 (A) the amount otherwise calculated under the first
21 paragraph of this subsection; or
22 (B) an amount calculated by the Teachers' Retirement
23 System of the State of Illinois using the average of the
24 monthly (or annual) salary obtained by dividing the total
25 salary or earnings calculated under Article 16 applicable
26 to the member or participant during the 96 months (or 8

HB4873- 273 -LRB103 35886 RPS 65971 b
1 years) of service within the last 120 months (or 10 years)
2 of service in which the total salary or earnings
3 calculated under the Article was the highest by the number
4 of months (or years) of service in that period.
5 (b-5) Beginning on January 1, 2011, for all purposes under
6this Code (including without limitation the calculation of
7benefits and employee contributions), the annual earnings,
8salary, or wages (based on the plan year) of a member or
9participant to whom this Section applies shall not exceed
10$106,800; however, that amount shall annually thereafter be
11increased by the lesser of (i) 3% of that amount, including all
12previous adjustments, or (ii) one-half the annual unadjusted
13percentage increase (but not less than zero) in the consumer
14price index-u for the 12 months ending with the September
15preceding each November 1, including all previous adjustments.
16 For the purposes of this Section, "consumer price index-u"
17means the index published by the Bureau of Labor Statistics of
18the United States Department of Labor that measures the
19average change in prices of goods and services purchased by
20all urban consumers, United States city average, all items,
211982-84 = 100. The new amount resulting from each annual
22adjustment shall be determined by the Public Pension Division
23of the Department of Insurance and made available to the
24boards of the retirement systems and pension funds by November
251 of each year.
26 (b-10) Beginning on January 1, 2024, for all purposes

HB4873- 274 -LRB103 35886 RPS 65971 b
1under this Code (including, without limitation, the
2calculation of benefits and employee contributions), the
3annual earnings, salary, or wages (based on the plan year) of a
4member or participant under Article 9 to whom this Section
5applies shall include an annual earnings, salary, or wage cap
6that tracks the Social Security wage base. Maximum annual
7earnings, wages, or salary shall be the annual contribution
8and benefit base established for the applicable year by the
9Commissioner of the Social Security Administration under the
10federal Social Security Act.
11 However, in no event shall the annual earnings, salary, or
12wages for the purposes of this Article and Article 9 exceed any
13limitation imposed on annual earnings, salary, or wages under
14Section 1-117. Under no circumstances shall the maximum amount
15of annual earnings, salary, or wages be greater than the
16amount set forth in this subsection (b-10) as a result of
17reciprocal service or any provisions regarding reciprocal
18services, nor shall the Fund under Article 9 be required to pay
19any refund as a result of the application of this maximum
20annual earnings, salary, and wage cap.
21 Nothing in this subsection (b-10) shall cause or otherwise
22result in any retroactive adjustment of any employee
23contributions. Nothing in this subsection (b-10) shall cause
24or otherwise result in any retroactive adjustment of
25disability or other payments made between January 1, 2011 and
26January 1, 2024.

HB4873- 275 -LRB103 35886 RPS 65971 b
1 (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (age 65, with respect to service under Article 12 that is
4subject to this Section, for a member or participant under
5Article 12 who first becomes a member or participant under
6Article 12 on or after January 1, 2022 or who makes the
7election under item (i) of subsection (d-15) of this Section)
8and has at least 10 years of service credit and is otherwise
9eligible under the requirements of the applicable Article.
10 A member or participant who has attained age 62 (age 60,
11with respect to service under Article 12 that is subject to
12this Section, for a member or participant under Article 12 who
13first becomes a member or participant under Article 12 on or
14after January 1, 2022 or who makes the election under item (i)
15of subsection (d-15) of this Section) and has at least 10 years
16of service credit and is otherwise eligible under the
17requirements of the applicable Article may elect to receive
18the lower retirement annuity provided in subsection (d) of
19this Section.
20 (c-5) A person who first becomes a member or a participant
21subject to this Section on or after July 6, 2017 (the effective
22date of Public Act 100-23), notwithstanding any other
23provision of this Code to the contrary, is entitled to a
24retirement annuity under Article 8 or Article 11 upon written
25application if he or she has attained age 65 and has at least
2610 years of service credit and is otherwise eligible under the

HB4873- 276 -LRB103 35886 RPS 65971 b
1requirements of Article 8 or Article 11 of this Code,
2whichever is applicable.
3 (d) The retirement annuity of a member or participant who
4is retiring after attaining age 62 (age 60, with respect to
5service under Article 12 that is subject to this Section, for a
6member or participant under Article 12 who first becomes a
7member or participant under Article 12 on or after January 1,
82022 or who makes the election under item (i) of subsection
9(d-15) of this Section) with at least 10 years of service
10credit shall be reduced by one-half of 1% for each full month
11that the member's age is under age 67 (age 65, with respect to
12service under Article 12 that is subject to this Section, for a
13member or participant under Article 12 who first becomes a
14member or participant under Article 12 on or after January 1,
152022 or who makes the election under item (i) of subsection
16(d-15) of this Section).
17 (d-5) The retirement annuity payable under Article 8 or
18Article 11 to an eligible person subject to subsection (c-5)
19of this Section who is retiring at age 60 with at least 10
20years of service credit shall be reduced by one-half of 1% for
21each full month that the member's age is under age 65.
22 (d-10) Each person who first became a member or
23participant under Article 8 or Article 11 of this Code on or
24after January 1, 2011 and prior to July 6, 2017 (the effective
25date of Public Act 100-23) shall make an irrevocable election
26either:

HB4873- 277 -LRB103 35886 RPS 65971 b
1 (i) to be eligible for the reduced retirement age
2 provided in subsections (c-5) and (d-5) of this Section,
3 the eligibility for which is conditioned upon the member
4 or participant agreeing to the increases in employee
5 contributions for age and service annuities provided in
6 subsection (a-5) of Section 8-174 of this Code (for
7 service under Article 8) or subsection (a-5) of Section
8 11-170 of this Code (for service under Article 11); or
9 (ii) to not agree to item (i) of this subsection
10 (d-10), in which case the member or participant shall
11 continue to be subject to the retirement age provisions in
12 subsections (c) and (d) of this Section and the employee
13 contributions for age and service annuity as provided in
14 subsection (a) of Section 8-174 of this Code (for service
15 under Article 8) or subsection (a) of Section 11-170 of
16 this Code (for service under Article 11).
17 The election provided for in this subsection shall be made
18between October 1, 2017 and November 15, 2017. A person
19subject to this subsection who makes the required election
20shall remain bound by that election. A person subject to this
21subsection who fails for any reason to make the required
22election within the time specified in this subsection shall be
23deemed to have made the election under item (ii).
24 (d-15) Each person who first becomes a member or
25participant under Article 12 on or after January 1, 2011 and
26prior to January 1, 2022 shall make an irrevocable election

HB4873- 278 -LRB103 35886 RPS 65971 b
1either:
2 (i) to be eligible for the reduced retirement age
3 specified in subsections (c) and (d) of this Section, the
4 eligibility for which is conditioned upon the member or
5 participant agreeing to the increase in employee
6 contributions for service annuities specified in
7 subsection (b) of Section 12-150; or
8 (ii) to not agree to item (i) of this subsection
9 (d-15), in which case the member or participant shall not
10 be eligible for the reduced retirement age specified in
11 subsections (c) and (d) of this Section and shall not be
12 subject to the increase in employee contributions for
13 service annuities specified in subsection (b) of Section
14 12-150.
15 The election provided for in this subsection shall be made
16between January 1, 2022 and April 1, 2022. A person subject to
17this subsection who makes the required election shall remain
18bound by that election. A person subject to this subsection
19who fails for any reason to make the required election within
20the time specified in this subsection shall be deemed to have
21made the election under item (ii).
22 (e) Any retirement annuity or supplemental annuity shall
23be subject to annual increases on the January 1 occurring
24either on or after the attainment of age 67 (age 65, with
25respect to service under Article 12 that is subject to this
26Section, for a member or participant under Article 12 who

HB4873- 279 -LRB103 35886 RPS 65971 b
1first becomes a member or participant under Article 12 on or
2after January 1, 2022 or who makes the election under item (i)
3of subsection (d-15); and beginning on July 6, 2017 (the
4effective date of Public Act 100-23), age 65 with respect to
5service under Article 8 or Article 11 for eligible persons
6who: (i) are subject to subsection (c-5) of this Section; or
7(ii) made the election under item (i) of subsection (d-10) of
8this Section) or the first anniversary of the annuity start
9date, whichever is later. Each annual increase shall be
10calculated at 3% or one-half the annual unadjusted percentage
11increase (but not less than zero) in the consumer price
12index-u for the 12 months ending with the September preceding
13each November 1, whichever is less, of the originally granted
14retirement annuity. If the annual unadjusted percentage change
15in the consumer price index-u for the 12 months ending with the
16September preceding each November 1 is zero or there is a
17decrease, then the annuity shall not be increased.
18 For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by Public Act 102-263 are
20applicable without regard to whether the employee was in
21active service on or after August 6, 2021 (the effective date
22of Public Act 102-263).
23 For the purposes of Section 1-103.1 of this Code, the
24changes made to this Section by Public Act 100-23 are
25applicable without regard to whether the employee was in
26active service on or after July 6, 2017 (the effective date of

HB4873- 280 -LRB103 35886 RPS 65971 b
1Public Act 100-23).
2 (f) The initial survivor's or widow's annuity of an
3otherwise eligible survivor or widow of a retired member or
4participant who first became a member or participant on or
5after January 1, 2011 shall be in the amount of 66 2/3% of the
6retired member's or participant's retirement annuity at the
7date of death. In the case of the death of a member or
8participant who has not retired and who first became a member
9or participant on or after January 1, 2011, eligibility for a
10survivor's or widow's annuity shall be determined by the
11applicable Article of this Code. The initial benefit shall be
1266 2/3% of the earned annuity without a reduction due to age. A
13child's annuity of an otherwise eligible child shall be in the
14amount prescribed under each Article if applicable. Any
15survivor's or widow's annuity shall be increased (1) on each
16January 1 occurring on or after the commencement of the
17annuity if the deceased member died while receiving a
18retirement annuity or (2) in other cases, on each January 1
19occurring after the first anniversary of the commencement of
20the annuity. Each annual increase shall be calculated at 3% or
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1, whichever
24is less, of the originally granted survivor's annuity. If the
25annual unadjusted percentage change in the consumer price
26index-u for the 12 months ending with the September preceding

HB4873- 281 -LRB103 35886 RPS 65971 b
1each November 1 is zero or there is a decrease, then the
2annuity shall not be increased.
3 (g) The benefits in Section 14-110 apply only if the
4person is a State policeman, a fire fighter in the fire
5protection service of a department, a conservation police
6officer, an investigator for the Secretary of State, an arson
7investigator, a Commerce Commission police officer,
8investigator for the Department of Revenue or the Illinois
9Gaming Board, a security employee of the Department of
10Corrections or the Department of Juvenile Justice, or a
11security employee of the Department of Innovation and
12Technology, as those terms are defined in subsection (b) and
13subsection (c) of Section 14-110. A person who meets the
14requirements of this Section is entitled to an annuity
15calculated under the provisions of Section 14-110, in lieu of
16the regular or minimum retirement annuity, only if the person
17has withdrawn from service with not less than 20 years of
18eligible creditable service and has attained age 60,
19regardless of whether the attainment of age 60 occurs while
20the person is still in service.
21 (h) If a person who first becomes a member or a participant
22of a retirement system or pension fund subject to this Section
23on or after January 1, 2011 is receiving a retirement annuity
24or retirement pension under that system or fund and becomes a
25member or participant under any other system or fund created
26by this Code and is employed on a full-time basis, except for

HB4873- 282 -LRB103 35886 RPS 65971 b
1those members or participants exempted from the provisions of
2this Section under subsection (a) of this Section, then the
3person's retirement annuity or retirement pension under that
4system or fund shall be suspended during that employment. Upon
5termination of that employment, the person's retirement
6annuity or retirement pension payments shall resume and be
7recalculated if recalculation is provided for under the
8applicable Article of this Code.
9 If a person who first becomes a member of a retirement
10system or pension fund subject to this Section on or after
11January 1, 2012 and is receiving a retirement annuity or
12retirement pension under that system or fund and accepts on a
13contractual basis a position to provide services to a
14governmental entity from which he or she has retired, then
15that person's annuity or retirement pension earned as an
16active employee of the employer shall be suspended during that
17contractual service. A person receiving an annuity or
18retirement pension under this Code shall notify the pension
19fund or retirement system from which he or she is receiving an
20annuity or retirement pension, as well as his or her
21contractual employer, of his or her retirement status before
22accepting contractual employment. A person who fails to submit
23such notification shall be guilty of a Class A misdemeanor and
24required to pay a fine of $1,000. Upon termination of that
25contractual employment, the person's retirement annuity or
26retirement pension payments shall resume and, if appropriate,

HB4873- 283 -LRB103 35886 RPS 65971 b
1be recalculated under the applicable provisions of this Code.
2 (i) (Blank).
3 (j) In the case of a conflict between the provisions of
4this Section and any other provision of this Code, the
5provisions of this Section shall control.
6(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
7102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
85-13-22.)
9 (Text of Section from P.A. 102-956)
10 Sec. 1-160. Provisions applicable to new hires.
11 (a) The provisions of this Section apply to a person who,
12on or after January 1, 2011, first becomes a member or a
13participant under any reciprocal retirement system or pension
14fund established under this Code, other than a retirement
15system or pension fund established under Article 2, 3, 4, 5, 6,
167, 15, or 18 of this Code, notwithstanding any other provision
17of this Code to the contrary, but do not apply to any
18self-managed plan established under this Code or to any
19participant of the retirement plan established under Section
2022-101; except that this Section applies to a person who
21elected to establish alternative credits by electing in
22writing after January 1, 2011, but before August 8, 2011,
23under Section 7-145.1 of this Code. Notwithstanding anything
24to the contrary in this Section, for purposes of this Section,
25a person who is a Tier 1 regular employee as defined in Section

HB4873- 284 -LRB103 35886 RPS 65971 b
17-109.4 of this Code or who participated in a retirement
2system under Article 15 prior to January 1, 2011 shall be
3deemed a person who first became a member or participant prior
4to January 1, 2011 under any retirement system or pension fund
5subject to this Section. The changes made to this Section by
6Public Act 98-596 are a clarification of existing law and are
7intended to be retroactive to January 1, 2011 (the effective
8date of Public Act 96-889), notwithstanding the provisions of
9Section 1-103.1 of this Code.
10 This Section does not apply to a person who first becomes a
11noncovered employee under Article 14 on or after the
12implementation date of the plan created under Section 1-161
13for that Article, unless that person elects under subsection
14(b) of Section 1-161 to instead receive the benefits provided
15under this Section and the applicable provisions of that
16Article.
17 This Section does not apply to a person who first becomes a
18member or participant under Article 16 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 elects under
25subsection (c-5) of Section 1-161 to receive the benefits
26under Section 1-161.

HB4873- 285 -LRB103 35886 RPS 65971 b
1 This Section does not apply to a person who first becomes a
2member or participant of an affected pension fund on or after 6
3months after the resolution or ordinance date, as defined in
4Section 1-162, unless that person elects under subsection (c)
5of Section 1-162 to receive the benefits provided under this
6Section and the applicable provisions of the Article under
7which he or she is a member or participant.
8 (b) "Final average salary" means, except as otherwise
9provided in this subsection, the average monthly (or annual)
10salary obtained by dividing the total salary or earnings
11calculated under the Article applicable to the member or
12participant during the 96 consecutive months (or 8 consecutive
13years) of service within the last 120 months (or 10 years) of
14service in which the total salary or earnings calculated under
15the applicable Article was the highest by the number of months
16(or years) of service in that period. For the purposes of a
17person who first becomes a member or participant of any
18retirement system or pension fund to which this Section
19applies on or after January 1, 2011, in this Code, "final
20average salary" shall be substituted for the following:
21 (1) (Blank).
22 (2) In Articles 8, 9, 10, 11, and 12, "highest average
23 annual salary for any 4 consecutive years within the last
24 10 years of service immediately preceding the date of
25 withdrawal".
26 (3) In Article 13, "average final salary".

HB4873- 286 -LRB103 35886 RPS 65971 b
1 (4) In Article 14, "final average compensation".
2 (5) In Article 17, "average salary".
3 (6) In Section 22-207, "wages or salary received by
4 him at the date of retirement or discharge".
5 A member of the Teachers' Retirement System of the State
6of Illinois who retires on or after June 1, 2021 and for whom
7the 2020-2021 school year is used in the calculation of the
8member's final average salary shall use the higher of the
9following for the purpose of determining the member's final
10average salary:
11 (A) the amount otherwise calculated under the first
12 paragraph of this subsection; or
13 (B) an amount calculated by the Teachers' Retirement
14 System of the State of Illinois using the average of the
15 monthly (or annual) salary obtained by dividing the total
16 salary or earnings calculated under Article 16 applicable
17 to the member or participant during the 96 months (or 8
18 years) of service within the last 120 months (or 10 years)
19 of service in which the total salary or earnings
20 calculated under the Article was the highest by the number
21 of months (or years) of service in that period.
22 (b-5) Beginning on January 1, 2011, for all purposes under
23this Code (including without limitation the calculation of
24benefits and employee contributions), the annual earnings,
25salary, or wages (based on the plan year) of a member or
26participant to whom this Section applies shall not exceed

HB4873- 287 -LRB103 35886 RPS 65971 b
1$106,800; however, that amount shall annually thereafter be
2increased by the lesser of (i) 3% of that amount, including all
3previous adjustments, or (ii) one-half the annual unadjusted
4percentage increase (but not less than zero) in the consumer
5price index-u for the 12 months ending with the September
6preceding each November 1, including all previous adjustments.
7 For the purposes of this Section, "consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the
10average change in prices of goods and services purchased by
11all urban consumers, United States city average, all items,
121982-84 = 100. The new amount resulting from each annual
13adjustment shall be determined by the Public Pension Division
14of the Department of Insurance and made available to the
15boards of the retirement systems and pension funds by November
161 of each year.
17 (b-10) Beginning on January 1, 2024, for all purposes
18under this Code (including, without limitation, the
19calculation of benefits and employee contributions), the
20annual earnings, salary, or wages (based on the plan year) of a
21member or participant under Article 9 to whom this Section
22applies shall include an annual earnings, salary, or wage cap
23that tracks the Social Security wage base. Maximum annual
24earnings, wages, or salary shall be the annual contribution
25and benefit base established for the applicable year by the
26Commissioner of the Social Security Administration under the

HB4873- 288 -LRB103 35886 RPS 65971 b
1federal Social Security Act.
2 However, in no event shall the annual earnings, salary, or
3wages for the purposes of this Article and Article 9 exceed any
4limitation imposed on annual earnings, salary, or wages under
5Section 1-117. Under no circumstances shall the maximum amount
6of annual earnings, salary, or wages be greater than the
7amount set forth in this subsection (b-10) as a result of
8reciprocal service or any provisions regarding reciprocal
9services, nor shall the Fund under Article 9 be required to pay
10any refund as a result of the application of this maximum
11annual earnings, salary, and wage cap.
12 Nothing in this subsection (b-10) shall cause or otherwise
13result in any retroactive adjustment of any employee
14contributions. Nothing in this subsection (b-10) shall cause
15or otherwise result in any retroactive adjustment of
16disability or other payments made between January 1, 2011 and
17January 1, 2024.
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.

HB4873- 289 -LRB103 35886 RPS 65971 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

HB4873- 290 -LRB103 35886 RPS 65971 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).
8 (d-5) The retirement annuity payable under Article 8 or
9Article 11 to an eligible person subject to subsection (c-5)
10of this Section who is retiring at age 60 with at least 10
11years of service credit shall be reduced by one-half of 1% for
12each full month that the member's age is under age 65.
13 (d-10) Each person who first became a member or
14participant under Article 8 or Article 11 of this Code on or
15after January 1, 2011 and prior to July 6, 2017 (the effective
16date of Public Act 100-23) shall make an irrevocable election
17either:
18 (i) to be eligible for the reduced retirement age
19 provided in subsections (c-5) and (d-5) of this Section,
20 the eligibility for which is conditioned upon the member
21 or participant agreeing to the increases in employee
22 contributions for age and service annuities provided in
23 subsection (a-5) of Section 8-174 of this Code (for
24 service under Article 8) or subsection (a-5) of Section
25 11-170 of this Code (for service under Article 11); or
26 (ii) to not agree to item (i) of this subsection

HB4873- 291 -LRB103 35886 RPS 65971 b
1 (d-10), in which case the member or participant shall
2 continue to be subject to the retirement age provisions in
3 subsections (c) and (d) of this Section and the employee
4 contributions for age and service annuity as provided in
5 subsection (a) of Section 8-174 of this Code (for service
6 under Article 8) or subsection (a) of Section 11-170 of
7 this Code (for service under Article 11).
8 The election provided for in this subsection shall be made
9between October 1, 2017 and November 15, 2017. A person
10subject to this subsection who makes the required election
11shall remain bound by that election. A person subject to this
12subsection who fails for any reason to make the required
13election within the time specified in this subsection shall be
14deemed to have made the election under item (ii).
15 (d-15) Each person who first becomes a member or
16participant under Article 12 on or after January 1, 2011 and
17prior to January 1, 2022 shall make an irrevocable election
18either:
19 (i) to be eligible for the reduced retirement age
20 specified in subsections (c) and (d) of this Section, the
21 eligibility for which is conditioned upon the member or
22 participant agreeing to the increase in employee
23 contributions for service annuities specified in
24 subsection (b) of Section 12-150; or
25 (ii) to not agree to item (i) of this subsection
26 (d-15), in which case the member or participant shall not

HB4873- 292 -LRB103 35886 RPS 65971 b
1 be eligible for the reduced retirement age specified in
2 subsections (c) and (d) of this Section and shall not be
3 subject to the increase in employee contributions for
4 service annuities specified in subsection (b) of Section
5 12-150.
6 The election provided for in this subsection shall be made
7between January 1, 2022 and April 1, 2022. A person subject to
8this subsection who makes the required election shall remain
9bound by that election. A person subject to this subsection
10who fails for any reason to make the required election within
11the time specified in this subsection shall be deemed to have
12made the election under item (ii).
13 (e) Any retirement annuity or supplemental annuity shall
14be subject to annual increases on the January 1 occurring
15either on or after the attainment of age 67 (age 65, with
16respect to service under Article 12 that is subject to this
17Section, for a member or participant under Article 12 who
18first becomes a member or participant under Article 12 on or
19after January 1, 2022 or who makes the election under item (i)
20of subsection (d-15); and beginning on July 6, 2017 (the
21effective date of Public Act 100-23), age 65 with respect to
22service under Article 8 or Article 11 for eligible persons
23who: (i) are subject to subsection (c-5) of this Section; or
24(ii) made the election under item (i) of subsection (d-10) of
25this Section) or the first anniversary of the annuity start
26date, whichever is later. Each annual increase shall be

HB4873- 293 -LRB103 35886 RPS 65971 b
1calculated at 3% or one-half the annual unadjusted percentage
2increase (but not less than zero) in the consumer price
3index-u for the 12 months ending with the September preceding
4each November 1, whichever is less, of the originally granted
5retirement annuity. If the annual unadjusted percentage change
6in the consumer price index-u for the 12 months ending with the
7September preceding each November 1 is zero or there is a
8decrease, then the annuity shall not be increased.
9 For the purposes of Section 1-103.1 of this Code, the
10changes made to this Section by Public Act 102-263 are
11applicable without regard to whether the employee was in
12active service on or after August 6, 2021 (the effective date
13of Public Act 102-263).
14 For the purposes of Section 1-103.1 of this Code, the
15changes made to this Section by Public Act 100-23 are
16applicable without regard to whether the employee was in
17active service on or after July 6, 2017 (the effective date of
18Public Act 100-23).
19 (f) The initial survivor's or widow's annuity of an
20otherwise eligible survivor or widow of a retired member or
21participant who first became a member or participant on or
22after January 1, 2011 shall be in the amount of 66 2/3% of the
23retired member's or participant's retirement annuity at the
24date of death. In the case of the death of a member or
25participant who has not retired and who first became a member
26or participant on or after January 1, 2011, eligibility for a

HB4873- 294 -LRB103 35886 RPS 65971 b
1survivor's or widow's annuity shall be determined by the
2applicable Article of this Code. The initial benefit shall be
366 2/3% of the earned annuity without a reduction due to age. A
4child's annuity of an otherwise eligible child shall be in the
5amount prescribed under each Article if applicable. Any
6survivor's or widow's annuity shall be increased (1) on each
7January 1 occurring on or after the commencement of the
8annuity if the deceased member died while receiving a
9retirement annuity or (2) in other cases, on each January 1
10occurring after the first anniversary of the commencement of
11the annuity. Each annual increase shall be calculated at 3% or
12one-half the annual unadjusted percentage increase (but not
13less than zero) in the consumer price index-u for the 12 months
14ending with the September preceding each November 1, whichever
15is less, of the originally granted survivor's annuity. If the
16annual unadjusted percentage change in the consumer price
17index-u for the 12 months ending with the September preceding
18each November 1 is zero or there is a decrease, then the
19annuity shall not be increased.
20 (g) The benefits in Section 14-110 apply only if the
21person is a State policeman, a fire fighter in the fire
22protection service of a department, a conservation police
23officer, an investigator for the Secretary of State, an
24investigator for the Office of the Attorney General, an arson
25investigator, a Commerce Commission police officer,
26investigator for the Department of Revenue or the Illinois

HB4873- 295 -LRB103 35886 RPS 65971 b
1Gaming Board, a security employee of the Department of
2Corrections or the Department of Juvenile Justice, or a
3security employee of the Department of Innovation and
4Technology, as those terms are defined in subsection (b) and
5subsection (c) of Section 14-110. A person who meets the
6requirements of this Section is entitled to an annuity
7calculated under the provisions of Section 14-110, in lieu of
8the regular or minimum retirement annuity, only if the person
9has withdrawn from service with not less than 20 years of
10eligible creditable service and has attained age 60,
11regardless of whether the attainment of age 60 occurs while
12the person is still in service.
13 (h) If a person who first becomes a member or a participant
14of a retirement system or pension fund subject to this Section
15on or after January 1, 2011 is receiving a retirement annuity
16or retirement pension under that system or fund and becomes a
17member or participant under any other system or fund created
18by this Code and is employed on a full-time basis, except for
19those members or participants exempted from the provisions of
20this Section under subsection (a) of this Section, then the
21person's retirement annuity or retirement pension under that
22system or fund shall be suspended during that employment. Upon
23termination of that employment, the person's retirement
24annuity or retirement pension payments shall resume and be
25recalculated if recalculation is provided for under the
26applicable Article of this Code.

HB4873- 296 -LRB103 35886 RPS 65971 b
1 If a person who first becomes a member of a retirement
2system or pension fund subject to this Section on or after
3January 1, 2012 and is receiving a retirement annuity or
4retirement pension under that system or fund and accepts on a
5contractual basis a position to provide services to a
6governmental entity from which he or she has retired, then
7that person's annuity or retirement pension earned as an
8active employee of the employer shall be suspended during that
9contractual service. A person receiving an annuity or
10retirement pension under this Code shall notify the pension
11fund or retirement system from which he or she is receiving an
12annuity or retirement pension, as well as his or her
13contractual employer, of his or her retirement status before
14accepting contractual employment. A person who fails to submit
15such notification shall be guilty of a Class A misdemeanor and
16required to pay a fine of $1,000. Upon termination of that
17contractual employment, the person's retirement annuity or
18retirement pension payments shall resume and, if appropriate,
19be recalculated under the applicable provisions of this Code.
20 (i) (Blank).
21 (j) In the case of a conflict between the provisions of
22this Section and any other provision of this Code, the
23provisions of this Section shall control.
24(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
25102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
268-11-23.)

HB4873- 297 -LRB103 35886 RPS 65971 b
1 (40 ILCS 5/15-108.2)
2 Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person
3who first becomes a participant under this Article on or after
4January 1, 2011 and before the implementation date, as defined
5under subsection (a) of Section 1-161, determined by the
6Board, other than a person in the self-managed plan
7established under Section 15-158.2 or a person who makes the
8election under subsection (c) of Section 1-161, unless the
9person is otherwise a Tier 1 member. The changes made to this
10Section by this amendatory Act of the 98th General Assembly
11are a correction of existing law and are intended to be
12retroactive to the effective date of Public Act 96-889,
13notwithstanding the provisions of Section 1-103.1 of this
14Code.
15(Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)
16 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
17 Sec. 15-155. Employer contributions.
18 (a) The State of Illinois shall make contributions by
19appropriations of amounts which, together with the other
20employer contributions from trust, federal, and other funds,
21employee contributions, income from investments, and other
22income of this System, will be sufficient to meet the cost of
23maintaining and administering the System on a 90% funded basis
24in accordance with actuarial recommendations.

HB4873- 298 -LRB103 35886 RPS 65971 b
1 The Board shall determine the amount of State
2contributions required for each fiscal year on the basis of
3the actuarial tables and other assumptions adopted by the
4Board and the recommendations of the actuary, using the
5formula in subsection (a-1).
6 (a-1) For State fiscal years 2012 through 2045, the
7minimum contribution to the System to be made by the State for
8each fiscal year shall be an amount determined by the System to
9be sufficient to bring the total assets of the System up to 90%
10of the total actuarial liabilities of the System by the end of
11State fiscal year 2045. In making these determinations, the
12required State contribution shall be calculated each year as a
13level percentage of payroll over the years remaining to and
14including fiscal year 2045 and shall be determined under the
15projected unit credit actuarial cost method.
16 For each of State fiscal years 2018, 2019, and 2020, the
17State shall make an additional contribution to the System
18equal to 2% of the total payroll of each employee who is deemed
19to have elected the benefits under Section 1-161 or who has
20made the election under subsection (c) of Section 1-161.
21 A change in an actuarial or investment assumption that
22increases or decreases the required State contribution and
23first applies in State fiscal year 2018 or thereafter shall be
24implemented in equal annual amounts over a 5-year period
25beginning in the State fiscal year in which the actuarial
26change first applies to the required State contribution.

HB4873- 299 -LRB103 35886 RPS 65971 b
1 A change in an actuarial or investment assumption that
2increases or decreases the required State contribution and
3first applied to the State contribution in fiscal year 2014,
42015, 2016, or 2017 shall be implemented:
5 (i) as already applied in State fiscal years before
6 2018; and
7 (ii) in the portion of the 5-year period beginning in
8 the State fiscal year in which the actuarial change first
9 applied that occurs in State fiscal year 2018 or
10 thereafter, by calculating the change in equal annual
11 amounts over that 5-year period and then implementing it
12 at the resulting annual rate in each of the remaining
13 fiscal years in that 5-year period.
14 For State fiscal years 1996 through 2005, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual
17increments so that by State fiscal year 2011, the State is
18contributing at the rate required under this Section.
19 Notwithstanding any other provision of this Article, the
20total required State contribution for State fiscal year 2006
21is $166,641,900.
22 Notwithstanding any other provision of this Article, the
23total required State contribution for State fiscal year 2007
24is $252,064,100.
25 For each of State fiscal years 2008 through 2009, the
26State contribution to the System, as a percentage of the

HB4873- 300 -LRB103 35886 RPS 65971 b
1applicable employee payroll, shall be increased in equal
2annual increments from the required State contribution for
3State fiscal year 2007, so that by State fiscal year 2011, the
4State is contributing at the rate otherwise required under
5this Section.
6 Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2010
8is $702,514,000 and shall be made from the State Pensions Fund
9and proceeds of bonds sold in fiscal year 2010 pursuant to
10Section 7.2 of the General Obligation Bond Act, less (i) the
11pro rata share of bond sale expenses determined by the
12System's share of total bond proceeds, (ii) any amounts
13received from the General Revenue Fund in fiscal year 2010,
14(iii) any reduction in bond proceeds due to the issuance of
15discounted bonds, if applicable.
16 Notwithstanding any other provision of this Article, the
17total required State contribution for State fiscal year 2011
18is the amount recertified by the System on or before April 1,
192011 pursuant to Section 15-165 and shall be made from the
20State Pensions Fund and proceeds of bonds sold in fiscal year
212011 pursuant to Section 7.2 of the General Obligation Bond
22Act, less (i) the pro rata share of bond sale expenses
23determined by the System's share of total bond proceeds, (ii)
24any amounts received from the General Revenue Fund in fiscal
25year 2011, and (iii) any reduction in bond proceeds due to the
26issuance of discounted bonds, if applicable.

HB4873- 301 -LRB103 35886 RPS 65971 b
1 Beginning in State fiscal year 2046, the minimum State
2contribution for each fiscal year shall be the amount needed
3to maintain the total assets of the System at 90% of the total
4actuarial liabilities of the System.
5 Amounts received by the System pursuant to Section 25 of
6the Budget Stabilization Act or Section 8.12 of the State
7Finance Act in any fiscal year do not reduce and do not
8constitute payment of any portion of the minimum State
9contribution required under this Article in that fiscal year.
10Such amounts shall not reduce, and shall not be included in the
11calculation of, the required State contributions under this
12Article in any future year until the System has reached a
13funding ratio of at least 90%. A reference in this Article to
14the "required State contribution" or any substantially similar
15term does not include or apply to any amounts payable to the
16System under Section 25 of the Budget Stabilization Act.
17 Notwithstanding any other provision of this Section, the
18required State contribution for State fiscal year 2005 and for
19fiscal year 2008 and each fiscal year thereafter, as
20calculated under this Section and certified under Section
2115-165, shall not exceed an amount equal to (i) the amount of
22the required State contribution that would have been
23calculated under this Section for that fiscal year if the
24System had not received any payments under subsection (d) of
25Section 7.2 of the General Obligation Bond Act, minus (ii) the
26portion of the State's total debt service payments for that

HB4873- 302 -LRB103 35886 RPS 65971 b
1fiscal year on the bonds issued in fiscal year 2003 for the
2purposes of that Section 7.2, as determined and certified by
3the Comptroller, that is the same as the System's portion of
4the total moneys distributed under subsection (d) of Section
57.2 of the General Obligation Bond Act. In determining this
6maximum for State fiscal years 2008 through 2010, however, the
7amount referred to in item (i) shall be increased, as a
8percentage of the applicable employee payroll, in equal
9increments calculated from the sum of the required State
10contribution for State fiscal year 2007 plus the applicable
11portion of the State's total debt service payments for fiscal
12year 2007 on the bonds issued in fiscal year 2003 for the
13purposes of Section 7.2 of the General Obligation Bond Act, so
14that, by State fiscal year 2011, the State is contributing at
15the rate otherwise required under this Section.
16 (a-2) (Blank). Beginning in fiscal year 2018, each
17employer under this Article shall pay to the System a required
18contribution determined as a percentage of projected payroll
19and sufficient to produce an annual amount equal to:
20 (i) for each of fiscal years 2018, 2019, and 2020, the
21 defined benefit normal cost of the defined benefit plan,
22 less the employee contribution, for each employee of that
23 employer who has elected or who is deemed to have elected
24 the benefits under Section 1-161 or who has made the
25 election under subsection (c) of Section 1-161; for fiscal
26 year 2021 and each fiscal year thereafter, the defined

HB4873- 303 -LRB103 35886 RPS 65971 b
1 benefit normal cost of the defined benefit plan, less the
2 employee contribution, plus 2%, for each employee of that
3 employer who has elected or who is deemed to have elected
4 the benefits under Section 1-161 or who has made the
5 election under subsection (c) of Section 1-161; plus
6 (ii) the amount required for that fiscal year to
7 amortize any unfunded actuarial accrued liability
8 associated with the present value of liabilities
9 attributable to the employer's account under Section
10 15-155.2, determined as a level percentage of payroll over
11 a 30-year rolling amortization period.
12 In determining contributions required under item (i) of
13this subsection, the System shall determine an aggregate rate
14for all employers, expressed as a percentage of projected
15payroll.
16 In determining the contributions required under item (ii)
17of this subsection, the amount shall be computed by the System
18on the basis of the actuarial assumptions and tables used in
19the most recent actuarial valuation of the System that is
20available at the time of the computation.
21 The contributions required under this subsection (a-2)
22shall be paid by an employer concurrently with that employer's
23payroll payment period. The State, as the actual employer of
24an employee, shall make the required contributions under this
25subsection.
26 As used in this subsection, "academic year" means the

HB4873- 304 -LRB103 35886 RPS 65971 b
112-month period beginning September 1.
2 (b) If an employee is paid from trust or federal funds, the
3employer shall pay to the Board contributions from those funds
4which are sufficient to cover the accruing normal costs on
5behalf of the employee. However, universities having employees
6who are compensated out of local auxiliary funds, income
7funds, or service enterprise funds are not required to pay
8such contributions on behalf of those employees. The local
9auxiliary funds, income funds, and service enterprise funds of
10universities shall not be considered trust funds for the
11purpose of this Article, but funds of alumni associations,
12foundations, and athletic associations which are affiliated
13with the universities included as employers under this Article
14and other employers which do not receive State appropriations
15are considered to be trust funds for the purpose of this
16Article.
17 (b-1) The City of Urbana and the City of Champaign shall
18each make employer contributions to this System for their
19respective firefighter employees who participate in this
20System pursuant to subsection (h) of Section 15-107. The rate
21of contributions to be made by those municipalities shall be
22determined annually by the Board on the basis of the actuarial
23assumptions adopted by the Board and the recommendations of
24the actuary, and shall be expressed as a percentage of salary
25for each such employee. The Board shall certify the rate to the
26affected municipalities as soon as may be practical. The

HB4873- 305 -LRB103 35886 RPS 65971 b
1employer contributions required under this subsection shall be
2remitted by the municipality to the System at the same time and
3in the same manner as employee contributions.
4 (c) Through State fiscal year 1995: The total employer
5contribution shall be apportioned among the various funds of
6the State and other employers, whether trust, federal, or
7other funds, in accordance with actuarial procedures approved
8by the Board. State of Illinois contributions for employers
9receiving State appropriations for personal services shall be
10payable from appropriations made to the employers or to the
11System. The contributions for Class I community colleges
12covering earnings other than those paid from trust and federal
13funds, shall be payable solely from appropriations to the
14Illinois Community College Board or the System for employer
15contributions.
16 (d) Beginning in State fiscal year 1996, the required
17State contributions to the System shall be appropriated
18directly to the System and shall be payable through vouchers
19issued in accordance with subsection (c) of Section 15-165,
20except as provided in subsection (g).
21 (e) The State Comptroller shall draw warrants payable to
22the System upon proper certification by the System or by the
23employer in accordance with the appropriation laws and this
24Code.
25 (f) Normal costs under this Section means liability for
26pensions and other benefits which accrues to the System

HB4873- 306 -LRB103 35886 RPS 65971 b
1because of the credits earned for service rendered by the
2participants during the fiscal year and expenses of
3administering the System, but shall not include the principal
4of or any redemption premium or interest on any bonds issued by
5the Board or any expenses incurred or deposits required in
6connection therewith.
7 (g) If the amount of a participant's earnings for any
8academic year used to determine the final rate of earnings,
9determined on a full-time equivalent basis, exceeds the amount
10of his or her earnings with the same employer for the previous
11academic year, determined on a full-time equivalent basis, by
12more than 6%, the participant's employer shall pay to the
13System, in addition to all other payments required under this
14Section and in accordance with guidelines established by the
15System, the present value of the increase in benefits
16resulting from the portion of the increase in earnings that is
17in excess of 6%. This present value shall be computed by the
18System on the basis of the actuarial assumptions and tables
19used in the most recent actuarial valuation of the System that
20is available at the time of the computation. The System may
21require the employer to provide any pertinent information or
22documentation.
23 Whenever it determines that a payment is or may be
24required under this subsection (g), the System shall calculate
25the amount of the payment and bill the employer for that
26amount. The bill shall specify the calculations used to

HB4873- 307 -LRB103 35886 RPS 65971 b
1determine the amount due. If the employer disputes the amount
2of the bill, it may, within 30 days after receipt of the bill,
3apply to the System in writing for a recalculation. The
4application must specify in detail the grounds of the dispute
5and, if the employer asserts that the calculation is subject
6to subsection (h), (h-5), or (i) of this Section, must include
7an affidavit setting forth and attesting to all facts within
8the employer's knowledge that are pertinent to the
9applicability of that subsection. Upon receiving a timely
10application for recalculation, the System shall review the
11application and, if appropriate, recalculate the amount due.
12 The employer contributions required under this subsection
13(g) may be paid in the form of a lump sum within 90 days after
14receipt of the bill. If the employer contributions are not
15paid within 90 days after receipt of the bill, then interest
16will be charged at a rate equal to the System's annual
17actuarially assumed rate of return on investment compounded
18annually from the 91st day after receipt of the bill. Payments
19must be concluded within 3 years after the employer's receipt
20of the bill.
21 When assessing payment for any amount due under this
22subsection (g), the System shall include earnings, to the
23extent not established by a participant under Section
2415-113.11 or 15-113.12, that would have been paid to the
25participant had the participant not taken (i) periods of
26voluntary or involuntary furlough occurring on or after July

HB4873- 308 -LRB103 35886 RPS 65971 b
11, 2015 and on or before June 30, 2017 or (ii) periods of
2voluntary pay reduction in lieu of furlough occurring on or
3after July 1, 2015 and on or before June 30, 2017. Determining
4earnings that would have been paid to a participant had the
5participant not taken periods of voluntary or involuntary
6furlough or periods of voluntary pay reduction shall be the
7responsibility of the employer, and shall be reported in a
8manner prescribed by the System.
9 This subsection (g) does not apply to (1) Tier 2 hybrid
10plan members and (2) Tier 2 defined benefit members who first
11participate under this Article on or after the implementation
12date of the Optional Hybrid Plan.
13 (g-1) (Blank).
14 (h) This subsection (h) applies only to payments made or
15salary increases given on or after June 1, 2005 but before July
161, 2011. The changes made by Public Act 94-1057 shall not
17require the System to refund any payments received before July
1831, 2006 (the effective date of Public Act 94-1057).
19 When assessing payment for any amount due under subsection
20(g), the System shall exclude earnings increases paid to
21participants under contracts or collective bargaining
22agreements entered into, amended, or renewed before June 1,
232005.
24 When assessing payment for any amount due under subsection
25(g), the System shall exclude earnings increases paid to a
26participant at a time when the participant is 10 or more years

HB4873- 309 -LRB103 35886 RPS 65971 b
1from retirement eligibility under Section 15-135.
2 When assessing payment for any amount due under subsection
3(g), the System shall exclude earnings increases resulting
4from overload work, including a contract for summer teaching,
5or overtime when the employer has certified to the System, and
6the System has approved the certification, that: (i) in the
7case of overloads (A) the overload work is for the sole purpose
8of academic instruction in excess of the standard number of
9instruction hours for a full-time employee occurring during
10the academic year that the overload is paid and (B) the
11earnings increases are equal to or less than the rate of pay
12for academic instruction computed using the participant's
13current salary rate and work schedule; and (ii) in the case of
14overtime, the overtime was necessary for the educational
15mission.
16 When assessing payment for any amount due under subsection
17(g), the System shall exclude any earnings increase resulting
18from (i) a promotion for which the employee moves from one
19classification to a higher classification under the State
20Universities Civil Service System, (ii) a promotion in
21academic rank for a tenured or tenure-track faculty position,
22or (iii) a promotion that the Illinois Community College Board
23has recommended in accordance with subsection (k) of this
24Section. These earnings increases shall be excluded only if
25the promotion is to a position that has existed and been filled
26by a member for no less than one complete academic year and the

HB4873- 310 -LRB103 35886 RPS 65971 b
1earnings increase as a result of the promotion is an increase
2that results in an amount no greater than the average salary
3paid for other similar positions.
4 (h-5) When assessing payment for any amount due under
5subsection (g), the System shall exclude any earnings increase
6paid in an academic year beginning on or after July 1, 2020
7resulting from overload work performed in an academic year
8subsequent to an academic year in which the employer was
9unable to offer or allow to be conducted overload work due to
10an emergency declaration limiting such activities.
11 (i) When assessing payment for any amount due under
12subsection (g), the System shall exclude any salary increase
13described in subsection (h) of this Section given on or after
14July 1, 2011 but before July 1, 2014 under a contract or
15collective bargaining agreement entered into, amended, or
16renewed on or after June 1, 2005 but before July 1, 2011.
17Except as provided in subsection (h-5), any payments made or
18salary increases given after June 30, 2014 shall be used in
19assessing payment for any amount due under subsection (g) of
20this Section.
21 (j) The System shall prepare a report and file copies of
22the report with the Governor and the General Assembly by
23January 1, 2007 that contains all of the following
24information:
25 (1) The number of recalculations required by the
26 changes made to this Section by Public Act 94-1057 for

HB4873- 311 -LRB103 35886 RPS 65971 b
1 each employer.
2 (2) The dollar amount by which each employer's
3 contribution to the System was changed due to
4 recalculations required by Public Act 94-1057.
5 (3) The total amount the System received from each
6 employer as a result of the changes made to this Section by
7 Public Act 94-4.
8 (4) The increase in the required State contribution
9 resulting from the changes made to this Section by Public
10 Act 94-1057.
11 (j-5) For State fiscal years beginning on or after July 1,
122017, if the amount of a participant's earnings for any State
13fiscal year exceeds the amount of the salary set by law for the
14Governor that is in effect on July 1 of that fiscal year, the
15participant's employer shall pay to the System, in addition to
16all other payments required under this Section and in
17accordance with guidelines established by the System, an
18amount determined by the System to be equal to the employer
19normal cost, as established by the System and expressed as a
20total percentage of payroll, multiplied by the amount of
21earnings in excess of the amount of the salary set by law for
22the Governor. This amount shall be computed by the System on
23the basis of the actuarial assumptions and tables used in the
24most recent actuarial valuation of the System that is
25available at the time of the computation. The System may
26require the employer to provide any pertinent information or

HB4873- 312 -LRB103 35886 RPS 65971 b
1documentation.
2 Whenever it determines that a payment is or may be
3required under this subsection, the System shall calculate the
4amount of the payment and bill the employer for that amount.
5The bill shall specify the calculation used to determine the
6amount due. If the employer disputes the amount of the bill, it
7may, within 30 days after receipt of the bill, apply to the
8System in writing for a recalculation. The application must
9specify in detail the grounds of the dispute. Upon receiving a
10timely application for recalculation, the System shall review
11the application and, if appropriate, recalculate the amount
12due.
13 The employer contributions required under this subsection
14may be paid in the form of a lump sum within 90 days after
15issuance of the bill. If the employer contributions are not
16paid within 90 days after issuance of the bill, then interest
17will be charged at a rate equal to the System's annual
18actuarially assumed rate of return on investment compounded
19annually from the 91st day after issuance of the bill. All
20payments must be received within 3 years after issuance of the
21bill. If the employer fails to make complete payment,
22including applicable interest, within 3 years, then the System
23may, after giving notice to the employer, certify the
24delinquent amount to the State Comptroller, and the
25Comptroller shall thereupon deduct the certified delinquent
26amount from State funds payable to the employer and pay them

HB4873- 313 -LRB103 35886 RPS 65971 b
1instead to the System.
2 This subsection (j-5) does not apply to a participant's
3earnings to the extent an employer pays the employer normal
4cost of such earnings.
5 The changes made to this subsection (j-5) by Public Act
6100-624 are intended to apply retroactively to July 6, 2017
7(the effective date of Public Act 100-23).
8 (k) The Illinois Community College Board shall adopt rules
9for recommending lists of promotional positions submitted to
10the Board by community colleges and for reviewing the
11promotional lists on an annual basis. When recommending
12promotional lists, the Board shall consider the similarity of
13the positions submitted to those positions recognized for
14State universities by the State Universities Civil Service
15System. The Illinois Community College Board shall file a copy
16of its findings with the System. The System shall consider the
17findings of the Illinois Community College Board when making
18determinations under this Section. The System shall not
19exclude any earnings increases resulting from a promotion when
20the promotion was not submitted by a community college.
21Nothing in this subsection (k) shall require any community
22college to submit any information to the Community College
23Board.
24 (l) For purposes of determining the required State
25contribution to the System, the value of the System's assets
26shall be equal to the actuarial value of the System's assets,

HB4873- 314 -LRB103 35886 RPS 65971 b
1which shall be calculated as follows:
2 As of June 30, 2008, the actuarial value of the System's
3assets shall be equal to the market value of the assets as of
4that date. In determining the actuarial value of the System's
5assets for fiscal years after June 30, 2008, any actuarial
6gains or losses from investment return incurred in a fiscal
7year shall be recognized in equal annual amounts over the
85-year period following that fiscal year.
9 (m) For purposes of determining the required State
10contribution to the system for a particular year, the
11actuarial value of assets shall be assumed to earn a rate of
12return equal to the system's actuarially assumed rate of
13return.
14(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
15102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff.
165-13-22.)
17 (40 ILCS 5/16-158.3)
18 Sec. 16-158.3. Individual employer accounts.
19 (a) The System shall create and maintain an individual
20account for each employer for the purposes of determining
21employer contributions under subsection (b-4) of Section
2216-158. Each employer's account shall be notionally charged
23with the liabilities attributable to that employer and
24credited with the assets attributable to that employer.
25 (b) Beginning with fiscal year 2018, the System shall

HB4873- 315 -LRB103 35886 RPS 65971 b
1assign notional liabilities to each employer's account, equal
2to the amount of the employer contributions required to be
3made by the employer pursuant to items (i) and (ii) of
4subsection (b-4) of Section 16-158, plus any unfunded
5actuarial accrued liability associated with the defined
6benefits attributable to the employer's employees who first
7became members on or after the implementation date and the
8employer's employees who made the election under subsection
9(c-5) of Section 1-161.
10 (c) Beginning with fiscal year 2018, the System shall
11assign notional assets to each employer's account equal to the
12amounts of employer contributions made pursuant to items (i)
13and (ii) of subsection (b-4) of Section 16-158.
14(Source: P.A. 100-23, eff. 7-6-17.)
15 (40 ILCS 5/1-161 rep.)
16 (40 ILCS 5/1-162 rep.)
17 (40 ILCS 5/15-155.2 rep.)
18 Section 10-10. The Illinois Pension Code is amended by
19repealing Sections 1-161, 1-162, and 15-155.2.
20
Article 11.
21 Section 11-5. The Illinois Pension Code is amended by
22changing Sections 1-160 and 14-110 as follows:

HB4873- 316 -LRB103 35886 RPS 65971 b
1 (40 ILCS 5/1-160)
2 (Text of Section from P.A. 102-719)
3 Sec. 1-160. Provisions applicable to new hires.
4 (a) The provisions of this Section apply to a person who,
5on or after January 1, 2011, first becomes a member or a
6participant under any reciprocal retirement system or pension
7fund established under this Code, other than a retirement
8system or pension fund established under Article 2, 3, 4, 5, 6,
97, 15, or 18 of this Code, notwithstanding any other provision
10of this Code to the contrary, but do not apply to any
11self-managed plan established under this Code or to any
12participant of the retirement plan established under Section
1322-101; except that this Section applies to a person who
14elected to establish alternative credits by electing in
15writing after January 1, 2011, but before August 8, 2011,
16under Section 7-145.1 of this Code. Notwithstanding anything
17to the contrary in this Section, for purposes of this Section,
18a person who is a Tier 1 regular employee as defined in Section
197-109.4 of this Code or who participated in a retirement
20system under Article 15 prior to January 1, 2011 shall be
21deemed a person who first became a member or participant prior
22to January 1, 2011 under any retirement system or pension fund
23subject to this Section. The changes made to this Section by
24Public Act 98-596 are a clarification of existing law and are
25intended to be retroactive to January 1, 2011 (the effective
26date of Public Act 96-889), notwithstanding the provisions of

HB4873- 317 -LRB103 35886 RPS 65971 b
1Section 1-103.1 of this Code.
2 This Section does not apply to a person who first becomes a
3noncovered employee under Article 14 on or after the
4implementation date of the plan created under Section 1-161
5for that Article, unless that person elects under subsection
6(b) of Section 1-161 to instead receive the benefits provided
7under this Section and the applicable provisions of that
8Article.
9 This Section does not apply to a person who first becomes a
10member or participant under Article 16 on or after the
11implementation date of the plan created under Section 1-161
12for that Article, unless that person elects under subsection
13(b) of Section 1-161 to instead receive the benefits provided
14under this Section and the applicable provisions of that
15Article.
16 This Section does not apply to a person who elects under
17subsection (c-5) of Section 1-161 to receive the benefits
18under Section 1-161.
19 This Section does not apply to a person who first becomes a
20member or participant of an affected pension fund on or after 6
21months after the resolution or ordinance date, as defined in
22Section 1-162, unless that person elects under subsection (c)
23of Section 1-162 to receive the benefits provided under this
24Section and the applicable provisions of the Article under
25which he or she is a member or participant.
26 (b) "Final average salary" means, except as otherwise

HB4873- 318 -LRB103 35886 RPS 65971 b
1provided in this subsection, the average monthly (or annual)
2salary obtained by dividing the total salary or earnings
3calculated under the Article applicable to the member or
4participant during the 96 consecutive months (or 8 consecutive
5years) of service within the last 120 months (or 10 years) of
6service in which the total salary or earnings calculated under
7the applicable Article was the highest by the number of months
8(or years) of service in that period. For the purposes of a
9person who first becomes a member or participant of any
10retirement system or pension fund to which this Section
11applies on or after January 1, 2011, in this Code, "final
12average salary" shall be substituted for the following:
13 (1) (Blank).
14 (2) In Articles 8, 9, 10, 11, and 12, "highest average
15 annual salary for any 4 consecutive years within the last
16 10 years of service immediately preceding the date of
17 withdrawal".
18 (3) In Article 13, "average final salary".
19 (4) In Article 14, "final average compensation".
20 (5) In Article 17, "average salary".
21 (6) In Section 22-207, "wages or salary received by
22 him at the date of retirement or discharge".
23 A member of the Teachers' Retirement System of the State
24of Illinois who retires on or after June 1, 2021 and for whom
25the 2020-2021 school year is used in the calculation of the
26member's final average salary shall use the higher of the

HB4873- 319 -LRB103 35886 RPS 65971 b
1following for the purpose of determining the member's final
2average salary:
3 (A) the amount otherwise calculated under the first
4 paragraph of this subsection; or
5 (B) an amount calculated by the Teachers' Retirement
6 System of the State of Illinois using the average of the
7 monthly (or annual) salary obtained by dividing the total
8 salary or earnings calculated under Article 16 applicable
9 to the member or participant during the 96 months (or 8
10 years) of service within the last 120 months (or 10 years)
11 of service in which the total salary or earnings
12 calculated under the Article was the highest by the number
13 of months (or years) of service in that period.
14 (b-5) Beginning on January 1, 2011, for all purposes under
15this Code (including without limitation the calculation of
16benefits and employee contributions), the annual earnings,
17salary, or wages (based on the plan year) of a member or
18participant to whom this Section applies shall not exceed
19$106,800; however, that amount shall annually thereafter be
20increased by the lesser of (i) 3% of that amount, including all
21previous adjustments, or (ii) one-half the annual unadjusted
22percentage increase (but not less than zero) in the consumer
23price index-u for the 12 months ending with the September
24preceding each November 1, including all previous adjustments.
25 For the purposes of this Section, "consumer price index-u"
26means the index published by the Bureau of Labor Statistics of

HB4873- 320 -LRB103 35886 RPS 65971 b
1the United States Department of Labor that measures the
2average change in prices of goods and services purchased by
3all urban consumers, United States city average, all items,
41982-84 = 100. The new amount resulting from each annual
5adjustment shall be determined by the Public Pension Division
6of the Department of Insurance and made available to the
7boards of the retirement systems and pension funds by November
81 of each year.
9 (b-10) Beginning on January 1, 2024, for all purposes
10under this Code (including, without limitation, the
11calculation of benefits and employee contributions), the
12annual earnings, salary, or wages (based on the plan year) of a
13member or participant under Article 9 to whom this Section
14applies shall include an annual earnings, salary, or wage cap
15that tracks the Social Security wage base. Maximum annual
16earnings, wages, or salary shall be the annual contribution
17and benefit base established for the applicable year by the
18Commissioner of the Social Security Administration under the
19federal Social Security Act.
20 However, in no event shall the annual earnings, salary, or
21wages for the purposes of this Article and Article 9 exceed any
22limitation imposed on annual earnings, salary, or wages under
23Section 1-117. Under no circumstances shall the maximum amount
24of annual earnings, salary, or wages be greater than the
25amount set forth in this subsection (b-10) as a result of
26reciprocal service or any provisions regarding reciprocal

HB4873- 321 -LRB103 35886 RPS 65971 b
1services, nor shall the Fund under Article 9 be required to pay
2any refund as a result of the application of this maximum
3annual earnings, salary, and wage cap.
4 Nothing in this subsection (b-10) shall cause or otherwise
5result in any retroactive adjustment of any employee
6contributions. Nothing in this subsection (b-10) shall cause
7or otherwise result in any retroactive adjustment of
8disability or other payments made between January 1, 2011 and
9January 1, 2024.
10 (c) A member or participant is entitled to a retirement
11annuity upon written application if he or she has attained age
1267 (age 65, with respect to service under Article 12 that is
13subject to this Section, for a member or participant under
14Article 12 who first becomes a member or participant under
15Article 12 on or after January 1, 2022 or who makes the
16election under item (i) of subsection (d-15) of this Section)
17and has at least 10 years of service credit and is otherwise
18eligible under the requirements of the applicable Article.
19 A member or participant who has attained age 62 (age 60,
20with respect to service under Article 12 that is subject to
21this Section, for a member or participant under Article 12 who
22first becomes a member or participant under Article 12 on or
23after January 1, 2022 or who makes the election under item (i)
24of subsection (d-15) of this Section) and has at least 10 years
25of service credit and is otherwise eligible under the
26requirements of the applicable Article may elect to receive

HB4873- 322 -LRB103 35886 RPS 65971 b
1the lower retirement annuity provided in subsection (d) of
2this Section.
3 (c-5) A person who first becomes a member or a participant
4subject to this Section on or after July 6, 2017 (the effective
5date of Public Act 100-23), notwithstanding any other
6provision of this Code to the contrary, is entitled to a
7retirement annuity under Article 8 or Article 11 upon written
8application if he or she has attained age 65 and has at least
910 years of service credit and is otherwise eligible under the
10requirements of Article 8 or Article 11 of this Code,
11whichever is applicable.
12 (d) The retirement annuity of a member or participant who
13is retiring after attaining age 62 (age 60, with respect to
14service under Article 12 that is subject to this Section, for a
15member or participant under Article 12 who first becomes a
16member or participant under Article 12 on or after January 1,
172022 or who makes the election under item (i) of subsection
18(d-15) of this Section) with at least 10 years of service
19credit shall be reduced by one-half of 1% for each full month
20that the member's age is under age 67 (age 65, with respect to
21service under Article 12 that is subject to this Section, for a
22member or participant under Article 12 who first becomes a
23member or participant under Article 12 on or after January 1,
242022 or who makes the election under item (i) of subsection
25(d-15) of this Section).
26 (d-5) The retirement annuity payable under Article 8 or

HB4873- 323 -LRB103 35886 RPS 65971 b
1Article 11 to an eligible person subject to subsection (c-5)
2of this Section who is retiring at age 60 with at least 10
3years of service credit shall be reduced by one-half of 1% for
4each full month that the member's age is under age 65.
5 (d-10) Each person who first became a member or
6participant under Article 8 or Article 11 of this Code on or
7after January 1, 2011 and prior to July 6, 2017 (the effective
8date of Public Act 100-23) shall make an irrevocable election
9either:
10 (i) to be eligible for the reduced retirement age
11 provided in subsections (c-5) and (d-5) of this Section,
12 the eligibility for which is conditioned upon the member
13 or participant agreeing to the increases in employee
14 contributions for age and service annuities provided in
15 subsection (a-5) of Section 8-174 of this Code (for
16 service under Article 8) or subsection (a-5) of Section
17 11-170 of this Code (for service under Article 11); or
18 (ii) to not agree to item (i) of this subsection
19 (d-10), in which case the member or participant shall
20 continue to be subject to the retirement age provisions in
21 subsections (c) and (d) of this Section and the employee
22 contributions for age and service annuity as provided in
23 subsection (a) of Section 8-174 of this Code (for service
24 under Article 8) or subsection (a) of Section 11-170 of
25 this Code (for service under Article 11).
26 The election provided for in this subsection shall be made

HB4873- 324 -LRB103 35886 RPS 65971 b
1between October 1, 2017 and November 15, 2017. A person
2subject to this subsection who makes the required election
3shall remain bound by that election. A person subject to this
4subsection who fails for any reason to make the required
5election within the time specified in this subsection shall be
6deemed to have made the election under item (ii).
7 (d-15) Each person who first becomes a member or
8participant under Article 12 on or after January 1, 2011 and
9prior to January 1, 2022 shall make an irrevocable election
10either:
11 (i) to be eligible for the reduced retirement age
12 specified in subsections (c) and (d) of this Section, the
13 eligibility for which is conditioned upon the member or
14 participant agreeing to the increase in employee
15 contributions for service annuities specified in
16 subsection (b) of Section 12-150; or
17 (ii) to not agree to item (i) of this subsection
18 (d-15), in which case the member or participant shall not
19 be eligible for the reduced retirement age specified in
20 subsections (c) and (d) of this Section and shall not be
21 subject to the increase in employee contributions for
22 service annuities specified in subsection (b) of Section
23 12-150.
24 The election provided for in this subsection shall be made
25between January 1, 2022 and April 1, 2022. A person subject to
26this subsection who makes the required election shall remain

HB4873- 325 -LRB103 35886 RPS 65971 b
1bound by that election. A person subject to this subsection
2who fails for any reason to make the required election within
3the time specified in this subsection shall be deemed to have
4made the election under item (ii).
5 (e) Any retirement annuity or supplemental annuity shall
6be subject to annual increases on the January 1 occurring
7either on or after the attainment of age 67 (age 65, with
8respect to service under Article 12 that is subject to this
9Section, 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); and beginning on July 6, 2017 (the
13effective date of Public Act 100-23), age 65 with respect to
14service under Article 8 or Article 11 for eligible persons
15who: (i) are subject to subsection (c-5) of this Section; or
16(ii) made the election under item (i) of subsection (d-10) of
17this Section) or the first anniversary of the annuity start
18date, whichever is later. Each annual increase shall be
19calculated at 3% or one-half the annual unadjusted percentage
20increase (but not less than zero) in the consumer price
21index-u for the 12 months ending with the September preceding
22each November 1, whichever is less, of the originally granted
23retirement annuity. If the annual unadjusted percentage change
24in the consumer price index-u for the 12 months ending with the
25September preceding each November 1 is zero or there is a
26decrease, then the annuity shall not be increased.

HB4873- 326 -LRB103 35886 RPS 65971 b
1 For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by Public Act 102-263 are
3applicable without regard to whether the employee was in
4active service on or after August 6, 2021 (the effective date
5of Public Act 102-263).
6 For the purposes of Section 1-103.1 of this Code, the
7changes made to this Section by Public Act 100-23 are
8applicable without regard to whether the employee was in
9active service on or after July 6, 2017 (the effective date of
10Public Act 100-23).
11 (f) The initial survivor's or widow's annuity of an
12otherwise eligible survivor or widow of a retired member or
13participant who first became a member or participant on or
14after January 1, 2011 shall be in the amount of 66 2/3% of the
15retired member's or participant's retirement annuity at the
16date of death. In the case of the death of a member or
17participant who has not retired and who first became a member
18or participant on or after January 1, 2011, eligibility for a
19survivor's or widow's annuity shall be determined by the
20applicable Article of this Code. The initial benefit shall be
2166 2/3% of the earned annuity without a reduction due to age. A
22child's annuity of an otherwise eligible child shall be in the
23amount prescribed under each Article if applicable. Any
24survivor's or widow's annuity shall be increased (1) on each
25January 1 occurring on or after the commencement of the
26annuity if the deceased member died while receiving a

HB4873- 327 -LRB103 35886 RPS 65971 b
1retirement annuity or (2) in other cases, on each January 1
2occurring after the first anniversary of the commencement of
3the annuity. Each annual increase shall be calculated at 3% or
4one-half the annual unadjusted percentage increase (but not
5less than zero) in the consumer price index-u for the 12 months
6ending with the September preceding each November 1, whichever
7is less, of the originally granted survivor's annuity. If the
8annual unadjusted percentage change in the consumer price
9index-u for the 12 months ending with the September preceding
10each November 1 is zero or there is a decrease, then the
11annuity shall not be increased.
12 (g) The benefits in Section 14-110 apply if the person is a
13fire fighter in the fire protection service of a department, a
14security employee of the Department of Corrections or the
15Department of Juvenile Justice, or a security employee of the
16Department of Innovation and Technology, as those terms are
17defined in subsection (b) and subsection (c) of Section
1814-110. A person who meets the requirements of this Section is
19entitled to an annuity calculated under the provisions of
20Section 14-110, in lieu of the regular or minimum retirement
21annuity, only if the person has withdrawn from service with
22not less than 20 years of eligible creditable service and has
23attained age 60, regardless of whether the attainment of age
2460 occurs while the person is still in service.
25 (g-1) The benefits in Section 14-110 apply if the person
26is a security employee of the Department of Corrections or the

HB4873- 328 -LRB103 35886 RPS 65971 b
1Department of Juvenile Justice, a security employee of the
2Department of Human Services, or an investigator for the
3Department of the Lottery, as those terms are defined in
4subsection (b) and subsection (c) of Section 14-110. A person
5who meets the requirements of this Section is entitled to an
6annuity calculated under the provisions of Section 14-110, in
7lieu of the regular or minimum retirement annuity, only if the
8person has withdrawn from service with not less than 20 years
9of eligible creditable service and has attained age 55,
10regardless of whether the attainment of age 55 occurs while
11the person is still in service.
12 (g-5) The benefits in Section 14-110 apply if the person
13is a State policeman, investigator for the Secretary of State,
14conservation police officer, investigator for the Department
15of Revenue or the Illinois Gaming Board, investigator for the
16Office of the Attorney General, Commerce Commission police
17officer, or arson investigator, as those terms are defined in
18subsection (b) and subsection (c) of Section 14-110. A person
19who meets the requirements of this Section is entitled to an
20annuity calculated under the provisions of Section 14-110, in
21lieu of the regular or minimum retirement annuity, only if the
22person has withdrawn from service with not less than 20 years
23of eligible creditable service and has attained age 55,
24regardless of whether the attainment of age 55 occurs while
25the person is still in service.
26 (h) If a person who first becomes a member or a participant

HB4873- 329 -LRB103 35886 RPS 65971 b
1of a retirement system or pension fund subject to this Section
2on or after January 1, 2011 is receiving a retirement annuity
3or retirement pension under that system or fund and becomes a
4member or participant under any other system or fund created
5by this Code and is employed on a full-time basis, except for
6those members or participants exempted from the provisions of
7this Section under subsection (a) of this Section, then the
8person's retirement annuity or retirement pension under that
9system or fund shall be suspended during that employment. Upon
10termination of that employment, the person's retirement
11annuity or retirement pension payments shall resume and be
12recalculated if recalculation is provided for under the
13applicable Article of this Code.
14 If a person who first becomes a member of a retirement
15system or pension fund subject to this Section on or after
16January 1, 2012 and is receiving a retirement annuity or
17retirement pension under that system or fund and accepts on a
18contractual basis a position to provide services to a
19governmental entity from which he or she has retired, then
20that person's annuity or retirement pension earned as an
21active employee of the employer shall be suspended during that
22contractual service. A person receiving an annuity or
23retirement pension under this Code shall notify the pension
24fund or retirement system from which he or she is receiving an
25annuity or retirement pension, as well as his or her
26contractual employer, of his or her retirement status before

HB4873- 330 -LRB103 35886 RPS 65971 b
1accepting contractual employment. A person who fails to submit
2such notification shall be guilty of a Class A misdemeanor and
3required to pay a fine of $1,000. Upon termination of that
4contractual employment, the person's retirement annuity or
5retirement pension payments shall resume and, if appropriate,
6be recalculated under the applicable provisions of this Code.
7 (i) (Blank).
8 (j) In the case of a conflict between the provisions of
9this Section and any other provision of this Code, the
10provisions of this Section shall control.
11(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
12102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
135-6-22.)
14 (Text of Section from P.A. 102-813)
15 Sec. 1-160. Provisions applicable to new hires.
16 (a) The provisions of this Section apply to a person who,
17on or after January 1, 2011, first becomes a member or a
18participant under any reciprocal retirement system or pension
19fund established under this Code, other than a retirement
20system or pension fund established under Article 2, 3, 4, 5, 6,
217, 15, or 18 of this Code, notwithstanding any other provision
22of this Code to the contrary, but do not apply to any
23self-managed plan established under this Code or to any
24participant of the retirement plan established under Section
2522-101; except that this Section applies to a person who

HB4873- 331 -LRB103 35886 RPS 65971 b
1elected to establish alternative credits by electing in
2writing after January 1, 2011, but before August 8, 2011,
3under Section 7-145.1 of this Code. Notwithstanding anything
4to the contrary in this Section, for purposes of this Section,
5a person who is a Tier 1 regular employee as defined in Section
67-109.4 of this Code or who participated in a retirement
7system under Article 15 prior to January 1, 2011 shall be
8deemed a person who first became a member or participant prior
9to January 1, 2011 under any retirement system or pension fund
10subject to this Section. The changes made to this Section by
11Public Act 98-596 are a clarification of existing law and are
12intended to be retroactive to January 1, 2011 (the effective
13date of Public Act 96-889), notwithstanding the provisions of
14Section 1-103.1 of this Code.
15 This Section does not apply to a person who first becomes a
16noncovered employee under Article 14 on or after the
17implementation date of the plan created under Section 1-161
18for that Article, unless that person elects under subsection
19(b) of Section 1-161 to instead receive the benefits provided
20under this Section and the applicable provisions of that
21Article.
22 This Section does not apply to a person who first becomes a
23member or participant under Article 16 on or after the
24implementation date of the plan created under Section 1-161
25for that Article, unless that person elects under subsection
26(b) of Section 1-161 to instead receive the benefits provided

HB4873- 332 -LRB103 35886 RPS 65971 b
1under this Section and the applicable provisions of that
2Article.
3 This Section does not apply to a person who elects under
4subsection (c-5) of Section 1-161 to receive the benefits
5under Section 1-161.
6 This Section does not apply to a person who first becomes a
7member or participant of an affected pension fund on or after 6
8months after the resolution or ordinance date, as defined in
9Section 1-162, unless that person elects under subsection (c)
10of Section 1-162 to receive the benefits provided under this
11Section and the applicable provisions of the Article under
12which he or she is a member or participant.
13 (b) "Final average salary" means, except as otherwise
14provided in this subsection, the average monthly (or annual)
15salary obtained by dividing the total salary or earnings
16calculated under the Article applicable to the member or
17participant during the 96 consecutive months (or 8 consecutive
18years) of service within the last 120 months (or 10 years) of
19service in which the total salary or earnings calculated under
20the applicable Article was the highest by the number of months
21(or years) of service in that period. For the purposes of a
22person who first becomes a member or participant of any
23retirement system or pension fund to which this Section
24applies on or after January 1, 2011, in this Code, "final
25average salary" shall be substituted for the following:
26 (1) (Blank).

HB4873- 333 -LRB103 35886 RPS 65971 b
1 (2) In Articles 8, 9, 10, 11, and 12, "highest average
2 annual salary for any 4 consecutive years within the last
3 10 years of service immediately preceding the date of
4 withdrawal".
5 (3) In Article 13, "average final salary".
6 (4) In Article 14, "final average compensation".
7 (5) In Article 17, "average salary".
8 (6) In Section 22-207, "wages or salary received by
9 him at the date of retirement or discharge".
10 A member of the Teachers' Retirement System of the State
11of Illinois who retires on or after June 1, 2021 and for whom
12the 2020-2021 school year is used in the calculation of the
13member's final average salary shall use the higher of the
14following for the purpose of determining the member's final
15average salary:
16 (A) the amount otherwise calculated under the first
17 paragraph of this subsection; or
18 (B) an amount calculated by the Teachers' Retirement
19 System of the State of Illinois using the average of the
20 monthly (or annual) salary obtained by dividing the total
21 salary or earnings calculated under Article 16 applicable
22 to the member or participant during the 96 months (or 8
23 years) of service within the last 120 months (or 10 years)
24 of service in which the total salary or earnings
25 calculated under the Article was the highest by the number
26 of months (or years) of service in that period.

HB4873- 334 -LRB103 35886 RPS 65971 b
1 (b-5) Beginning on January 1, 2011, for all purposes under
2this Code (including without limitation the calculation of
3benefits and employee contributions), the annual earnings,
4salary, or wages (based on the plan year) of a member or
5participant to whom this Section applies shall not exceed
6$106,800; however, that amount shall annually thereafter be
7increased by the lesser of (i) 3% of that amount, including all
8previous adjustments, or (ii) one-half the annual unadjusted
9percentage increase (but not less than zero) in the consumer
10price index-u for the 12 months ending with the September
11preceding each November 1, including all previous adjustments.
12 For the purposes of this Section, "consumer price index-u"
13means the index published by the Bureau of Labor Statistics of
14the United States Department of Labor that measures the
15average change in prices of goods and services purchased by
16all urban consumers, United States city average, all items,
171982-84 = 100. The new amount resulting from each annual
18adjustment shall be determined by the Public Pension Division
19of the Department of Insurance and made available to the
20boards of the retirement systems and pension funds by November
211 of each year.
22 (b-10) Beginning on January 1, 2024, for all purposes
23under this Code (including, without limitation, the
24calculation of benefits and employee contributions), the
25annual earnings, salary, or wages (based on the plan year) of a
26member or participant under Article 9 to whom this Section

HB4873- 335 -LRB103 35886 RPS 65971 b
1applies shall include an annual earnings, salary, or wage cap
2that tracks the Social Security wage base. Maximum annual
3earnings, wages, or salary shall be the annual contribution
4and benefit base established for the applicable year by the
5Commissioner of the Social Security Administration under the
6federal Social Security Act.
7 However, in no event shall the annual earnings, salary, or
8wages for the purposes of this Article and Article 9 exceed any
9limitation imposed on annual earnings, salary, or wages under
10Section 1-117. Under no circumstances shall the maximum amount
11of annual earnings, salary, or wages be greater than the
12amount set forth in this subsection (b-10) as a result of
13reciprocal service or any provisions regarding reciprocal
14services, nor shall the Fund under Article 9 be required to pay
15any refund as a result of the application of this maximum
16annual earnings, salary, and wage cap.
17 Nothing in this subsection (b-10) shall cause or otherwise
18result in any retroactive adjustment of any employee
19contributions. Nothing in this subsection (b-10) shall cause
20or otherwise result in any retroactive adjustment of
21disability or other payments made between January 1, 2011 and
22January 1, 2024.
23 (c) A member or participant is entitled to a retirement
24annuity upon written application if he or she has attained age
2567 (age 65, with respect to service under Article 12 that is
26subject to this Section, for a member or participant under

HB4873- 336 -LRB103 35886 RPS 65971 b
1Article 12 who first becomes a member or participant under
2Article 12 on or after January 1, 2022 or who makes the
3election under item (i) of subsection (d-15) of this Section)
4and has at least 10 years of service credit and is otherwise
5eligible under the requirements of the applicable Article.
6 A member or participant who has attained age 62 (age 60,
7with respect to service under Article 12 that is subject to
8this Section, for a member or participant under Article 12 who
9first becomes a member or participant under Article 12 on or
10after January 1, 2022 or who makes the election under item (i)
11of subsection (d-15) of this Section) and has at least 10 years
12of service credit and is otherwise eligible under the
13requirements of the applicable Article may elect to receive
14the lower retirement annuity provided in subsection (d) of
15this Section.
16 (c-5) A person who first becomes a member or a participant
17subject to this Section on or after July 6, 2017 (the effective
18date of Public Act 100-23), notwithstanding any other
19provision of this Code to the contrary, is entitled to a
20retirement annuity under Article 8 or Article 11 upon written
21application if he or she has attained age 65 and has at least
2210 years of service credit and is otherwise eligible under the
23requirements of Article 8 or Article 11 of this Code,
24whichever is applicable.
25 (d) The retirement annuity of a member or participant who
26is retiring after attaining age 62 (age 60, with respect to

HB4873- 337 -LRB103 35886 RPS 65971 b
1service under Article 12 that is subject to this Section, for a
2member or participant under Article 12 who first becomes a
3member or participant under Article 12 on or after January 1,
42022 or who makes the election under item (i) of subsection
5(d-15) of this Section) with at least 10 years of service
6credit shall be reduced by one-half of 1% for each full month
7that the member's age is under age 67 (age 65, with respect to
8service under Article 12 that is subject to this Section, for a
9member or participant under Article 12 who first becomes a
10member or participant under Article 12 on or after January 1,
112022 or who makes the election under item (i) of subsection
12(d-15) of this Section).
13 (d-5) The retirement annuity payable under Article 8 or
14Article 11 to an eligible person subject to subsection (c-5)
15of this Section who is retiring at age 60 with at least 10
16years of service credit shall be reduced by one-half of 1% for
17each full month that the member's age is under age 65.
18 (d-10) Each person who first became a member or
19participant under Article 8 or Article 11 of this Code on or
20after January 1, 2011 and prior to July 6, 2017 (the effective
21date of Public Act 100-23) shall make an irrevocable election
22either:
23 (i) to be eligible for the reduced retirement age
24 provided in subsections (c-5) and (d-5) of this Section,
25 the eligibility for which is conditioned upon the member
26 or participant agreeing to the increases in employee

HB4873- 338 -LRB103 35886 RPS 65971 b
1 contributions for age and service annuities provided in
2 subsection (a-5) of Section 8-174 of this Code (for
3 service under Article 8) or subsection (a-5) of Section
4 11-170 of this Code (for service under Article 11); or
5 (ii) to not agree to item (i) of this subsection
6 (d-10), in which case the member or participant shall
7 continue to be subject to the retirement age provisions in
8 subsections (c) and (d) of this Section and the employee
9 contributions for age and service annuity as provided in
10 subsection (a) of Section 8-174 of this Code (for service
11 under Article 8) or subsection (a) of Section 11-170 of
12 this Code (for service under Article 11).
13 The election provided for in this subsection shall be made
14between October 1, 2017 and November 15, 2017. A person
15subject to this subsection who makes the required election
16shall remain bound by that election. A person subject to this
17subsection who fails for any reason to make the required
18election within the time specified in this subsection shall be
19deemed to have made the election under item (ii).
20 (d-15) Each person who first becomes a member or
21participant under Article 12 on or after January 1, 2011 and
22prior to January 1, 2022 shall make an irrevocable election
23either:
24 (i) to be eligible for the reduced retirement age
25 specified in subsections (c) and (d) of this Section, the
26 eligibility for which is conditioned upon the member or

HB4873- 339 -LRB103 35886 RPS 65971 b
1 participant agreeing to the increase in employee
2 contributions for service annuities specified in
3 subsection (b) of Section 12-150; or
4 (ii) to not agree to item (i) of this subsection
5 (d-15), in which case the member or participant shall not
6 be eligible for the reduced retirement age specified in
7 subsections (c) and (d) of this Section and shall not be
8 subject to the increase in employee contributions for
9 service annuities specified in subsection (b) of Section
10 12-150.
11 The election provided for in this subsection shall be made
12between January 1, 2022 and April 1, 2022. A person subject to
13this subsection who makes the required election shall remain
14bound by that election. A person subject to this subsection
15who fails for any reason to make the required election within
16the time specified in this subsection shall be deemed to have
17made the election under item (ii).
18 (e) Any retirement annuity or supplemental annuity shall
19be subject to annual increases on the January 1 occurring
20either on or after the attainment of age 67 (age 65, with
21respect to service under Article 12 that is subject to this
22Section, for a member or participant under Article 12 who
23first becomes a member or participant under Article 12 on or
24after January 1, 2022 or who makes the election under item (i)
25of subsection (d-15); and beginning on July 6, 2017 (the
26effective date of Public Act 100-23), age 65 with respect to

HB4873- 340 -LRB103 35886 RPS 65971 b
1service under Article 8 or Article 11 for eligible persons
2who: (i) are subject to subsection (c-5) of this Section; or
3(ii) made the election under item (i) of subsection (d-10) of
4this Section) or the first anniversary of the annuity start
5date, whichever is later. Each annual increase shall be
6calculated at 3% or one-half the annual unadjusted percentage
7increase (but not less than zero) in the consumer price
8index-u for the 12 months ending with the September preceding
9each November 1, whichever is less, of the originally granted
10retirement annuity. If the annual unadjusted percentage change
11in the consumer price index-u for the 12 months ending with the
12September preceding each November 1 is zero or there is a
13decrease, then the annuity shall not be increased.
14 For the purposes of Section 1-103.1 of this Code, the
15changes made to this Section by Public Act 102-263 are
16applicable without regard to whether the employee was in
17active service on or after August 6, 2021 (the effective date
18of Public Act 102-263).
19 For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by Public Act 100-23 are
21applicable without regard to whether the employee was in
22active service on or after July 6, 2017 (the effective date of
23Public Act 100-23).
24 (f) The initial survivor's or widow's annuity of an
25otherwise eligible survivor or widow of a retired member or
26participant who first became a member or participant on or

HB4873- 341 -LRB103 35886 RPS 65971 b
1after January 1, 2011 shall be in the amount of 66 2/3% of the
2retired member's or participant's retirement annuity at the
3date of death. In the case of the death of a member or
4participant who has not retired and who first became a member
5or participant on or after January 1, 2011, eligibility for a
6survivor's or widow's annuity shall be determined by the
7applicable Article of this Code. The initial benefit shall be
866 2/3% of the earned annuity without a reduction due to age. A
9child's annuity of an otherwise eligible child shall be in the
10amount prescribed under each Article if applicable. Any
11survivor's or widow's annuity shall be increased (1) on each
12January 1 occurring on or after the commencement of the
13annuity if the deceased member died while receiving a
14retirement annuity or (2) in other cases, on each January 1
15occurring after the first anniversary of the commencement of
16the annuity. Each annual increase shall be calculated at 3% or
17one-half the annual unadjusted percentage increase (but not
18less than zero) in the consumer price index-u for the 12 months
19ending with the September preceding each November 1, whichever
20is less, of the originally granted survivor's annuity. If the
21annual unadjusted percentage change in the consumer price
22index-u for the 12 months ending with the September preceding
23each November 1 is zero or there is a decrease, then the
24annuity shall not be increased.
25 (g) The benefits in Section 14-110 apply only if the
26person is a State policeman, a fire fighter in the fire

HB4873- 342 -LRB103 35886 RPS 65971 b
1protection service of a department, a conservation police
2officer, an investigator for the Secretary of State, an arson
3investigator, a Commerce Commission police officer,
4investigator for the Department of Revenue or the Illinois
5Gaming Board, a security employee of the Department of
6Corrections or the Department of Juvenile Justice, or a
7security employee of the Department of Innovation and
8Technology, as those terms are defined in subsection (b) and
9subsection (c) of Section 14-110. A person who meets the
10requirements of this Section is entitled to an annuity
11calculated under the provisions of Section 14-110, in lieu of
12the regular or minimum retirement annuity, only if the person
13has withdrawn from service with not less than 20 years of
14eligible creditable service and has attained age 60,
15regardless of whether the attainment of age 60 occurs while
16the person is still in service.
17 (g-1) The benefits in Section 14-110 apply if the person
18is a security employee of the Department of Corrections or the
19Department of Juvenile Justice, a security employee of the
20Department of Human Services, or an investigator for the
21Department of the Lottery, as those terms are defined in
22subsection (b) and subsection (c) of Section 14-110. A person
23who meets the requirements of this Section is entitled to an
24annuity calculated under the provisions of Section 14-110, in
25lieu of the regular or minimum retirement annuity, only if the
26person has withdrawn from service with not less than 20 years

HB4873- 343 -LRB103 35886 RPS 65971 b
1of eligible creditable service and has attained age 55,
2regardless of whether the attainment of age 55 occurs while
3the person is still in service.
4 (h) If a person who first becomes a member or a participant
5of a retirement system or pension fund subject to this Section
6on or after January 1, 2011 is receiving a retirement annuity
7or retirement pension under that system or fund and becomes a
8member or participant under any other system or fund created
9by this Code and is employed on a full-time basis, except for
10those members or participants exempted from the provisions of
11this Section under subsection (a) of this Section, then the
12person's retirement annuity or retirement pension under that
13system or fund shall be suspended during that employment. Upon
14termination of that employment, the person's retirement
15annuity or retirement pension payments shall resume and be
16recalculated if recalculation is provided for under the
17applicable Article of this Code.
18 If a person who first becomes a member of a retirement
19system or pension fund subject to this Section on or after
20January 1, 2012 and is receiving a retirement annuity or
21retirement pension under that system or fund and accepts on a
22contractual basis a position to provide services to a
23governmental entity from which he or she has retired, then
24that person's annuity or retirement pension earned as an
25active employee of the employer shall be suspended during that
26contractual service. A person receiving an annuity or

HB4873- 344 -LRB103 35886 RPS 65971 b
1retirement pension under this Code shall notify the pension
2fund or retirement system from which he or she is receiving an
3annuity or retirement pension, as well as his or her
4contractual employer, of his or her retirement status before
5accepting contractual employment. A person who fails to submit
6such notification shall be guilty of a Class A misdemeanor and
7required to pay a fine of $1,000. Upon termination of that
8contractual employment, the person's retirement annuity or
9retirement pension payments shall resume and, if appropriate,
10be recalculated under the applicable provisions of this Code.
11 (i) (Blank).
12 (j) In the case of a conflict between the provisions of
13this Section and any other provision of this Code, the
14provisions of this Section shall control.
15(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
16102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
175-13-22.)
18 (Text of Section from P.A. 102-956)
19 Sec. 1-160. Provisions applicable to new hires.
20 (a) The provisions of this Section apply to a person who,
21on or after January 1, 2011, first becomes a member or a
22participant under any reciprocal retirement system or pension
23fund established under this Code, other than a retirement
24system or pension fund established under Article 2, 3, 4, 5, 6,
257, 15, or 18 of this Code, notwithstanding any other provision

HB4873- 345 -LRB103 35886 RPS 65971 b
1of this Code to the contrary, but do not apply to any
2self-managed plan established under this Code or to any
3participant of the retirement plan established under Section
422-101; except that this Section applies to a person who
5elected to establish alternative credits by electing in
6writing after January 1, 2011, but before August 8, 2011,
7under Section 7-145.1 of this Code. Notwithstanding anything
8to the contrary in this Section, for purposes of this Section,
9a person who is a Tier 1 regular employee as defined in Section
107-109.4 of this Code or who participated in a retirement
11system under Article 15 prior to January 1, 2011 shall be
12deemed a person who first became a member or participant prior
13to January 1, 2011 under any retirement system or pension fund
14subject to this Section. The changes made to this Section by
15Public Act 98-596 are a clarification of existing law and are
16intended to be retroactive to January 1, 2011 (the effective
17date of Public Act 96-889), notwithstanding the provisions of
18Section 1-103.1 of this Code.
19 This Section does not apply to a person who first becomes a
20noncovered employee under Article 14 on or after the
21implementation date of the plan created under Section 1-161
22for that Article, unless that person elects under subsection
23(b) of Section 1-161 to instead receive the benefits provided
24under this Section and the applicable provisions of that
25Article.
26 This Section does not apply to a person who first becomes a

HB4873- 346 -LRB103 35886 RPS 65971 b
1member or participant under Article 16 on or after the
2implementation date of the plan created under Section 1-161
3for that Article, unless that person elects under subsection
4(b) of Section 1-161 to instead receive the benefits provided
5under this Section and the applicable provisions of that
6Article.
7 This Section does not apply to a person who elects under
8subsection (c-5) of Section 1-161 to receive the benefits
9under Section 1-161.
10 This Section does not apply to a person who first becomes a
11member or participant of an affected pension fund on or after 6
12months after the resolution or ordinance date, as defined in
13Section 1-162, unless that person elects under subsection (c)
14of Section 1-162 to receive the benefits provided under this
15Section and the applicable provisions of the Article under
16which he or she is a member or participant.
17 (b) "Final average salary" means, except as otherwise
18provided in this subsection, the average monthly (or annual)
19salary obtained by dividing the total salary or earnings
20calculated under the Article applicable to the member or
21participant during the 96 consecutive months (or 8 consecutive
22years) of service within the last 120 months (or 10 years) of
23service in which the total salary or earnings calculated under
24the applicable Article was the highest by the number of months
25(or years) of service in that period. For the purposes of a
26person who first becomes a member or participant of any

HB4873- 347 -LRB103 35886 RPS 65971 b
1retirement system or pension fund to which this Section
2applies on or after January 1, 2011, in this Code, "final
3average salary" shall be substituted for the following:
4 (1) (Blank).
5 (2) In Articles 8, 9, 10, 11, and 12, "highest average
6 annual salary for any 4 consecutive years within the last
7 10 years of service immediately preceding the date of
8 withdrawal".
9 (3) In Article 13, "average final salary".
10 (4) In Article 14, "final average compensation".
11 (5) In Article 17, "average salary".
12 (6) In Section 22-207, "wages or salary received by
13 him at the date of retirement or discharge".
14 A member of the Teachers' Retirement System of the State
15of Illinois who retires on or after June 1, 2021 and for whom
16the 2020-2021 school year is used in the calculation of the
17member's final average salary shall use the higher of the
18following for the purpose of determining the member's final
19average salary:
20 (A) the amount otherwise calculated under the first
21 paragraph of this subsection; or
22 (B) an amount calculated by the Teachers' Retirement
23 System of the State of Illinois using the average of the
24 monthly (or annual) salary obtained by dividing the total
25 salary or earnings calculated under Article 16 applicable
26 to the member or participant during the 96 months (or 8

HB4873- 348 -LRB103 35886 RPS 65971 b
1 years) of service within the last 120 months (or 10 years)
2 of service in which the total salary or earnings
3 calculated under the Article was the highest by the number
4 of months (or years) of service in that period.
5 (b-5) Beginning on January 1, 2011, for all purposes under
6this Code (including without limitation the calculation of
7benefits and employee contributions), the annual earnings,
8salary, or wages (based on the plan year) of a member or
9participant to whom this Section applies shall not exceed
10$106,800; however, that amount shall annually thereafter be
11increased by the lesser of (i) 3% of that amount, including all
12previous adjustments, or (ii) one-half the annual unadjusted
13percentage increase (but not less than zero) in the consumer
14price index-u for the 12 months ending with the September
15preceding each November 1, including all previous adjustments.
16 For the purposes of this Section, "consumer price index-u"
17means the index published by the Bureau of Labor Statistics of
18the United States Department of Labor that measures the
19average change in prices of goods and services purchased by
20all urban consumers, United States city average, all items,
211982-84 = 100. The new amount resulting from each annual
22adjustment shall be determined by the Public Pension Division
23of the Department of Insurance and made available to the
24boards of the retirement systems and pension funds by November
251 of each year.
26 (b-10) Beginning on January 1, 2024, for all purposes

HB4873- 349 -LRB103 35886 RPS 65971 b
1under this Code (including, without limitation, the
2calculation of benefits and employee contributions), the
3annual earnings, salary, or wages (based on the plan year) of a
4member or participant under Article 9 to whom this Section
5applies shall include an annual earnings, salary, or wage cap
6that tracks the Social Security wage base. Maximum annual
7earnings, wages, or salary shall be the annual contribution
8and benefit base established for the applicable year by the
9Commissioner of the Social Security Administration under the
10federal Social Security Act.
11 However, in no event shall the annual earnings, salary, or
12wages for the purposes of this Article and Article 9 exceed any
13limitation imposed on annual earnings, salary, or wages under
14Section 1-117. Under no circumstances shall the maximum amount
15of annual earnings, salary, or wages be greater than the
16amount set forth in this subsection (b-10) as a result of
17reciprocal service or any provisions regarding reciprocal
18services, nor shall the Fund under Article 9 be required to pay
19any refund as a result of the application of this maximum
20annual earnings, salary, and wage cap.
21 Nothing in this subsection (b-10) shall cause or otherwise
22result in any retroactive adjustment of any employee
23contributions. Nothing in this subsection (b-10) shall cause
24or otherwise result in any retroactive adjustment of
25disability or other payments made between January 1, 2011 and
26January 1, 2024.

HB4873- 350 -LRB103 35886 RPS 65971 b
1 (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (age 65, with respect to service under Article 12 that is
4subject to this Section, for a member or participant under
5Article 12 who first becomes a member or participant under
6Article 12 on or after January 1, 2022 or who makes the
7election under item (i) of subsection (d-15) of this Section)
8and has at least 10 years of service credit and is otherwise
9eligible under the requirements of the applicable Article.
10 A member or participant who has attained age 62 (age 60,
11with respect to service under Article 12 that is subject to
12this Section, for a member or participant under Article 12 who
13first becomes a member or participant under Article 12 on or
14after January 1, 2022 or who makes the election under item (i)
15of subsection (d-15) of this Section) and has at least 10 years
16of service credit and is otherwise eligible under the
17requirements of the applicable Article may elect to receive
18the lower retirement annuity provided in subsection (d) of
19this Section.
20 (c-5) A person who first becomes a member or a participant
21subject to this Section on or after July 6, 2017 (the effective
22date of Public Act 100-23), notwithstanding any other
23provision of this Code to the contrary, is entitled to a
24retirement annuity under Article 8 or Article 11 upon written
25application if he or she has attained age 65 and has at least
2610 years of service credit and is otherwise eligible under the

HB4873- 351 -LRB103 35886 RPS 65971 b
1requirements of Article 8 or Article 11 of this Code,
2whichever is applicable.
3 (d) The retirement annuity of a member or participant who
4is retiring after attaining age 62 (age 60, with respect to
5service under Article 12 that is subject to this Section, for a
6member or participant under Article 12 who first becomes a
7member or participant under Article 12 on or after January 1,
82022 or who makes the election under item (i) of subsection
9(d-15) of this Section) with at least 10 years of service
10credit shall be reduced by one-half of 1% for each full month
11that the member's age is under age 67 (age 65, with respect to
12service under Article 12 that is subject to this Section, for a
13member or participant under Article 12 who first becomes a
14member or participant under Article 12 on or after January 1,
152022 or who makes the election under item (i) of subsection
16(d-15) of this Section).
17 (d-5) The retirement annuity payable under Article 8 or
18Article 11 to an eligible person subject to subsection (c-5)
19of this Section who is retiring at age 60 with at least 10
20years of service credit shall be reduced by one-half of 1% for
21each full month that the member's age is under age 65.
22 (d-10) Each person who first became a member or
23participant under Article 8 or Article 11 of this Code on or
24after January 1, 2011 and prior to July 6, 2017 (the effective
25date of Public Act 100-23) shall make an irrevocable election
26either:

HB4873- 352 -LRB103 35886 RPS 65971 b
1 (i) to be eligible for the reduced retirement age
2 provided in subsections (c-5) and (d-5) of this Section,
3 the eligibility for which is conditioned upon the member
4 or participant agreeing to the increases in employee
5 contributions for age and service annuities provided in
6 subsection (a-5) of Section 8-174 of this Code (for
7 service under Article 8) or subsection (a-5) of Section
8 11-170 of this Code (for service under Article 11); or
9 (ii) to not agree to item (i) of this subsection
10 (d-10), in which case the member or participant shall
11 continue to be subject to the retirement age provisions in
12 subsections (c) and (d) of this Section and the employee
13 contributions for age and service annuity as provided in
14 subsection (a) of Section 8-174 of this Code (for service
15 under Article 8) or subsection (a) of Section 11-170 of
16 this Code (for service under Article 11).
17 The election provided for in this subsection shall be made
18between October 1, 2017 and November 15, 2017. A person
19subject to this subsection who makes the required election
20shall remain bound by that election. A person subject to this
21subsection who fails for any reason to make the required
22election within the time specified in this subsection shall be
23deemed to have made the election under item (ii).
24 (d-15) Each person who first becomes a member or
25participant under Article 12 on or after January 1, 2011 and
26prior to January 1, 2022 shall make an irrevocable election

HB4873- 353 -LRB103 35886 RPS 65971 b
1either:
2 (i) to be eligible for the reduced retirement age
3 specified in subsections (c) and (d) of this Section, the
4 eligibility for which is conditioned upon the member or
5 participant agreeing to the increase in employee
6 contributions for service annuities specified in
7 subsection (b) of Section 12-150; or
8 (ii) to not agree to item (i) of this subsection
9 (d-15), in which case the member or participant shall not
10 be eligible for the reduced retirement age specified in
11 subsections (c) and (d) of this Section and shall not be
12 subject to the increase in employee contributions for
13 service annuities specified in subsection (b) of Section
14 12-150.
15 The election provided for in this subsection shall be made
16between January 1, 2022 and April 1, 2022. A person subject to
17this subsection who makes the required election shall remain
18bound by that election. A person subject to this subsection
19who fails for any reason to make the required election within
20the time specified in this subsection shall be deemed to have
21made the election under item (ii).
22 (e) Any retirement annuity or supplemental annuity shall
23be subject to annual increases on the January 1 occurring
24either on or after the attainment of age 67 (age 65, with
25respect to service under Article 12 that is subject to this
26Section, for a member or participant under Article 12 who

HB4873- 354 -LRB103 35886 RPS 65971 b
1first becomes a member or participant under Article 12 on or
2after January 1, 2022 or who makes the election under item (i)
3of subsection (d-15); and beginning on July 6, 2017 (the
4effective date of Public Act 100-23), age 65 with respect to
5service under Article 8 or Article 11 for eligible persons
6who: (i) are subject to subsection (c-5) of this Section; or
7(ii) made the election under item (i) of subsection (d-10) of
8this Section) or the first anniversary of the annuity start
9date, whichever is later. Each annual increase shall be
10calculated at 3% or one-half the annual unadjusted percentage
11increase (but not less than zero) in the consumer price
12index-u for the 12 months ending with the September preceding
13each November 1, whichever is less, of the originally granted
14retirement annuity. If the annual unadjusted percentage change
15in the consumer price index-u for the 12 months ending with the
16September preceding each November 1 is zero or there is a
17decrease, then the annuity shall not be increased.
18 For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by Public Act 102-263 are
20applicable without regard to whether the employee was in
21active service on or after August 6, 2021 (the effective date
22of Public Act 102-263).
23 For the purposes of Section 1-103.1 of this Code, the
24changes made to this Section by Public Act 100-23 are
25applicable without regard to whether the employee was in
26active service on or after July 6, 2017 (the effective date of

HB4873- 355 -LRB103 35886 RPS 65971 b
1Public Act 100-23).
2 (f) The initial survivor's or widow's annuity of an
3otherwise eligible survivor or widow of a retired member or
4participant who first became a member or participant on or
5after January 1, 2011 shall be in the amount of 66 2/3% of the
6retired member's or participant's retirement annuity at the
7date of death. In the case of the death of a member or
8participant who has not retired and who first became a member
9or participant on or after January 1, 2011, eligibility for a
10survivor's or widow's annuity shall be determined by the
11applicable Article of this Code. The initial benefit shall be
1266 2/3% of the earned annuity without a reduction due to age. A
13child's annuity of an otherwise eligible child shall be in the
14amount prescribed under each Article if applicable. Any
15survivor's or widow's annuity shall be increased (1) on each
16January 1 occurring on or after the commencement of the
17annuity if the deceased member died while receiving a
18retirement annuity or (2) in other cases, on each January 1
19occurring after the first anniversary of the commencement of
20the annuity. Each annual increase shall be calculated at 3% or
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1, whichever
24is less, of the originally granted survivor's annuity. If the
25annual unadjusted percentage change in the consumer price
26index-u for the 12 months ending with the September preceding

HB4873- 356 -LRB103 35886 RPS 65971 b
1each November 1 is zero or there is a decrease, then the
2annuity shall not be increased.
3 (g) The benefits in Section 14-110 apply only if the
4person is a State policeman, a fire fighter in the fire
5protection service of a department, a conservation police
6officer, an investigator for the Secretary of State, an
7investigator for the Office of the Attorney General, an arson
8investigator, a Commerce Commission police officer,
9investigator for the Department of Revenue or the Illinois
10Gaming Board, a security employee of the Department of
11Corrections or the Department of Juvenile Justice, or a
12security employee of the Department of Innovation and
13Technology, as those terms are defined in subsection (b) and
14subsection (c) of Section 14-110. A person who meets the
15requirements of this Section is entitled to an annuity
16calculated under the provisions of Section 14-110, in lieu of
17the regular or minimum retirement annuity, only if the person
18has withdrawn from service with not less than 20 years of
19eligible creditable service and has attained age 60,
20regardless of whether the attainment of age 60 occurs while
21the person is still in service.
22 (g-1) The benefits in Section 14-110 apply if the person
23is a security employee of the Department of Corrections or the
24Department of Juvenile Justice, a security employee of the
25Department of Human Services, or an investigator for the
26Department of the Lottery, as those terms are defined in

HB4873- 357 -LRB103 35886 RPS 65971 b
1subsection (b) and subsection (c) of Section 14-110. A person
2who meets the requirements of this Section is entitled to an
3annuity calculated under the provisions of Section 14-110, in
4lieu of the regular or minimum retirement annuity, only if the
5person has withdrawn from service with not less than 20 years
6of eligible creditable service and has attained age 55,
7regardless of whether the attainment of age 55 occurs while
8the person is still in service.
9 (h) If a person who first becomes a member or a participant
10of a retirement system or pension fund subject to this Section
11on or after January 1, 2011 is receiving a retirement annuity
12or retirement pension under that system or fund and becomes a
13member or participant under any other system or fund created
14by this Code and is employed on a full-time basis, except for
15those members or participants exempted from the provisions of
16this Section under subsection (a) of this Section, then the
17person's retirement annuity or retirement pension under that
18system or fund shall be suspended during that employment. Upon
19termination of that employment, the person's retirement
20annuity or retirement pension payments shall resume and be
21recalculated if recalculation is provided for under the
22applicable Article of this Code.
23 If a person who first becomes a member of a retirement
24system or pension fund subject to this Section on or after
25January 1, 2012 and is receiving a retirement annuity or
26retirement pension under that system or fund and accepts on a

HB4873- 358 -LRB103 35886 RPS 65971 b
1contractual basis a position to provide services to a
2governmental entity from which he or she has retired, then
3that person's annuity or retirement pension earned as an
4active employee of the employer shall be suspended during that
5contractual service. A person receiving an annuity or
6retirement pension under this Code shall notify the pension
7fund or retirement system from which he or she is receiving an
8annuity or retirement pension, as well as his or her
9contractual employer, of his or her retirement status before
10accepting contractual employment. A person who fails to submit
11such notification shall be guilty of a Class A misdemeanor and
12required to pay a fine of $1,000. Upon termination of that
13contractual employment, the person's retirement annuity or
14retirement pension payments shall resume and, if appropriate,
15be recalculated under the applicable provisions of this Code.
16 (i) (Blank).
17 (j) In the case of a conflict between the provisions of
18this Section and any other provision of this Code, the
19provisions of this Section shall control.
20(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
21102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
228-11-23.)
23 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
24 (Text of Section from P.A. 102-813 and 103-34)
25 Sec. 14-110. Alternative retirement annuity.

HB4873- 359 -LRB103 35886 RPS 65971 b
1 (a) Any member who has withdrawn from service with not
2less than 20 years of eligible creditable service and has
3attained age 55, and any member who has withdrawn from service
4with not less than 25 years of eligible creditable service and
5has attained age 50, regardless of whether the attainment of
6either of the specified ages occurs while the member is still
7in service, shall be entitled to receive at the option of the
8member, in lieu of the regular or minimum retirement annuity,
9a retirement annuity computed as follows:
10 (i) for periods of service as a noncovered employee:
11 if retirement occurs on or after January 1, 2001, 3% of
12 final average compensation for each year of creditable
13 service; if retirement occurs before January 1, 2001, 2
14 1/4% of final average compensation for each of the first
15 10 years of creditable service, 2 1/2% for each year above
16 10 years to and including 20 years of creditable service,
17 and 2 3/4% for each year of creditable service above 20
18 years; and
19 (ii) for periods of eligible creditable service as a
20 covered employee: if retirement occurs on or after January
21 1, 2001, 2.5% of final average compensation for each year
22 of creditable service; if retirement occurs before January
23 1, 2001, 1.67% of final average compensation for each of
24 the first 10 years of such service, 1.90% for each of the
25 next 10 years of such service, 2.10% for each year of such
26 service in excess of 20 but not exceeding 30, and 2.30% for

HB4873- 360 -LRB103 35886 RPS 65971 b
1 each year in excess of 30.
2 Such annuity shall be subject to a maximum of 75% of final
3average compensation if retirement occurs before January 1,
42001 or to a maximum of 80% of final average compensation if
5retirement occurs on or after January 1, 2001.
6 These rates shall not be applicable to any service
7performed by a member as a covered employee which is not
8eligible creditable service. Service as a covered employee
9which is not eligible creditable service shall be subject to
10the rates and provisions of Section 14-108.
11 (b) For the purpose of this Section, "eligible creditable
12service" means creditable service resulting from service in
13one or more of the following positions:
14 (1) State policeman;
15 (2) fire fighter in the fire protection service of a
16 department;
17 (3) air pilot;
18 (4) special agent;
19 (5) investigator for the Secretary of State;
20 (6) conservation police officer;
21 (7) investigator for the Department of Revenue or the
22 Illinois Gaming Board;
23 (8) security employee of the Department of Human
24 Services;
25 (9) Central Management Services security police
26 officer;

HB4873- 361 -LRB103 35886 RPS 65971 b
1 (10) security employee of the Department of
2 Corrections or the Department of Juvenile Justice;
3 (11) dangerous drugs investigator;
4 (12) investigator for the Illinois State Police;
5 (13) investigator for the Office of the Attorney
6 General;
7 (14) controlled substance inspector;
8 (15) investigator for the Office of the State's
9 Attorneys Appellate Prosecutor;
10 (16) Commerce Commission police officer;
11 (17) arson investigator;
12 (18) State highway maintenance worker;
13 (19) security employee of the Department of Innovation
14 and Technology; or
15 (20) transferred employee; or .
16 (21) investigator for the Department of the Lottery.
17 A person employed in one of the positions specified in
18this subsection is entitled to eligible creditable service for
19service credit earned under this Article while undergoing the
20basic police training course approved by the Illinois Law
21Enforcement Training Standards Board, if completion of that
22training is required of persons serving in that position. For
23the purposes of this Code, service during the required basic
24police training course shall be deemed performance of the
25duties of the specified position, even though the person is
26not a sworn peace officer at the time of the training.

HB4873- 362 -LRB103 35886 RPS 65971 b
1 A person under paragraph (20) is entitled to eligible
2creditable service for service credit earned under this
3Article on and after his or her transfer by Executive Order No.
42003-10, Executive Order No. 2004-2, or Executive Order No.
52016-1.
6 (c) For the purposes of this Section:
7 (1) The term "State policeman" includes any title or
8 position in the Illinois State Police that is held by an
9 individual employed under the Illinois State Police Act.
10 (2) The term "fire fighter in the fire protection
11 service of a department" includes all officers in such
12 fire protection service including fire chiefs and
13 assistant fire chiefs.
14 (3) The term "air pilot" includes any employee whose
15 official job description on file in the Department of
16 Central Management Services, or in the department by which
17 he is employed if that department is not covered by the
18 Personnel Code, states that his principal duty is the
19 operation of aircraft, and who possesses a pilot's
20 license; however, the change in this definition made by
21 Public Act 83-842 shall not operate to exclude any
22 noncovered employee who was an "air pilot" for the
23 purposes of this Section on January 1, 1984.
24 (4) The term "special agent" means any person who by
25 reason of employment by the Division of Narcotic Control,
26 the Bureau of Investigation or, after July 1, 1977, the

HB4873- 363 -LRB103 35886 RPS 65971 b
1 Division of Criminal Investigation, the Division of
2 Internal Investigation, the Division of Operations, the
3 Division of Patrol, or any other Division or
4 organizational entity in the Illinois State Police is
5 vested by law with duties to maintain public order,
6 investigate violations of the criminal law of this State,
7 enforce the laws of this State, make arrests and recover
8 property. The term "special agent" includes any title or
9 position in the Illinois State Police that is held by an
10 individual employed under the Illinois State Police Act.
11 (5) The term "investigator for the Secretary of State"
12 means any person employed by the Office of the Secretary
13 of State and vested with such investigative duties as
14 render him ineligible for coverage under the Social
15 Security Act by reason of Sections 218(d)(5)(A),
16 218(d)(8)(D) and 218(l)(1) of that Act.
17 A person who became employed as an investigator for
18 the Secretary of State between January 1, 1967 and
19 December 31, 1975, and who has served as such until
20 attainment of age 60, either continuously or with a single
21 break in service of not more than 3 years duration, which
22 break terminated before January 1, 1976, shall be entitled
23 to have his retirement annuity calculated in accordance
24 with subsection (a), notwithstanding that he has less than
25 20 years of credit for such service.
26 (6) The term "Conservation Police Officer" means any

HB4873- 364 -LRB103 35886 RPS 65971 b
1 person employed by the Division of Law Enforcement of the
2 Department of Natural Resources and vested with such law
3 enforcement duties as render him ineligible for coverage
4 under the Social Security Act by reason of Sections
5 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
6 term "Conservation Police Officer" includes the positions
7 of Chief Conservation Police Administrator and Assistant
8 Conservation Police Administrator.
9 (7) The term "investigator for the Department of
10 Revenue" means any person employed by the Department of
11 Revenue and vested with such investigative duties as
12 render him ineligible for coverage under the Social
13 Security Act by reason of Sections 218(d)(5)(A),
14 218(d)(8)(D) and 218(l)(1) of that Act.
15 The term "investigator for the Illinois Gaming Board"
16 means any person employed as such by the Illinois Gaming
17 Board and vested with such peace officer duties as render
18 the person ineligible for coverage under the Social
19 Security Act by reason of Sections 218(d)(5)(A),
20 218(d)(8)(D), and 218(l)(1) of that Act.
21 (8) The term "security employee of the Department of
22 Human Services" means any person employed by the
23 Department of Human Services who (i) is employed at the
24 Chester Mental Health Center and has daily contact with
25 the residents thereof, (ii) is employed within a security
26 unit at a facility operated by the Department and has

HB4873- 365 -LRB103 35886 RPS 65971 b
1 daily contact with the residents of the security unit,
2 (iii) is employed at a facility operated by the Department
3 that includes a security unit and is regularly scheduled
4 to work at least 50% of his or her working hours within
5 that security unit, or (iv) is a mental health police
6 officer. "Mental health police officer" means any person
7 employed by the Department of Human Services in a position
8 pertaining to the Department's mental health and
9 developmental disabilities functions who is vested with
10 such law enforcement duties as render the person
11 ineligible for coverage under the Social Security Act by
12 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
13 218(l)(1) of that Act. "Security unit" means that portion
14 of a facility that is devoted to the care, containment,
15 and treatment of persons committed to the Department of
16 Human Services as sexually violent persons, persons unfit
17 to stand trial, or persons not guilty by reason of
18 insanity. With respect to past employment, references to
19 the Department of Human Services include its predecessor,
20 the Department of Mental Health and Developmental
21 Disabilities.
22 The changes made to this subdivision (c)(8) by Public
23 Act 92-14 apply to persons who retire on or after January
24 1, 2001, notwithstanding Section 1-103.1.
25 (9) "Central Management Services security police
26 officer" means any person employed by the Department of

HB4873- 366 -LRB103 35886 RPS 65971 b
1 Central Management Services who is vested with such law
2 enforcement duties as render him ineligible for coverage
3 under the Social Security Act by reason of Sections
4 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
5 (10) For a member who first became an employee under
6 this Article before July 1, 2005, the term "security
7 employee of the Department of Corrections or the
8 Department of Juvenile Justice" means any employee of the
9 Department of Corrections or the Department of Juvenile
10 Justice or the former Department of Personnel, and any
11 member or employee of the Prisoner Review Board, who has
12 daily contact with inmates or youth by working within a
13 correctional facility or Juvenile facility operated by the
14 Department of Juvenile Justice or who is a parole officer
15 or an employee who has direct contact with committed
16 persons in the performance of his or her job duties. For a
17 member who first becomes an employee under this Article on
18 or after July 1, 2005, the term means an employee of the
19 Department of Corrections or the Department of Juvenile
20 Justice who is any of the following: (i) officially
21 headquartered at a correctional facility or Juvenile
22 facility operated by the Department of Juvenile Justice,
23 (ii) a parole officer, (iii) a member of the apprehension
24 unit, (iv) a member of the intelligence unit, (v) a member
25 of the sort team, or (vi) an investigator.
26 (11) The term "dangerous drugs investigator" means any

HB4873- 367 -LRB103 35886 RPS 65971 b
1 person who is employed as such by the Department of Human
2 Services.
3 (12) The term "investigator for the Illinois State
4 Police" means a person employed by the Illinois State
5 Police who is vested under Section 4 of the Narcotic
6 Control Division Abolition Act with such law enforcement
7 powers as render him ineligible for coverage under the
8 Social Security Act by reason of Sections 218(d)(5)(A),
9 218(d)(8)(D) and 218(l)(1) of that Act.
10 (13) "Investigator for the Office of the Attorney
11 General" means any person who is employed as such by the
12 Office of the Attorney General and is vested with such
13 investigative duties as render him ineligible for coverage
14 under the Social Security Act by reason of Sections
15 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
16 the period before January 1, 1989, the term includes all
17 persons who were employed as investigators by the Office
18 of the Attorney General, without regard to social security
19 status.
20 (14) "Controlled substance inspector" means any person
21 who is employed as such by the Department of Professional
22 Regulation and is vested with such law enforcement duties
23 as render him ineligible for coverage under the Social
24 Security Act by reason of Sections 218(d)(5)(A),
25 218(d)(8)(D) and 218(l)(1) of that Act. The term
26 "controlled substance inspector" includes the Program

HB4873- 368 -LRB103 35886 RPS 65971 b
1 Executive of Enforcement and the Assistant Program
2 Executive of Enforcement.
3 (15) The term "investigator for the Office of the
4 State's Attorneys Appellate Prosecutor" means a person
5 employed in that capacity on a full-time basis under the
6 authority of Section 7.06 of the State's Attorneys
7 Appellate Prosecutor's Act.
8 (16) "Commerce Commission police officer" means any
9 person employed by the Illinois Commerce Commission who is
10 vested with such law enforcement duties as render him
11 ineligible for coverage under the Social Security Act by
12 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
13 218(l)(1) of that Act.
14 (17) "Arson investigator" means any person who is
15 employed as such by the Office of the State Fire Marshal
16 and is vested with such law enforcement duties as render
17 the person ineligible for coverage under the Social
18 Security Act by reason of Sections 218(d)(5)(A),
19 218(d)(8)(D), and 218(l)(1) of that Act. A person who was
20 employed as an arson investigator on January 1, 1995 and
21 is no longer in service but not yet receiving a retirement
22 annuity may convert his or her creditable service for
23 employment as an arson investigator into eligible
24 creditable service by paying to the System the difference
25 between the employee contributions actually paid for that
26 service and the amounts that would have been contributed

HB4873- 369 -LRB103 35886 RPS 65971 b
1 if the applicant were contributing at the rate applicable
2 to persons with the same social security status earning
3 eligible creditable service on the date of application.
4 (18) The term "State highway maintenance worker" means
5 a person who is either of the following:
6 (i) A person employed on a full-time basis by the
7 Illinois Department of Transportation in the position
8 of highway maintainer, highway maintenance lead
9 worker, highway maintenance lead/lead worker, heavy
10 construction equipment operator, power shovel
11 operator, or bridge mechanic; and whose principal
12 responsibility is to perform, on the roadway, the
13 actual maintenance necessary to keep the highways that
14 form a part of the State highway system in serviceable
15 condition for vehicular traffic.
16 (ii) A person employed on a full-time basis by the
17 Illinois State Toll Highway Authority in the position
18 of equipment operator/laborer H-4, equipment
19 operator/laborer H-6, welder H-4, welder H-6,
20 mechanical/electrical H-4, mechanical/electrical H-6,
21 water/sewer H-4, water/sewer H-6, sign maker/hanger
22 H-4, sign maker/hanger H-6, roadway lighting H-4,
23 roadway lighting H-6, structural H-4, structural H-6,
24 painter H-4, or painter H-6; and whose principal
25 responsibility is to perform, on the roadway, the
26 actual maintenance necessary to keep the Authority's

HB4873- 370 -LRB103 35886 RPS 65971 b
1 tollways in serviceable condition for vehicular
2 traffic.
3 (19) The term "security employee of the Department of
4 Innovation and Technology" means a person who was a
5 security employee of the Department of Corrections or the
6 Department of Juvenile Justice, was transferred to the
7 Department of Innovation and Technology pursuant to
8 Executive Order 2016-01, and continues to perform similar
9 job functions under that Department.
10 (20) "Transferred employee" means an employee who was
11 transferred to the Department of Central Management
12 Services by Executive Order No. 2003-10 or Executive Order
13 No. 2004-2 or transferred to the Department of Innovation
14 and Technology by Executive Order No. 2016-1, or both, and
15 was entitled to eligible creditable service for services
16 immediately preceding the transfer.
17 (21) The term "investigator for the Department of the
18 Lottery" means any person employed by the Department of
19 the Lottery and who is vested with such investigative
20 duties which render him or her ineligible for coverage
21 under the Social Security Act by reason of Sections
22 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
23 investigator for the Department of the Lottery who
24 qualifies under this Section shall earn eligible
25 creditable service and be required to make contributions
26 at the rate specified in paragraph (3) of subsection (a)

HB4873- 371 -LRB103 35886 RPS 65971 b
1 of Section 14-133 for all periods of service as an
2 investigator for the Department of the Lottery.
3 (d) A security employee of the Department of Corrections
4or the Department of Juvenile Justice, a security employee of
5the Department of Human Services who is not a mental health
6police officer, and a security employee of the Department of
7Innovation and Technology shall not be eligible for the
8alternative retirement annuity provided by this Section unless
9he or she meets the following minimum age and service
10requirements at the time of retirement:
11 (i) 25 years of eligible creditable service and age
12 55; or
13 (ii) beginning January 1, 1987, 25 years of eligible
14 creditable service and age 54, or 24 years of eligible
15 creditable service and age 55; or
16 (iii) beginning January 1, 1988, 25 years of eligible
17 creditable service and age 53, or 23 years of eligible
18 creditable service and age 55; or
19 (iv) beginning January 1, 1989, 25 years of eligible
20 creditable service and age 52, or 22 years of eligible
21 creditable service and age 55; or
22 (v) beginning January 1, 1990, 25 years of eligible
23 creditable service and age 51, or 21 years of eligible
24 creditable service and age 55; or
25 (vi) beginning January 1, 1991, 25 years of eligible
26 creditable service and age 50, or 20 years of eligible

HB4873- 372 -LRB103 35886 RPS 65971 b
1 creditable service and age 55.
2 Persons who have service credit under Article 16 of this
3Code for service as a security employee of the Department of
4Corrections or the Department of Juvenile Justice, or the
5Department of Human Services in a position requiring
6certification as a teacher may count such service toward
7establishing their eligibility under the service requirements
8of this Section; but such service may be used only for
9establishing such eligibility, and not for the purpose of
10increasing or calculating any benefit.
11 (e) If a member enters military service while working in a
12position in which eligible creditable service may be earned,
13and returns to State service in the same or another such
14position, and fulfills in all other respects the conditions
15prescribed in this Article for credit for military service,
16such military service shall be credited as eligible creditable
17service for the purposes of the retirement annuity prescribed
18in this Section.
19 (f) For purposes of calculating retirement annuities under
20this Section, periods of service rendered after December 31,
211968 and before October 1, 1975 as a covered employee in the
22position of special agent, conservation police officer, mental
23health police officer, or investigator for the Secretary of
24State, shall be deemed to have been service as a noncovered
25employee, provided that the employee pays to the System prior
26to retirement an amount equal to (1) the difference between

HB4873- 373 -LRB103 35886 RPS 65971 b
1the employee contributions that would have been required for
2such service as a noncovered employee, and the amount of
3employee contributions actually paid, plus (2) if payment is
4made after July 31, 1987, regular interest on the amount
5specified in item (1) from the date of service to the date of
6payment.
7 For purposes of calculating retirement annuities under
8this Section, periods of service rendered after December 31,
91968 and before January 1, 1982 as a covered employee in the
10position of investigator for the Department of Revenue shall
11be deemed to have been service as a noncovered employee,
12provided that the employee pays to the System prior to
13retirement an amount equal to (1) the difference between the
14employee contributions that would have been required for such
15service as a noncovered employee, and the amount of employee
16contributions actually paid, plus (2) if payment is made after
17January 1, 1990, regular interest on the amount specified in
18item (1) from the date of service to the date of payment.
19 (g) A State policeman may elect, not later than January 1,
201990, to establish eligible creditable service for up to 10
21years of his service as a policeman under Article 3, by filing
22a written election with the Board, accompanied by payment of
23an amount to be determined by the Board, equal to (i) the
24difference between the amount of employee and employer
25contributions transferred to the System under Section 3-110.5,
26and the amounts that would have been contributed had such

HB4873- 374 -LRB103 35886 RPS 65971 b
1contributions been made at the rates applicable to State
2policemen, plus (ii) interest thereon at the effective rate
3for each year, compounded annually, from the date of service
4to the date of payment.
5 Subject to the limitation in subsection (i), a State
6policeman may elect, not later than July 1, 1993, to establish
7eligible creditable service for up to 10 years of his service
8as a member of the County Police Department under Article 9, by
9filing a written election with the Board, accompanied by
10payment of an amount to be determined by the Board, equal to
11(i) the difference between the amount of employee and employer
12contributions transferred to the System under Section 9-121.10
13and the amounts that would have been contributed had those
14contributions been made at the rates applicable to State
15policemen, plus (ii) interest thereon at the effective rate
16for each year, compounded annually, from the date of service
17to the date of payment.
18 (h) Subject to the limitation in subsection (i), a State
19policeman or investigator for the Secretary of State may elect
20to establish eligible creditable service for up to 12 years of
21his service as a policeman under Article 5, by filing a written
22election with the Board on or before January 31, 1992, and
23paying to the System by January 31, 1994 an amount to be
24determined by the Board, equal to (i) the difference between
25the amount of employee and employer contributions transferred
26to the System under Section 5-236, and the amounts that would

HB4873- 375 -LRB103 35886 RPS 65971 b
1have been contributed had such contributions been made at the
2rates applicable to State policemen, plus (ii) interest
3thereon at the effective rate for each year, compounded
4annually, from the date of service to the date of payment.
5 Subject to the limitation in subsection (i), a State
6policeman, conservation police officer, or investigator for
7the Secretary of State may elect to establish eligible
8creditable service for up to 10 years of service as a sheriff's
9law enforcement employee under Article 7, by filing a written
10election with the Board on or before January 31, 1993, and
11paying to the System by January 31, 1994 an amount to be
12determined by the Board, equal to (i) the difference between
13the amount of employee and employer contributions transferred
14to the System under Section 7-139.7, and the amounts that
15would have been contributed had such contributions been made
16at the rates applicable to State policemen, plus (ii) interest
17thereon at the effective rate for each year, compounded
18annually, from the date of service to the date of payment.
19 Subject to the limitation in subsection (i), a State
20policeman, conservation police officer, or investigator for
21the Secretary of State may elect to establish eligible
22creditable service for up to 5 years of service as a police
23officer under Article 3, a policeman under Article 5, a
24sheriff's law enforcement employee under Article 7, a member
25of the county police department under Article 9, or a police
26officer under Article 15 by filing a written election with the

HB4873- 376 -LRB103 35886 RPS 65971 b
1Board and paying to the System an amount to be determined by
2the Board, equal to (i) the difference between the amount of
3employee and employer contributions transferred to the System
4under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
5and the amounts that would have been contributed had such
6contributions been made at the rates applicable to State
7policemen, plus (ii) interest thereon at the effective rate
8for each year, compounded annually, from the date of service
9to the date of payment.
10 Subject to the limitation in subsection (i), an
11investigator for the Office of the Attorney General, or an
12investigator for the Department of Revenue, may elect to
13establish eligible creditable service for up to 5 years of
14service as a police officer under Article 3, a policeman under
15Article 5, a sheriff's law enforcement employee under Article
167, or a member of the county police department under Article 9
17by filing a written election with the Board within 6 months
18after August 25, 2009 (the effective date of Public Act
1996-745) and paying to the System an amount to be determined by
20the Board, equal to (i) the difference between the amount of
21employee and employer contributions transferred to the System
22under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
23amounts that would have been contributed had such
24contributions been made at the rates applicable to State
25policemen, plus (ii) interest thereon at the actuarially
26assumed rate for each year, compounded annually, from the date

HB4873- 377 -LRB103 35886 RPS 65971 b
1of service to the date of payment.
2 Subject to the limitation in subsection (i), a State
3policeman, conservation police officer, investigator for the
4Office of the Attorney General, an investigator for the
5Department of Revenue, or investigator for the Secretary of
6State may elect to establish eligible creditable service for
7up to 5 years of service as a person employed by a
8participating municipality to perform police duties, or law
9enforcement officer employed on a full-time basis by a forest
10preserve district under Article 7, a county corrections
11officer, or a court services officer under Article 9, by
12filing a written election with the Board within 6 months after
13August 25, 2009 (the effective date of Public Act 96-745) and
14paying to the System an amount to be determined by the Board,
15equal to (i) the difference between the amount of employee and
16employer contributions transferred to the System under
17Sections 7-139.8 and 9-121.10 and the amounts that would have
18been contributed had such contributions been made at the rates
19applicable to State policemen, plus (ii) interest thereon at
20the actuarially assumed rate for each year, compounded
21annually, from the date of service to the date of payment.
22 Subject to the limitation in subsection (i), a State
23policeman, arson investigator, or Commerce Commission police
24officer may elect to establish eligible creditable service for
25up to 5 years of service as a person employed by a
26participating municipality to perform police duties under

HB4873- 378 -LRB103 35886 RPS 65971 b
1Article 7, a county corrections officer, a court services
2officer under Article 9, or a firefighter under Article 4 by
3filing a written election with the Board within 6 months after
4July 30, 2021 (the effective date of Public Act 102-210) and
5paying to the System an amount to be determined by the Board
6equal to (i) the difference between the amount of employee and
7employer contributions transferred to the System under
8Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
9would have been contributed had such contributions been made
10at the rates applicable to State policemen, plus (ii) interest
11thereon at the actuarially assumed rate for each year,
12compounded annually, from the date of service to the date of
13payment.
14 Subject to the limitation in subsection (i), a
15conservation police officer may elect to establish eligible
16creditable service for up to 5 years of service as a person
17employed by a participating municipality to perform police
18duties under Article 7, a county corrections officer, or a
19court services officer under Article 9 by filing a written
20election with the Board within 6 months after July 30, 2021
21(the effective date of Public Act 102-210) and paying to the
22System an amount to be determined by the Board equal to (i) the
23difference between the amount of employee and employer
24contributions transferred to the System under Sections 7-139.8
25and 9-121.10 and the amounts that would have been contributed
26had such contributions been made at the rates applicable to

HB4873- 379 -LRB103 35886 RPS 65971 b
1State policemen, plus (ii) interest thereon at the actuarially
2assumed rate for each year, compounded annually, from the date
3of service to the date of payment.
4 Notwithstanding the limitation in subsection (i), a State
5policeman or conservation police officer may elect to convert
6service credit earned under this Article to eligible
7creditable service, as defined by this Section, by filing a
8written election with the board within 6 months after July 30,
92021 (the effective date of Public Act 102-210) and paying to
10the System an amount to be determined by the Board equal to (i)
11the difference between the amount of employee contributions
12originally paid for that service and the amounts that would
13have been contributed had such contributions been made at the
14rates applicable to State policemen, plus (ii) the difference
15between the employer's normal cost of the credit prior to the
16conversion authorized by Public Act 102-210 and the employer's
17normal cost of the credit converted in accordance with Public
18Act 102-210, plus (iii) interest thereon at the actuarially
19assumed rate for each year, compounded annually, from the date
20of service to the date of payment.
21 Subject to the limitation in subsection (i), a security
22employee of the Department of Human Services who is subject to
23subsection (g-1) of Section 1-160 may elect to convert up to 12
24years of service credit established before the effective date
25of this amendatory Act of the 103rd General Assembly as a
26security employee of the Department of Human Services to

HB4873- 380 -LRB103 35886 RPS 65971 b
1eligible creditable service by filing a written election with
2the Board no later than 2 years after the effective date of
3this amendatory Act of the 103rd General Assembly, accompanied
4by payment of an amount, to be determined by the Board, equal
5to (i) the difference between the amount of the employee
6contributions actually paid for that service and the amount of
7the employee contributions that would have been paid had the
8employee contributions been made as a covered employee serving
9in a position in which eligible creditable service, as defined
10in this Section, may be earned, plus (ii) interest thereon at
11the effective rate for each year, compounded annually, from
12the date of service to the date of payment.
13 (i) The total amount of eligible creditable service
14established by any person under subsections (g), (h), (j),
15(k), (l), (l-5), and (o) of this Section shall not exceed 12
16years.
17 (j) Subject to the limitation in subsection (i), an
18investigator for the Office of the State's Attorneys Appellate
19Prosecutor or a controlled substance inspector may elect to
20establish eligible creditable service for up to 10 years of
21his service as a policeman under Article 3 or a sheriff's law
22enforcement employee under Article 7, by filing a written
23election with the Board, accompanied by payment of an amount
24to be determined by the Board, equal to (1) the difference
25between the amount of employee and employer contributions
26transferred to the System under Section 3-110.6 or 7-139.8,

HB4873- 381 -LRB103 35886 RPS 65971 b
1and the amounts that would have been contributed had such
2contributions been made at the rates applicable to State
3policemen, plus (2) interest thereon at the effective rate for
4each year, compounded annually, from the date of service to
5the date of payment.
6 (k) Subject to the limitation in subsection (i) of this
7Section, an alternative formula employee may elect to
8establish eligible creditable service for periods spent as a
9full-time law enforcement officer or full-time corrections
10officer employed by the federal government or by a state or
11local government located outside of Illinois, for which credit
12is not held in any other public employee pension fund or
13retirement system. To obtain this credit, the applicant must
14file a written application with the Board by March 31, 1998,
15accompanied by evidence of eligibility acceptable to the Board
16and payment of an amount to be determined by the Board, equal
17to (1) employee contributions for the credit being
18established, based upon the applicant's salary on the first
19day as an alternative formula employee after the employment
20for which credit is being established and the rates then
21applicable to alternative formula employees, plus (2) an
22amount determined by the Board to be the employer's normal
23cost of the benefits accrued for the credit being established,
24plus (3) regular interest on the amounts in items (1) and (2)
25from the first day as an alternative formula employee after
26the employment for which credit is being established to the

HB4873- 382 -LRB103 35886 RPS 65971 b
1date of payment.
2 (l) Subject to the limitation in subsection (i), a
3security employee of the Department of Corrections may elect,
4not later than July 1, 1998, to establish eligible creditable
5service for up to 10 years of his or her service as a policeman
6under Article 3, by filing a written election with the Board,
7accompanied by payment of an amount to be determined by the
8Board, equal to (i) the difference between the amount of
9employee and employer contributions transferred to the System
10under Section 3-110.5, and the amounts that would have been
11contributed had such contributions been made at the rates
12applicable to security employees of the Department of
13Corrections, plus (ii) interest thereon at the effective rate
14for each year, compounded annually, from the date of service
15to the date of payment.
16 (l-5) Subject to the limitation in subsection (i) of this
17Section, a State policeman may elect to establish eligible
18creditable service for up to 5 years of service as a full-time
19law enforcement officer employed by the federal government or
20by a state or local government located outside of Illinois for
21which credit is not held in any other public employee pension
22fund or retirement system. To obtain this credit, the
23applicant must file a written application with the Board no
24later than 3 years after January 1, 2020 (the effective date of
25Public Act 101-610), accompanied by evidence of eligibility
26acceptable to the Board and payment of an amount to be

HB4873- 383 -LRB103 35886 RPS 65971 b
1determined by the Board, equal to (1) employee contributions
2for the credit being established, based upon the applicant's
3salary on the first day as an alternative formula employee
4after the employment for which credit is being established and
5the rates then applicable to alternative formula employees,
6plus (2) an amount determined by the Board to be the employer's
7normal cost of the benefits accrued for the credit being
8established, plus (3) regular interest on the amounts in items
9(1) and (2) from the first day as an alternative formula
10employee after the employment for which credit is being
11established to the date of payment.
12 (m) The amendatory changes to this Section made by Public
13Act 94-696 apply only to: (1) security employees of the
14Department of Juvenile Justice employed by the Department of
15Corrections before June 1, 2006 (the effective date of Public
16Act 94-696) and transferred to the Department of Juvenile
17Justice by Public Act 94-696; and (2) persons employed by the
18Department of Juvenile Justice on or after June 1, 2006 (the
19effective date of Public Act 94-696) who are required by
20subsection (b) of Section 3-2.5-15 of the Unified Code of
21Corrections to have any bachelor's or advanced degree from an
22accredited college or university or, in the case of persons
23who provide vocational training, who are required to have
24adequate knowledge in the skill for which they are providing
25the vocational training.
26 Beginning with the pay period that immediately follows the

HB4873- 384 -LRB103 35886 RPS 65971 b
1effective date of this amendatory Act of the 103rd General
2Assembly, the bachelor's or advanced degree requirement of
3subsection (b) of Section 3-2.5-15 of the Unified Code of
4Corrections shall no longer determine the eligibility to earn
5eligible creditable service for a person employed by the
6Department of Juvenile Justice.
7 An employee may elect to convert into eligible creditable
8service his or her creditable service earned with the
9Department of Juvenile Justice while employed in a position
10that required the employee to do any one or more of the
11following: (1) participate or assist in the rehabilitative and
12vocational training of delinquent youths; (2) supervise the
13daily activities and assume direct and continuing
14responsibility for the youth's security, welfare, and
15development; or (3) participate in the personal rehabilitation
16of delinquent youth by training, supervising, and assisting
17lower-level personnel. To convert that creditable service to
18eligible creditable service, the employee must pay to the
19System the difference between the employee contributions
20actually paid for that service and the amounts that would have
21been contributed if the applicant were contributing at the
22rate applicable to persons with the same Social Security
23status earning eligible creditable service on the date of
24application.
25 (n) A person employed in a position under subsection (b)
26of this Section who has purchased service credit under

HB4873- 385 -LRB103 35886 RPS 65971 b
1subsection (j) of Section 14-104 or subsection (b) of Section
214-105 in any other capacity under this Article may convert up
3to 5 years of that service credit into service credit covered
4under this Section by paying to the Fund an amount equal to (1)
5the additional employee contribution required under Section
614-133, plus (2) the additional employer contribution required
7under Section 14-131, plus (3) interest on items (1) and (2) at
8the actuarially assumed rate from the date of the service to
9the date of payment.
10 (o) Subject to the limitation in subsection (i), a
11conservation police officer, investigator for the Secretary of
12State, Commerce Commission police officer, investigator for
13the Department of Revenue or the Illinois Gaming Board, or
14arson investigator subject to subsection (g) of Section 1-160
15may elect to convert up to 8 years of service credit
16established before January 1, 2020 (the effective date of
17Public Act 101-610) as a conservation police officer,
18investigator for the Secretary of State, Commerce Commission
19police officer, investigator for the Department of Revenue or
20the Illinois Gaming Board, or arson investigator under this
21Article into eligible creditable service by filing a written
22election with the Board no later than one year after January 1,
232020 (the effective date of Public Act 101-610), accompanied
24by payment of an amount to be determined by the Board equal to
25(i) the difference between the amount of the employee
26contributions actually paid for that service and the amount of

HB4873- 386 -LRB103 35886 RPS 65971 b
1the employee contributions that would have been paid had the
2employee contributions been made as a noncovered employee
3serving in a position in which eligible creditable service, as
4defined in this Section, may be earned, plus (ii) interest
5thereon at the effective rate for each year, compounded
6annually, from the date of service to the date of payment.
7(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
8102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)
9 (Text of Section from P.A. 102-856 and 103-34)
10 Sec. 14-110. Alternative retirement annuity.
11 (a) Any member who has withdrawn from service with not
12less than 20 years of eligible creditable service and has
13attained age 55, and any member who has withdrawn from service
14with not less than 25 years of eligible creditable service and
15has attained age 50, regardless of whether the attainment of
16either of the specified ages occurs while the member is still
17in service, shall be entitled to receive at the option of the
18member, in lieu of the regular or minimum retirement annuity,
19a retirement annuity computed as follows:
20 (i) for periods of service as a noncovered employee:
21 if retirement occurs on or after January 1, 2001, 3% of
22 final average compensation for each year of creditable
23 service; if retirement occurs before January 1, 2001, 2
24 1/4% of final average compensation for each of the first
25 10 years of creditable service, 2 1/2% for each year above

HB4873- 387 -LRB103 35886 RPS 65971 b
1 10 years to and including 20 years of creditable service,
2 and 2 3/4% for each year of creditable service above 20
3 years; and
4 (ii) for periods of eligible creditable service as a
5 covered employee: if retirement occurs on or after January
6 1, 2001, 2.5% of final average compensation for each year
7 of creditable service; if retirement occurs before January
8 1, 2001, 1.67% of final average compensation for each of
9 the first 10 years of such service, 1.90% for each of the
10 next 10 years of such service, 2.10% for each year of such
11 service in excess of 20 but not exceeding 30, and 2.30% for
12 each year in excess of 30.
13 Such annuity shall be subject to a maximum of 75% of final
14average compensation if retirement occurs before January 1,
152001 or to a maximum of 80% of final average compensation if
16retirement occurs on or after January 1, 2001.
17 These rates shall not be applicable to any service
18performed by a member as a covered employee which is not
19eligible creditable service. Service as a covered employee
20which is not eligible creditable service shall be subject to
21the rates and provisions of Section 14-108.
22 (b) For the purpose of this Section, "eligible creditable
23service" means creditable service resulting from service in
24one or more of the following positions:
25 (1) State policeman;
26 (2) fire fighter in the fire protection service of a

HB4873- 388 -LRB103 35886 RPS 65971 b
1 department;
2 (3) air pilot;
3 (4) special agent;
4 (5) investigator for the Secretary of State;
5 (6) conservation police officer;
6 (7) investigator for the Department of Revenue or the
7 Illinois Gaming Board;
8 (8) security employee of the Department of Human
9 Services;
10 (9) Central Management Services security police
11 officer;
12 (10) security employee of the Department of
13 Corrections or the Department of Juvenile Justice;
14 (11) dangerous drugs investigator;
15 (12) investigator for the Illinois State Police;
16 (13) investigator for the Office of the Attorney
17 General;
18 (14) controlled substance inspector;
19 (15) investigator for the Office of the State's
20 Attorneys Appellate Prosecutor;
21 (16) Commerce Commission police officer;
22 (17) arson investigator;
23 (18) State highway maintenance worker;
24 (19) security employee of the Department of Innovation
25 and Technology; or
26 (20) transferred employee; or .

HB4873- 389 -LRB103 35886 RPS 65971 b
1 (21) investigator for the Department of the Lottery.
2 A person employed in one of the positions specified in
3this subsection is entitled to eligible creditable service for
4service credit earned under this Article while undergoing the
5basic police training course approved by the Illinois Law
6Enforcement Training Standards Board, if completion of that
7training is required of persons serving in that position. For
8the purposes of this Code, service during the required basic
9police training course shall be deemed performance of the
10duties of the specified position, even though the person is
11not a sworn peace officer at the time of the training.
12 A person under paragraph (20) is entitled to eligible
13creditable service for service credit earned under this
14Article on and after his or her transfer by Executive Order No.
152003-10, Executive Order No. 2004-2, or Executive Order No.
162016-1.
17 (c) For the purposes of this Section:
18 (1) The term "State policeman" includes any title or
19 position in the Illinois State Police that is held by an
20 individual employed under the Illinois State Police Act.
21 (2) The term "fire fighter in the fire protection
22 service of a department" includes all officers in such
23 fire protection service including fire chiefs and
24 assistant fire chiefs.
25 (3) The term "air pilot" includes any employee whose
26 official job description on file in the Department of

HB4873- 390 -LRB103 35886 RPS 65971 b
1 Central Management Services, or in the department by which
2 he is employed if that department is not covered by the
3 Personnel Code, states that his principal duty is the
4 operation of aircraft, and who possesses a pilot's
5 license; however, the change in this definition made by
6 Public Act 83-842 shall not operate to exclude any
7 noncovered employee who was an "air pilot" for the
8 purposes of this Section on January 1, 1984.
9 (4) The term "special agent" means any person who by
10 reason of employment by the Division of Narcotic Control,
11 the Bureau of Investigation or, after July 1, 1977, the
12 Division of Criminal Investigation, the Division of
13 Internal Investigation, the Division of Operations, the
14 Division of Patrol, or any other Division or
15 organizational entity in the Illinois State Police is
16 vested by law with duties to maintain public order,
17 investigate violations of the criminal law of this State,
18 enforce the laws of this State, make arrests and recover
19 property. The term "special agent" includes any title or
20 position in the Illinois State Police that is held by an
21 individual employed under the Illinois State Police Act.
22 (5) The term "investigator for the Secretary of State"
23 means any person employed by the Office of the Secretary
24 of State and vested with such investigative duties as
25 render him ineligible for coverage under the Social
26 Security Act by reason of Sections 218(d)(5)(A),

HB4873- 391 -LRB103 35886 RPS 65971 b
1 218(d)(8)(D) and 218(l)(1) of that Act.
2 A person who became employed as an investigator for
3 the Secretary of State between January 1, 1967 and
4 December 31, 1975, and who has served as such until
5 attainment of age 60, either continuously or with a single
6 break in service of not more than 3 years duration, which
7 break terminated before January 1, 1976, shall be entitled
8 to have his retirement annuity calculated in accordance
9 with subsection (a), notwithstanding that he has less than
10 20 years of credit for such service.
11 (6) The term "Conservation Police Officer" means any
12 person employed by the Division of Law Enforcement of the
13 Department of Natural Resources and vested with such law
14 enforcement duties as render him ineligible for coverage
15 under the Social Security Act by reason of Sections
16 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
17 term "Conservation Police Officer" includes the positions
18 of Chief Conservation Police Administrator and Assistant
19 Conservation Police Administrator.
20 (7) The term "investigator for the Department of
21 Revenue" means any person employed by the Department of
22 Revenue and vested with such investigative duties as
23 render him ineligible for coverage under the Social
24 Security Act by reason of Sections 218(d)(5)(A),
25 218(d)(8)(D) and 218(l)(1) of that Act.
26 The term "investigator for the Illinois Gaming Board"

HB4873- 392 -LRB103 35886 RPS 65971 b
1 means any person employed as such by the Illinois Gaming
2 Board and vested with such peace officer duties as render
3 the person ineligible for coverage under the Social
4 Security Act by reason of Sections 218(d)(5)(A),
5 218(d)(8)(D), and 218(l)(1) of that Act.
6 (8) The term "security employee of the Department of
7 Human Services" means any person employed by the
8 Department of Human Services who (i) is employed at the
9 Chester Mental Health Center and has daily contact with
10 the residents thereof, (ii) is employed within a security
11 unit at a facility operated by the Department and has
12 daily contact with the residents of the security unit,
13 (iii) is employed at a facility operated by the Department
14 that includes a security unit and is regularly scheduled
15 to work at least 50% of his or her working hours within
16 that security unit, or (iv) is a mental health police
17 officer. "Mental health police officer" means any person
18 employed by the Department of Human Services in a position
19 pertaining to the Department's mental health and
20 developmental disabilities functions who is vested with
21 such law enforcement duties as render the person
22 ineligible for coverage under the Social Security Act by
23 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
24 218(l)(1) of that Act. "Security unit" means that portion
25 of a facility that is devoted to the care, containment,
26 and treatment of persons committed to the Department of

HB4873- 393 -LRB103 35886 RPS 65971 b
1 Human Services as sexually violent persons, persons unfit
2 to stand trial, or persons not guilty by reason of
3 insanity. With respect to past employment, references to
4 the Department of Human Services include its predecessor,
5 the Department of Mental Health and Developmental
6 Disabilities.
7 The changes made to this subdivision (c)(8) by Public
8 Act 92-14 apply to persons who retire on or after January
9 1, 2001, notwithstanding Section 1-103.1.
10 (9) "Central Management Services security police
11 officer" means any person employed by the Department of
12 Central Management Services who is vested with such law
13 enforcement duties as render him ineligible for coverage
14 under the Social Security Act by reason of Sections
15 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
16 (10) For a member who first became an employee under
17 this Article before July 1, 2005, the term "security
18 employee of the Department of Corrections or the
19 Department of Juvenile Justice" means any employee of the
20 Department of Corrections or the Department of Juvenile
21 Justice or the former Department of Personnel, and any
22 member or employee of the Prisoner Review Board, who has
23 daily contact with inmates or youth by working within a
24 correctional facility or Juvenile facility operated by the
25 Department of Juvenile Justice or who is a parole officer
26 or an employee who has direct contact with committed

HB4873- 394 -LRB103 35886 RPS 65971 b
1 persons in the performance of his or her job duties. For a
2 member who first becomes an employee under this Article on
3 or after July 1, 2005, the term means an employee of the
4 Department of Corrections or the Department of Juvenile
5 Justice who is any of the following: (i) officially
6 headquartered at a correctional facility or Juvenile
7 facility operated by the Department of Juvenile Justice,
8 (ii) a parole officer, (iii) a member of the apprehension
9 unit, (iv) a member of the intelligence unit, (v) a member
10 of the sort team, or (vi) an investigator.
11 (11) The term "dangerous drugs investigator" means any
12 person who is employed as such by the Department of Human
13 Services.
14 (12) The term "investigator for the Illinois State
15 Police" means a person employed by the Illinois State
16 Police who is vested under Section 4 of the Narcotic
17 Control Division Abolition Act with such law enforcement
18 powers as render him ineligible for coverage under the
19 Social Security Act by reason of Sections 218(d)(5)(A),
20 218(d)(8)(D) and 218(l)(1) of that Act.
21 (13) "Investigator for the Office of the Attorney
22 General" means any person who is employed as such by the
23 Office of the Attorney General and is vested with such
24 investigative duties as render him ineligible for coverage
25 under the Social Security Act by reason of Sections
26 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For

HB4873- 395 -LRB103 35886 RPS 65971 b
1 the period before January 1, 1989, the term includes all
2 persons who were employed as investigators by the Office
3 of the Attorney General, without regard to social security
4 status.
5 (14) "Controlled substance inspector" means any person
6 who is employed as such by the Department of Professional
7 Regulation and is vested with such law enforcement duties
8 as render him ineligible for coverage under the Social
9 Security Act by reason of Sections 218(d)(5)(A),
10 218(d)(8)(D) and 218(l)(1) of that Act. The term
11 "controlled substance inspector" includes the Program
12 Executive of Enforcement and the Assistant Program
13 Executive of Enforcement.
14 (15) The term "investigator for the Office of the
15 State's Attorneys Appellate Prosecutor" means a person
16 employed in that capacity on a full-time basis under the
17 authority of Section 7.06 of the State's Attorneys
18 Appellate Prosecutor's Act.
19 (16) "Commerce Commission police officer" means any
20 person employed by the Illinois Commerce Commission who is
21 vested with such law enforcement duties as render him
22 ineligible for coverage under the Social Security Act by
23 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
24 218(l)(1) of that Act.
25 (17) "Arson investigator" means any person who is
26 employed as such by the Office of the State Fire Marshal

HB4873- 396 -LRB103 35886 RPS 65971 b
1 and is vested with such law enforcement duties as render
2 the person ineligible for coverage under the Social
3 Security Act by reason of Sections 218(d)(5)(A),
4 218(d)(8)(D), and 218(l)(1) of that Act. A person who was
5 employed as an arson investigator on January 1, 1995 and
6 is no longer in service but not yet receiving a retirement
7 annuity may convert his or her creditable service for
8 employment as an arson investigator into eligible
9 creditable service by paying to the System the difference
10 between the employee contributions actually paid for that
11 service and the amounts that would have been contributed
12 if the applicant were contributing at the rate applicable
13 to persons with the same social security status earning
14 eligible creditable service on the date of application.
15 (18) The term "State highway maintenance worker" means
16 a person who is either of the following:
17 (i) A person employed on a full-time basis by the
18 Illinois Department of Transportation in the position
19 of highway maintainer, highway maintenance lead
20 worker, highway maintenance lead/lead worker, heavy
21 construction equipment operator, power shovel
22 operator, or bridge mechanic; and whose principal
23 responsibility is to perform, on the roadway, the
24 actual maintenance necessary to keep the highways that
25 form a part of the State highway system in serviceable
26 condition for vehicular traffic.

HB4873- 397 -LRB103 35886 RPS 65971 b
1 (ii) A person employed on a full-time basis by the
2 Illinois State Toll Highway Authority in the position
3 of equipment operator/laborer H-4, equipment
4 operator/laborer H-6, welder H-4, welder H-6,
5 mechanical/electrical H-4, mechanical/electrical H-6,
6 water/sewer H-4, water/sewer H-6, sign maker/hanger
7 H-4, sign maker/hanger H-6, roadway lighting H-4,
8 roadway lighting H-6, structural H-4, structural H-6,
9 painter H-4, or painter H-6; and whose principal
10 responsibility is to perform, on the roadway, the
11 actual maintenance necessary to keep the Authority's
12 tollways in serviceable condition for vehicular
13 traffic.
14 (19) The term "security employee of the Department of
15 Innovation and Technology" means a person who was a
16 security employee of the Department of Corrections or the
17 Department of Juvenile Justice, was transferred to the
18 Department of Innovation and Technology pursuant to
19 Executive Order 2016-01, and continues to perform similar
20 job functions under that Department.
21 (20) "Transferred employee" means an employee who was
22 transferred to the Department of Central Management
23 Services by Executive Order No. 2003-10 or Executive Order
24 No. 2004-2 or transferred to the Department of Innovation
25 and Technology by Executive Order No. 2016-1, or both, and
26 was entitled to eligible creditable service for services

HB4873- 398 -LRB103 35886 RPS 65971 b
1 immediately preceding the transfer.
2 (21) The term "investigator for the Department of the
3 Lottery" means any person employed by the Department of
4 the Lottery and who is vested with such investigative
5 duties which render him or her ineligible for coverage
6 under the Social Security Act by reason of Sections
7 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
8 investigator for the Department of the Lottery who
9 qualifies under this Section shall earn eligible
10 creditable service and be required to make contributions
11 at the rate specified in paragraph (3) of subsection (a)
12 of Section 14-133 for all periods of service as an
13 investigator for the Department of the Lottery.
14 (d) A security employee of the Department of Corrections
15or the Department of Juvenile Justice, a security employee of
16the Department of Human Services who is not a mental health
17police officer, and a security employee of the Department of
18Innovation and Technology shall not be eligible for the
19alternative retirement annuity provided by this Section unless
20he or she meets the following minimum age and service
21requirements at the time of retirement:
22 (i) 25 years of eligible creditable service and age
23 55; or
24 (ii) beginning January 1, 1987, 25 years of eligible
25 creditable service and age 54, or 24 years of eligible
26 creditable service and age 55; or

HB4873- 399 -LRB103 35886 RPS 65971 b
1 (iii) beginning January 1, 1988, 25 years of eligible
2 creditable service and age 53, or 23 years of eligible
3 creditable service and age 55; or
4 (iv) beginning January 1, 1989, 25 years of eligible
5 creditable service and age 52, or 22 years of eligible
6 creditable service and age 55; or
7 (v) beginning January 1, 1990, 25 years of eligible
8 creditable service and age 51, or 21 years of eligible
9 creditable service and age 55; or
10 (vi) beginning January 1, 1991, 25 years of eligible
11 creditable service and age 50, or 20 years of eligible
12 creditable service and age 55.
13 Persons who have service credit under Article 16 of this
14Code for service as a security employee of the Department of
15Corrections or the Department of Juvenile Justice, or the
16Department of Human Services in a position requiring
17certification as a teacher may count such service toward
18establishing their eligibility under the service requirements
19of this Section; but such service may be used only for
20establishing such eligibility, and not for the purpose of
21increasing or calculating any benefit.
22 (e) If a member enters military service while working in a
23position in which eligible creditable service may be earned,
24and returns to State service in the same or another such
25position, and fulfills in all other respects the conditions
26prescribed in this Article for credit for military service,

HB4873- 400 -LRB103 35886 RPS 65971 b
1such military service shall be credited as eligible creditable
2service for the purposes of the retirement annuity prescribed
3in this Section.
4 (f) For purposes of calculating retirement annuities under
5this Section, periods of service rendered after December 31,
61968 and before October 1, 1975 as a covered employee in the
7position of special agent, conservation police officer, mental
8health police officer, or investigator for the Secretary of
9State, shall be deemed to have been service as a noncovered
10employee, provided that the employee pays to the System prior
11to retirement an amount equal to (1) the difference between
12the employee contributions that would have been required for
13such service as a noncovered employee, and the amount of
14employee contributions actually paid, plus (2) if payment is
15made after July 31, 1987, regular interest on the amount
16specified in item (1) from the date of service to the date of
17payment.
18 For purposes of calculating retirement annuities under
19this Section, periods of service rendered after December 31,
201968 and before January 1, 1982 as a covered employee in the
21position of investigator for the Department of Revenue shall
22be deemed to have been service as a noncovered employee,
23provided that the employee pays to the System prior to
24retirement an amount equal to (1) the difference between the
25employee contributions that would have been required for such
26service as a noncovered employee, and the amount of employee

HB4873- 401 -LRB103 35886 RPS 65971 b
1contributions actually paid, plus (2) if payment is made after
2January 1, 1990, regular interest on the amount specified in
3item (1) from the date of service to the date of payment.
4 (g) A State policeman may elect, not later than January 1,
51990, to establish eligible creditable service for up to 10
6years of his service as a policeman under Article 3, by filing
7a written election with the Board, accompanied by payment of
8an amount to be determined by the Board, equal to (i) the
9difference between the amount of employee and employer
10contributions transferred to the System under Section 3-110.5,
11and the amounts that would have been contributed had such
12contributions been made at the rates applicable to State
13policemen, plus (ii) interest thereon at the effective rate
14for each year, compounded annually, from the date of service
15to the date of payment.
16 Subject to the limitation in subsection (i), a State
17policeman may elect, not later than July 1, 1993, to establish
18eligible creditable service for up to 10 years of his service
19as a member of the County Police Department under Article 9, by
20filing a written election with the Board, accompanied by
21payment of an amount to be determined by the Board, equal to
22(i) the difference between the amount of employee and employer
23contributions transferred to the System under Section 9-121.10
24and the amounts that would have been contributed had those
25contributions been made at the rates applicable to State
26policemen, plus (ii) interest thereon at the effective rate

HB4873- 402 -LRB103 35886 RPS 65971 b
1for each year, compounded annually, from the date of service
2to the date of payment.
3 (h) Subject to the limitation in subsection (i), a State
4policeman or investigator for the Secretary of State may elect
5to establish eligible creditable service for up to 12 years of
6his service as a policeman under Article 5, by filing a written
7election with the Board on or before January 31, 1992, and
8paying to the System by January 31, 1994 an amount to be
9determined by the Board, equal to (i) the difference between
10the amount of employee and employer contributions transferred
11to the System under Section 5-236, and the amounts that would
12have been contributed had such contributions been made at the
13rates applicable to State policemen, plus (ii) interest
14thereon at the effective rate for each year, compounded
15annually, from the date of service to the date of payment.
16 Subject to the limitation in subsection (i), a State
17policeman, conservation police officer, or investigator for
18the Secretary of State may elect to establish eligible
19creditable service for up to 10 years of service as a sheriff's
20law enforcement employee under Article 7, by filing a written
21election with the Board on or before January 31, 1993, and
22paying to the System by January 31, 1994 an amount to be
23determined by the Board, equal to (i) the difference between
24the amount of employee and employer contributions transferred
25to the System under Section 7-139.7, and the amounts that
26would have been contributed had such contributions been made

HB4873- 403 -LRB103 35886 RPS 65971 b
1at the rates applicable to State policemen, plus (ii) interest
2thereon at the effective rate for each year, compounded
3annually, from the date of service to the date of payment.
4 Subject to the limitation in subsection (i), a State
5policeman, conservation police officer, or investigator for
6the Secretary of State may elect to establish eligible
7creditable service for up to 5 years of service as a police
8officer under Article 3, a policeman under Article 5, a
9sheriff's law enforcement employee under Article 7, a member
10of the county police department under Article 9, or a police
11officer under Article 15 by filing a written election with the
12Board and paying to the System an amount to be determined by
13the Board, equal to (i) the difference between the amount of
14employee and employer contributions transferred to the System
15under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
16and the amounts that would have been contributed had such
17contributions been made at the rates applicable to State
18policemen, plus (ii) interest thereon at the effective rate
19for each year, compounded annually, from the date of service
20to the date of payment.
21 Subject to the limitation in subsection (i), an
22investigator for the Office of the Attorney General, or an
23investigator for the Department of Revenue, may elect to
24establish eligible creditable service for up to 5 years of
25service as a police officer under Article 3, a policeman under
26Article 5, a sheriff's law enforcement employee under Article

HB4873- 404 -LRB103 35886 RPS 65971 b
17, or a member of the county police department under Article 9
2by filing a written election with the Board within 6 months
3after August 25, 2009 (the effective date of Public Act
496-745) and paying to the System an amount to be determined by
5the Board, equal to (i) the difference between the amount of
6employee and employer contributions transferred to the System
7under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
8amounts that would have been contributed had such
9contributions been made at the rates applicable to State
10policemen, plus (ii) interest thereon at the actuarially
11assumed rate for each year, compounded annually, from the date
12of service to the date of payment.
13 Subject to the limitation in subsection (i), a State
14policeman, conservation police officer, investigator for the
15Office of the Attorney General, an investigator for the
16Department of Revenue, or investigator for the Secretary of
17State may elect to establish eligible creditable service for
18up to 5 years of service as a person employed by a
19participating municipality to perform police duties, or law
20enforcement officer employed on a full-time basis by a forest
21preserve district under Article 7, a county corrections
22officer, or a court services officer under Article 9, by
23filing a written election with the Board within 6 months after
24August 25, 2009 (the effective date of Public Act 96-745) and
25paying to the System an amount to be determined by the Board,
26equal to (i) the difference between the amount of employee and

HB4873- 405 -LRB103 35886 RPS 65971 b
1employer contributions transferred to the System under
2Sections 7-139.8 and 9-121.10 and the amounts that would have
3been contributed had such contributions been made at the rates
4applicable to State policemen, plus (ii) interest thereon at
5the actuarially assumed rate for each year, compounded
6annually, from the date of service to the date of payment.
7 Subject to the limitation in subsection (i), a State
8policeman, arson investigator, or Commerce Commission police
9officer may elect to establish eligible creditable service for
10up to 5 years of service as a person employed by a
11participating municipality to perform police duties under
12Article 7, a county corrections officer, a court services
13officer under Article 9, or a firefighter under Article 4 by
14filing a written election with the Board within 6 months after
15July 30, 2021 (the effective date of Public Act 102-210) and
16paying to the System an amount to be determined by the Board
17equal to (i) the difference between the amount of employee and
18employer contributions transferred to the System under
19Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
20would have been contributed had such contributions been made
21at the rates applicable to State policemen, plus (ii) interest
22thereon at the actuarially assumed rate for each year,
23compounded annually, from the date of service to the date of
24payment.
25 Subject to the limitation in subsection (i), a
26conservation police officer may elect to establish eligible

HB4873- 406 -LRB103 35886 RPS 65971 b
1creditable service for up to 5 years of service as a person
2employed by a participating municipality to perform police
3duties under Article 7, a county corrections officer, or a
4court services officer under Article 9 by filing a written
5election with the Board within 6 months after July 30, 2021
6(the effective date of Public Act 102-210) and paying to the
7System an amount to be determined by the Board equal to (i) the
8difference between the amount of employee and employer
9contributions transferred to the System under Sections 7-139.8
10and 9-121.10 and the amounts that would have been contributed
11had such contributions been made at the rates applicable to
12State policemen, plus (ii) interest thereon at the actuarially
13assumed rate for each year, compounded annually, from the date
14of service to the date of payment.
15 Subject to the limitation in subsection (i), an
16investigator for the Department of Revenue, investigator for
17the Illinois Gaming Board, investigator for the Secretary of
18State, or arson investigator may elect to establish eligible
19creditable service for up to 5 years of service as a person
20employed by a participating municipality to perform police
21duties under Article 7, a county corrections officer, a court
22services officer under Article 9, or a firefighter under
23Article 4 by filing a written election with the Board within 6
24months after the effective date of this amendatory Act of the
25102nd General Assembly and paying to the System an amount to be
26determined by the Board equal to (i) the difference between

HB4873- 407 -LRB103 35886 RPS 65971 b
1the amount of employee and employer contributions transferred
2to the System under Sections 4-108.8, 7-139.8, and 9-121.10
3and the amounts that would have been contributed had such
4contributions been made at the rates applicable to State
5policemen, plus (ii) interest thereon at the actuarially
6assumed rate for each year, compounded annually, from the date
7of service to the date of payment.
8 Notwithstanding the limitation in subsection (i), a State
9policeman or conservation police officer may elect to convert
10service credit earned under this Article to eligible
11creditable service, as defined by this Section, by filing a
12written election with the board within 6 months after July 30,
132021 (the effective date of Public Act 102-210) and paying to
14the System an amount to be determined by the Board equal to (i)
15the difference between the amount of employee contributions
16originally paid for that service and the amounts that would
17have been contributed had such contributions been made at the
18rates applicable to State policemen, plus (ii) the difference
19between the employer's normal cost of the credit prior to the
20conversion authorized by Public Act 102-210 and the employer's
21normal cost of the credit converted in accordance with Public
22Act 102-210, plus (iii) interest thereon at the actuarially
23assumed rate for each year, compounded annually, from the date
24of service to the date of payment.
25 Notwithstanding the limitation in subsection (i), an
26investigator for the Department of Revenue, investigator for

HB4873- 408 -LRB103 35886 RPS 65971 b
1the Illinois Gaming Board, investigator for the Secretary of
2State, or arson investigator may elect to convert service
3credit earned under this Article to eligible creditable
4service, as defined by this Section, by filing a written
5election with the Board within 6 months after the effective
6date of this amendatory Act of the 102nd General Assembly and
7paying to the System an amount to be determined by the Board
8equal to (i) the difference between the amount of employee
9contributions originally paid for that service and the amounts
10that would have been contributed had such contributions been
11made at the rates applicable to investigators for the
12Department of Revenue, investigators for the Illinois Gaming
13Board, investigators for the Secretary of State, or arson
14investigators, plus (ii) the difference between the employer's
15normal cost of the credit prior to the conversion authorized
16by this amendatory Act of the 102nd General Assembly and the
17employer's normal cost of the credit converted in accordance
18with this amendatory Act of the 102nd General Assembly, plus
19(iii) interest thereon at the actuarially assumed rate for
20each year, compounded annually, from the date of service to
21the date of payment.
22 Subject to the limitation in subsection (i), a security
23employee of the Department of Human Services who is subject to
24subsection (g-1) of Section 1-160 may elect to convert up to 12
25years of service credit established before the effective date
26of this amendatory Act of the 103rd General Assembly as a

HB4873- 409 -LRB103 35886 RPS 65971 b
1security employee of the Department of Human Services to
2eligible creditable service by filing a written election with
3the Board no later than 2 years after the effective date of
4this amendatory Act of the 103rd General Assembly, accompanied
5by payment of an amount, to be determined by the Board, equal
6to (i) the difference between the amount of the employee
7contributions actually paid for that service and the amount of
8the employee contributions that would have been paid had the
9employee contributions been made as a covered employee serving
10in a position in which eligible creditable service, as defined
11in this Section, may be earned, plus (ii) interest thereon at
12the effective rate for each year, compounded annually, from
13the date of service to the date of payment.
14 (i) The total amount of eligible creditable service
15established by any person under subsections (g), (h), (j),
16(k), (l), (l-5), and (o) of this Section shall not exceed 12
17years.
18 (j) Subject to the limitation in subsection (i), an
19investigator for the Office of the State's Attorneys Appellate
20Prosecutor or a controlled substance inspector may elect to
21establish eligible creditable service for up to 10 years of
22his service as a policeman under Article 3 or a sheriff's law
23enforcement employee under Article 7, by filing a written
24election with the Board, accompanied by payment of an amount
25to be determined by the Board, equal to (1) the difference
26between the amount of employee and employer contributions

HB4873- 410 -LRB103 35886 RPS 65971 b
1transferred to the System under Section 3-110.6 or 7-139.8,
2and the amounts that would have been contributed had such
3contributions been made at the rates applicable to State
4policemen, plus (2) interest thereon at the effective rate for
5each year, compounded annually, from the date of service to
6the date of payment.
7 (k) Subject to the limitation in subsection (i) of this
8Section, an alternative formula employee may elect to
9establish eligible creditable service for periods spent as a
10full-time law enforcement officer or full-time corrections
11officer employed by the federal government or by a state or
12local government located outside of Illinois, for which credit
13is not held in any other public employee pension fund or
14retirement system. To obtain this credit, the applicant must
15file a written application with the Board by March 31, 1998,
16accompanied by evidence of eligibility acceptable to the Board
17and payment of an amount to be determined by the Board, equal
18to (1) employee contributions for the credit being
19established, based upon the applicant's salary on the first
20day as an alternative formula employee after the employment
21for which credit is being established and the rates then
22applicable to alternative formula employees, plus (2) an
23amount determined by the Board to be the employer's normal
24cost of the benefits accrued for the credit being established,
25plus (3) regular interest on the amounts in items (1) and (2)
26from the first day as an alternative formula employee after

HB4873- 411 -LRB103 35886 RPS 65971 b
1the employment for which credit is being established to the
2date of payment.
3 (l) Subject to the limitation in subsection (i), a
4security employee of the Department of Corrections may elect,
5not later than July 1, 1998, to establish eligible creditable
6service for up to 10 years of his or her service as a policeman
7under Article 3, by filing a written election with the Board,
8accompanied by payment of an amount to be determined by the
9Board, equal to (i) the difference between the amount of
10employee and employer contributions transferred to the System
11under Section 3-110.5, and the amounts that would have been
12contributed had such contributions been made at the rates
13applicable to security employees of the Department of
14Corrections, plus (ii) interest thereon at the effective rate
15for each year, compounded annually, from the date of service
16to the date of payment.
17 (l-5) Subject to the limitation in subsection (i) of this
18Section, a State policeman may elect to establish eligible
19creditable service for up to 5 years of service as a full-time
20law enforcement officer employed by the federal government or
21by a state or local government located outside of Illinois for
22which credit is not held in any other public employee pension
23fund or retirement system. To obtain this credit, the
24applicant must file a written application with the Board no
25later than 3 years after January 1, 2020 (the effective date of
26Public Act 101-610), accompanied by evidence of eligibility

HB4873- 412 -LRB103 35886 RPS 65971 b
1acceptable to the Board and payment of an amount to be
2determined by the Board, equal to (1) employee contributions
3for the credit being established, based upon the applicant's
4salary on the first day as an alternative formula employee
5after the employment for which credit is being established and
6the rates then applicable to alternative formula employees,
7plus (2) an amount determined by the Board to be the employer's
8normal cost of the benefits accrued for the credit being
9established, plus (3) regular interest on the amounts in items
10(1) and (2) from the first day as an alternative formula
11employee after the employment for which credit is being
12established to the date of payment.
13 (m) The amendatory changes to this Section made by Public
14Act 94-696 apply only to: (1) security employees of the
15Department of Juvenile Justice employed by the Department of
16Corrections before June 1, 2006 (the effective date of Public
17Act 94-696) and transferred to the Department of Juvenile
18Justice by Public Act 94-696; and (2) persons employed by the
19Department of Juvenile Justice on or after June 1, 2006 (the
20effective date of Public Act 94-696) who are required by
21subsection (b) of Section 3-2.5-15 of the Unified Code of
22Corrections to have any bachelor's or advanced degree from an
23accredited college or university or, in the case of persons
24who provide vocational training, who are required to have
25adequate knowledge in the skill for which they are providing
26the vocational training.

HB4873- 413 -LRB103 35886 RPS 65971 b
1 Beginning with the pay period that immediately follows the
2effective date of this amendatory Act of the 103rd General
3Assembly, the bachelor's or advanced degree requirement of
4subsection (b) of Section 3-2.5-15 of the Unified Code of
5Corrections shall no longer determine the eligibility to earn
6eligible creditable service for a person employed by the
7Department of Juvenile Justice.
8 An employee may elect to convert into eligible creditable
9service his or her creditable service earned with the
10Department of Juvenile Justice while employed in a position
11that required the employee to do any one or more of the
12following: (1) participate or assist in the rehabilitative and
13vocational training of delinquent youths; (2) supervise the
14daily activities and assume direct and continuing
15responsibility for the youth's security, welfare, and
16development; or (3) participate in the personal rehabilitation
17of delinquent youth by training, supervising, and assisting
18lower-level personnel. To convert that creditable service to
19eligible creditable service, the employee must pay to the
20System the difference between the employee contributions
21actually paid for that service and the amounts that would have
22been contributed if the applicant were contributing at the
23rate applicable to persons with the same Social Security
24status earning eligible creditable service on the date of
25application.
26 (n) A person employed in a position under subsection (b)

HB4873- 414 -LRB103 35886 RPS 65971 b
1of this Section who has purchased service credit under
2subsection (j) of Section 14-104 or subsection (b) of Section
314-105 in any other capacity under this Article may convert up
4to 5 years of that service credit into service credit covered
5under this Section by paying to the Fund an amount equal to (1)
6the additional employee contribution required under Section
714-133, plus (2) the additional employer contribution required
8under Section 14-131, plus (3) interest on items (1) and (2) at
9the actuarially assumed rate from the date of the service to
10the date of payment.
11 (o) Subject to the limitation in subsection (i), a
12conservation police officer, investigator for the Secretary of
13State, Commerce Commission police officer, investigator for
14the Department of Revenue or the Illinois Gaming Board, or
15arson investigator subject to subsection (g) of Section 1-160
16may elect to convert up to 8 years of service credit
17established before January 1, 2020 (the effective date of
18Public Act 101-610) as a conservation police officer,
19investigator for the Secretary of State, Commerce Commission
20police officer, investigator for the Department of Revenue or
21the Illinois Gaming Board, or arson investigator under this
22Article into eligible creditable service by filing a written
23election with the Board no later than one year after January 1,
242020 (the effective date of Public Act 101-610), accompanied
25by payment of an amount to be determined by the Board equal to
26(i) the difference between the amount of the employee

HB4873- 415 -LRB103 35886 RPS 65971 b
1contributions actually paid for that service and the amount of
2the employee contributions that would have been paid had the
3employee contributions been made as a noncovered employee
4serving in a position in which eligible creditable service, as
5defined in this Section, may be earned, plus (ii) interest
6thereon at the effective rate for each year, compounded
7annually, from the date of service to the date of payment.
8(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
9102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)
10 (Text of Section from P.A. 102-956 and 103-34)
11 Sec. 14-110. Alternative retirement annuity.
12 (a) Any member who has withdrawn from service with not
13less than 20 years of eligible creditable service and has
14attained age 55, and any member who has withdrawn from service
15with not less than 25 years of eligible creditable service and
16has attained age 50, regardless of whether the attainment of
17either of the specified ages occurs while the member is still
18in service, shall be entitled to receive at the option of the
19member, in lieu of the regular or minimum retirement annuity,
20a retirement annuity computed as follows:
21 (i) for periods of service as a noncovered employee:
22 if retirement occurs on or after January 1, 2001, 3% of
23 final average compensation for each year of creditable
24 service; if retirement occurs before January 1, 2001, 2
25 1/4% of final average compensation for each of the first

HB4873- 416 -LRB103 35886 RPS 65971 b
1 10 years of creditable service, 2 1/2% for each year above
2 10 years to and including 20 years of creditable service,
3 and 2 3/4% for each year of creditable service above 20
4 years; and
5 (ii) for periods of eligible creditable service as a
6 covered employee: if retirement occurs on or after January
7 1, 2001, 2.5% of final average compensation for each year
8 of creditable service; if retirement occurs before January
9 1, 2001, 1.67% of final average compensation for each of
10 the first 10 years of such service, 1.90% for each of the
11 next 10 years of such service, 2.10% for each year of such
12 service in excess of 20 but not exceeding 30, and 2.30% for
13 each year in excess of 30.
14 Such annuity shall be subject to a maximum of 75% of final
15average compensation if retirement occurs before January 1,
162001 or to a maximum of 80% of final average compensation if
17retirement occurs on or after January 1, 2001.
18 These rates shall not be applicable to any service
19performed by a member as a covered employee which is not
20eligible creditable service. Service as a covered employee
21which is not eligible creditable service shall be subject to
22the rates and provisions of Section 14-108.
23 (b) For the purpose of this Section, "eligible creditable
24service" means creditable service resulting from service in
25one or more of the following positions:
26 (1) State policeman;

HB4873- 417 -LRB103 35886 RPS 65971 b
1 (2) fire fighter in the fire protection service of a
2 department;
3 (3) air pilot;
4 (4) special agent;
5 (5) investigator for the Secretary of State;
6 (6) conservation police officer;
7 (7) investigator for the Department of Revenue or the
8 Illinois Gaming Board;
9 (8) security employee of the Department of Human
10 Services;
11 (9) Central Management Services security police
12 officer;
13 (10) security employee of the Department of
14 Corrections or the Department of Juvenile Justice;
15 (11) dangerous drugs investigator;
16 (12) investigator for the Illinois State Police;
17 (13) investigator for the Office of the Attorney
18 General;
19 (14) controlled substance inspector;
20 (15) investigator for the Office of the State's
21 Attorneys Appellate Prosecutor;
22 (16) Commerce Commission police officer;
23 (17) arson investigator;
24 (18) State highway maintenance worker;
25 (19) security employee of the Department of Innovation
26 and Technology; or

HB4873- 418 -LRB103 35886 RPS 65971 b
1 (20) transferred employee; or .
2 (21) investigator for the Department of the Lottery.
3 A person employed in one of the positions specified in
4this subsection is entitled to eligible creditable service for
5service credit earned under this Article while undergoing the
6basic police training course approved by the Illinois Law
7Enforcement Training Standards Board, if completion of that
8training is required of persons serving in that position. For
9the purposes of this Code, service during the required basic
10police training course shall be deemed performance of the
11duties of the specified position, even though the person is
12not a sworn peace officer at the time of the training.
13 A person under paragraph (20) is entitled to eligible
14creditable service for service credit earned under this
15Article on and after his or her transfer by Executive Order No.
162003-10, Executive Order No. 2004-2, or Executive Order No.
172016-1.
18 (c) For the purposes of this Section:
19 (1) The term "State policeman" includes any title or
20 position in the Illinois State Police that is held by an
21 individual employed under the Illinois State Police Act.
22 (2) The term "fire fighter in the fire protection
23 service of a department" includes all officers in such
24 fire protection service including fire chiefs and
25 assistant fire chiefs.
26 (3) The term "air pilot" includes any employee whose

HB4873- 419 -LRB103 35886 RPS 65971 b
1 official job description on file in the Department of
2 Central Management Services, or in the department by which
3 he is employed if that department is not covered by the
4 Personnel Code, states that his principal duty is the
5 operation of aircraft, and who possesses a pilot's
6 license; however, the change in this definition made by
7 Public Act 83-842 shall not operate to exclude any
8 noncovered employee who was an "air pilot" for the
9 purposes of this Section on January 1, 1984.
10 (4) The term "special agent" means any person who by
11 reason of employment by the Division of Narcotic Control,
12 the Bureau of Investigation or, after July 1, 1977, the
13 Division of Criminal Investigation, the Division of
14 Internal Investigation, the Division of Operations, the
15 Division of Patrol, or any other Division or
16 organizational entity in the Illinois State Police is
17 vested by law with duties to maintain public order,
18 investigate violations of the criminal law of this State,
19 enforce the laws of this State, make arrests and recover
20 property. The term "special agent" includes any title or
21 position in the Illinois State Police that is held by an
22 individual employed under the Illinois State Police Act.
23 (5) The term "investigator for the Secretary of State"
24 means any person employed by the Office of the Secretary
25 of State and vested with such investigative duties as
26 render him ineligible for coverage under the Social

HB4873- 420 -LRB103 35886 RPS 65971 b
1 Security Act by reason of Sections 218(d)(5)(A),
2 218(d)(8)(D) and 218(l)(1) of that Act.
3 A person who became employed as an investigator for
4 the Secretary of State between January 1, 1967 and
5 December 31, 1975, and who has served as such until
6 attainment of age 60, either continuously or with a single
7 break in service of not more than 3 years duration, which
8 break terminated before January 1, 1976, shall be entitled
9 to have his retirement annuity calculated in accordance
10 with subsection (a), notwithstanding that he has less than
11 20 years of credit for such service.
12 (6) The term "Conservation Police Officer" means any
13 person employed by the Division of Law Enforcement of the
14 Department of Natural Resources and vested with such law
15 enforcement duties as render him ineligible for coverage
16 under the Social Security Act by reason of Sections
17 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
18 term "Conservation Police Officer" includes the positions
19 of Chief Conservation Police Administrator and Assistant
20 Conservation Police Administrator.
21 (7) The term "investigator for the Department of
22 Revenue" means any person employed by the Department of
23 Revenue and vested with such investigative duties as
24 render him ineligible for coverage under the Social
25 Security Act by reason of Sections 218(d)(5)(A),
26 218(d)(8)(D) and 218(l)(1) of that Act.

HB4873- 421 -LRB103 35886 RPS 65971 b
1 The term "investigator for the Illinois Gaming Board"
2 means any person employed as such by the Illinois Gaming
3 Board and vested with such peace officer duties as render
4 the person ineligible for coverage under the Social
5 Security Act by reason of Sections 218(d)(5)(A),
6 218(d)(8)(D), and 218(l)(1) of that Act.
7 (8) The term "security employee of the Department of
8 Human Services" means any person employed by the
9 Department of Human Services who (i) is employed at the
10 Chester Mental Health Center and has daily contact with
11 the residents thereof, (ii) is employed within a security
12 unit at a facility operated by the Department and has
13 daily contact with the residents of the security unit,
14 (iii) is employed at a facility operated by the Department
15 that includes a security unit and is regularly scheduled
16 to work at least 50% of his or her working hours within
17 that security unit, or (iv) is a mental health police
18 officer. "Mental health police officer" means any person
19 employed by the Department of Human Services in a position
20 pertaining to the Department's mental health and
21 developmental disabilities functions who is vested with
22 such law enforcement duties as render the person
23 ineligible for coverage under the Social Security Act by
24 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
25 218(l)(1) of that Act. "Security unit" means that portion
26 of a facility that is devoted to the care, containment,

HB4873- 422 -LRB103 35886 RPS 65971 b
1 and treatment of persons committed to the Department of
2 Human Services as sexually violent persons, persons unfit
3 to stand trial, or persons not guilty by reason of
4 insanity. With respect to past employment, references to
5 the Department of Human Services include its predecessor,
6 the Department of Mental Health and Developmental
7 Disabilities.
8 The changes made to this subdivision (c)(8) by Public
9 Act 92-14 apply to persons who retire on or after January
10 1, 2001, notwithstanding Section 1-103.1.
11 (9) "Central Management Services security police
12 officer" means any person employed by the Department of
13 Central Management Services who is vested with such law
14 enforcement duties as render him ineligible for coverage
15 under the Social Security Act by reason of Sections
16 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
17 (10) For a member who first became an employee under
18 this Article before July 1, 2005, the term "security
19 employee of the Department of Corrections or the
20 Department of Juvenile Justice" means any employee of the
21 Department of Corrections or the Department of Juvenile
22 Justice or the former Department of Personnel, and any
23 member or employee of the Prisoner Review Board, who has
24 daily contact with inmates or youth by working within a
25 correctional facility or Juvenile facility operated by the
26 Department of Juvenile Justice or who is a parole officer

HB4873- 423 -LRB103 35886 RPS 65971 b
1 or an employee who has direct contact with committed
2 persons in the performance of his or her job duties. For a
3 member who first becomes an employee under this Article on
4 or after July 1, 2005, the term means an employee of the
5 Department of Corrections or the Department of Juvenile
6 Justice who is any of the following: (i) officially
7 headquartered at a correctional facility or Juvenile
8 facility operated by the Department of Juvenile Justice,
9 (ii) a parole officer, (iii) a member of the apprehension
10 unit, (iv) a member of the intelligence unit, (v) a member
11 of the sort team, or (vi) an investigator.
12 (11) The term "dangerous drugs investigator" means any
13 person who is employed as such by the Department of Human
14 Services.
15 (12) The term "investigator for the Illinois State
16 Police" means a person employed by the Illinois State
17 Police who is vested under Section 4 of the Narcotic
18 Control Division Abolition Act with such law enforcement
19 powers as render him ineligible for coverage under the
20 Social Security Act by reason of Sections 218(d)(5)(A),
21 218(d)(8)(D) and 218(l)(1) of that Act.
22 (13) "Investigator for the Office of the Attorney
23 General" means any person who is employed as such by the
24 Office of the Attorney General and is vested with such
25 investigative duties as render him ineligible for coverage
26 under the Social Security Act by reason of Sections

HB4873- 424 -LRB103 35886 RPS 65971 b
1 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
2 the period before January 1, 1989, the term includes all
3 persons who were employed as investigators by the Office
4 of the Attorney General, without regard to social security
5 status.
6 (14) "Controlled substance inspector" means any person
7 who is employed as such by the Department of Professional
8 Regulation and is vested with such law enforcement duties
9 as render him ineligible for coverage under the Social
10 Security Act by reason of Sections 218(d)(5)(A),
11 218(d)(8)(D) and 218(l)(1) of that Act. The term
12 "controlled substance inspector" includes the Program
13 Executive of Enforcement and the Assistant Program
14 Executive of Enforcement.
15 (15) The term "investigator for the Office of the
16 State's Attorneys Appellate Prosecutor" means a person
17 employed in that capacity on a full-time basis under the
18 authority of Section 7.06 of the State's Attorneys
19 Appellate Prosecutor's Act.
20 (16) "Commerce Commission police officer" means any
21 person employed by the Illinois Commerce Commission who is
22 vested with such law enforcement duties as render him
23 ineligible for coverage under the Social Security Act by
24 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
25 218(l)(1) of that Act.
26 (17) "Arson investigator" means any person who is

HB4873- 425 -LRB103 35886 RPS 65971 b
1 employed as such by the Office of the State Fire Marshal
2 and is vested with such law enforcement duties as render
3 the person ineligible for coverage under the Social
4 Security Act by reason of Sections 218(d)(5)(A),
5 218(d)(8)(D), and 218(l)(1) of that Act. A person who was
6 employed as an arson investigator on January 1, 1995 and
7 is no longer in service but not yet receiving a retirement
8 annuity may convert his or her creditable service for
9 employment as an arson investigator into eligible
10 creditable service by paying to the System the difference
11 between the employee contributions actually paid for that
12 service and the amounts that would have been contributed
13 if the applicant were contributing at the rate applicable
14 to persons with the same social security status earning
15 eligible creditable service on the date of application.
16 (18) The term "State highway maintenance worker" means
17 a person who is either of the following:
18 (i) A person employed on a full-time basis by the
19 Illinois Department of Transportation in the position
20 of highway maintainer, highway maintenance lead
21 worker, highway maintenance lead/lead worker, heavy
22 construction equipment operator, power shovel
23 operator, or bridge mechanic; and whose principal
24 responsibility is to perform, on the roadway, the
25 actual maintenance necessary to keep the highways that
26 form a part of the State highway system in serviceable

HB4873- 426 -LRB103 35886 RPS 65971 b
1 condition for vehicular traffic.
2 (ii) A person employed on a full-time basis by the
3 Illinois State Toll Highway Authority in the position
4 of equipment operator/laborer H-4, equipment
5 operator/laborer H-6, welder H-4, welder H-6,
6 mechanical/electrical H-4, mechanical/electrical H-6,
7 water/sewer H-4, water/sewer H-6, sign maker/hanger
8 H-4, sign maker/hanger H-6, roadway lighting H-4,
9 roadway lighting H-6, structural H-4, structural H-6,
10 painter H-4, or painter H-6; and whose principal
11 responsibility is to perform, on the roadway, the
12 actual maintenance necessary to keep the Authority's
13 tollways in serviceable condition for vehicular
14 traffic.
15 (19) The term "security employee of the Department of
16 Innovation and Technology" means a person who was a
17 security employee of the Department of Corrections or the
18 Department of Juvenile Justice, was transferred to the
19 Department of Innovation and Technology pursuant to
20 Executive Order 2016-01, and continues to perform similar
21 job functions under that Department.
22 (20) "Transferred employee" means an employee who was
23 transferred to the Department of Central Management
24 Services by Executive Order No. 2003-10 or Executive Order
25 No. 2004-2 or transferred to the Department of Innovation
26 and Technology by Executive Order No. 2016-1, or both, and

HB4873- 427 -LRB103 35886 RPS 65971 b
1 was entitled to eligible creditable service for services
2 immediately preceding the transfer.
3 (21) The term "investigator for the Department of the
4 Lottery" means any person employed by the Department of
5 the Lottery and who is vested with such investigative
6 duties which render him or her ineligible for coverage
7 under the Social Security Act by reason of Sections
8 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. An
9 investigator for the Department of the Lottery who
10 qualifies under this Section shall earn eligible
11 creditable service and be required to make contributions
12 at the rate specified in paragraph (3) of subsection (a)
13 of Section 14-133 for all periods of service as an
14 investigator for the Department of the Lottery.
15 (d) A security employee of the Department of Corrections
16or the Department of Juvenile Justice, a security employee of
17the Department of Human Services who is not a mental health
18police officer, and a security employee of the Department of
19Innovation and Technology shall not be eligible for the
20alternative retirement annuity provided by this Section unless
21he or she meets the following minimum age and service
22requirements at the time of retirement:
23 (i) 25 years of eligible creditable service and age
24 55; or
25 (ii) beginning January 1, 1987, 25 years of eligible
26 creditable service and age 54, or 24 years of eligible

HB4873- 428 -LRB103 35886 RPS 65971 b
1 creditable service and age 55; or
2 (iii) beginning January 1, 1988, 25 years of eligible
3 creditable service and age 53, or 23 years of eligible
4 creditable service and age 55; or
5 (iv) beginning January 1, 1989, 25 years of eligible
6 creditable service and age 52, or 22 years of eligible
7 creditable service and age 55; or
8 (v) beginning January 1, 1990, 25 years of eligible
9 creditable service and age 51, or 21 years of eligible
10 creditable service and age 55; or
11 (vi) beginning January 1, 1991, 25 years of eligible
12 creditable service and age 50, or 20 years of eligible
13 creditable service and age 55.
14 Persons who have service credit under Article 16 of this
15Code for service as a security employee of the Department of
16Corrections or the Department of Juvenile Justice, or the
17Department of Human Services in a position requiring
18certification as a teacher may count such service toward
19establishing their eligibility under the service requirements
20of this Section; but such service may be used only for
21establishing such eligibility, and not for the purpose of
22increasing or calculating any benefit.
23 (e) If a member enters military service while working in a
24position in which eligible creditable service may be earned,
25and returns to State service in the same or another such
26position, and fulfills in all other respects the conditions

HB4873- 429 -LRB103 35886 RPS 65971 b
1prescribed in this Article for credit for military service,
2such military service shall be credited as eligible creditable
3service for the purposes of the retirement annuity prescribed
4in this Section.
5 (f) For purposes of calculating retirement annuities under
6this Section, periods of service rendered after December 31,
71968 and before October 1, 1975 as a covered employee in the
8position of special agent, conservation police officer, mental
9health police officer, or investigator for the Secretary of
10State, shall be deemed to have been service as a noncovered
11employee, provided that the employee pays to the System prior
12to retirement an amount equal to (1) the difference between
13the employee contributions that would have been required for
14such service as a noncovered employee, and the amount of
15employee contributions actually paid, plus (2) if payment is
16made after July 31, 1987, regular interest on the amount
17specified in item (1) from the date of service to the date of
18payment.
19 For purposes of calculating retirement annuities under
20this Section, periods of service rendered after December 31,
211968 and before January 1, 1982 as a covered employee in the
22position of investigator for the Department of Revenue shall
23be deemed to have been service as a noncovered employee,
24provided that the employee pays to the System prior to
25retirement an amount equal to (1) the difference between the
26employee contributions that would have been required for such

HB4873- 430 -LRB103 35886 RPS 65971 b
1service as a noncovered employee, and the amount of employee
2contributions actually paid, plus (2) if payment is made after
3January 1, 1990, regular interest on the amount specified in
4item (1) from the date of service to the date of payment.
5 (g) A State policeman may elect, not later than January 1,
61990, to establish eligible creditable service for up to 10
7years of his service as a policeman under Article 3, by filing
8a written election with the Board, accompanied by payment of
9an amount to be determined by the Board, equal to (i) the
10difference between the amount of employee and employer
11contributions transferred to the System under Section 3-110.5,
12and the amounts that would have been contributed had such
13contributions been made at the rates applicable to State
14policemen, plus (ii) interest thereon at the effective rate
15for each year, compounded annually, from the date of service
16to the date of payment.
17 Subject to the limitation in subsection (i), a State
18policeman may elect, not later than July 1, 1993, to establish
19eligible creditable service for up to 10 years of his service
20as a member of the County Police Department under Article 9, by
21filing a written election with the Board, accompanied by
22payment of an amount to be determined by the Board, equal to
23(i) the difference between the amount of employee and employer
24contributions transferred to the System under Section 9-121.10
25and the amounts that would have been contributed had those
26contributions been made at the rates applicable to State

HB4873- 431 -LRB103 35886 RPS 65971 b
1policemen, plus (ii) interest thereon at the effective rate
2for each year, compounded annually, from the date of service
3to the date of payment.
4 (h) Subject to the limitation in subsection (i), a State
5policeman or investigator for the Secretary of State may elect
6to establish eligible creditable service for up to 12 years of
7his service as a policeman under Article 5, by filing a written
8election with the Board on or before January 31, 1992, and
9paying to the System by January 31, 1994 an amount to be
10determined by the Board, equal to (i) the difference between
11the amount of employee and employer contributions transferred
12to the System under Section 5-236, and the amounts that would
13have been contributed had such contributions been made at the
14rates applicable to State policemen, plus (ii) interest
15thereon at the effective rate for each year, compounded
16annually, from the date of service to the date of payment.
17 Subject to the limitation in subsection (i), a State
18policeman, conservation police officer, or investigator for
19the Secretary of State may elect to establish eligible
20creditable service for up to 10 years of service as a sheriff's
21law enforcement employee under Article 7, by filing a written
22election with the Board on or before January 31, 1993, and
23paying to the System by January 31, 1994 an amount to be
24determined by the Board, equal to (i) the difference between
25the amount of employee and employer contributions transferred
26to the System under Section 7-139.7, and the amounts that

HB4873- 432 -LRB103 35886 RPS 65971 b
1would have been contributed had such contributions been made
2at the rates applicable to State policemen, plus (ii) interest
3thereon at the effective rate for each year, compounded
4annually, from the date of service to the date of payment.
5 Subject to the limitation in subsection (i), a State
6policeman, conservation police officer, or investigator for
7the Secretary of State may elect to establish eligible
8creditable service for up to 5 years of service as a police
9officer under Article 3, a policeman under Article 5, a
10sheriff's law enforcement employee under Article 7, a member
11of the county police department under Article 9, or a police
12officer under Article 15 by filing a written election with the
13Board and paying to the System an amount to be determined by
14the Board, equal to (i) the difference between the amount of
15employee and employer contributions transferred to the System
16under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
17and the amounts that would have been contributed had such
18contributions been made at the rates applicable to State
19policemen, plus (ii) interest thereon at the effective rate
20for each year, compounded annually, from the date of service
21to the date of payment.
22 Subject to the limitation in subsection (i), an
23investigator for the Office of the Attorney General, or an
24investigator for the Department of Revenue, may elect to
25establish eligible creditable service for up to 5 years of
26service as a police officer under Article 3, a policeman under

HB4873- 433 -LRB103 35886 RPS 65971 b
1Article 5, a sheriff's law enforcement employee under Article
27, or a member of the county police department under Article 9
3by filing a written election with the Board within 6 months
4after August 25, 2009 (the effective date of Public Act
596-745) and paying to the System an amount to be determined by
6the Board, equal to (i) the difference between the amount of
7employee and employer contributions transferred to the System
8under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
9amounts that would have been contributed had such
10contributions been made at the rates applicable to State
11policemen, plus (ii) interest thereon at the actuarially
12assumed rate for each year, compounded annually, from the date
13of service to the date of payment.
14 Subject to the limitation in subsection (i), a State
15policeman, conservation police officer, investigator for the
16Office of the Attorney General, an investigator for the
17Department of Revenue, or investigator for the Secretary of
18State may elect to establish eligible creditable service for
19up to 5 years of service as a person employed by a
20participating municipality to perform police duties, or law
21enforcement officer employed on a full-time basis by a forest
22preserve district under Article 7, a county corrections
23officer, or a court services officer under Article 9, by
24filing a written election with the Board within 6 months after
25August 25, 2009 (the effective date of Public Act 96-745) and
26paying to the System an amount to be determined by the Board,

HB4873- 434 -LRB103 35886 RPS 65971 b
1equal to (i) the difference between the amount of employee and
2employer contributions transferred to the System under
3Sections 7-139.8 and 9-121.10 and the amounts that would have
4been contributed had such contributions been made at the rates
5applicable to State policemen, plus (ii) interest thereon at
6the actuarially assumed rate for each year, compounded
7annually, from the date of service to the date of payment.
8 Subject to the limitation in subsection (i), a State
9policeman, arson investigator, or Commerce Commission police
10officer may elect to establish eligible creditable service for
11up to 5 years of service as a person employed by a
12participating municipality to perform police duties under
13Article 7, a county corrections officer, a court services
14officer under Article 9, or a firefighter under Article 4 by
15filing a written election with the Board within 6 months after
16July 30, 2021 (the effective date of Public Act 102-210) and
17paying to the System an amount to be determined by the Board
18equal to (i) the difference between the amount of employee and
19employer contributions transferred to the System under
20Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
21would have been contributed had such contributions been made
22at the rates applicable to State policemen, plus (ii) interest
23thereon at the actuarially assumed rate for each year,
24compounded annually, from the date of service to the date of
25payment.
26 Subject to the limitation in subsection (i), a

HB4873- 435 -LRB103 35886 RPS 65971 b
1conservation police officer may elect to establish eligible
2creditable service for up to 5 years of service as a person
3employed by a participating municipality to perform police
4duties under Article 7, a county corrections officer, or a
5court services officer under Article 9 by filing a written
6election with the Board within 6 months after July 30, 2021
7(the effective date of Public Act 102-210) and paying to the
8System an amount to be determined by the Board equal to (i) the
9difference between the amount of employee and employer
10contributions transferred to the System under Sections 7-139.8
11and 9-121.10 and the amounts that would have been contributed
12had such contributions been made at the rates applicable to
13State policemen, plus (ii) interest thereon at the actuarially
14assumed rate for each year, compounded annually, from the date
15of service to the date of payment.
16 Notwithstanding the limitation in subsection (i), a State
17policeman or conservation police officer may elect to convert
18service credit earned under this Article to eligible
19creditable service, as defined by this Section, by filing a
20written election with the board within 6 months after July 30,
212021 (the effective date of Public Act 102-210) and paying to
22the System an amount to be determined by the Board equal to (i)
23the difference between the amount of employee contributions
24originally paid for that service and the amounts that would
25have been contributed had such contributions been made at the
26rates applicable to State policemen, plus (ii) the difference

HB4873- 436 -LRB103 35886 RPS 65971 b
1between the employer's normal cost of the credit prior to the
2conversion authorized by Public Act 102-210 and the employer's
3normal cost of the credit converted in accordance with Public
4Act 102-210, plus (iii) interest thereon at the actuarially
5assumed rate for each year, compounded annually, from the date
6of service to the date of payment.
7 Subject to the limitation in subsection (i), a security
8employee of the Department of Human Services who is subject to
9subsection (g-1) of Section 1-160 may elect to convert up to 12
10years of service credit established before the effective date
11of this amendatory Act of the 103rd General Assembly as a
12security employee of the Department of Human Services to
13eligible creditable service by filing a written election with
14the Board no later than 2 years after the effective date of
15this amendatory Act of the 103rd General Assembly, accompanied
16by payment of an amount, to be determined by the Board, equal
17to (i) the difference between the amount of the employee
18contributions actually paid for that service and the amount of
19the employee contributions that would have been paid had the
20employee contributions been made as a covered employee serving
21in a position in which eligible creditable service, as defined
22in this Section, may be earned, plus (ii) interest thereon at
23the effective rate for each year, compounded annually, from
24the date of service to the date of payment.
25 (i) The total amount of eligible creditable service
26established by any person under subsections (g), (h), (j),

HB4873- 437 -LRB103 35886 RPS 65971 b
1(k), (l), (l-5), (o), and (p) of this Section shall not exceed
212 years.
3 (j) Subject to the limitation in subsection (i), an
4investigator for the Office of the State's Attorneys Appellate
5Prosecutor or a controlled substance inspector may elect to
6establish eligible creditable service for up to 10 years of
7his service as a policeman under Article 3 or a sheriff's law
8enforcement employee under Article 7, by filing a written
9election with the Board, accompanied by payment of an amount
10to be determined by the Board, equal to (1) the difference
11between the amount of employee and employer contributions
12transferred to the System under Section 3-110.6 or 7-139.8,
13and the amounts that would have been contributed had such
14contributions been made at the rates applicable to State
15policemen, plus (2) interest thereon at the effective rate for
16each year, compounded annually, from the date of service to
17the date of payment.
18 (k) Subject to the limitation in subsection (i) of this
19Section, an alternative formula employee may elect to
20establish eligible creditable service for periods spent as a
21full-time law enforcement officer or full-time corrections
22officer employed by the federal government or by a state or
23local government located outside of Illinois, for which credit
24is not held in any other public employee pension fund or
25retirement system. To obtain this credit, the applicant must
26file a written application with the Board by March 31, 1998,

HB4873- 438 -LRB103 35886 RPS 65971 b
1accompanied by evidence of eligibility acceptable to the Board
2and payment of an amount to be determined by the Board, equal
3to (1) employee contributions for the credit being
4established, based upon the applicant's salary on the first
5day as an alternative formula employee after the employment
6for which credit is being established and the rates then
7applicable to alternative formula employees, plus (2) an
8amount determined by the Board to be the employer's normal
9cost of the benefits accrued for the credit being established,
10plus (3) regular interest on the amounts in items (1) and (2)
11from the first day as an alternative formula employee after
12the employment for which credit is being established to the
13date of payment.
14 (l) Subject to the limitation in subsection (i), a
15security employee of the Department of Corrections may elect,
16not later than July 1, 1998, to establish eligible creditable
17service for up to 10 years of his or her service as a policeman
18under Article 3, by filing a written election with the Board,
19accompanied by payment of an amount to be determined by the
20Board, equal to (i) the difference between the amount of
21employee and employer contributions transferred to the System
22under Section 3-110.5, and the amounts that would have been
23contributed had such contributions been made at the rates
24applicable to security employees of the Department of
25Corrections, plus (ii) interest thereon at the effective rate
26for each year, compounded annually, from the date of service

HB4873- 439 -LRB103 35886 RPS 65971 b
1to the date of payment.
2 (l-5) Subject to the limitation in subsection (i) of this
3Section, a State policeman may elect to establish eligible
4creditable service for up to 5 years of service as a full-time
5law enforcement officer employed by the federal government or
6by a state or local government located outside of Illinois for
7which credit is not held in any other public employee pension
8fund or retirement system. To obtain this credit, the
9applicant must file a written application with the Board no
10later than 3 years after January 1, 2020 (the effective date of
11Public Act 101-610), accompanied by evidence of eligibility
12acceptable to the Board and payment of an amount to be
13determined by the Board, equal to (1) employee contributions
14for the credit being established, based upon the applicant's
15salary on the first day as an alternative formula employee
16after the employment for which credit is being established and
17the rates then applicable to alternative formula employees,
18plus (2) an amount determined by the Board to be the employer's
19normal cost of the benefits accrued for the credit being
20established, plus (3) regular interest on the amounts in items
21(1) and (2) from the first day as an alternative formula
22employee after the employment for which credit is being
23established to the date of payment.
24 (m) The amendatory changes to this Section made by Public
25Act 94-696 apply only to: (1) security employees of the
26Department of Juvenile Justice employed by the Department of

HB4873- 440 -LRB103 35886 RPS 65971 b
1Corrections before June 1, 2006 (the effective date of Public
2Act 94-696) and transferred to the Department of Juvenile
3Justice by Public Act 94-696; and (2) persons employed by the
4Department of Juvenile Justice on or after June 1, 2006 (the
5effective date of Public Act 94-696) who are required by
6subsection (b) of Section 3-2.5-15 of the Unified Code of
7Corrections to have any bachelor's or advanced degree from an
8accredited college or university or, in the case of persons
9who provide vocational training, who are required to have
10adequate knowledge in the skill for which they are providing
11the vocational training.
12 Beginning with the pay period that immediately follows the
13effective date of this amendatory Act of the 103rd General
14Assembly, the bachelor's or advanced degree requirement of
15subsection (b) of Section 3-2.5-15 of the Unified Code of
16Corrections shall no longer determine the eligibility to earn
17eligible creditable service for a person employed by the
18Department of Juvenile Justice.
19 An employee may elect to convert into eligible creditable
20service his or her creditable service earned with the
21Department of Juvenile Justice while employed in a position
22that required the employee to do any one or more of the
23following: (1) participate or assist in the rehabilitative and
24vocational training of delinquent youths; (2) supervise the
25daily activities and assume direct and continuing
26responsibility for the youth's security, welfare, and

HB4873- 441 -LRB103 35886 RPS 65971 b
1development; or (3) participate in the personal rehabilitation
2of delinquent youth by training, supervising, and assisting
3lower-level personnel. To convert that creditable service to
4eligible creditable service, the employee must pay to the
5System the difference between the employee contributions
6actually paid for that service and the amounts that would have
7been contributed if the applicant were contributing at the
8rate applicable to persons with the same Social Security
9status earning eligible creditable service on the date of
10application.
11 (n) A person employed in a position under subsection (b)
12of this Section who has purchased service credit under
13subsection (j) of Section 14-104 or subsection (b) of Section
1414-105 in any other capacity under this Article may convert up
15to 5 years of that service credit into service credit covered
16under this Section by paying to the Fund an amount equal to (1)
17the additional employee contribution required under Section
1814-133, plus (2) the additional employer contribution required
19under Section 14-131, plus (3) interest on items (1) and (2) at
20the actuarially assumed rate from the date of the service to
21the date of payment.
22 (o) Subject to the limitation in subsection (i), a
23conservation police officer, investigator for the Secretary of
24State, Commerce Commission police officer, investigator for
25the Department of Revenue or the Illinois Gaming Board, or
26arson investigator subject to subsection (g) of Section 1-160

HB4873- 442 -LRB103 35886 RPS 65971 b
1may elect to convert up to 8 years of service credit
2established before January 1, 2020 (the effective date of
3Public Act 101-610) as a conservation police officer,
4investigator for the Secretary of State, Commerce Commission
5police officer, investigator for the Department of Revenue or
6the Illinois Gaming Board, or arson investigator under this
7Article into eligible creditable service by filing a written
8election with the Board no later than one year after January 1,
92020 (the effective date of Public Act 101-610), accompanied
10by payment of an amount to be determined by the Board equal to
11(i) the difference between the amount of the employee
12contributions actually paid for that service and the amount of
13the employee contributions that would have been paid had the
14employee contributions been made as a noncovered employee
15serving in a position in which eligible creditable service, as
16defined in this Section, may be earned, plus (ii) interest
17thereon at the effective rate for each year, compounded
18annually, from the date of service to the date of payment.
19 (p) Subject to the limitation in subsection (i), an
20investigator for the Office of the Attorney General subject to
21subsection (g) of Section 1-160 may elect to convert up to 8
22years of service credit established before the effective date
23of this amendatory Act of the 102nd General Assembly as an
24investigator for the Office of the Attorney General under this
25Article into eligible creditable service by filing a written
26election with the Board no later than one year after the

HB4873- 443 -LRB103 35886 RPS 65971 b
1effective date of this amendatory Act of the 102nd General
2Assembly, accompanied by payment of an amount to be determined
3by the Board equal to (i) the difference between the amount of
4the employee contributions actually paid for that service and
5the amount of the employee contributions that would have been
6paid had the employee contributions been made as a noncovered
7employee serving in a position in which eligible creditable
8service, as defined in this Section, may be earned, plus (ii)
9interest thereon at the effective rate for each year,
10compounded annually, from the date of service to the date of
11payment.
12(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
13102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)
14
Article 12.
15 Section 12-5. The Illinois Pension Code is amended by
16adding Sections 3-144.3 and 4-138.15 as follows:
17 (40 ILCS 5/3-144.3 new)
18 Sec. 3-144.3. Retirement Systems Reciprocal Act. The
19Retirement Systems Reciprocal Act, Article 20 of this Code, is
20adopted and made a part of this Article, but only with respect
21to a person who, on or after the effective date of this
22amendatory Act of the 103rd General Assembly, is entitled
23under this Article or through a participating system under the

HB4873- 444 -LRB103 35886 RPS 65971 b
1Retirement Systems Reciprocal Act, as defined in Section
220-108, to begin receiving a retirement annuity or survivor's
3annuity (as those terms are defined in Article 20) and who
4elects to proceed under the Retirement Systems Reciprocal Act.
5 (40 ILCS 5/4-138.15 new)
6 Sec. 4-138.15. Retirement Systems Reciprocal Act. The
7Retirement Systems Reciprocal Act, Article 20 of this Code, is
8adopted and made a part of this Article, but only with respect
9to a person who, on or after the effective date of this
10amendatory Act of the 103rd General Assembly, is entitled
11under this Article or through a participating system under the
12Retirement Systems Reciprocal Act, as defined in Section
1320-108, to begin receiving a retirement annuity or survivor's
14annuity (as those terms are defined in Article 20) and who
15elects to proceed under the Retirement Systems Reciprocal Act.
16
Article 90.
17 Section 90-5. The Illinois Pension Code is amended by
18changing Sections 2-162, 14-152.1, 15-198, 16-203, and 18-169
19as follows:
20 (40 ILCS 5/2-162)
21 Sec. 2-162. Application and expiration of new benefit
22increases.

HB4873- 445 -LRB103 35886 RPS 65971 b
1 (a) As used in this Section, "new benefit increase" means
2an increase in the amount of any benefit provided under this
3Article, or an expansion of the conditions of eligibility for
4any benefit under this Article, that results from an amendment
5to this Code that takes effect after the effective date of this
6amendatory Act of the 94th General Assembly. "New benefit
7increase", however, does not include any benefit increase
8resulting from the changes made to this Article by this
9amendatory Act of the 103rd General Assembly.
10 (b) Notwithstanding any other provision of this Code or
11any subsequent amendment to this Code, every new benefit
12increase is subject to this Section and shall be deemed to be
13granted only in conformance with and contingent upon
14compliance with the provisions of this Section.
15 (c) The Public Act enacting a new benefit increase must
16identify and provide for payment to the System of additional
17funding at least sufficient to fund the resulting annual
18increase in cost to the System as it accrues.
19 Every new benefit increase is contingent upon the General
20Assembly providing the additional funding required under this
21subsection. The Commission on Government Forecasting and
22Accountability shall analyze whether adequate additional
23funding has been provided for the new benefit increase and
24shall report its analysis to the Public Pension Division of
25the Department of Insurance. A new benefit increase created by
26a Public Act that does not include the additional funding

HB4873- 446 -LRB103 35886 RPS 65971 b
1required under this subsection is null and void. If the Public
2Pension Division determines that the additional funding
3provided for a new benefit increase under this subsection is
4or has become inadequate, it may so certify to the Governor and
5the State Comptroller and, in the absence of corrective action
6by the General Assembly, the new benefit increase shall expire
7at the end of the fiscal year in which the certification is
8made.
9 (d) Every new benefit increase shall expire 5 years after
10its effective date or on such earlier date as may be specified
11in the language enacting the new benefit increase or provided
12under subsection (c). This does not prevent the General
13Assembly from extending or re-creating a new benefit increase
14by law.
15 (e) Except as otherwise provided in the language creating
16the new benefit increase, a new benefit increase that expires
17under this Section continues to apply to persons who applied
18and qualified for the affected benefit while the new benefit
19increase was in effect and to the affected beneficiaries and
20alternate payees of such persons, but does not apply to any
21other person, including without limitation a person who
22continues in service after the expiration date and did not
23apply and qualify for the affected benefit while the new
24benefit increase was in effect.
25(Source: P.A. 103-426, eff. 8-4-23.)

HB4873- 447 -LRB103 35886 RPS 65971 b
1 (40 ILCS 5/14-152.1)
2 Sec. 14-152.1. Application and expiration of new benefit
3increases.
4 (a) As used in this Section, "new benefit increase" means
5an increase in the amount of any benefit provided under this
6Article, or an expansion of the conditions of eligibility for
7any benefit under this Article, that results from an amendment
8to this Code that takes effect after June 1, 2005 (the
9effective date of Public Act 94-4). "New benefit increase",
10however, does not include any benefit increase resulting from
11the changes made to Article 1 or this Article by Public Act
1296-37, Public Act 100-23, Public Act 100-587, Public Act
13100-611, Public Act 101-10, Public Act 101-610, Public Act
14102-210, Public Act 102-856, Public Act 102-956, or this
15amendatory Act of the 103rd General Assembly this amendatory
16Act of the 102nd General Assembly.
17 (b) Notwithstanding any other provision of this Code or
18any subsequent amendment to this Code, every new benefit
19increase is subject to this Section and shall be deemed to be
20granted only in conformance with and contingent upon
21compliance with the provisions of this Section.
22 (c) The Public Act enacting a new benefit increase must
23identify and provide for payment to the System of additional
24funding at least sufficient to fund the resulting annual
25increase in cost to the System as it accrues.
26 Every new benefit increase is contingent upon the General

HB4873- 448 -LRB103 35886 RPS 65971 b
1Assembly providing the additional funding required under this
2subsection. The Commission on Government Forecasting and
3Accountability shall analyze whether adequate additional
4funding has been provided for the new benefit increase and
5shall report its analysis to the Public Pension Division of
6the Department of Insurance. A new benefit increase created by
7a Public Act that does not include the additional funding
8required under this subsection is null and void. If the Public
9Pension Division determines that the additional funding
10provided for a new benefit increase under this subsection is
11or has become inadequate, it may so certify to the Governor and
12the State Comptroller and, in the absence of corrective action
13by the General Assembly, the new benefit increase shall expire
14at the end of the fiscal year in which the certification is
15made.
16 (d) Every new benefit increase shall expire 5 years after
17its effective date or on such earlier date as may be specified
18in the language enacting the new benefit increase or provided
19under subsection (c). This does not prevent the General
20Assembly from extending or re-creating a new benefit increase
21by law.
22 (e) Except as otherwise provided in the language creating
23the new benefit increase, a new benefit increase that expires
24under this Section continues to apply to persons who applied
25and qualified for the affected benefit while the new benefit
26increase was in effect and to the affected beneficiaries and

HB4873- 449 -LRB103 35886 RPS 65971 b
1alternate payees of such persons, but does not apply to any
2other person, including, without limitation, a person who
3continues in service after the expiration date and did not
4apply and qualify for the affected benefit while the new
5benefit increase was in effect.
6(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
7101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
81-1-23; 102-956, eff. 5-27-22.)
9 (40 ILCS 5/15-198)
10 Sec. 15-198. Application and expiration of new benefit
11increases.
12 (a) As used in this Section, "new benefit increase" means
13an increase in the amount of any benefit provided under this
14Article, or an expansion of the conditions of eligibility for
15any benefit under this Article, that results from an amendment
16to this Code that takes effect after June 1, 2005 (the
17effective date of Public Act 94-4). "New benefit increase",
18however, does not include any benefit increase resulting from
19the changes made to Article 1 or this Article by Public Act
20100-23, Public Act 100-587, Public Act 100-769, Public Act
21101-10, Public Act 101-610, Public Act 102-16, Public Act
22103-80, Public Act 103-548, or this amendatory Act of the
23103rd General Assembly or this amendatory Act of the 103rd
24General Assembly.
25 (b) Notwithstanding any other provision of this Code or

HB4873- 450 -LRB103 35886 RPS 65971 b
1any subsequent amendment to this Code, every new benefit
2increase is subject to this Section and shall be deemed to be
3granted only in conformance with and contingent upon
4compliance with the provisions of this Section.
5 (c) The Public Act enacting a new benefit increase must
6identify and provide for payment to the System of additional
7funding at least sufficient to fund the resulting annual
8increase in cost to the System as it accrues.
9 Every new benefit increase is contingent upon the General
10Assembly providing the additional funding required under this
11subsection. The Commission on Government Forecasting and
12Accountability shall analyze whether adequate additional
13funding has been provided for the new benefit increase and
14shall report its analysis to the Public Pension Division of
15the Department of Insurance. A new benefit increase created by
16a Public Act that does not include the additional funding
17required under this subsection is null and void. If the Public
18Pension Division determines that the additional funding
19provided for a new benefit increase under this subsection is
20or has become inadequate, it may so certify to the Governor and
21the State Comptroller and, in the absence of corrective action
22by the General Assembly, the new benefit increase shall expire
23at the end of the fiscal year in which the certification is
24made.
25 (d) Every new benefit increase shall expire 5 years after
26its effective date or on such earlier date as may be specified

HB4873- 451 -LRB103 35886 RPS 65971 b
1in the language enacting the new benefit increase or provided
2under subsection (c). This does not prevent the General
3Assembly from extending or re-creating a new benefit increase
4by law.
5 (e) Except as otherwise provided in the language creating
6the new benefit increase, a new benefit increase that expires
7under this Section continues to apply to persons who applied
8and qualified for the affected benefit while the new benefit
9increase was in effect and to the affected beneficiaries and
10alternate payees of such persons, but does not apply to any
11other person, including, without limitation, a person who
12continues in service after the expiration date and did not
13apply and qualify for the affected benefit while the new
14benefit increase was in effect.
15(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23;
16103-548, eff. 8-11-23; revised 8-31-23.)
17 (40 ILCS 5/16-203)
18 Sec. 16-203. Application and expiration of new benefit
19increases.
20 (a) As used in this Section, "new benefit increase" means
21an increase in the amount of any benefit provided under this
22Article, or an expansion of the conditions of eligibility for
23any benefit under this Article, that results from an amendment
24to this Code that takes effect after June 1, 2005 (the
25effective date of Public Act 94-4). "New benefit increase",

HB4873- 452 -LRB103 35886 RPS 65971 b
1however, does not include any benefit increase resulting from
2the changes made to Article 1 or this Article by Public Act
395-910, Public Act 100-23, Public Act 100-587, Public Act
4100-743, Public Act 100-769, Public Act 101-10, Public Act
5101-49, Public Act 102-16, or Public Act 102-871, or this
6amendatory Act of the 103rd General Assembly.
7 (b) Notwithstanding any other provision of this Code or
8any subsequent amendment to this Code, every new benefit
9increase is subject to this Section and shall be deemed to be
10granted only in conformance with and contingent upon
11compliance with the provisions of this Section.
12 (c) The Public Act enacting a new benefit increase must
13identify and provide for payment to the System of additional
14funding at least sufficient to fund the resulting annual
15increase in cost to the System as it accrues.
16 Every new benefit increase is contingent upon the General
17Assembly providing the additional funding required under this
18subsection. The Commission on Government Forecasting and
19Accountability shall analyze whether adequate additional
20funding has been provided for the new benefit increase and
21shall report its analysis to the Public Pension Division of
22the Department of Insurance. A new benefit increase created by
23a Public Act that does not include the additional funding
24required under this subsection is null and void. If the Public
25Pension Division determines that the additional funding
26provided for a new benefit increase under this subsection is

HB4873- 453 -LRB103 35886 RPS 65971 b
1or has become inadequate, it may so certify to the Governor and
2the State Comptroller and, in the absence of corrective action
3by the General Assembly, the new benefit increase shall expire
4at the end of the fiscal year in which the certification is
5made.
6 (d) Every new benefit increase shall expire 5 years after
7its effective date or on such earlier date as may be specified
8in the language enacting the new benefit increase or provided
9under subsection (c). This does not prevent the General
10Assembly from extending or re-creating a new benefit increase
11by law.
12 (e) Except as otherwise provided in the language creating
13the new benefit increase, a new benefit increase that expires
14under this Section continues to apply to persons who applied
15and qualified for the affected benefit while the new benefit
16increase was in effect and to the affected beneficiaries and
17alternate payees of such persons, but does not apply to any
18other person, including, without limitation, a person who
19continues in service after the expiration date and did not
20apply and qualify for the affected benefit while the new
21benefit increase was in effect.
22(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
23102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
246-30-23.)
25 (40 ILCS 5/18-169)

HB4873- 454 -LRB103 35886 RPS 65971 b
1 Sec. 18-169. Application and expiration of new benefit
2increases.
3 (a) As used in this Section, "new benefit increase" means
4an increase in the amount of any benefit provided under this
5Article, or an expansion of the conditions of eligibility for
6any benefit under this Article, that results from an amendment
7to this Code that takes effect after the effective date of this
8amendatory Act of the 94th General Assembly. "New benefit
9increase", however, does not include any benefit increase
10resulting from the changes made to this Article by this
11amendatory Act of the 103rd General Assembly.
12 (b) Notwithstanding any other provision of this Code or
13any subsequent amendment to this Code, every new benefit
14increase is subject to this Section and shall be deemed to be
15granted only in conformance with and contingent upon
16compliance with the provisions of this Section.
17 (c) The Public Act enacting a new benefit increase must
18identify and provide for payment to the System of additional
19funding at least sufficient to fund the resulting annual
20increase in cost to the System as it accrues.
21 Every new benefit increase is contingent upon the General
22Assembly providing the additional funding required under this
23subsection. The Commission on Government Forecasting and
24Accountability shall analyze whether adequate additional
25funding has been provided for the new benefit increase and
26shall report its analysis to the Public Pension Division of

HB4873- 455 -LRB103 35886 RPS 65971 b
1the Department of Insurance. A new benefit increase created by
2a Public Act that does not include the additional funding
3required under this subsection is null and void. If the Public
4Pension Division determines that the additional funding
5provided for a new benefit increase under this subsection is
6or has become inadequate, it may so certify to the Governor and
7the State Comptroller and, in the absence of corrective action
8by the General Assembly, the new benefit increase shall expire
9at the end of the fiscal year in which the certification is
10made.
11 (d) Every new benefit increase shall expire 5 years after
12its effective date or on such earlier date as may be specified
13in the language enacting the new benefit increase or provided
14under subsection (c). This does not prevent the General
15Assembly from extending or re-creating a new benefit increase
16by law.
17 (e) Except as otherwise provided in the language creating
18the new benefit increase, a new benefit increase that expires
19under this Section continues to apply to persons who applied
20and qualified for the affected benefit while the new benefit
21increase was in effect and to the affected beneficiaries and
22alternate payees of such persons, but does not apply to any
23other person, including without limitation a person who
24continues in service after the expiration date and did not
25apply and qualify for the affected benefit while the new
26benefit increase was in effect.

HB4873- 456 -LRB103 35886 RPS 65971 b
1(Source: P.A. 103-426, eff. 8-4-23.)
2 Section 90-90. The State Mandates Act is amended by adding
3Section 8.48 as follows:
4 (30 ILCS 805/8.48 new)
5 Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
68 of this Act, no reimbursement by the State is required for
7the implementation of any mandate created by this amendatory
8Act of the 103rd General Assembly.
9
Article 99.
10 Section 99-99. Effective date. This Act takes effect July
111, 2025.

HB4873- 457 -LRB103 35886 RPS 65971 b
1 INDEX
2 Statutes amended in order of appearance
3 40 ILCS 5/1-160
4 40 ILCS 5/2-108.1from Ch. 108 1/2, par. 2-108.1
5 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
6 40 ILCS 5/14-103.10from Ch. 108 1/2, par. 14-103.10
7 40 ILCS 5/15-111from Ch. 108 1/2, par. 15-111
8 40 ILCS 5/18-125from Ch. 108 1/2, par. 18-125
9 40 ILCS 5/18-128.01from Ch. 108 1/2, par. 18-128.01
10 40 ILCS 5/1-160
11 40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
12 40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
13 40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.1
14 5 ILCS 100/5-45.55 new
15 40 ILCS 5/2-154.5 new
16 40 ILCS 5/2-154.6 new
17 40 ILCS 5/17-156.10 new
18 40 ILCS 5/17-156.11 new
19 40 ILCS 5/18-161.5 new
20 40 ILCS 5/18-161.6 new
21 40 ILCS 5/1-168 new
22 40 ILCS 5/3-118 new
23 40 ILCS 5/4-136 new
24 40 ILCS 5/7-142.2 new
25 30 ILCS 330/7.2

HB4873- 458 -LRB103 35886 RPS 65971 b
1 30 ILCS 330/7.6
2 30 ILCS 105/8s new
3 40 ILCS 5/2-101from Ch. 108 1/2, par. 2-101
4 40 ILCS 5/2-105from Ch. 108 1/2, par. 2-105
5 40 ILCS 5/2-107from Ch. 108 1/2, par. 2-107
6 40 ILCS 5/2-117from Ch. 108 1/2, par. 2-117
7 40 ILCS 5/14-103.05from Ch. 108 1/2, par. 14-103.05
8 40 ILCS 5/14-104from Ch. 108 1/2, par. 14-104
9 40 ILCS 5/14-104.14 new
10 40 ILCS 5/14-105.4from Ch. 108 1/2, par. 14-105.4
11 40 ILCS 5/18-101from Ch. 108 1/2, par. 18-101
12 40 ILCS 5/18-108from Ch. 108 1/2, par. 18-108
13 40 ILCS 5/18-109from Ch. 108 1/2, par. 18-109
14 40 ILCS 5/18-110from Ch. 108 1/2, par. 18-110
15 40 ILCS 5/18-120from Ch. 108 1/2, par. 18-120
16 40 ILCS 5/1-160
17 40 ILCS 5/15-135from Ch. 108 1/2, par. 15-135
18 40 ILCS 5/1-160
19 40 ILCS 5/15-108.2
20 40 ILCS 5/15-155from Ch. 108 1/2, par. 15-155
21 40 ILCS 5/16-158.3
22 40 ILCS 5/1-161 rep.
23 40 ILCS 5/1-162 rep.
24 40 ILCS 5/15-155.2 rep.
25 40 ILCS 5/1-160
26 40 ILCS 5/14-110from Ch. 108 1/2, par. 14-110

HB4873- 459 -LRB103 35886 RPS 65971 b