Bill Text: IL SB1646 | 2023-2024 | 103rd General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of the bill, as amended by Senate Amendment No. 1, with the following changes. Further amends the Illinois Pension Code. In the Chicago Laborers Article, provides that the Board of Trustees of the Fund has the power to issue subpoenas to compel the attendance of witnesses to testify before it and to compel the production of documents and records upon any matter concerning the Fund. Makes changes concerning witness fees. In the General Provisions Article, excludes disclosures made to the Municipal Employees Society of Chicago from a provision that prohibits the disclosure of certain information regarding members or participants of a pension fund or retirement system. In the Firefighters' Pension Investment Fund Article, makes changes concerning the oath of office; reimbursement for travel expenses; and trustee vacancies. In the Chicago Municipal Article, provides that for school years beginning on or after July 1, 2023, an age and service or prior service annuity shall not be cancelled in the case of an employee who is re-employed by the Board of Education of the city as a paraprofessional or related service provider on a temporary and non-annual basis or on an hourly basis so long as the person: (1) does not work for compensation on more than 120 days in a school year; or (2) does not accept gross compensation for the re-employment in a school year in excess of $30,000. Amends the School Code. Provides that the school board and other employers shall make available to each active teacher who is an elected trustee under the Chicago Teachers Article of the Illinois Pension Code up to 22 days of paid leave of absence per year for the purpose of attending meetings and seminars of the Board of Trustees. In the Downstate Teacher Article of the Illinois Pension Code, makes changes concerning the employer's submission of reports and contributions. In the Cook County Article of the Code, provides that if an employee annuitant re-enters service as an election worker and provides services for a scheduled federal, State, or local election for a period of 60 days or less during a calendar year, that employee annuitant's annuity shall not be suspended. In a provision of the Chicago Teachers Article allowing a member to establish credit for service as a teacher or administrator employed by a private school, provides that the applicable interest rate is the actuarially assumed rate in effect at the time of application (rather than at a rate determined by the Board of Trustees). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Passed) 2023-08-11 - Public Act . . . . . . . . . 103-0552 [SB1646 Detail]

Download: Illinois-2023-SB1646-Enrolled.html



SB1646 EnrolledLRB103 27811 RPS 54189 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 Section 11-196 and by adding Section 12-162.5 as
7follows:
8 (40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196)
9 Sec. 11-196. To subpoena witnesses and compel the
10production of records. To issue subpoenas to compel the
11attendance of witnesses to testify before it and to compel the
12production of documents and records upon any matter concerning
13the Fund, including, but not limited to, in conjunction with:
14fund and allow witness fees not in excess of $6 per day.
15 (1) a disability claim;
16 (2) an administrative review proceeding;
17 (3) an attempt to obtain information to assist in the
18 collection of sums due to the Fund;
19 (4) obtaining any and all personal identifying
20 information necessary for the administration of benefits;
21 (5) the determination of the death of a benefit
22 recipient or a potential benefit recipient; or

SB1646 Enrolled- 2 -LRB103 27811 RPS 54189 b
1 (6) a felony forfeiture investigation.
2 The fees of witnesses for attendance and travel shall be
3the same as the fees of witnesses before the circuit courts of
4this State and shall be paid by the party seeking the subpoena.
5The Board may apply to any circuit court in the State for an
6order requiring compliance with a subpoena issued under this
7Section. Subpoenas issued under this Section shall be subject
8to applicable provisions of the Code of Civil Procedure. The
9president or other members of the board may administer oaths
10to witnesses.
11(Source: Laws 1963, p. 161.)
12 (40 ILCS 5/12-162.5 new)
13 Sec. 12-162.5. To subpoena witnesses and compel the
14production of records. To issue subpoenas to compel the
15attendance of witnesses to testify before it and to compel the
16production of documents and records upon any matter concerning
17the Fund, including, but not limited to, in conjunction with:
18 (1) a disability claim;
19 (2) an administrative review proceeding;
20 (3) an attempt to obtain information to assist in the
21 collection of sums due to the Fund;
22 (4) obtaining any and all personal identifying
23 information necessary for the administration of benefits;
24 (5) the determination of the death of a benefit
25 recipient or a potential benefit recipient; or

SB1646 Enrolled- 3 -LRB103 27811 RPS 54189 b
1 (6) a felony forfeiture investigation.
2 The fees of witnesses for attendance and travel shall be
3the same as the fees of witnesses before the circuit courts of
4this State and shall be paid by the party seeking the subpoena.
5The Board may apply to any circuit court in the State for an
6order requiring compliance with a subpoena issued under this
7Section. Subpoenas issued under this Section shall be subject
8to applicable provisions of the Code of Civil Procedure. The
9president or other members of the board may administer oaths
10to witnesses.
11
Article 2.
12 Section 2-5. The Illinois Pension Code is amended by
13changing Sections 15-202, 16-204, 24-104, and 24-107 as
14follows:
15 (40 ILCS 5/15-202)
16 Sec. 15-202. Optional deferred compensation plan.
17 (a) As soon as practicable after August 10, 2018 (the
18effective date of Public Act 100-769), the System shall offer
19a deferred compensation plan that is eligible under Section
20457(b) of the Internal Revenue Code of 1986, as amended, to
21participating employees of the System employed by employers
22described in Section 15-106 of this Code that qualify as
23eligible employers under Section 457(e)(1)(A) of the Internal

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1Revenue Code of 1986, as amended. Such eligible employers
2shall adopt the plan with an effective date no later than
3September 1, 2021. Participating employees may voluntarily
4elect to make elective deferrals to the eligible deferred
5compensation plan. Eligible employers may make optional
6employer contributions to the plan on behalf of participating
7employees, which contributions may be maintained, increased,
8reduced, or eliminated at the discretion of the employer from
9plan year to plan year. The plan shall collect voluntary
10employee and optional employer contributions into an account
11for each participant and shall offer investment options to the
12participant. The plan under this Section shall be operated in
13full compliance with any applicable State and federal laws,
14and the System shall utilize generally accepted practices in
15creating and maintaining the plan for the best interest of the
16participants. In administering the deferred compensation plan,
17the System shall require that the deferred compensation plan
18recordkeeper agree that, in performing services with respect
19to the deferred compensation plan, the recordkeeper: (i) will
20not use information received as a result of providing services
21with respect to the deferred compensation plan or the
22participants in the deferred compensation plan to solicit the
23participants in the deferred compensation plan for the purpose
24of cross-selling nonplan products and services, unless in
25response to a request by a participant in the deferred
26compensation plan; and (ii) will not promote, recommend,

SB1646 Enrolled- 5 -LRB103 27811 RPS 54189 b
1endorse, or solicit participants in the deferred compensation
2plan to purchase any financial products or services outside of
3the deferred compensation plan, except that links to parts of
4the recordkeeper's website that are generally available to the
5public, are about commercial products, and may be encountered
6by a participant in the regular course of navigating the
7recordkeeper's website will not constitute a violation of this
8item (ii). The System may use funds from the employee and
9employer contributions to defray any and all costs of creating
10and maintaining the plan. The System shall produce an annual
11report on the participation in the plan and shall make the
12report public.
13 (b) The System shall automatically enroll in the eligible
14deferred compensation plan any employee of an eligible
15employer who first becomes a participating employee of the
16System on or after July 1, 2023 under an eligible automatic
17contribution arrangement that is subject to Section 414(w) of
18the Internal Revenue Code of 1986, as amended, and the United
19States Department of Treasury regulations promulgated
20thereunder. An employee who is automatically enrolled under
21this subsection (b) shall have 3% of his or her compensation,
22as defined by the plan, for each pay period deferred on a
23pre-tax basis into his or her account, subject to any
24contribution limits applicable to the plan. The Board may
25increase the default percentage of compensation deferred under
26this subsection (b).

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1 An employee shall have 30 days from the date on which the
2System provides the notice required under Section 414(w) of
3the Internal Revenue Code of 1986, as amended, to elect to not
4participate in the eligible deferred compensation plan or to
5elect to increase or reduce the initial amount of elective
6deferrals made to the plan. In the absence of such affirmative
7election, the employee shall be automatically enrolled in the
8plan on the first day of the calendar month, or as soon as
9administratively practicable thereafter, following the 30th
10day from the date on which the System provides the required
11notice. An employee who has been automatically enrolled in the
12plan under this subsection (b) may elect, within 90 days of
13enrollment, to withdraw from the plan and receive a refund of
14amounts deferred, adjusted by applicable earnings and fees. An
15employee making such an election shall forfeit all employer
16matching contributions, if any, made with respect to such
17refunded elective deferrals and such forfeited amounts shall
18be used to defray plan expenses. Any refunded elective
19deferrals shall be included in the employee's gross income for
20the taxable year in which the refund is issued.
21 (c) The System may provide for one or more automatic
22contribution arrangements, which shall comply with all
23applicable Internal Revenue Service rules and regulations, in
24conjunction with or in lieu of the eligible automatic
25contribution arrangement under subsection (b), for
26participating employees of eligible employers whose annual

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1earnings are limited by application of subsection (b) of
2Section 15-111 of this Code. The amount of elective deferrals
3made for the employee each pay period under an automatic
4contribution arrangement shall equal the default percentage
5specified by resolution of the Board multiplied by the
6employee's compensation as defined by the plan, subject to any
7contribution limits applicable to the plan, and shall be made
8on a pre-tax basis. An employee subject to this subsection (c)
9shall have 30 days from the date on which the System provides
10written notice to the employee to elect to not participate in
11the eligible deferred compensation plan or to elect to
12increase or reduce the amount of initial elective deferrals
13made to the plan. In the absence of such affirmative election,
14the employee shall be automatically enrolled in the plan
15beginning the first day of the calendar month, or as soon as
16administratively practicable thereafter, following the 30th
17day from the date on which the System provides the required
18notice.
19 (d) The System may provide that the default percentage for
20any employee automatically enrolled in the eligible deferred
21compensation plan under subsection (b) or (c) be increased by
22a specified percentage each plan year after the plan year in
23which the employee is automatically enrolled in the plan. The
24amount of automatic annual increases in any plan year shall
25not exceed 1% of compensation as defined by the plan.
26 (e) The changes made to this Section by this amendatory

SB1646 Enrolled- 8 -LRB103 27811 RPS 54189 b
1Act of the 102nd General Assembly are corrections of existing
2law and are intended to be retroactive to the effective date of
3Public Act 100-769, notwithstanding Section 1-103.1 of this
4Code.
5(Source: P.A. 102-540, eff. 8-20-21.)
6 (40 ILCS 5/16-204)
7 Sec. 16-204. Optional defined contribution benefit. As
8soon as practicable after the effective date of this
9amendatory Act of the 100th General Assembly, the System shall
10offer a defined contribution benefit to active members of the
11System. The defined contribution benefit shall be an optional
12benefit to any member who chooses to participate. The defined
13contribution benefit shall collect optional employee and
14optional employer contributions into an account and shall
15offer investment options to the participant. The benefit under
16this Section shall be operated in full compliance with any
17applicable State and federal laws, and the System shall
18utilize generally accepted practices in creating and
19maintaining the benefit for the best interest of the
20participants. In administering the defined contribution
21benefit, the System shall require that the defined
22contribution benefit recordkeeper agree that, in performing
23services with respect to the defined contribution benefit, the
24recordkeeper: (i) will not use information received as a
25result of providing services with respect to the defined

SB1646 Enrolled- 9 -LRB103 27811 RPS 54189 b
1contribution benefit or the participants in the defined
2contribution benefit to solicit the participants in the
3defined contribution benefit for the purpose of cross-selling
4nonplan products and services, unless in response to a request
5by a participant in the defined contribution benefit; and (ii)
6will not promote, recommend, endorse, or solicit participants
7in the defined contribution benefit to purchase any financial
8products or services outside of the defined contribution
9benefit, except that links to parts of the recordkeeper's
10website that are generally available to the public, are about
11commercial products, and may be encountered by a participant
12in the regular course of navigating the recordkeeper's website
13will not constitute a violation of this item (ii). The System
14may use funds from the employee and employer contributions to
15defray any and all costs of creating and maintaining the
16benefit. In addition, the System may use funds provided under
17Section 16-158 of this Code to defray any and all costs of
18creating and maintaining the benefit and then shall reimburse
19those costs from funds received from the employee and employer
20contributions under this Section. All employers must comply
21with the reporting and administrative functions established by
22the System and are required to implement the benefits
23established under this Section. The System shall produce an
24annual report on the participation in the benefit and shall
25make the report public.
26 As soon as is practicable on or after January 1, 2022, the

SB1646 Enrolled- 10 -LRB103 27811 RPS 54189 b
1System shall automatically enroll any employee who first
2becomes an active member or participant in the System. A
3member automatically enrolled under this Section shall have 3%
4of his or her pre-tax gross compensation for each compensation
5period deferred into his or her deferred compensation account,
6unless the member otherwise instructs the System on forms
7approved by the System. A member may elect, in a manner
8provided for by the System, to not participate in the defined
9contribution benefit or to increase or reduce the amount of
10pre-tax gross compensation contributed, consistent with State
11or federal law. A member shall be automatically enrolled in
12the benefit beginning the first day of the pay period
13following the member's 30th day of employment. A member who
14has been automatically enrolled in the benefit may elect,
15within 90 days of enrollment, to withdraw from the benefit and
16receive a refund of amounts deferred, plus or minus any
17applicable earnings, investment fees, and administrative fees.
18Any refunded amount shall be included in the member's gross
19income for the taxable year in which the refund is issued.
20 On or after January 1, 2023, the System may elect to
21increase the automatic annual contributions under this
22Section. The increase in the rate of contribution, however,
23shall not exceed 2% of a member's pre-tax gross compensation
24per year, and at no time shall any total contribution exceed
25any contribution limits established by State or federal law.
26(Source: P.A. 102-540, eff. 8-20-21.)

SB1646 Enrolled- 11 -LRB103 27811 RPS 54189 b
1 (40 ILCS 5/24-104) (from Ch. 108 1/2, par. 24-104)
2 Sec. 24-104. State Employees Deferred Compensation Plan.
3 In this Section, "Plan" means the State Employees Deferred
4Compensation Plan.
5 The Illinois State Board of Investment created under
6Article 22A of this Act shall develop and establish a deferred
7compensation plan for employees of the State which shall be
8known as the State Employees Deferred Compensation Plan. The
9Plan shall provide for the Board to review proposed investment
10offerings and shall require that only investments determined
11to be acceptable by the Board may be used for investing
12compensation deferred.
13 The Plan shall include appropriate provisions pertaining
14to its day to day operation providing for methods of electing
15to defer income, methods of changing the amount of income to be
16deferred, methods of selecting from among investment options
17available under the plan and such other provisions as may be
18appropriate.
19 In administering the Plan, the Board shall require that
20the Plan recordkeeper agree that, in performing services with
21respect to the Plan, the recordkeeper: (i) will not use
22information received as a result of providing services with
23respect to the Plan or the Plan's participants to solicit the
24Plan's participants for the purpose of cross-selling non-Plan
25products and services, unless in response to a request by a

SB1646 Enrolled- 12 -LRB103 27811 RPS 54189 b
1Plan participant; and (ii) will not promote, recommend,
2endorse, or solicit Plan participants to purchase any
3financial products or services outside of the Plan, except
4that links to parts of the recordkeeper's website that are
5generally available to the public, are about commercial
6products, and may be encountered by a Plan participant in the
7regular course of navigating the recordkeeper's website will
8not constitute a violation of this item (ii).
9 The Plan shall provide for the preparation, and
10distribution from time to time to all eligible State
11employees, of pamphlets describing the Plan and outlining the
12options and opportunities available to State employees under
13the Plan.
14 The Plan established under this Section shall not be
15implemented or amended until the Board is satisfied that
16compensation deferred under the Plan is not subject to income
17tax for the year in which it is earned and that the taxation of
18such compensation will be deferred until the time of its
19distribution to the employee.
20 The Board shall also review and oversee the administration
21of the Plan.
22(Source: P.A. 81-671.)
23 (40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)
24 Sec. 24-107. Local government plans.
25 (a) Any unit of local government or school district may

SB1646 Enrolled- 13 -LRB103 27811 RPS 54189 b
1establish for its employees a deferred compensation plan
2program. Participation shall be by written agreement between
3each employee and the legislative authority of the unit of
4local government or school district providing for the deferral
5of such compensation and the subsequent investment and
6administration of such funds.
7 (b) Any unit of local government may establish an
8employer-funded money purchase retirement plan for those of
9its full time employees who are not eligible to participate in
10any pension fund or retirement system established under
11Articles 2 through 18 of this Code. Contributions to the plan
12shall be made by the unit of local government only from general
13purpose funds not derived from real property taxes imposed by
14the unit, at a rate to be determined from time to time by the
15unit of local government. However, the rate of employer
16contribution shall be (i) the same for all employees
17participating in the plan, and (ii) not more than 10% of the
18employee's salary.
19 Any benefits accruing to the participants in a retirement
20plan established under this subsection shall be protected from
21impairment in accordance with Article XIII, Section 5 of the
22Illinois Constitution. However, the unit of local government
23establishing such a plan may terminate it at any time, unless
24it has otherwise contractually agreed with its participating
25employees.
26 (c) The agency or department designated by the unit of

SB1646 Enrolled- 14 -LRB103 27811 RPS 54189 b
1local government or school district to establish and
2administer a plan or program authorized under subsection (a)
3or (b) of this Section may invest the assets of the plan in
4investments deemed appropriate by the agency or department,
5including but not limited to life insurance or annuity
6contracts, and share or share certificate accounts of State or
7federal credit unions, the accounts of which are insured as
8required by the Illinois Credit Union Act or the Federal
9Credit Union Act, whichever is applicable. The payment of
10employer contributions to a retirement plan established under
11subsection (b), and investment and payment to a participant of
12deferred compensation and income or gain thereon, if any,
13shall not be construed to be prohibited uses of the general
14assets of the unit of local government or school district.
15 This Section does not limit the power or authority of any
16unit of local government, school district or any institution
17supported in whole or in part by public funds to establish and
18administer any other deferred compensation plans that may be
19authorized by law and deemed appropriate by the officials of
20such subdivisions or institutions.
21 (d) In administering the deferred compensation plans
22authorized under this Section, the governing board or
23administrators of the sponsoring unit of local government or
24school district shall require that the deferred compensation
25plan recordkeeper agree that, in performing services with
26respect to the deferred compensation plan, the recordkeeper:

SB1646 Enrolled- 15 -LRB103 27811 RPS 54189 b
1(i) will not use information received as a result of providing
2services with respect to the deferred compensation plan or the
3deferred compensation plan's participants to solicit the
4participants in the deferred compensation plan for the purpose
5of cross-selling nonplan products and services, unless in
6response to a request by a participant in the deferred
7compensation plan; and (ii) will not promote, recommend,
8endorse, or solicit participants in the deferred compensation
9plan to purchase any financial products or services outside of
10the deferred compensation plan, except that links to parts of
11the recordkeeper's website that are generally available to the
12public, are about commercial products, and may be encountered
13by a Plan participant in the regular course of navigating the
14recordkeeper's website will not constitute a violation of this
15item (ii).
16(Source: P.A. 87-794.)
17 Section 2-10. The University Employees Custodial Accounts
18Act is amended by changing Section 2 as follows:
19 (110 ILCS 95/2) (from Ch. 144, par. 1702)
20 Sec. 2. The governing board of any public institution of
21higher education has the power to establish a defined
22contribution plan to make payments to custodial accounts for
23investment in regulated investment company stock to provide
24retirement benefits as described in Section 403(b)(7) of the

SB1646 Enrolled- 16 -LRB103 27811 RPS 54189 b
1Internal Revenue Code for eligible employees of such
2institutions. Such payments shall be made with funds made
3available by deductions from or reductions in salary or wages
4of eligible employees who authorize in writing deductions or
5reductions for such purpose. Such stock shall be purchased
6only from persons authorized to sell such stock in this State.
7 In administering the defined contribution plan, the
8governing board of any public institution of higher education
9shall require that the defined contribution plan recordkeeper
10agree that, in performing services with respect to the defined
11contribution plan, the recordkeeper: (i) will not use
12information received as a result of providing services with
13respect to the defined contribution plan or the participants
14in the defined contribution plan to solicit the participants
15in the defined contribution plan for the purpose of
16cross-selling nonplan products and services, unless in
17response to a request by a participant in the defined
18contribution plan; and (ii) will not promote, recommend,
19endorse, or solicit participants in the defined contribution
20plan to purchase any financial products or services outside of
21the defined contribution plan, except that links to parts of
22the recordkeeper's website that are generally available to the
23public, are about commercial products, and may be encountered
24by a participant in the regular course of navigating the
25recordkeeper's website will not constitute a violation of this
26item (ii). However, a public institution of higher education

SB1646 Enrolled- 17 -LRB103 27811 RPS 54189 b
1may allow promotion of limited services if the public
2institution of higher education receives no compensation from
3the recordkeeper for promoting or providing such services.
4Such limited services may include educational, counseling,
5debt reduction, student loan repayment or forgiveness, or
6other services intended to enhance retirement savings
7opportunities. Such limited services may not include credit
8cards, life insurance, or banking products.
9(Source: P.A. 83-261.)
10
Article 3.
11 Section 3-5. The Illinois Pension Code is amended by
12changing Section 1-167 as follows:
13 (40 ILCS 5/1-167)
14 Sec. 1-167. Prohibited disclosures. No pension fund or
15retirement system subject to this Code shall disclose the
16following information of any members or participants of any
17pension fund or retirement system: (1) the individual's home
18address (including ZIP code and county); (2) the individual's
19date of birth; (3) the individual's home and personal phone
20number; (4) the individual's personal email address; (5)
21personally identifying member or participant deduction
22information; or (6) any membership status in a labor
23organization or other voluntary association affiliated with a

SB1646 Enrolled- 18 -LRB103 27811 RPS 54189 b
1labor organization or labor federation (including whether
2participants are members of such organization, the identity of
3such organization, whether or not participants pay or
4authorize the payment of any dues or moneys to such
5organization, and the amounts of such dues or moneys).
6 This Section does not apply to disclosures (i) required
7under the Freedom of Information Act, (ii) for purposes of
8conducting public operations or business, or (iii) to a labor
9organization or other voluntary association affiliated with a
10labor organization or labor federation or to the Municipal
11Employees Society of Chicago.
12(Source: P.A. 101-620, eff. 12-20-19.)
13
Article 4.
14 Section 4-5. The Illinois Pension Code is amended by
15changing Section 24-105.2 as follows:
16 (40 ILCS 5/24-105.2)
17 Sec. 24-105.2. Automatic enrollment for certain employees.
18The Department of Central Management Services shall
19automatically enroll in the State Employees Deferred
20Compensation Plan any employee who, on or after July 1, 2020,
21becomes an active member or participant of a retirement system
22created under Article 2, 14, or 18. Any agency with employees
23subject to automatic enrollment must systematically provide

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1the employee data necessary for enrollment to the Department
2of Central Management Services or its designee. An employee
3automatically enrolled under this Section shall have 3% of his
4or her pre-tax gross compensation for each compensation period
5deferred into his or her deferred compensation account. The
6Board may increase the default percentage amount of
7compensation deferred into employee accounts.
8 An employee hired on or after January 1, 2024 shall be
9automatically enrolled in the Plan beginning the first day of
10the pay period following the close of the notice period,
11unless the employee elects otherwise within the notice period.
12During the notice period, an employee may elect to not
13participate in the Plan or to increase or reduce the amount of
14pre-tax gross compensation deferred. For the purposes of this
15Section, "notice period" means a reasonable period of time
16after the employee is provided with an automatic enrollment
17notice as required under Section 414(w) of the Internal
18Revenue Code of 1986, as amended. An employee who has been
19automatically enrolled in the Plan may elect, within 90 days
20after enrollment, to withdraw from the Plan and receive a
21refund of amounts deferred, plus or minus any applicable
22earnings, investment fees, and administrative fees. An
23employee making such an election shall forfeit all employer
24matching contributions, if any, made prior to the election.
25Any refunded amount shall be included in the employee's gross
26income for the taxable year in which the refund is issued.

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1 An employee hired on or after July 1, 2020 and before
2January 1, 2024 shall have 30 days from the start date of
3employment to elect to not participate in the deferred
4compensation plan or to elect to increase or reduce the amount
5of pre-tax gross compensation deferred. An employee shall be
6automatically enrolled in the Plan beginning the first day of
7the pay period following the employee's thirtieth day of
8employment. An employee who has been automatically enrolled in
9the Plan may elect, within 90 days of enrollment, to withdraw
10from the Plan and receive a refund of amounts deferred, plus or
11minus any applicable earnings, investment fees, and
12administrative fees. An employee making such an election shall
13forfeit all employer matching contributions, if any, made
14prior to the election. Any refunded amount shall be included
15in the employee's gross income for the taxable year in which
16the refund is issued.
17 As soon as practicable, the Board shall establish annual,
18automatic increases to employee contribution rates for
19employees who are automatically enrolled in the Plan pursuant
20to this Section. The amount of automatic annual increases in
21any 12-month period shall not exceed 1% of compensation.
22Employees may elect to not receive automatic annual increases
23in a manner described by the Board.
24(Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.)
25
Article 5.

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1 Section 5-5. The Illinois Pension Code is amended by
2changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as
3follows:
4 (40 ILCS 5/22C-115)
5 Sec. 22C-115. Board of Trustees of the Fund.
6 (a) No later than February 1, 2020 (one month after the
7effective date of Public Act 101-610) or as soon thereafter as
8may be practicable, the Governor shall appoint, by and with
9the advice and consent of the Senate, a transition board of
10trustees consisting of 9 members as follows:
11 (1) three members representing municipalities and fire
12 protection districts who are mayors, presidents, chief
13 executive officers, chief financial officers, or other
14 officers, executives, or department heads of
15 municipalities or fire protection districts and appointed
16 from among candidates recommended by the Illinois
17 Municipal League;
18 (2) three members representing participants who are
19 participants and appointed from among candidates
20 recommended by the statewide labor organization
21 representing firefighters employed by at least 85
22 municipalities that is affiliated with the Illinois State
23 Federation of Labor;
24 (3) one member representing beneficiaries who is a

SB1646 Enrolled- 22 -LRB103 27811 RPS 54189 b
1 beneficiary and appointed from among the candidate or
2 candidates recommended by the statewide labor organization
3 representing firefighters employed by at least 85
4 municipalities that is affiliated with the Illinois State
5 Federation of Labor;
6 (4) one member recommended by the Illinois Municipal
7 League; and
8 (5) one member who is a participant recommended by the
9 statewide labor organization representing firefighters
10 employed by at least 85 municipalities and that is
11 affiliated with the Illinois State Federation of Labor.
12 The transition board members shall serve until the initial
13permanent board members are elected and qualified.
14 The transition board of trustees shall select the
15chairperson of the transition board of trustees from among the
16trustees for the duration of the transition board's tenure.
17 (b) The permanent board of trustees shall consist of 9
18members comprised as follows:
19 (1) Three members who are mayors, presidents, chief
20 executive officers, chief financial officers, or other
21 officers, executives, or department heads of
22 municipalities or fire protection districts that have
23 participating pension funds and are elected by the mayors
24 and presidents of municipalities or fire protection
25 districts that have participating pension funds.
26 (2) Three members who are participants of

SB1646 Enrolled- 23 -LRB103 27811 RPS 54189 b
1 participating pension funds and elected by the
2 participants of participating pension funds.
3 (3) One member who is a beneficiary of a participating
4 pension fund and is elected by the beneficiaries of
5 participating pension funds.
6 (4) One member recommended by the Illinois Municipal
7 League who shall be appointed by the Governor with the
8 advice and consent of the Senate.
9 (5) One member recommended by the statewide labor
10 organization representing firefighters employed by at
11 least 85 municipalities and that is affiliated with the
12 Illinois State Federation of Labor who shall be appointed
13 by the Governor with the advice and consent of the Senate.
14 The permanent board of trustees shall select the
15chairperson of the permanent board of trustees from among the
16trustees for a term of 2 years. The holder of the office of
17chairperson shall alternate between a person elected or
18appointed under item (1) or (4) of this subsection (b) and a
19person elected or appointed under item (2), (3), or (5) of this
20subsection (b).
21 (c) Each trustee shall qualify by taking an oath of office
22before the Secretary of State or the Board's appointed legal
23counsel stating that he or she will diligently and honestly
24administer the affairs of the board and will not violate or
25knowingly permit the violation of any provision of this
26Article.

SB1646 Enrolled- 24 -LRB103 27811 RPS 54189 b
1 (d) Trustees shall receive no salary for service on the
2board but shall be reimbursed for travel expenses incurred
3while on business for the board according to the standards in
4effect for members of the Commission on Government Forecasting
5and Accountability.
6 A municipality or fire protection district employing a
7firefighter who is an elected or appointed trustee of the
8board must allow reasonable time off with compensation for the
9firefighter to conduct official business related to his or her
10position on the board, including time for travel. The board
11shall notify the municipality or fire protection district in
12advance of the dates, times, and locations of this official
13business. The Fund shall timely reimburse the municipality or
14fire protection district for the reasonable costs incurred
15that are due to the firefighter's absence.
16 (e) No trustee shall have any interest in any brokerage
17fee, commission, or other profit or gain arising out of any
18investment directed by the board. This subsection does not
19preclude ownership by any member of any minority interest in
20any common stock or any corporate obligation in which an
21investment is directed by the board.
22 (f) Notwithstanding any provision or interpretation of law
23to the contrary, any member of the transition board may also be
24elected or appointed as a member of the permanent board.
25 Notwithstanding any provision or interpretation of law to
26the contrary, any trustee of a fund established under Article

SB1646 Enrolled- 25 -LRB103 27811 RPS 54189 b
14 of this Code may also be appointed as a member of the
2transition board or elected or appointed as a member of the
3permanent board.
4 The restriction in Section 3.1 of the Lobbyist
5Registration Act shall not apply to a member of the transition
6board appointed pursuant to items (4) or (5) of subsection (a)
7or to a member of the permanent board appointed pursuant to
8items (4) or (5) of subsection (b).
9(Source: P.A. 101-610, eff. 1-1-20; 102-558, eff. 8-20-21.)
10 (40 ILCS 5/22C-116)
11 Sec. 22C-116. Conduct and administration of elections;
12terms of office.
13 (a) For the election of the permanent trustees, the
14transition board shall administer the initial elections and
15the permanent board shall administer all subsequent elections.
16Each board shall develop and implement such procedures as it
17determines to be appropriate for the conduct of such
18elections. For the purposes of obtaining information necessary
19to conduct elections under this Section, participating pension
20funds shall cooperate with the Fund.
21 (b) All nominations for election shall be by petition.
22Each petition for a trustee shall be executed as follows:
23 (1) for trustees to be elected by the mayors and
24 presidents of municipalities or fire protection districts
25 that have participating pension funds, by at least 20 such

SB1646 Enrolled- 26 -LRB103 27811 RPS 54189 b
1 mayors and presidents; except that this item (1) shall
2 apply only with respect to participating pension funds;
3 (2) for trustees to be elected by participants, by at
4 least 400 participants; and
5 (3) for trustees to be elected by beneficiaries, by at
6 least 100 beneficiaries.
7 (c) A separate ballot shall be used for each class of
8trustee. The board shall prepare and send ballots and ballot
9envelopes to the participants and beneficiaries eligible
10voters to vote in accordance with rules adopted by the board.
11The ballots shall contain the names of all candidates in
12alphabetical order. The ballot envelope shall have on the
13outside a form of certificate stating that the person voting
14the ballot is a participant or beneficiary entitled to vote.
15 Eligible voters Participants and beneficiaries, upon
16receipt of the ballot, shall vote the ballot and place it in
17the ballot envelope, seal the envelope, execute the
18certificate thereon, and return the ballot to the Fund.
19 The board shall set a final date for ballot return, and
20ballots received prior to that date in a ballot envelope with a
21properly executed certificate and properly voted shall be
22valid ballots.
23 The board shall set a day for counting the ballots and name
24judges and clerks of election to conduct the count of ballots
25and shall make any rules necessary for the conduct of the
26count.

SB1646 Enrolled- 27 -LRB103 27811 RPS 54189 b
1 The candidate or candidates receiving the highest number
2of votes for each class of trustee shall be elected. In the
3case of a tie vote, the winner shall be determined in
4accordance with procedures developed by the Department of
5Insurance.
6 In lieu of conducting elections via mail balloting as
7described in this Section, the board may instead adopt rules
8to provide for elections to be carried out solely via Internet
9balloting or phone balloting. Nothing in this Section
10prohibits the Fund from contracting with a third party to
11administer the election in accordance with this Section.
12 (d) At any election, voting shall be as follows:
13 (1) Each person authorized to vote for an elected
14 trustee may cast one vote for each related position for
15 which such person is entitled to vote and may cast such
16 vote for any candidate or candidates on the ballot for
17 such trustee position.
18 (2) If only one candidate for each position is
19 properly nominated in petitions received, that candidate
20 shall be deemed the winner and no election under this
21 Section shall be required.
22 (3) The results shall be entered in the minutes of the
23 first meeting of the board following the tally of votes.
24 (e) The initial election for permanent trustees shall be
25held and the permanent board shall be seated no later than 12
26months after the effective date of this amendatory Act of the

SB1646 Enrolled- 28 -LRB103 27811 RPS 54189 b
1101st General Assembly. Each subsequent election shall be held
2no later than 30 days prior to the end of the term of the
3incumbent trustees.
4 (f) The elected trustees shall each serve for terms of 4
5years commencing on the first business day of the first month
6after election; except that the terms of office of the
7initially elected trustees shall be as follows:
8 (1) One trustee elected pursuant to item (1) of
9 subsection (b) of Section 22C-115 shall serve for a term
10 of 2 years and 2 trustees elected pursuant to item (1) of
11 subsection (b) of Section 22C-115 shall serve for a term
12 of 4 years;
13 (2) One trustee elected pursuant to item (2) of
14 subsection (b) of Section 22C-115 shall serve for a term
15 of 2 years and 2 trustees elected pursuant to item (2) of
16 subsection (b) of Section 22C-115 shall serve for a term
17 of 4 years; and
18 (3) The trustee elected pursuant to item (3) of
19 subsection (b) of Section 22C-115 shall serve for a term
20 of 2 years.
21 (g) The trustees appointed pursuant to items (4) and (5)
22of subsection (b) of Section 22C-115 shall each serve for a
23term of 4 years commencing on the first business day of the
24first month after the election of the elected trustees.
25 (h) A member of the board who was elected pursuant to item
26(1) of subsection (b) of Section 22C-115 who ceases to serve as

SB1646 Enrolled- 29 -LRB103 27811 RPS 54189 b
1a mayor, president, chief executive officer, chief financial
2officer, or other officer, executive, or department head of a
3municipality or fire protection district that has a
4participating pension fund shall not be eligible to serve as a
5member of the board and his or her position shall be deemed
6vacant. A member of the board who was elected by the
7participants of participating pension funds who ceases to be a
8participant may serve the remainder of his or her elected
9term.
10 For a vacancy of an elected trustee occurring with an
11unexpired term of 6 months or more, an election shall be
12conducted for the vacancy in accordance with Section 22C-115
13and this Section.
14 For a vacancy of an elected trustee occurring with an
15unexpired term of less than 6 months, the vacancy shall be
16filled by appointment by the board for the unexpired term as
17follows: a vacancy of a member elected pursuant to item (1) of
18subsection (b) of Section 22C-115 shall be filled by a mayor,
19president, chief executive officer, chief financial officer,
20or other officer, executive, or department head of a
21municipality or fire protection district that has a
22participating pension fund; a vacancy of a member elected
23pursuant to item (2) of subsection (b) of Section 22C-115
24shall be filled by a participant of a participating pension
25fund; and a vacancy of a member elected under item (3) of
26subsection (b) of Section 22C-115 shall be filled by a

SB1646 Enrolled- 30 -LRB103 27811 RPS 54189 b
1beneficiary of a participating pension fund. A trustee
2appointed to fill the vacancy of an elected trustee shall
3serve until a successor is elected. Special elections to fill
4the remainder of an unexpired term vacated by an elected
5trustee shall be held concurrently with and in the same manner
6as the next regular election for an elected trustee position.
7 Vacancies among the appointed trustees shall be filled for
8unexpired terms by appointment in like manner as for the
9original appointments.
10(Source: P.A. 101-610, eff. 1-1-20.)
11 (40 ILCS 5/22C-119)
12 Sec. 22C-119. Adoption of rules. The board shall adopt
13such rules (not inconsistent with this Code) as in its
14judgment are desirable to implement and properly administer
15this Article. Such rules shall specifically provide for the
16following: (1) the implementation of the transition process
17described in Section 22C-120; (2) the process by which the
18participating pension funds may request transfer of funds; (3)
19the process for the transfer in, receipt for, and investment
20of pension assets received by the Fund after the transition
21period from the participating pension funds; (4) the process
22by which contributions from municipalities and fire protection
23districts for the benefit of the participating pension funds
24may, but are not required to, be directly transferred to the
25Fund; and (5) compensation and benefits for its employees. A

SB1646 Enrolled- 31 -LRB103 27811 RPS 54189 b
1copy of the rules adopted by the Fund shall be posted on the
2Fund's website filed with the Secretary of State and the
3Department of Insurance. The adoption and effectiveness of
4such rules shall not be subject to Article 5 of the Illinois
5Administrative Procedure Act.
6(Source: P.A. 101-610, eff. 1-1-20.)
7 (40 ILCS 5/22C-123)
8 Sec. 22C-123. Custodian. The pension fund assets
9transferred to or otherwise acquired by the Fund shall be
10placed in the custody of a custodian who shall provide
11adequate safe deposit facilities for those assets and hold all
12such securities, funds, and other assets subject to the order
13of the Fund.
14 Each custodian shall furnish a corporate surety bond of
15such amount as the board designates, which bond shall
16indemnify the Fund, the board, and the officers and employees
17of the Fund against any loss that may result from any action or
18failure to act by the custodian or any of the custodian's
19agents, or provide insurance coverages of such type and limits
20as the board designates. All charges incidental to the
21procuring and giving of any bond shall be paid by the board and
22each bond shall be in the custody of the board.
23(Source: P.A. 101-610, eff. 1-1-20.)
24
Article 6.

SB1646 Enrolled- 32 -LRB103 27811 RPS 54189 b
1 Section 6-5. The Illinois Pension Code is amended by
2changing Section 8-165 as follows:
3 (40 ILCS 5/8-165) (from Ch. 108 1/2, par. 8-165)
4 Sec. 8-165. Re-entry into service.
5 (a) Except as provided in subsection (c) or (d), when an
6employee receiving age and service or prior service annuity
7who has withdrawn from service after the effective date
8re-enters service before age 65, any annuity previously
9granted and any annuity fixed for his wife shall be cancelled.
10The employee shall be credited for annuity purposes with sums
11sufficient to provide annuities equal to those cancelled, as
12of their ages on the date of re-entry; provided, the maximum
13age of the wife for this purpose shall be as provided in
14Section 8-155 of this Article.
15 The sums so credited shall provide for annuities to be
16fixed and granted in the future. Contributions by the
17employees and the city for the purposes of this Article shall
18be made, and when the proper time arrives, as provided in this
19Article, new annuities based upon the total credit for annuity
20purposes and the entire term of his service shall be fixed for
21the employee and his wife.
22 If the employee's wife died before he re-entered service,
23no part of any credits for widow's or widow's prior service
24annuity at the time annuity for his wife was fixed shall be

SB1646 Enrolled- 33 -LRB103 27811 RPS 54189 b
1credited upon re-entry into service, and no such sums shall
2thereafter be used to provide such annuity.
3 (b) Except as provided in subsection (c) or (d), when an
4employee re-enters service after age 65, payments on account
5of any annuity previously granted shall be suspended during
6the time thereafter that he is in service, and when he again
7withdraws, annuity payments shall be resumed. If the employee
8dies in service, his widow shall receive the amount of annuity
9previously fixed for her.
10 (c) For school years beginning on or after July 1, 2021, an
11age and service or prior service annuity shall not be
12cancelled in the case of an employee who is re-employed by the
13Board of Education of the city as a Special Education
14Classroom Assistant or Classroom Assistant on a temporary and
15non-annual basis or on an hourly basis so long as the person:
16(1) does not work for compensation on more than 120 days in a
17school year; or (2) does not accept gross compensation for the
18re-employment in a school year in excess of $30,000. These
19limitations apply only to school years that begin on or after
20July 1, 2021. Re-employment under this subsection does not
21require contributions, result in service credit being earned
22or granted, or constitute active participation in the Fund.
23 (d) For school years beginning on or after July 1, 2023, an
24age and service or prior service annuity shall not be
25cancelled in the case of an employee who is re-employed by the
26Board of Education of the city as a paraprofessional or

SB1646 Enrolled- 34 -LRB103 27811 RPS 54189 b
1related service provider on a temporary and non-annual basis
2or on an hourly basis so long as the person: (1) does not work
3for compensation on more than 120 days in a school year; or (2)
4does not accept gross compensation for the re-employment in a
5school year in excess of $30,000. These limitations apply only
6to school years that begin on or after July 1, 2023.
7Re-employment under this subsection does not require
8contributions, result in service credit being earned or
9granted, or constitute active participation in the Fund.
10(Source: P.A. 102-342, eff. 8-13-21.)
11
Article 7.
12 Section 7-5. The School Code is amended by changing
13Section 24-6.3 as follows:
14 (105 ILCS 5/24-6.3) (from Ch. 122, par. 24-6.3)
15 Sec. 24-6.3. Retirement trustee leave.
16 (a) Each school board employing a teacher who is an
17elected trustee of the Teachers' Retirement System of the
18State of Illinois shall make available to the elected trustee
19at least 20 days of paid leave of absence per year for the
20purpose of attending meetings of the System's Board of
21Trustees, committee meetings of such Board, and seminars
22regarding issues for which such Board is responsible. The
23Teachers' Retirement System of the State of Illinois shall

SB1646 Enrolled- 35 -LRB103 27811 RPS 54189 b
1reimburse affected school districts for the actual cost of
2hiring a substitute teacher during such leaves of absence.
3 (b) Each school board employing an employee who is an
4elected trustee of the Illinois Municipal Retirement Fund
5shall make available to the elected trustee at least 20 days of
6paid leave of absence per year for the purpose of attending
7meetings of the Fund's Board of Trustees, committee meetings
8of the Board of Trustees, and seminars regarding issues for
9which the Board of Trustees is responsible. The Illinois
10Municipal Retirement Fund may reimburse affected school
11districts for the actual cost of hiring a substitute employee
12during such leaves of absence.
13 (c) The school board established under Article 34 and
14employers under Article 17 of the Illinois Pension Code shall
15make available to each active teacher who is an elected
16trustee of the Board of Trustees of the Public School
17Teachers' Pension and Retirement Fund of Chicago established
18under Article 17 of the Illinois Pension Code up to 22 days of
19paid leave of absence per year for the purpose of attending
20meetings of the Board of Trustees, committee meetings of the
21Board of Trustees, and seminars regarding issues for which the
22Board of Trustees is responsible. The allocation of the days
23of paid leave shall be at the discretion of the Board of
24Trustees of the Public School Teachers' Pension and Retirement
25Fund of Chicago.
26(Source: P.A. 96-357, eff. 8-13-09.)

SB1646 Enrolled- 36 -LRB103 27811 RPS 54189 b
1
Article 8.
2 Section 8-5. The Illinois Pension Code is amended by
3changing Section 16-155 as follows:
4 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
5 Sec. 16-155. Report to system and payment of deductions.
6 (a) The employer governing body of each school district
7shall submit to the System all required reports and make two
8deposits each month. The deposit for member contributions for
9salary paid during any between the first and the fifteenth of
10the month is due by the 10th 25th of the following month.
11Additionally, all The deposit of member contributions for
12salary paid between the sixteenth and last day of the month is
13due by the 10th of the following month. All required
14contributions for salary earned during a school term are due
15by July 10 next following the close of such school term.
16 The governing body of each State institution coming under
17this retirement system, the State Comptroller or other State
18officer certifying payroll vouchers including payments of
19salary or wages to teachers, and any other employer of
20teachers, shall, monthly, forward to the secretary of the
21retirement system the member contributions required under this
22Article.
23 Each employer specified above shall, prior to August 15 of

SB1646 Enrolled- 37 -LRB103 27811 RPS 54189 b
1each year, forward to the System a detailed statement,
2verified in all cases of school districts by the secretary or
3clerk of the district, of the amounts so contributed since the
4period covered by the last previous annual statement, together
5with required contributions not yet forwarded, such payments
6being payable to the System.
7 The board may prescribe rules governing the form, content,
8investigation, control, and supervision of such statements and
9may establish additional interim employer reporting
10requirements as the Board deems necessary. If no teacher in a
11school district comes under the provisions of this Article,
12the governing body of the district shall so state under the
13oath of its secretary to this system, and shall at the same
14time forward a copy of the statement to the regional
15superintendent of schools.
16 The board may also require reporting requirements that are
17different than those prescribed in this Section and may
18require different reporting requirements for different
19benefits or purposes established under this Article,
20including, but not limited to, any optional benefit plan an
21employee chooses to participate in.
22 (b) If the governing body of an employer that is not a
23State agency fails to forward such required contributions
24within the time permitted in subsection (a) above, the System
25shall notify the employer of an additional amount due, equal
26to $50 per day for each day that elapses from the due date

SB1646 Enrolled- 38 -LRB103 27811 RPS 54189 b
1until the day such report and employee contributions are
2received by the System.
3 (c) If the system, on August 15, is not in receipt of the
4detailed statements required under this Section of any school
5district or other employing unit, such school district or
6other employing unit shall pay to the system an amount equal to
7$250 for each day that elapses from August 15, until the day
8such statement is filed with the system.
9(Source: P.A. 101-502, eff. 8-23-19.)
10
Article 9.
11 Section 9-5. The Illinois Pension Code is amended by
12changing Sections 9-108.3 and 9-161 as follows:
13 (40 ILCS 5/9-108.3)
14 Sec. 9-108.3. In service. "In service": Any period during
15which contributions are being made to the Fund on behalf of an
16employee except for temporary election work as described in
17subsection (c) of Section 9-161.
18(Source: P.A. 99-578, eff. 7-15-16.)
19 (40 ILCS 5/9-161) (from Ch. 108 1/2, par. 9-161)
20 Sec. 9-161. Re-entry into service. (a) When an employee
21who has withdrawn from service after the effective date
22re-enters service before age 65, any annuity previously

SB1646 Enrolled- 39 -LRB103 27811 RPS 54189 b
1granted and any annuity fixed for his wife shall be cancelled.
2The employee shall be credited for annuity purposes with the
3actuarial value of annuities equal to those cancelled as of
4their ages on the date of re-entry; provided, the maximum age
5of the wife for this purpose shall be as provided in Section
69-151 of this Article. The sums so credited shall provide for
7annuities to be fixed and granted in the future. Contributions
8by the employee and the county for the purposes of this Article
9shall be made and when the proper time arrives, as provided in
10this Article, new annuities based upon the total sums
11accumulated to his credit for annuity purposes and the entire
12term of his service shall be fixed for the employee and his
13wife.
14 If the employee's wife has died before he re-entered
15service, no part of any credits for widow's or widow's prior
16service annuity at the time annuity for his wife was fixed
17shall be credited upon re-entry into service, and no such sums
18shall thereafter be used to provide such annuity.
19 (b) When an employee re-enters service after age 65,
20payments on account of any annuity previously granted shall be
21suspended during the time thereafter that he is in service,
22and when he again withdraws annuity payments shall be resumed.
23If the employee dies in service, his widow shall receive the
24annuity previously fixed for her.
25 (c) If an employee annuitant re-enters service as an
26election worker and provides services for a scheduled federal,

SB1646 Enrolled- 40 -LRB103 27811 RPS 54189 b
1State, or local election for a period of 60 days or less during
2a calendar year, that employee annuitant's annuity shall not
3be suspended and such employee annuitant shall not be
4considered to be in service within the meaning of Section
59-108.3 and is not entitled to benefits for employees in
6service. If an employee annuitant re-enters service for a
7period longer than 60 days during a calendar year, the annuity
8shall be suspended or cancelled retroactive to the initial
9date of re-entry.
10(Source: P.A. 81-1536.)
11
Article 10.
12 Section 10-5. The Illinois Pension Code is amended by
13changing Section 17-133 as follows:
14 (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
15 Sec. 17-133. Contributions for periods of outside and
16other service. Regularly certified and appointed teachers who
17desire to have the following described services credited for
18pension purposes shall submit to the Board evidence thereof
19and pay into the Fund the amounts prescribed herein:
20 1. For teaching service by a certified teacher in the
21 public schools of the several states or in schools
22 operated by or under the auspices of the United States, a
23 teacher shall pay the contributions at the rates in force

SB1646 Enrolled- 41 -LRB103 27811 RPS 54189 b
1 (a) on the date of appointment as a regularly certified
2 teacher after salary adjustments are completed, or (b) at
3 the time of reappointment after salary adjustments are
4 completed, whichever is later, but not less than $450 per
5 year of service. Upon the Board's approval of such service
6 and the payment of the required contributions, service
7 credit of not more than 10 years shall be granted.
8 2. For service as a playground instructor in public
9 school playgrounds, teachers shall pay the contributions
10 prescribed in this Article (a) at the time of appointment,
11 as a regularly certified teacher after salary adjustments
12 are completed, or (b) on return to service as a full time
13 regularly certified teacher, as the case may be, provided
14 such rates or amounts shall not be less than $450 per year.
15 3. For service prior to September 1, 1955, in the
16 public schools of the City as a substitute, evening school
17 or temporary teacher, or for service as an Americanization
18 teacher prior to December 31, 1955, teachers shall pay the
19 contributions prescribed in this Article (a) at the time
20 of appointment, as a regularly certified teacher after
21 salary adjustments are completed, (b) on return to service
22 as a full time regularly certified teacher, as the case
23 may be, provided such rates or amounts shall not be less
24 than $450 per year; and provided further that for teachers
25 employed on or after September 1, 1953, rates shall not
26 include contributions for widows' pensions if the service

SB1646 Enrolled- 42 -LRB103 27811 RPS 54189 b
1 described in this sub-paragraph 3 was rendered before that
2 date. Any teacher entitled to repay a refund of
3 contributions under Section 17-126 may validate service
4 described in this paragraph by payment of the amounts
5 prescribed herein, together with the repayment of the
6 refund, provided that if such creditable service was the
7 last service rendered in the public schools of the City
8 and is not automatically reinstated by repayment of the
9 refund, the rates or amounts shall not be less than $450
10 per year.
11 4. For service after June 30, 1982 as a member of the
12 Board of Education, if required to resign from an
13 administrative or teaching position in order to qualify as
14 a member of the Board of Education.
15 5. For service during the 1986-87 school year as a
16 teacher on a special leave of absence with full loss of
17 salary, teaching for an agency under contract to the Board
18 of Education, if the teacher returned to employment in
19 September, 1987. For service under this item 5, the
20 teacher must pay the contributions at the rates in force
21 at the completion of the leave period.
22 6. For up to 2 years of service as a teacher or
23 administrator employed by a private school registered with
24 or recognized by the Illinois State Board of Education,
25 provided that the teacher (i) was certified under the law
26 governing the certification of teachers at the time the

SB1646 Enrolled- 43 -LRB103 27811 RPS 54189 b
1 service was rendered, (ii) applies in writing no later
2 than 2 years after the effective date of this amendatory
3 Act of the 102nd General Assembly, (iii) supplies
4 satisfactory evidence of the employment, (iv) completes at
5 least 10 years of contributing service as a teacher as
6 defined in Section 17-106, (v) pays the contribution
7 required in this Section, and (vi) does not receive credit
8 for that service under any other provision of this Code.
9 The member may apply for credit under this subsection and
10 pay the required contribution before completing the 10
11 years of contributing service required under item (iv),
12 but the credit may not be used until the item (iv)
13 contributing service requirement has been met.
14 For each year of service credit to be established
15 under this subparagraph 6, a member is required to
16 contribute to the System (i) the employee and employer
17 contribution that would have been required had such
18 service been rendered as a member based on the annual
19 salary rate during the first year of full-time employment
20 as a teacher under this Article following the private
21 school service, plus (ii) interest thereon at the
22 actuarially assumed rate from the date of first full-time
23 employment as a teacher under this Article following the
24 private school service to the date of payment, compounded
25 annually, at a rate determined by the Board.
26 For service described in sub-paragraphs 1, 2 and 3 of this

SB1646 Enrolled- 44 -LRB103 27811 RPS 54189 b
1Section, interest shall be charged beginning one year after
2the effective date of appointment or reappointment.
3 Effective September 1, 1974, the interest rate to be
4charged by the Fund on contributions provided in
5sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
6annually.
7(Source: P.A. 102-822, eff. 5-13-22.)
8
Article 99.
9 Section 99-90. The State Mandates Act is amended by adding
10Section 8.47 as follows:
11 (30 ILCS 805/8.47 new)
12 Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
138 of this Act, no reimbursement by the State is required for
14the implementation of any mandate created by this amendatory
15Act of the 103rd General Assembly.
16 Section 99-99. Effective date. This Act takes effect upon
17becoming law.
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