SB1646 Enrolled LRB103 27811 RPS 54189 b
1		AN ACT concerning public employee benefits.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Article 1.
5		Section 1-5. The Illinois Pension Code is amended by
6		changing Section 11-196 and by adding Section 12-162.5 as
7		follows:
8		(40 ILCS 5/11-196) (from Ch. 108 1/2, par. 11-196)
9		Sec. 11-196. To subpoena witnesses and compel the
10		production of records. To issue subpoenas to compel the
11		attendance of witnesses to testify before it and to compel the
12		production of documents and records upon any matter concerning
13		the Fund, including, but not limited to, in conjunction with:
14		fund 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

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1		(6) a felony forfeiture investigation.
2		The fees of witnesses for attendance and travel shall be
3		the same as the fees of witnesses before the circuit courts of
4		this State and shall be paid by the party seeking the subpoena.
5		The Board may apply to any circuit court in the State for an
6		order requiring compliance with a subpoena issued under this
7		Section. Subpoenas issued under this Section shall be subject
8		to applicable provisions of the Code of Civil Procedure. The
9		president or other members of the board may administer oaths
10		to 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
14		production of records. To issue subpoenas to compel the
15		attendance of witnesses to testify before it and to compel the
16		production of documents and records upon any matter concerning
17		the 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

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1		(6) a felony forfeiture investigation.
2		The fees of witnesses for attendance and travel shall be
3		the same as the fees of witnesses before the circuit courts of
4		this State and shall be paid by the party seeking the subpoena.
5		The Board may apply to any circuit court in the State for an
6		order requiring compliance with a subpoena issued under this
7		Section. Subpoenas issued under this Section shall be subject
8		to applicable provisions of the Code of Civil Procedure. The
9		president or other members of the board may administer oaths
10		to witnesses.
11		Article 2.
12		Section 2-5. The Illinois Pension Code is amended by
13		changing Sections 15-202, 16-204, 24-104, and 24-107 as
14		follows:
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
18		effective date of Public Act 100-769), the System shall offer
19		a deferred compensation plan that is eligible under Section
20		457(b) of the Internal Revenue Code of 1986, as amended, to
21		participating employees of the System employed by employers
22		described in Section 15-106 of this Code that qualify as
23		eligible employers under Section 457(e)(1)(A) of the Internal

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

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

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

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

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

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

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

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

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1		Plan participant; and (ii) will not promote, recommend,
2		endorse, or solicit Plan participants to purchase any
3		financial products or services outside of the Plan, except
4		that links to parts of the recordkeeper's website that are
5		generally available to the public, are about commercial
6		products, and may be encountered by a Plan participant in the
7		regular course of navigating the recordkeeper's website will
8		not constitute a violation of this item (ii).
9		The Plan shall provide for the preparation, and
10		distribution from time to time to all eligible State
11		employees, of pamphlets describing the Plan and outlining the
12		options and opportunities available to State employees under
13		the Plan.
14		The Plan established under this Section shall not be
15		implemented or amended until the Board is satisfied that
16		compensation deferred under the Plan is not subject to income
17		tax for the year in which it is earned and that the taxation of
18		such compensation will be deferred until the time of its
19		distribution to the employee.
20		The Board shall also review and oversee the administration
21		of 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

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

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

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

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

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

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

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1		the employee data necessary for enrollment to the Department
2		of Central Management Services or its designee. An employee
3		automatically enrolled under this Section shall have 3% of his
4		or her pre-tax gross compensation for each compensation period
5		deferred into his or her deferred compensation account. The
6		Board may increase the default percentage amount of
7		compensation deferred into employee accounts.
8		An employee hired on or after January 1, 2024 shall be
9		automatically enrolled in the Plan beginning the first day of
10		the pay period following the close of the notice period,
11		unless the employee elects otherwise within the notice period.
12		During the notice period, an employee may elect to not
13		participate in the Plan or to increase or reduce the amount of
14		pre-tax gross compensation deferred. For the purposes of this
15		Section, "notice period" means a reasonable period of time
16		after the employee is provided with an automatic enrollment
17		notice as required under Section 414(w) of the Internal
18		Revenue Code of 1986, as amended. An employee who has been
19		automatically enrolled in the Plan may elect, within 90 days
20		after enrollment, to withdraw from the Plan and receive a
21		refund of amounts deferred, plus or minus any applicable
22		earnings, investment fees, and administrative fees. An
23		employee making such an election shall forfeit all employer
24		matching contributions, if any, made prior to the election.
25		Any refunded amount shall be included in the employee's gross
26		income 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
2		January 1, 2024 shall have 30 days from the start date of
3		employment to elect to not participate in the deferred
4		compensation plan or to elect to increase or reduce the amount
5		of pre-tax gross compensation deferred. An employee shall be
6		automatically enrolled in the Plan beginning the first day of
7		the pay period following the employee's thirtieth day of
8		employment. An employee who has been automatically enrolled in
9		the Plan may elect, within 90 days of enrollment, to withdraw
10		from the Plan and receive a refund of amounts deferred, plus or
11		minus any applicable earnings, investment fees, and
12		administrative fees. An employee making such an election shall
13		forfeit all employer matching contributions, if any, made
14		prior to the election. Any refunded amount shall be included
15		in the employee's gross income for the taxable year in which
16		the refund is issued.
17		As soon as practicable, the Board shall establish annual,
18		automatic increases to employee contribution rates for
19		employees who are automatically enrolled in the Plan pursuant
20		to this Section. The amount of automatic annual increases in
21		any 12-month period shall not exceed 1% of compensation.
22		Employees may elect to not receive automatic annual increases
23		in 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.

SB1646 Enrolled - 21 - LRB103 27811 RPS 54189 b
1		Section 5-5. The Illinois Pension Code is amended by
2		changing Sections 22C-115, 22C-116, 22C-119, and 22C-123 as
3		follows:
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
7		effective date of Public Act 101-610) or as soon thereafter as
8		may be practicable, the Governor shall appoint, by and with
9		the advice and consent of the Senate, a transition board of
10		trustees 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
13		permanent board members are elected and qualified.
14		The transition board of trustees shall select the
15		chairperson of the transition board of trustees from among the
16		trustees for the duration of the transition board's tenure.
17		(b) The permanent board of trustees shall consist of 9
18		members 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
15		chairperson of the permanent board of trustees from among the
16		trustees for a term of 2 years. The holder of the office of
17		chairperson shall alternate between a person elected or
18		appointed under item (1) or (4) of this subsection (b) and a
19		person elected or appointed under item (2), (3), or (5) of this
20		subsection (b).
21		(c) Each trustee shall qualify by taking an oath of office
22		before the Secretary of State or the Board's appointed legal
23		counsel stating that he or she will diligently and honestly
24		administer the affairs of the board and will not violate or
25		knowingly permit the violation of any provision of this
26		Article.

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

SB1646 Enrolled - 25 - LRB103 27811 RPS 54189 b
1		4 of this Code may also be appointed as a member of the
2		transition board or elected or appointed as a member of the
3		permanent board.
4		The restriction in Section 3.1 of the Lobbyist
5		Registration Act shall not apply to a member of the transition
6		board appointed pursuant to items (4) or (5) of subsection (a)
7		or to a member of the permanent board appointed pursuant to
8		items (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;
12		terms of office.
13		(a) For the election of the permanent trustees, the
14		transition board shall administer the initial elections and
15		the permanent board shall administer all subsequent elections.
16		Each board shall develop and implement such procedures as it
17		determines to be appropriate for the conduct of such
18		elections. For the purposes of obtaining information necessary
19		to conduct elections under this Section, participating pension
20		funds shall cooperate with the Fund.
21		(b) All nominations for election shall be by petition.
22		Each 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
8		trustee. The board shall prepare and send ballots and ballot
9		envelopes to the participants and beneficiaries eligible
10		voters to vote in accordance with rules adopted by the board.
11		The ballots shall contain the names of all candidates in
12		alphabetical order. The ballot envelope shall have on the
13		outside a form of certificate stating that the person voting
14		the ballot is a participant or beneficiary entitled to vote.
15		Eligible voters Participants and beneficiaries, upon
16		receipt of the ballot, shall vote the ballot and place it in
17		the ballot envelope, seal the envelope, execute the
18		certificate thereon, and return the ballot to the Fund.
19		The board shall set a final date for ballot return, and
20		ballots received prior to that date in a ballot envelope with a
21		properly executed certificate and properly voted shall be
22		valid ballots.
23		The board shall set a day for counting the ballots and name
24		judges and clerks of election to conduct the count of ballots
25		and shall make any rules necessary for the conduct of the
26		count.

SB1646 Enrolled - 27 - LRB103 27811 RPS 54189 b
1		The candidate or candidates receiving the highest number
2		of votes for each class of trustee shall be elected. In the
3		case of a tie vote, the winner shall be determined in
4		accordance with procedures developed by the Department of
5		Insurance.
6		In lieu of conducting elections via mail balloting as
7		described in this Section, the board may instead adopt rules
8		to provide for elections to be carried out solely via Internet
9		balloting or phone balloting. Nothing in this Section
10		prohibits the Fund from contracting with a third party to
11		administer 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
25		held and the permanent board shall be seated no later than 12
26		months after the effective date of this amendatory Act of the

SB1646 Enrolled - 28 - LRB103 27811 RPS 54189 b
1		101st General Assembly. Each subsequent election shall be held
2		no later than 30 days prior to the end of the term of the
3		incumbent trustees.
4		(f) The elected trustees shall each serve for terms of 4
5		years commencing on the first business day of the first month
6		after election; except that the terms of office of the
7		initially 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)
22		of subsection (b) of Section 22C-115 shall each serve for a
23		term of 4 years commencing on the first business day of the
24		first 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
1		a mayor, president, chief executive officer, chief financial
2		officer, or other officer, executive, or department head of a
3		municipality or fire protection district that has a
4		participating pension fund shall not be eligible to serve as a
5		member of the board and his or her position shall be deemed
6		vacant. A member of the board who was elected by the
7		participants of participating pension funds who ceases to be a
8		participant may serve the remainder of his or her elected
9		term.
10		For a vacancy of an elected trustee occurring with an
11		unexpired term of 6 months or more, an election shall be
12		conducted for the vacancy in accordance with Section 22C-115
13		and this Section.
14		For a vacancy of an elected trustee occurring with an
15		unexpired term of less than 6 months, the vacancy shall be
16		filled by appointment by the board for the unexpired term as
17		follows: a vacancy of a member elected pursuant to item (1) of
18		subsection (b) of Section 22C-115 shall be filled by a mayor,
19		president, chief executive officer, chief financial officer,
20		or other officer, executive, or department head of a
21		municipality or fire protection district that has a
22		participating pension fund; a vacancy of a member elected
23		pursuant to item (2) of subsection (b) of Section 22C-115
24		shall be filled by a participant of a participating pension
25		fund; and a vacancy of a member elected under item (3) of
26		subsection (b) of Section 22C-115 shall be filled by a

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

SB1646 Enrolled - 31 - LRB103 27811 RPS 54189 b
1		copy of the rules adopted by the Fund shall be posted on the
2		Fund's website filed with the Secretary of State and the
3		Department of Insurance. The adoption and effectiveness of
4		such rules shall not be subject to Article 5 of the Illinois
5		Administrative 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
9		transferred to or otherwise acquired by the Fund shall be
10		placed in the custody of a custodian who shall provide
11		adequate safe deposit facilities for those assets and hold all
12		such securities, funds, and other assets subject to the order
13		of the Fund.
14		Each custodian shall furnish a corporate surety bond of
15		such amount as the board designates, which bond shall
16		indemnify the Fund, the board, and the officers and employees
17		of the Fund against any loss that may result from any action or
18		failure to act by the custodian or any of the custodian's
19		agents, or provide insurance coverages of such type and limits
20		as the board designates. All charges incidental to the
21		procuring and giving of any bond shall be paid by the board and
22		each 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
2		changing 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
6		employee receiving age and service or prior service annuity
7		who has withdrawn from service after the effective date
8		re-enters service before age 65, any annuity previously
9		granted and any annuity fixed for his wife shall be cancelled.
10		The employee shall be credited for annuity purposes with sums
11		sufficient to provide annuities equal to those cancelled, as
12		of their ages on the date of re-entry; provided, the maximum
13		age of the wife for this purpose shall be as provided in
14		Section 8-155 of this Article.
15		The sums so credited shall provide for annuities to be
16		fixed and granted in the future. Contributions by the
17		employees and the city for the purposes of this Article shall
18		be made, and when the proper time arrives, as provided in this
19		Article, new annuities based upon the total credit for annuity
20		purposes and the entire term of his service shall be fixed for
21		the employee and his wife.
22		If the employee's wife died before he re-entered service,
23		no part of any credits for widow's or widow's prior service
24		annuity at the time annuity for his wife was fixed shall be

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

SB1646 Enrolled - 34 - LRB103 27811 RPS 54189 b
1		related service provider on a temporary and non-annual basis
2		or on an hourly basis so long as the person: (1) does not work
3		for compensation on more than 120 days in a school year; or (2)
4		does not accept gross compensation for the re-employment in a
5		school year in excess of $30,000. These limitations apply only
6		to school years that begin on or after July 1, 2023.
7		Re-employment under this subsection does not require
8		contributions, result in service credit being earned or
9		granted, 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
13		Section 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
17		elected trustee of the Teachers' Retirement System of the
18		State of Illinois shall make available to the elected trustee
19		at least 20 days of paid leave of absence per year for the
20		purpose of attending meetings of the System's Board of
21		Trustees, committee meetings of such Board, and seminars
22		regarding issues for which such Board is responsible. The
23		Teachers' Retirement System of the State of Illinois shall

SB1646 Enrolled - 35 - LRB103 27811 RPS 54189 b
1		reimburse affected school districts for the actual cost of
2		hiring a substitute teacher during such leaves of absence.
3		(b) Each school board employing an employee who is an
4		elected trustee of the Illinois Municipal Retirement Fund
5		shall make available to the elected trustee at least 20 days of
6		paid leave of absence per year for the purpose of attending
7		meetings of the Fund's Board of Trustees, committee meetings
8		of the Board of Trustees, and seminars regarding issues for
9		which the Board of Trustees is responsible. The Illinois
10		Municipal Retirement Fund may reimburse affected school
11		districts for the actual cost of hiring a substitute employee
12		during such leaves of absence.
13		(c) The school board established under Article 34 and
14		employers under Article 17 of the Illinois Pension Code shall
15		make available to each active teacher who is an elected
16		trustee of the Board of Trustees of the Public School
17		Teachers' Pension and Retirement Fund of Chicago established
18		under Article 17 of the Illinois Pension Code up to 22 days of
19		paid leave of absence per year for the purpose of attending
20		meetings of the Board of Trustees, committee meetings of the
21		Board of Trustees, and seminars regarding issues for which the
22		Board of Trustees is responsible. The allocation of the days
23		of paid leave shall be at the discretion of the Board of
24		Trustees of the Public School Teachers' Pension and Retirement
25		Fund 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
3		changing 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
7		shall submit to the System all required reports and make two
8		deposits each month. The deposit for member contributions for
9		salary paid during any between the first and the fifteenth of
10		the month is due by the 10th 25th of the following month.
11		Additionally, all The deposit of member contributions for
12		salary paid between the sixteenth and last day of the month is
13		due by the 10th of the following month. All required
14		contributions for salary earned during a school term are due
15		by July 10 next following the close of such school term.
16		The governing body of each State institution coming under
17		this retirement system, the State Comptroller or other State
18		officer certifying payroll vouchers including payments of
19		salary or wages to teachers, and any other employer of
20		teachers, shall, monthly, forward to the secretary of the
21		retirement system the member contributions required under this
22		Article.
23		Each employer specified above shall, prior to August 15 of

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

SB1646 Enrolled - 38 - LRB103 27811 RPS 54189 b
1		until the day such report and employee contributions are
2		received by the System.
3		(c) If the system, on August 15, is not in receipt of the
4		detailed statements required under this Section of any school
5		district or other employing unit, such school district or
6		other employing unit shall pay to the system an amount equal to
7		$250 for each day that elapses from August 15, until the day
8		such 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
12		changing 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
15		which contributions are being made to the Fund on behalf of an
16		employee except for temporary election work as described in
17		subsection (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
21		who has withdrawn from service after the effective date
22		re-enters service before age 65, any annuity previously

SB1646 Enrolled - 39 - LRB103 27811 RPS 54189 b
1		granted and any annuity fixed for his wife shall be cancelled.
2		The employee shall be credited for annuity purposes with the
3		actuarial value of annuities equal to those cancelled as of
4		their ages on the date of re-entry; provided, the maximum age
5		of the wife for this purpose shall be as provided in Section
6		9-151 of this Article. The sums so credited shall provide for
7		annuities to be fixed and granted in the future. Contributions
8		by the employee and the county for the purposes of this Article
9		shall be made and when the proper time arrives, as provided in
10		this Article, new annuities based upon the total sums
11		accumulated to his credit for annuity purposes and the entire
12		term of his service shall be fixed for the employee and his
13		wife.
14		If the employee's wife has died before he re-entered
15		service, no part of any credits for widow's or widow's prior
16		service annuity at the time annuity for his wife was fixed
17		shall be credited upon re-entry into service, and no such sums
18		shall thereafter be used to provide such annuity.
19		(b) When an employee re-enters service after age 65,
20		payments on account of any annuity previously granted shall be
21		suspended during the time thereafter that he is in service,
22		and when he again withdraws annuity payments shall be resumed.
23		If the employee dies in service, his widow shall receive the
24		annuity previously fixed for her.
25		(c) If an employee annuitant re-enters service as an
26		election worker and provides services for a scheduled federal,

SB1646 Enrolled - 40 - LRB103 27811 RPS 54189 b
1		State, or local election for a period of 60 days or less during
2		a calendar year, that employee annuitant's annuity shall not
3		be suspended and such employee annuitant shall not be
4		considered to be in service within the meaning of Section
5		9-108.3 and is not entitled to benefits for employees in
6		service. If an employee annuitant re-enters service for a
7		period longer than 60 days during a calendar year, the annuity
8		shall be suspended or cancelled retroactive to the initial
9		date of re-entry.
10		(Source: P.A. 81-1536.)
11		Article 10.
12		Section 10-5. The Illinois Pension Code is amended by
13		changing 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
16		other service. Regularly certified and appointed teachers who
17		desire to have the following described services credited for
18		pension purposes shall submit to the Board evidence thereof
19		and 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
1		Section, interest shall be charged beginning one year after
2		the effective date of appointment or reappointment.
3		Effective September 1, 1974, the interest rate to be
4		charged by the Fund on contributions provided in
5		sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
6		annually.
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
10		Section 8.47 as follows:
11		(30 ILCS 805/8.47 new)
12		Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
13		8 of this Act, no reimbursement by the State is required for
14		the implementation of any mandate created by this amendatory
15		Act of the 103rd General Assembly.
16		Section 99-99. Effective date. This Act takes effect upon
17		becoming law.