Bill Text: IL SB1922 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Cook County Article of the Illinois Pension Code. Provides that a county employee with 20 or more years of service, who first became a participant on or after January 1, 2011 and whose entire disability benefit credit period expires before attainment of age 62, may qualify for certain annuities. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2014-06-09 - Public Act . . . . . . . . . 98-0641 [SB1922 Detail]

Download: Illinois-2013-SB1922-Amended.html

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Rep. Michael J. Madigan

Filed: 4/2/2014

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AMENDMENT TO SENATE BILL 1922
AMENDMENT NO. ______. Amend Senate Bill 1922, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 1. Findings. It is the intention of the General
Assembly to address an immediate funding crisis that threatens
the solvency and sustainability of the public pension systems
("Pension Funds") serving employees of the City of Chicago
("City"). The Pension Funds include the Municipal Employees'
Annuity and Benefit Fund of Chicago ("MEABF") and the Laborers'
and Retirement Board Employees' Annuity Benefit Fund of Chicago
("LABF"). After reviewing the condition of the Pension Funds,
potential sources of funding, and assessing the need for reform
thereof, the General Assembly finds and declares that:
1. The overall financial condition of these two city
pension funds is so dire, even under the most optimistic
assumptions, a balanced increase in funding, both from the City

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and from its employees, combined with a modification of retiree
benefits for both current and future retirees, is necessary to
stabilize and fund the pension funds.
2. While considering the combined unfunded liabilities of
these two City funds, as well as other pension funds that
ultimately will rely on funds from the City's property tax
base, a combination of benefit modification and increased
revenues are necessary to keep the city funds solvent.
3. Furthermore, the City cannot feasibly reduce its other
expenses to address this serious problem without an
unprecedented reduction in basic City services. Personnel
costs constitute approximately 75% of the non-discretionary
appropriations for the City. As such, reductions in City
expenditures to fund pensions would necessarily result in
substantial cuts to City personnel, including in key services
areas such as public safety, sanitation, and construction.
4. In sum, the crisis confronting the City and its Funds is
so large and immediate that it cannot be addressed through
increased funding alone, without modifying pension benefits.
The consequences to the City of attempting to do so would be
draconian. Accordingly, the General Assembly concludes that,
unless reforms are enacted, the benefits currently promised by
the Pension Funds are at risk.
Section 5. The Property Tax Code is amended by changing
Section 20-15 as follows:

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(35 ILCS 200/20-15)
Sec. 20-15. Information on bill or separate statement.
There shall be printed on each bill, or on a separate slip
which shall be mailed with the bill:
(a) a statement itemizing the rate at which taxes have
been extended for each of the taxing districts in the
county in whose district the property is located, and in
those counties utilizing electronic data processing
equipment the dollar amount of tax due from the person
assessed allocable to each of those taxing districts,
including a separate statement of the dollar amount of tax
due which is allocable to a tax levied under the Illinois
Local Library Act or to any other tax levied by a
municipality or township for public library purposes,
(b) a separate statement for each of the taxing
districts of the dollar amount of tax due which is
allocable to a tax levied under the Illinois Pension Code
or to any other tax levied by a municipality or township
for public pension or retirement purposes; provided,
however, there shall be a separate statement of the dollar
amount of tax due which is allocable to the Pension
Stabilization Levy under Articles 8 and 11 of the Illinois
Pension Code,
(c) the total tax rate,
(d) the total amount of tax due, and

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(e) the amount by which the total tax and the tax
allocable to each taxing district differs from the
taxpayer's last prior tax bill.
The county treasurer shall ensure that only those taxing
districts in which a parcel of property is located shall be
listed on the bill for that property.
In all counties the statement shall also provide:
(1) the property index number or other suitable
description,
(2) the assessment of the property,
(3) the statutory amount of each homestead exemption
applied to the property,
(4) the assessed value of the property after
application of all homestead exemptions,
(5) the equalization factors imposed by the county and
by the Department, and
(6) the equalized assessment resulting from the
application of the equalization factors to the basic
assessment.
In all counties which do not classify property for purposes
of taxation, for property on which a single family residence is
situated the statement shall also include a statement to
reflect the fair cash value determined for the property. In all
counties which classify property for purposes of taxation in
accordance with Section 4 of Article IX of the Illinois
Constitution, for parcels of residential property in the lowest

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assessment classification the statement shall also include a
statement to reflect the fair cash value determined for the
property.
In all counties, the statement must include information
that certain taxpayers may be eligible for tax exemptions,
abatements, and other assistance programs and that, for more
information, taxpayers should consult with the office of their
township or county assessor and with the Illinois Department of
Revenue.
In all counties, the statement shall include information
that certain taxpayers may be eligible for the Senior Citizens
and Disabled Persons Property Tax Relief Act and that
applications are available from the Illinois Department on
Aging.
In counties which use the estimated or accelerated billing
methods, these statements shall only be provided with the final
installment of taxes due. The provisions of this Section create
a mandatory statutory duty. They are not merely directory or
discretionary. The failure or neglect of the collector to mail
the bill, or the failure of the taxpayer to receive the bill,
shall not affect the validity of any tax, or the liability for
the payment of any tax.
(Source: P.A. 97-689, eff. 6-14-12; 98-93, eff. 7-16-13.)
Section 10. The Illinois Pension Code is amended by
changing Sections 1-160, 8-137, 8-137.1, 8-173, 8-174, 8-196,

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11-134.1, 11-134.3, 11-169, 11-170, and 11-185 and by adding
Sections 8-173.1, 8-174.2, 11-169.1, and 11-179.1 as follows:
(40 ILCS 5/1-160)
(Text of Section before amendment by P.A. 98-622)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
15 or 18 of this Code, notwithstanding any other provision of
this Code to the contrary, but do not apply to any self-managed
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101. Notwithstanding anything to the contrary
in this Section, for purposes of this Section, a person who
participated in a retirement system under Article 15 prior to
January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 this
amendatory Act of the 98th General Assembly are a clarification
of existing law and are intended to be retroactive to the
effective date of Public Act 96-889, notwithstanding the

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provisions of Section 1-103.1 of this Code.
(b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant
of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) In Article 7 (except for service as sheriff's law
enforcement employees), "final rate of earnings".
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of

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benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 and has at
least 10 years of service credit and is otherwise eligible
under the requirements of the applicable Article may elect to
receive the lower retirement annuity provided in subsection (d)

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of this Section.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 with at least 10 years of
service credit shall be reduced by one-half of 1% for each full
month that the member's age is under age 67.
(e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 or the first anniversary
of the annuity start date, whichever is later. Each annual
increase shall be calculated at 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted retirement annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a

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

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provisions of Section 14-110, in lieu of the regular or minimum
retirement annuity, only if the person has withdrawn from
service with not less than 20 years of eligible creditable
service and has attained age 60, regardless of whether the
attainment of age 60 occurs while the person is still in
service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created by
this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then that

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person's annuity or retirement pension earned as an active
employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
eff. 11-19-13; revised 1-23-14.)
(Text of Section after amendment by P.A. 98-622)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement

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system or pension fund established under Article 2, 3, 4, 5, 6,
15 or 18 of this Code, notwithstanding any other provision of
this Code to the contrary, but do not apply to any self-managed
plan established under this Code, to any person with respect to
service as a sheriff's law enforcement employee under Article
7, or to any participant of the retirement plan established
under Section 22-101. Notwithstanding anything to the contrary
in this Section, for purposes of this Section, a person who
participated in a retirement system under Article 15 prior to
January 1, 2011 shall be deemed a person who first became a
member or participant prior to January 1, 2011 under any
retirement system or pension fund subject to this Section. The
changes made to this Section by Public Act 98-596 this
amendatory Act of the 98th General Assembly are a clarification
of existing law and are intended to be retroactive to the
effective date of Public Act 96-889, notwithstanding the
provisions of Section 1-103.1 of this Code.
(b) "Final average salary" means the average monthly (or
annual) salary obtained by dividing the total salary or
earnings calculated under the Article applicable to the member
or participant during the 96 consecutive months (or 8
consecutive years) of service within the last 120 months (or 10
years) of service in which the total salary or earnings
calculated under the applicable Article was the highest by the
number of months (or years) of service in that period. For the
purposes of a person who first becomes a member or participant

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of any retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) In Article 7 (except for service as sheriff's law
enforcement employees), "final rate of earnings".
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by him
at the date of retirement or discharge".
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"

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means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100. The new amount resulting from each annual adjustment shall
be determined by the Public Pension Division of the Department
of Insurance and made available to the boards of the retirement
systems and pension funds by November 1 of each year.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
Section) and has at least 10 years of service credit and is
otherwise eligible under the requirements of the applicable
Article.
A member or participant who has attained age 62 (beginning
January 1, 2015, age 60 with respect to service under Article
8, 11, or 12 of this Code that is subject to this Section) and
has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article may
elect to receive the lower retirement annuity provided in
subsection (d) of this Section.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (beginning January 1, 2015,
age 60 with respect to service under Article 8, 11, or 12 of
this Code that is subject to this Section) with at least 10

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years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 67
(beginning January 1, 2015, age 65 with respect to service
under Article 8, 11, or 12 of this Code that is subject to this
Section).
(e) Any retirement annuity or supplemental annuity shall be
subject to annual increases on the January 1 occurring either
on or after the attainment of age 67 (beginning January 1,
2015, age 65 with respect to service under Article 8, 11, or 12
of this Code that is subject to this Section) or the first
anniversary (the second anniversary with respect to service
under Article 8 or 11) of the annuity start date, whichever is
later. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted retirement annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
Notwithstanding any provision of this Section to the
contrary, with respect to service under Article 8 or 11 of this
Code that is subject to this Section, no annual increase under
this subsection shall be paid or accrue to any person in year
2025. In all other years, the Fund shall continue to pay annual

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increases as provided in this Section.
Notwithstanding Section 1-103.1 of this Code, the changes
in this amendatory Act of the 98th General Assembly are
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act
of the 98th General Assembly.
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the annuity
if the deceased member died while receiving a retirement
annuity or (2) in other cases, on each January 1 occurring
after the first anniversary of the commencement of the annuity.
Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase (but not less than zero)

09800SB1922ham003 - 18 - LRB098 09566 EFG 58042 a
in the consumer price index-u for the 12 months ending with the
September preceding each November 1, whichever is less, of the
originally granted survivor's annuity. If the annual
unadjusted percentage change in the consumer price index-u for
the 12 months ending with the September preceding each November
1 is zero or there is a decrease, then the annuity shall not be
increased.
(g) The benefits in Section 14-110 apply only if the person
is a State policeman, a fire fighter in the fire protection
service of a department, or a security employee of the
Department of Corrections or the Department of Juvenile
Justice, as those terms are defined in subsection (b) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or minimum
retirement annuity, only if the person has withdrawn from
service with not less than 20 years of eligible creditable
service and has attained age 60, regardless of whether the
attainment of age 60 occurs while the person is still in
service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created by
this Code and is employed on a full-time basis, except for

09800SB1922ham003 - 19 - LRB098 09566 EFG 58042 a
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then that
person's annuity or retirement pension earned as an active
employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,

09800SB1922ham003 - 20 - LRB098 09566 EFG 58042 a
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 97-609, eff. 1-1-12; 98-92, eff. 7-16-13; 98-596,
eff. 11-19-13; 98-622, eff. 6-1-14; revised 1-23-14.)
(40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
Sec. 8-137. Automatic increase in annuity.
(a) An employee who retired or retires from service after
December 31, 1959 and before January 1, 1987, having attained
age 60 or more, shall, in January of the year after the year in
which the first anniversary of retirement occurs, have the
amount of his then fixed and payable monthly annuity increased
by 1 1/2%, and such first fixed annuity as granted at
retirement increased by a further 1 1/2% in January of each
year thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning with January of the year 1984
such increases shall be at the rate of 3%. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article. An employee who retires
on annuity after December 31, 1959 and before January 1, 1987,
but before age 60, shall receive such increases beginning in

09800SB1922ham003 - 21 - LRB098 09566 EFG 58042 a
January of the year after the year in which he attains age 60.
An employee who retires from service on or after January 1,
1987 shall, upon the first annuity payment date following the
first anniversary of the date of retirement, or upon the first
annuity payment date following attainment of age 60, whichever
occurs later, have his then fixed and payable monthly annuity
increased by 3%, and such annuity shall be increased by an
additional 3% of the original fixed annuity on the same date
each year thereafter. Beginning in January of 1999, such
increases shall be at the rate of 3% of the currently payable
monthly annuity, including any increases previously granted
under this Article.
(a-5) Notwithstanding the provisions of subsection (a),
upon the first annuity payment date following (1) the third
anniversary of retirement, (2) the attainment of age 53, or (3)
January 1, 2002, whichever occurs latest, the monthly annuity
of an employee who retires on annuity prior to the attainment
of age 60 and has not received an increase under subsection (a)
shall be increased by 3%, and the annuity shall be increased by
an additional 3% of the current payable monthly annuity,
including any increases previously granted under this Article,
on the same date each year thereafter. The increases provided
under this subsection are in lieu of the increases provided in
subsection (a).
(a-6) Notwithstanding the provisions of subsections (a)
and (a-5), for all calendar years following the year in which

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this amendatory Act of the 93rd General Assembly takes effect,
an increase in annuity under this Section that would otherwise
take effect at any time during the year shall instead take
effect in January of that year.
(b) Subsections (a), (a-5), and (a-6) are not applicable to
an employee retiring and receiving a term annuity, as herein
defined, nor to any otherwise qualified employee who retires
before he makes employee contributions (at the 1/2 of 1% rate
as provided in this Act) for this additional annuity for not
less than the equivalent of one full year. Such employee,
however, shall make arrangement to pay to the fund a balance of
such 1/2 of 1% contributions, based on his final salary, as
will bring such 1/2 of 1% contributions, computed without
interest, to the equivalent of or completion of one year's
contributions.
Beginning with January, 1960, each employee shall
contribute by means of salary deductions 1/2 of 1% of each
salary payment, concurrently with and in addition to the
employee contributions otherwise made for annuity purposes.
Each such additional contribution shall be credited to an
account in the prior service annuity reserve, to be used,
together with city contributions, to defray the cost of the
specified annuity increments. Any balance in such account at
the beginning of each calendar year shall be credited with
interest at the rate of 3% per annum.
Such additional employee contributions are not refundable,

09800SB1922ham003 - 23 - LRB098 09566 EFG 58042 a
except to an employee who withdraws and applies for refund
under this Article, and in cases where a term annuity becomes
payable. In such cases his contributions shall be refunded,
without interest, and charged to such account in the prior
service annuity reserve.
(b-5) Notwithstanding any provision of this Section to the
contrary, there shall be no annual increase under this Section
in years 2017, 2019, and 2025. In all other years, beginning
January 1, 2015, the Fund shall pay an annual increase to
persons eligible to receive one under this Section, in lieu of
any other annual increase provided under this Section, in an
amount equal to the lesser of 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, of the person's last
annual annuity amount prior to January 1, 2015. If a person was
not granted an annuity before the effective date of this
amendatory Act of the 98th General Assembly, then this
calculation shall be based on his or her originally granted
annuity; provided, however, that a person retiring after the
effective date of this amendatory Act of the 98th General
Assembly shall not be eligible for an annual increase under
this Section until one full year after the date on which such
annual increase otherwise would take effect under this Section.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of

09800SB1922ham003 - 24 - LRB098 09566 EFG 58042 a
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
Notwithstanding Section 1-103.1, this subsection (b-5) is
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act
of the 98th General Assembly. This subsection (b-5) applies to
any former employee who on or after the effective date of this
amendatory Act of the 98th General Assembly is receiving a
retirement annuity and is eligible for an automatic annual
increase under this Section.
(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
93-654, eff. 1-16-04.)
(40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
Sec. 8-137.1. Automatic increases in annuity for certain
heretofore retired participants. A retired municipal employee
who (a) is receiving annuity based on a service credit of 20 or
more years regardless of age at retirement or based on a
service credit of 15 or more years with retirement at age 55 or
over, and (b) does not qualify for the automatic increases in
annuity provided for in Section 8-137 of this Article, and (c)
elects to make a contribution to the Fund at a time and manner
prescribed by the Retirement Board, of a sum equal to 1% of the
amount of final monthly salary times the number of full years

09800SB1922ham003 - 25 - LRB098 09566 EFG 58042 a
of service on which the annuity was based in those cases where
the annuity was computed on the money purchase formula and in
those cases in which the annuity was computed under the minimum
annuity formula provisions of this Article a sum equal to 1% of
the average monthly salary on which the annuity was based times
such number of full years of service, shall have his original
fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains the
age of 65 years, if such age of 65 years is attained in the year
1969 or later, by an amount equal to 1-1/2%, and by an equal
additional 1-1/2% in January of each year thereafter. Beginning
with January of the year 1972, such increases shall be at the
rate of 2% in lieu of the aforesaid specified 1 1/2%, and
beginning January of the year 1984 such increases shall be at
the rate of 3%. Beginning in January of 1999, such increases
shall be at the rate of 3% of the currently payable monthly
annuity, including any increases previously granted under this
Article.
Whenever the retired municipal employee receiving annuity
has attained the age of 66 or more in 1969, he shall have such
annuity increased in January, 1970 by an amount equal to 1-1/2%
multiplied by the number equal to the number of months of
January elapsing from and including January of the year
immediately following the year he attained the age of 65 if
retired at or before age 65, or from and including January of
the year immediately following the year of retirement if

09800SB1922ham003 - 26 - LRB098 09566 EFG 58042 a
retired at an age greater than 65, to and including January,
1970, and by an equal additional 1-1/2% in January of each year
thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning January of the year 1984 such
increases shall be at the rate of 3%. Beginning in January of
1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
To defray the annual cost of such increases, the annual
interest income of the Fund, accruing from investments held by
the Fund, exclusive of gains or losses on sales or exchanges of
assets during the year, over and above 4% a year, shall be used
to the extent necessary and available to finance the cost of
such increases for the following year, and such amount shall be
transferred as of the end of each year, beginning with the year
1969, to a Fund account designated as the Supplementary Payment
Reserve from the Investment and Interest Reserve set forth in
Section 8-221. The sums contributed by annuitants as provided
for in this Section shall also be placed in the aforesaid
Supplementary Payment Reserve and shall be applied and used for
the purposes of such Fund account, together with the aforesaid
interest.
In the event the monies in the Supplementary Payment
Reserve in any year arising from: (1) the available interest
income as defined hereinbefore and accruing in the preceding

09800SB1922ham003 - 27 - LRB098 09566 EFG 58042 a
year above 4% a year and (2) the contributions by retired
persons, as set forth hereinbefore, are insufficient to make
the total payments to all persons estimated to be entitled to
the annuity increases specified hereinbefore, then (3) any
interest earnings over 4% a year beginning with the year 1969
which were not previously used to finance such increases and
which were transferred to the Prior Service Annuity Reserve may
be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current
year, and such sums shall be transferred from the Prior Service
Annuity Reserve.
In the event the total monies available in the
Supplementary Payment Reserve from the preceding indicated
sources are insufficient to make the total payments to all
persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies
available to the total of the total payments for that year
shall be paid to each person for that year.
The Fund shall be obligated for the payment of the
increases in annuity as provided for in this Section only to
the extent that the assets for such purpose, as specified
herein, are available.
Notwithstanding any provision of this Section to the
contrary, there shall be no annual increase under this Section
in years 2017, 2019, and 2025. In all other years, beginning
January 1, 2015, the Fund shall pay an annual increase to

09800SB1922ham003 - 28 - LRB098 09566 EFG 58042 a
persons eligible to receive one under this Section, in lieu of
any other annual increase provided under this Section, in an
amount equal to the lesser of 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, of the person's last
annual annuity amount prior to January 1, 2015.
For purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
Notwithstanding Section 1-103.1, the changes made to this
Section by this amendatory Act of the 98th General Assembly are
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act.
These changes apply to any former employee who, on or after the
effective date of this amendatory Act, is receiving a
retirement annuity and is eligible for an automatic annual
increase under this Section.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
Sec. 8-173. Financing; tax levies levy.
(a) Except as provided in subsection (f) of this Section,

09800SB1922ham003 - 29 - LRB098 09566 EFG 58042 a
the city council of the city shall levy a tax annually upon all
taxable property in the city at a rate that will produce a sum
which, when added to the amounts deducted from the salaries of
the employees or otherwise contributed by them and the amounts
deposited under subsection (f), will be sufficient for the
requirements of this Article, but which when extended will
produce an amount not to exceed the greater of the following:
(a) the sum obtained by the levy of a tax of .1093% of the
value, as equalized or assessed by the Department of Revenue,
of all taxable property within such city, or (b) the sum of
$12,000,000. However any city in which a Fund has been
established and in operation under this Article for more than 3
years prior to 1970 shall levy for the year 1970 a tax at a rate
on the dollar of assessed valuation of all taxable property
that will produce, when extended, an amount not to exceed 1.2
times the total amount of contributions made by employees to
the Fund for annuity purposes in the calendar year 1968, and,
for the year 1971 and 1972 such levy that will produce, when
extended, an amount not to exceed 1.3 times the total amount of
contributions made by employees to the Fund for annuity
purposes in the calendar years 1969 and 1970, respectively; and
for the year 1973 an amount not to exceed 1.365 times such
total amount of contributions made by employees for annuity
purposes in the calendar year 1971; and for the year 1974 an
amount not to exceed 1.430 times such total amount of
contributions made by employees for annuity purposes in the

09800SB1922ham003 - 30 - LRB098 09566 EFG 58042 a
calendar year 1972; and for the year 1975 an amount not to
exceed 1.495 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1973; and
for the year 1976 an amount not to exceed 1.560 times such
total amount of contributions made by employees for annuity
purposes in the calendar year 1974; and for the year 1977 an
amount not to exceed 1.625 times such total amount of
contributions made by employees for annuity purposes in the
calendar year 1975; and for the year 1978 and each year
thereafter, such levy as will produce, when extended, an amount
not to exceed the total amount of contributions made by or on
behalf of employees to the Fund for annuity purposes in the
calendar year 2 years prior to the year for which the annual
applicable tax is levied, multiplied by 1.690 for the years
1978 through 1998 and by 1.250 for the year 1999 and for each
year thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the city, and shall be exclusive of and in
addition to the amount of tax the city is now or may hereafter
be authorized to levy for general purposes under any laws which
may limit the amount of tax which the city may levy for general
purposes. The county clerk of the county in which the city is
located, in reducing tax levies under the provisions of any Act
concerning the levy and extension of taxes, shall not consider
the tax herein provided for as a part of the general tax levy
for city purposes, and shall not include the same within any

09800SB1922ham003 - 31 - LRB098 09566 EFG 58042 a
limitation of the percent of the assessed valuation upon which
taxes are required to be extended for such city.
Revenues derived from such tax shall be paid to the city
treasurer of the city as collected and held by him for the
benefit of the fund.
If the payments on account of taxes are insufficient during
any year to meet the requirements of this Article, the city may
issue tax anticipation warrants against the current tax levy.
(a-1) Notwithstanding anything to the contrary in
subsection (a) of this Section, beginning with the city's levy
under subsection (a) in 2015 and each year thereafter, the levy
shall not exceed the amount of the city's total contribution to
the Fund under this Section for payment year 2014; provided,
however, that the city may continue to use other lawfully
available funds in lieu of all or part of the levy as provided
under subsection (f) of this Section. The increases that would
have occurred under subsection (a) of this Section if not for
the aforementioned limitation shall be included in the
calculations under subsection (a-2) of this Section for levy
purposes.
(a-2) For purposes of this Section, the payment year is the
year following the levy year. Starting in payment year 2016,
the city shall pay to the Fund annually, in the manner
described in this subsection, an amount that, when added to the
amounts of the contribution provided in subsection (a) of this
Section as modified by subsection (a-1) of this Section, shall

09800SB1922ham003 - 32 - LRB098 09566 EFG 58042 a
equal the lesser of:
(i) (I) for payment years 2016 through 2055, the annual
amount determined by the Fund to be equal to the greater of
$0, or the sum of (1) the City's portion of the projected
normal cost for that fiscal year, plus (2) an amount
determined on a level percentage of applicable employee
payroll basis (reflecting any limits on individual
participants' pay that apply for benefit and contribution
purposes under this plan) that is sufficient to bring the
total actuarial assets of the Fund up to 90% of the total
actuarial liabilities of the Fund by the end of 2055. (II)
For payment years after 2055, the annual amount determined
by the Fund to be equal to the amount needed, if any, to
bring the total actuarial assets of the Fund up to 90% of
the total actuarial liabilities of the Fund as of the end
of the year. In making the determinations under both (I)
and (II), the actuarial calculations shall be determined
under the entry age normal actuarial cost method on an open
group projection basis, and any actuarial gains or losses
from investment return incurred in a fiscal year shall be
recognized in equal annual amounts over the 5-year period
following the fiscal year; or
(ii) for payment year 2016, 1.85 times the total amount
of contributions made by or on behalf of employees to the
Fund for annuity purposes in the calendar year 2013; for
payment year 2017, 2.15 times the total amount of

09800SB1922ham003 - 33 - LRB098 09566 EFG 58042 a
contributions made by or on behalf of employees to the Fund
for annuity purposes in the calendar year 2014; for payment
year 2018, 2.45 times the total amount of contributions
made by or on behalf of employees to the Fund for annuity
purposes in the calendar year 2015; for payment year 2019,
2.75 times the total amount of contributions made by or on
behalf of employees to the Fund for annuity purposes in the
calendar year 2016; for payment year 2020, 3.05 times the
total amount of contributions made by or on behalf of
employees to the Fund for annuity purposes in the calendar
year 2017; provided however, that beginning in the earlier
of the year that the annual contribution amount is at least
the amount calculated under subdivision (i), or payment
year 2021, and each year thereafter, the city's annual
contribution shall be determined pursuant to subdivision
(i) only.
(a-3) For levy years 2015 through 2020, the city council of
the city shall levy a separate tax annually upon all taxable
property in the city that shall be known as the Pension
Stabilization Levy and shall be at a rate that, when extended,
will produce an amount that is no less than one-half of the
city's total required contribution amount under subsection
(a-2) for each year. The remainder of the city's total required
contribution amount under subsection (a-2) shall be paid by the
city to the city treasurer of the city with any lawfully
available funds, which shall be collected and held by the city

09800SB1922ham003 - 34 - LRB098 09566 EFG 58042 a
treasurer for the benefit of the Fund; provided however, that
the city may elect to fund some or all of such remaining amount
through the Pension Stabilization Levy in lieu of paying with
other available funds of the city.
Subject to subsection (f) of this Section, for levy year
2021 and thereafter, the city council of the city may levy the
Pension Stabilization Levy at a rate that, when extended, will
produce an amount not to exceed the city's total required
contribution amount under subsection (a-2) for each applicable
payment year.
The Pension Stabilization Levy shall be levied and
collected in like manner with the general taxes of the city,
and shall be exclusive of and in addition to the amount of tax
the city is now or may hereafter be authorized to levy for
general purposes under any laws which may limit the amount of
tax which the city may levy for general purposes. The county
clerk of the county in which the city is located, in reducing
tax levies under the provisions of any Act concerning the levy
and extension of taxes, shall not consider the tax herein
provided for as a part of the general tax levy for city
purposes, and shall not include the same within any limitation
of the percent of the assessed valuation upon which taxes are
required to be extended for such city.
Revenues derived from such tax shall be used solely to
satisfy the city's obligations to the Fund pursuant to
subsection (a-2) and shall be paid to the city treasurer as

09800SB1922ham003 - 35 - LRB098 09566 EFG 58042 a
collected and held by him for the benefit of the fund.
If the payments on account of taxes are insufficient during
any year to meet the requirements of this Article, the city may
issue tax anticipation warrants against the current tax levy.
(a-4) For levy years 2015 through 2020, if the city does
not: (i) levy a tax under subsection (a-3) equal to at least
50% of the city's required contribution under subsection (a-2);
and (ii) transmit the proceeds of the levy to the Fund within
90 days after the payment of that contribution is due, the Fund
may, after giving notice to the city, certify to the State
Comptroller the amounts of the delinquent payment, and the
Comptroller must, beginning in payment year 2016, deduct and
deposit into the Fund the certified amount or a portion of that
amount from the following proportions of grants of State funds
to the city:
(1) in payment year 2016, one-third of the total amount
of any grants of State funds to the city;
(2) in payment year 2017, two-thirds of the total
amount of any grants of State funds to the city; and
(3) in payment years 2018 through 2021, the total
amount of any grants of State funds to the city.
The State Comptroller may not deduct from any grants of
State funds to the city more than the amount of delinquent
payment certified to the State Comptroller by the Fund.
(b) On or before January 10, annually, the board shall
notify the city council of the requirements of this Article

09800SB1922ham003 - 36 - LRB098 09566 EFG 58042 a
that the taxes tax herein provided shall be levied for that
current year. The board shall compute the amounts necessary to
be credited to the reserves established and maintained as
herein provided, and shall make an annual determination of the
amount of the required city contributions, and certify the
results thereof to the city council.
(c) In respect to employees of the city who are transferred
to the employment of a park district by virtue of the "Exchange
of Functions Act of 1957", the corporate authorities of the
park district shall annually levy a tax upon all the taxable
property in the park district at such rate per cent of the
value of such property, as equalized or assessed by the
Department of Revenue, as shall be sufficient, when added to
the amounts deducted from their salaries and otherwise
contributed by them to provide the benefits to which they and
their dependents and beneficiaries are entitled under this
Article. The city shall not levy a tax hereunder in respect to
such employees.
The tax so levied by the park district shall be in addition
to and exclusive of all other taxes authorized to be levied by
the park district for corporate, annuity fund, or other
purposes. The county clerk of the county in which the park
district is located, in reducing any tax levied under the
provisions of any act concerning the levy and extension of
taxes shall not consider such tax as part of the general tax
levy for park purposes, and shall not include the same in any

09800SB1922ham003 - 37 - LRB098 09566 EFG 58042 a
limitation of the per cent of the assessed valuation upon which
taxes are required to be extended for the park district. The
proceeds of the tax levied by the park district, upon receipt
by the district, shall be immediately paid over to the city
treasurer of the city for the uses and purposes of the fund.
The various sums to be contributed by the city and park
district and allocated for the purposes of this Article, and
any interest to be contributed by the city, shall be derived
from the revenue from the taxes authorized in this Section or
otherwise as expressly provided in this Section.
If it is not possible or practicable for the city to make
contributions for age and service annuity and widow's annuity
at the same time that employee contributions are made for such
purposes, such city contributions shall be construed to be due
and payable as of the end of the fiscal year for which the tax
is levied and shall accrue thereafter with interest at the
effective rate until paid.
(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the board
has elected to establish a manpower program reserve, the board
shall compute the amounts necessary to be credited to the
manpower program reserves established and maintained as herein
provided, and shall make a periodic determination of the amount

09800SB1922ham003 - 38 - LRB098 09566 EFG 58042 a
of required contributions from the City to the reserve to be
reimbursed by the federal government in accordance with rules
and regulations established by the Secretary of the United
States Department of Labor or his designee, and certify the
results thereof to the City Council. Any such amounts shall
become a credit to the City and will be used to reduce the
amount which the City would otherwise contribute during
succeeding years for all employees.
(e) In lieu of establishing a manpower program reserve with
respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as
authorized by subsection (d), the board may elect to establish
a special municipality contribution rate for all such
employees. If this option is elected, the City shall contribute
to the Fund from federal funds provided under the Comprehensive
Employment and Training Act program at the special rate so
established and such contributions shall become a credit to the
City and be used to reduce the amount which the City would
otherwise contribute during succeeding years for all
employees.
(f) Except as otherwise provided in subsection (a-3), in In
lieu of levying all or a portion of the taxes tax required
under this Section in any year, the city may deposit with the
city treasurer no later than March 1 of that year for the
benefit of the fund, to be held in accordance with this
Article, an amount that, together with the taxes levied under

09800SB1922ham003 - 39 - LRB098 09566 EFG 58042 a
this Section for that year, is not less than the amount of the
city contributions for that year as certified by the board to
the city council. The deposit may be derived from any source
legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit
shall satisfy fully the requirements of this Section for that
year to the extent of the amounts so deposited. Amounts
deposited under this subsection may be used by the fund for any
of the purposes for which the proceeds of the taxes tax levied
by the city under this Section may be used, including the
payment of any amount that is otherwise required by this
Article to be paid from the proceeds of those taxes that tax.
(Source: P.A. 90-31, eff. 6-27-97; 90-655, eff. 7-30-98;
90-766, eff. 8-14-98.)
(40 ILCS 5/8-173.1 new)
Sec. 8-173.1. Funding Obligation.
(a) Beginning January 1, 2015, the city shall be obligated
to contribute to the Fund in each fiscal year an amount not
less than the amount determined annually under subsections (a)
through (a-2) of Section 8-173 of this Code. Notwithstanding
any other provision of law, if the city fails to pay the amount
guaranteed under this Section on or before December 31 of the
year in which such amount is due, the retirement board may
bring a mandamus action in the Circuit Court of Cook County to
compel the city to make the required payment, irrespective of

09800SB1922ham003 - 40 - LRB098 09566 EFG 58042 a
other remedies that may be available to the Fund. The
obligations and causes of action created under this Section
shall be in addition to any other right or remedy otherwise
accorded by common law or State or federal law, and nothing in
this Section shall be construed to deny, abrogate, impair, or
waive any such common law or statutory right or remedy.
(b) In ordering the city to make the required payment, the
court may order a reasonable payment schedule to enable the
city to make the required payment without significantly
imperiling the public health, safety, or welfare. Any payments
required to be made by the city pursuant to this Section are
expressly subordinated to the payment of the principal,
interest, premium, if any, and other payments on or related to
any bonded debt obligation of the city, either currently
outstanding or to be issued, for which the source of repayment
or security thereon is derived directly or indirectly from any
funds collected or received by the city or collected or
received on behalf of the city. Payments on such bonded
obligations include any statutory fund transfers or other
prefunding mechanisms or formulas set forth, now or hereafter,
in State law, city ordinance, or bond indentures, into debt
service funds or accounts of the city related to such bonded
obligations, consistent with the payment schedules associated
with such obligations.
(40 ILCS 5/8-174) (from Ch. 108 1/2, par. 8-174)

09800SB1922ham003 - 41 - LRB098 09566 EFG 58042 a
Sec. 8-174. Contributions for age and service annuities for
present employees and future entrants.
(a) Beginning on the effective date and prior to July 1,
1947, 3 1/4%; and beginning on July 1, 1947 and prior to July
1, 1953, 5%; and beginning July 1, 1953, and prior to January
1, 1972, 6%; and beginning January 1, 1972, 6.5%; and beginning
January 1, 2015, and prior to January 1, 2016, 7.0%; and
beginning January 1, 2016, and prior to January 1, 2017, 7.5%;
and, beginning January 1, 2017, and prior to January 1, 2018,
8.0%; and beginning January 1, 2018, and prior to January 1,
2019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0%
6-1/2% of each payment of the salary of each present employee
and future entrant shall be contributed to the fund as a
deduction from salary for age and service annuity; provided,
however, that beginning with the first pay period on or after
the date when the funded ratio of the Fund is first determined
to have reached the 90% funding goal set forth in subsection
(a-2) of Section 8-173, and each pay period thereafter for as
long as the Fund maintains a funding ratio of 90% or more,
employee contributions shall be 7.75% of salary for the age and
service annuity. If the funding ratio falls below 90%, then
employee contributions for the age and service annuity shall
revert to 9.0% of salary until such time as the Fund once again
is determined to have reached a funding ratio of at least 90%,
at which time employee contributions of 7.75% shall resume for
the age and service annuity.

09800SB1922ham003 - 42 - LRB098 09566 EFG 58042 a
Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 98th General
Assembly apply regardless of whether the employee was in active
service on or after the effective date of this amendatory Act.
Such deductions beginning on the effective date and prior
to July 1, 1947 shall be made for a future entrant while he is
in the service until he attains age 65 and for a present
employee while he is in the service until the amount so
deducted from his salary with the amount deducted from his
salary or paid by him according to law to any municipal pension
fund in force on the effective date with interest on both such
amounts at 4% per annum equals the sum that would have been to
his credit from sums deducted from his salary if deductions at
the rate herein stated had been made during his entire service
until he attained age 65 with interest at 4% per annum for the
period subsequent to his attainment of age 65. Such deductions
beginning July 1, 1947 shall be made and continued for
employees while in the service.
(b) Concurrently with each employee contribution beginning
on the effective date and prior to July 1, 1947 the city shall
contribute 5 3/4%; and beginning on July 1, 1947 and prior to
July 1, 1953, 7%; and beginning July 1, 1953, 6% of each
payment of such salary until the employee attains age 65.
Notwithstanding any provision of this subsection (b) to the
contrary, the city shall not make a contribution for any credit
established by an employee under subsection (b) of Section

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8-138.4.
(c) Each employee contribution made prior to the date the
age and service annuity for an employee is fixed and each
corresponding city contribution shall be credited to the
employee and allocated to the account of the employee for whose
benefit it is made.
(Source: P.A. 93-654, eff. 1-16-04.)
(40 ILCS 5/8-174.2 new)
Sec. 8-174.2. Use of contributions for health care
subsidies. Except as may be required pursuant to Sections
8-164.1 and 8-164.2 of this Code, the Fund shall not use any
contribution received by the Fund under this Article to provide
a subsidy for the cost of participation in a retiree health
care program.
(40 ILCS 5/8-196) (from Ch. 108 1/2, par. 8-196)
Sec. 8-196. Board meetings.
The board shall hold regular meetings in the months of
March, June, September and December annually and special
meetings as it deems necessary. A majority of the members shall
constitute a quorum for the transaction of business at any
meeting, but no annuity or benefit shall be granted or payments
made by the fund unless ordered by a vote of a majority of the
board members. The board shall not change the discount rate,
rate of return, mortality assumptions, or any other assumption

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that materially affects the City's contribution obligation
pursuant to subsection (a-2) of Section 8-173 without the
approval of at least 4 of the board's 5 members.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
Sec. 11-134.1. Automatic increase in annuity.
(a) An employee who retired or retires from service after
December 31, 1963, and before January 1, 1987, having attained
age 60 or more, shall, in the month of January of the year
following the year in which the first anniversary of retirement
occurs, have the amount of his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by a further 1 1/2% in January
of each year thereafter. Beginning with January of the year
1972, such increases shall be at the rate of 2% in lieu of the
aforesaid specified 1 1/2%. Beginning January, 1984, such
increases shall be at the rate of 3%. Beginning in January of
1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article. An employee who retires
on annuity after December 31, 1963 and before January 1, 1987,
but prior to age 60, shall receive such increases beginning
with January of the year immediately following the year in
which he attains the age of 60 years.
An employee who retires from service on or after January 1,

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1987 shall, upon the first annuity payment date following the
first anniversary of the date of retirement, or upon the first
annuity payment date following attainment of age 60, whichever
occurs later, have his then fixed and payable monthly annuity
increased by 3%, and such annuity shall be increased by an
additional 3% of the original fixed annuity on the same date
each year thereafter. Beginning in January of 1999, such
increases shall be at the rate of 3% of the currently payable
monthly annuity, including any increases previously granted
under this Article.
(a-5) Notwithstanding the provisions of subsection (a),
upon the first annuity payment date following (1) the third
anniversary of retirement, (2) the attainment of age 53, or (3)
January 1, 2002, whichever occurs latest, the monthly annuity
of an employee who retires on annuity prior to the attainment
of age 60 and has not received an increase under subsection (a)
shall be increased by 3%, and the annuity shall be increased by
an additional 3% of the current payable monthly annuity,
including any increases previously granted under this Article,
on the same date each year thereafter. The increases provided
under this subsection are in lieu of the increases provided in
subsection (a).
(a-6) Notwithstanding the provisions of subsections (a)
and (a-5), for all calendar years following the year in which
this amendatory Act of the 93rd General Assembly takes effect,
an increase in annuity under this Section that would otherwise

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take effect at any time during the year shall instead take
effect in January of that year.
(b) Subsections (a), (a-5), and (a-6) are not applicable to
an employee retiring and receiving a term annuity, as defined
in this Article, nor to any otherwise qualified employee who
retires before he shall have made employee contributions (at
the 1/2 of 1% rate as hereinafter provided) for the purposes of
this additional annuity for not less than the equivalent of one
full year. Such employee, however, shall make arrangement to
pay to the fund a balance of such 1/2 of 1% contributions,
based on his final salary, as will bring such 1/2 of 1%
contributions, computed without interest, to the equivalent of
or completion of one year's contributions.
Beginning with the month of January, 1964, each employee
shall contribute by means of salary deductions 1/2 of 1% of
each salary payment, concurrently with and in addition to the
employee contributions otherwise made for annuity purposes.
Each such additional employee contribution shall be
credited to an account in the prior service annuity reserve, to
be used, together with city contributions, to defray the cost
of the specified annuity increments. Any balance as of the
beginning of each calendar year existing in such account shall
be credited with interest at the rate of 3% per annum.
Such employee contributions shall not be subject to refund,
except to an employee who resigns or is discharged and applies
for refund under this Article, and also in cases where a term

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annuity becomes payable.
In such cases the employee contributions shall be refunded
him, without interest, and charged to the aforementioned
account in the prior service annuity reserve.
(b-5) Notwithstanding any provision of this Section to the
contrary, there shall be no annual increase under this Section
in years 2017, 2019, and 2025. In all other years, beginning
January 1, 2015, the Fund shall pay an annual increase to
persons eligible to receive one under this Section, in lieu of
any other annual increase provided under this Section, in an
amount equal to the lesser of 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, of the person's last
annual annuity amount prior to January 1, 2015. If a person was
not granted an annuity before the effective date of this
amendatory Act of the 98th General Assembly, then this
calculation shall be based on his or her originally granted
annuity; provided, however, that a person retiring after the
effective date of this amendatory Act of the 98th General
Assembly shall not be eligible for an annual increase under
this Section until one full year after the date on which such
annual increase otherwise would take effect under this Section.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average

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change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
Notwithstanding Section 1-103.1, this subsection (b-5) is
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act
of the 98th General Assembly. This subsection (b-5) applies to
any former employee who on or after the effective date of this
amendatory Act of the 98th General Assembly is receiving a
retirement annuity and is eligible for an automatic annual
increase under this Section.
(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff. 7-1-02;
93-654, eff. 1-16-04.)
(40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
Sec. 11-134.3. Automatic increases in annuity for certain
heretofore retired participants. A retired employee who (a) is
receiving annuity based on a service credit of 20 or more years
regardless of age at retirement or based on a service credit of
15 or more years with retirement at age 55 or over, and (b)
does not qualify for the automatic increases in annuity
provided for in Section 11-134.1 of this Article, and (c)
elects to make a contribution to the Fund at a time and manner
prescribed by the Retirement Board, of a sum equal to 1% of the
amount of final monthly salary times the number of full years
of service on which the annuity was based in those cases where

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the annuity was computed on the money purchase formula, and in
those cases in which the annuity was computed under the minimum
annuity formula provisions of this Article a sum equal to 1% of
the average monthly salary on which the annuity was based times
such number of full years of service, shall have his original
fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains the
age of 65 years, if such age of 65 years is attained in the year
1969 or later, by an amount equal to 1 1/2%, and by an equal
additional 1 1/2% in January of each year thereafter. Beginning
with January of the year 1972, such increases shall be at the
rate of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the
rate of 3% of the currently payable monthly annuity, including
any increases previously granted under this Article.
In those cases in which the retired employee receiving
annuity has attained the age of 66 or more years in the year
1969, he shall have such annuity increased in January of the
year 1970 by an amount equal to 1 1/2% multiplied by the number
equal to the number of months of January elapsing from and
including January of the year immediately following the year he
attained the age of 65 years if retired at or prior to age 65,
or from and including January of the year immediately following
the year of retirement if retired at an age greater than 65
years, to and including January of the year 1970, and by an

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equal additional 1 1/2% in January of each year thereafter.
Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
Beginning January, 1984, such increases shall be at the rate of
3%. Beginning in January of 1999, such increases shall be at
the rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this Article.
To defray the annual cost of such increases, the annual
interest income of the Fund, accruing from investments held by
the Fund, exclusive of gains or losses on sales or exchanges of
assets during the year, over and above 4% a year, shall be used
to the extent necessary and available to finance the cost of
such increases for the following year, and such amount shall be
transferred as of the end of each year, beginning with the year
1969, to a Fund account designated as the Supplementary Payment
Reserve from the Investment and Interest Reserve set forth in
Sec. 11-210. The sums contributed by annuitants as provided for
in this Section shall also be placed in the aforesaid
Supplementary Payment Reserve and shall be applied for and used
for the purposes of such Fund account, together with the
aforesaid interest.
In the event the monies in the Supplementary Payment
Reserve in any year arising from: (1) the available interest
income as defined hereinbefore and accruing in the preceding
year above 4% a year and (2) the contributions by retired
persons, as set forth hereinbefore, are insufficient to make

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the total payments to all persons estimated to be entitled to
the annuity increases specified hereinbefore, then (3) any
interest earnings over 4% a year beginning with the year 1969
which were not previously used to finance such increases and
which were transferred to the Prior Service Annuity Reserve may
be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current
year, and such sums shall be transferred from the Prior Service
Annuity Reserve.
In the event the total monies available in the
Supplementary Payment Reserve from the preceding indicated
sources are insufficient to make the total payments to all
persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies
available to the total of the total payments for that year
shall be paid to each person for that year.
The Fund shall be obligated for the payment of the
increases in annuity as provided for in this Section only to
the extent that the assets for such purpose, as specified
herein, are available.
Notwithstanding any provision of this Section to the
contrary, there shall be no annual increase under this Section
in years 2017, 2019, and 2025. In all other years, beginning
January 1, 2015, the Fund shall pay an annual increase to
persons eligible to receive one under this Section, in lieu of
any other annual increase provided under this Section, in an

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amount equal to the lesser of 3% or one-half the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1 of the person's last annual
annuity amount prior to January 1, 2015.
For purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
Notwithstanding Section 1-103.1, the changes made to this
Section by this amendatory Act of the 98th General Assembly are
applicable without regard to whether the employee was in active
service on or after the effective date of this amendatory Act.
These changes apply to any former employee who, on or after the
effective date of this amendatory Act, is receiving a
retirement annuity and is eligible for an automatic annual
increase under this Section.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
Sec. 11-169. Financing; tax levies levy.
(a) Except as provided in subsection (f) of this Section,
the city council of the city shall levy a tax annually upon all
taxable property in the city at the rate that will produce a

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sum which, when added to the amounts deducted from the salaries
of the employees or otherwise contributed by them and the
amounts deposited under subsection (f), will be sufficient for
the requirements of this Article. For the years prior to the
year 1950 the tax rate shall be as provided for under "The 1935
Act". Beginning with the year 1950 to and including the year
1969 such tax shall be not more than .036% annually of the
value, as equalized or assessed by the Department of Revenue,
of all taxable property within such city. Beginning with the
year 1970 and each year thereafter the city shall levy a tax
annually at a rate on the dollar of the value, as equalized or
assessed by the Department of Revenue of all taxable property
within such city that will produce, when extended, not to
exceed an amount equal to the total amount of contributions by
the employees to the fund made in the calendar year 2 years
prior to the year for which the annual applicable tax is
levied, multiplied by 1.1 for the years 1970, 1971 and 1972;
1.145 for the year 1973; 1.19 for the year 1974; 1.235 for the
year 1975; 1.280 for the year 1976; 1.325 for the year 1977;
1.370 for the years 1978 through 1998; and 1.000 for the year
1999 and for each year thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the city, and shall be exclusive of and in
addition to the amount of tax the city is now or may hereafter
be authorized to levy for general purposes under any laws which
may limit the amount of tax which the city may levy for general

09800SB1922ham003 - 54 - LRB098 09566 EFG 58042 a
purposes. The county clerk of the county in which the city is
located, in reducing tax levies under the provisions of any Act
concerning the levy and extension of taxes, shall not consider
the tax herein provided for as a part of the general tax levy
for city purposes, and shall not include the same within any
limitation of the per cent of the assessed valuation upon which
taxes are required to be extended for such city.
Revenues derived from such tax shall be paid to the city
treasurer of the city as collected and held by him for the
benefit of the fund.
If the payments on account of taxes are insufficient during
any year to meet the requirements of this Article, the city may
issue tax anticipation warrants against the current tax levy.
(a-1) Notwithstanding anything to the contrary in
subsection (a) of this Section, beginning with the city's levy
under subsection (a) in 2015 and each year thereafter, the levy
shall not exceed the amount of the city's total contribution to
the Fund under this Section for payment year 2014; provided,
however, that the city may continue to use other lawfully
available funds in lieu of all or part of the levy as provided
under subsection (f) of this Section. The increases that would
have occurred under subsection (a) of this Section if not for
the aforementioned limitation shall be included in
calculations under subsection (a-2) of this Section for levy
purposes.
(a-2) For purposes of this Section, the payment year is the

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year following the levy year. Starting in payment year 2016,
the city shall pay to the Fund annually, in the manner
described in this subsection, an amount that, when added to the
amounts of the contribution provided in subsection (a) of this
Section as modified by subsection (a-1) of this Section, shall
equal the lesser of:
(i) (I) for payment years 2016 through 2055, the annual
amount determined by the Fund to be equal to the greater of
$0, or the sum of (1) the City's portion of the projected
normal cost for that fiscal year, plus (2) an amount
determined on a level percentage of applicable employee
payroll basis (reflecting any limits on individual
participants' pay that apply for benefit and contribution
purposes under this plan) that is sufficient to bring the
total actuarial assets of the Fund up to 90% of the total
actuarial liabilities of the Fund by the end of 2055. (II)
For payment years after 2055, the annual amount determined
by the Fund to be equal to the amount needed, if any, to
bring the total actuarial assets of the Fund up to 90% of
the total actuarial liabilities of the Fund as of the end
of the year. In making the determinations under both (I)
and (II), the actuarial calculations shall be determined
under the entry age normal actuarial cost method on an open
group projection basis, and any actuarial gains or losses
from investment return incurred in a fiscal year shall be
recognized in equal annual amounts over the 5-year period

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following the fiscal year; or
(ii) for payment year 2016, 1.60 times the total amount
of contributions made by or on behalf of employees to the
Fund for annuity purposes in the calendar year 2013; for
payment year 2017, 1.90 times the total amount of
contributions made by or on behalf of employees to the Fund
for annuity purposes in the calendar year 2014; for payment
year 2018, 2.20 times the total amount of contributions
made by or on behalf of employees to the Fund for annuity
purposes in the calendar year 2015; for payment year 2019,
2.50 times the total amount of contributions made by or on
behalf of employees to the Fund for annuity purposes in the
calendar year 2016; for payment year 2020, 2.80 times the
total amount of contributions made by or on behalf of
employees to the Fund for annuity purposes in the calendar
year 2017; provided however, that beginning in the earlier
of the year that the annual contribution amount is the
amount calculated under subdivision (i), or payment year
2021, and each year thereafter, the city's annual
contribution shall be determined pursuant to subdivision
(i) only.
(a-3) For levy years 2015 through 2020, the city council of
the city shall levy a separate tax annually upon all taxable
property in the city that shall be known as the Pension
Stabilization Levy and shall be at a rate that, when extended,
will produce an amount that is no less than one-half of the

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city's required contribution amount under subsection (a-2) for
each year. The remainder of the city's total required
contribution amount under subsection (a-2) shall be paid by the
city to the city treasurer of the city with any lawfully
available funds, which shall be collected and held by the city
treasurer for the benefit of the Fund; provided however, that
the city may elect to fund some or all of such remaining amount
through the Pension Stabilization Levy in lieu of paying with
other available funds of the city.
Subject to subsection (f) of this Section, for levy year
2021 and thereafter, the city council of the city may levy the
Pension Stabilization Levy at a rate that, when extended, will
produce an amount not to exceed the city's total required
contribution amount under subsection (a-2) for each applicable
payment year.
The Pension Stabilization Levy shall be levied and
collected in like manner with the general taxes of the city,
and shall be exclusive of and in addition to the amount of tax
the city is now or may hereafter be authorized to levy for
general purposes under any laws which may limit the amount of
tax which the city may levy for general purposes. The county
clerk of the county in which the city is located, in reducing
tax levies under the provisions of any Act concerning the levy
and extension of taxes, shall not consider the tax herein
provided for as a part of the general tax levy for city
purposes, and shall not include the same within any limitation

09800SB1922ham003 - 58 - LRB098 09566 EFG 58042 a
of the percent of the assessed valuation upon which taxes are
required to be extended for such city.
Revenues derived from such tax shall be used solely to
satisfy the city's obligations to the Fund pursuant to
subsection (a-2) and shall be paid to the city treasurer as
collected and held by him for the benefit of the fund.
If the payments on account of taxes are insufficient during
any year to meet the requirements of this Article, the city may
issue tax anticipation warrants against the current tax levy.
(a-4) For levy years 2015 through 2020, if the city does
not: (i) levy a tax under subsection (a-3) equal to at least
50% of the city's required contribution under subsection (a-2);
and (ii) transmit the proceeds of the levy to the Fund within
90 days after the payment of that contribution is due, the Fund
may, after giving notice to the city, certify to the State
Comptroller the amounts of the delinquent payment, and the
Comptroller must, beginning in payment year 2016, deduct and
deposit into the Fund the certified amount or a portion of that
amount from the following proportions of grants of State funds
to the city:
(1) in payment year 2016, one-third of the total amount
of any grants of State funds to the city;
(2) in payment year 2017, two-thirds of the total
amount of any grants of State funds to the city; and
(3) in payment years 2018 through 2021, the total
amount of any grants of State funds to the city.

09800SB1922ham003 - 59 - LRB098 09566 EFG 58042 a
The State Comptroller may not deduct from any grants of
State funds to the city more than the amount of delinquent
payment certified to the State Comptroller by the Fund.
(b) On or before January 10, annually, the board shall
notify the city council of the requirement of this Article that
the taxes tax herein provided shall be levied for that current
year. The board shall compute the amounts necessary for the
purposes of this fund to be credited to the reserves
established and maintained as herein provided, and shall make
an annual determination of the amount of the required city
contributions; and certify the results thereof to the city
council.
(c) In respect to employees of the city who are transferred
to the employment of a park district by virtue of "Exchange of
Functions Act of 1957" the corporate authorities of the park
district shall annually levy a tax upon all the taxable
property in the park district at such rate per cent of the
value of such property, as equalized or assessed by the
Department of Revenue, as shall be sufficient, when added to
the amounts deducted from their salaries and otherwise
contributed by them, to provide the benefits to which they and
their dependents and beneficiaries are entitled under this
Article. The city shall not levy a tax hereunder in respect to
such employees.
The tax so levied by the park district shall be in addition
to and exclusive of all other taxes authorized to be levied by

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the park district for corporate, annuity fund, or other
purposes. The county clerk of the county in which the park
district is located, in reducing any tax levied under the
provisions of any Act concerning the levy and extension of
taxes shall not consider such tax as part of the general tax
levy for park purposes, and shall not include the same in any
limitation of the per cent of the assessed valuation upon which
taxes are required to be extended for the park district. The
proceeds of the tax levied by the park district, upon receipt
by the district, shall be immediately paid over to the city
treasurer of the city for the uses and purposes of the fund.
The various sums to be contributed by the city and
allocated for the purposes of this Article, and any interest to
be contributed by the city, shall be taken from the revenue
derived from the taxes authorized in this Section, and no money
of such city derived from any source other than the levy and
collection of those taxes or the sale of tax anticipation
warrants in accordance with the provisions of this Article
shall be used to provide revenue for this Article, except as
expressly provided in this Section.
If it is not possible for the city to make contributions
for age and service annuity and widow's annuity concurrently
with the employee's contributions made for such purposes, such
city shall make such contributions as soon as possible and
practicable thereafter with interest thereon at the effective
rate to the time they shall be made.

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(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the board
has elected to establish a manpower program reserve, the board
shall compute the amounts necessary to be credited to the
manpower program reserves established and maintained as herein
provided, and shall make a periodic determination of the amount
of required contributions from the City to the reserve to be
reimbursed by the federal government in accordance with rules
and regulations established by the Secretary of the United
States Department of Labor or his designee, and certify the
results thereof to the City Council. Any such amounts shall
become a credit to the City and will be used to reduce the
amount which the City would otherwise contribute during
succeeding years for all employees.
(e) In lieu of establishing a manpower program reserve with
respect to employees whose wages are funded as participants
under the Comprehensive Employment and Training Act of 1973, as
authorized by subsection (d), the board may elect to establish
a special municipality contribution rate for all such
employees. If this option is elected, the City shall contribute
to the Fund from federal funds provided under the Comprehensive
Employment and Training Act program at the special rate so
established and such contributions shall become a credit to the

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City and be used to reduce the amount which the City would
otherwise contribute during succeeding years for all
employees.
(f) Except as otherwise provided in subsection (a-3), in In
lieu of levying all or a portion of the tax required under this
Section in any year, the city may deposit with the city
treasurer no later than March 1 of that year for the benefit of
the fund, to be held in accordance with this Article, an amount
that, together with the taxes levied under this Section for
that year, is not less than the amount of the city
contributions for that year as certified by the board to the
city council. The deposit may be derived from any source
legally available for that purpose, including, but not limited
to, the proceeds of city borrowings. The making of a deposit
shall satisfy fully the requirements of this Section for that
year to the extent of the amounts so deposited. Amounts
deposited under this subsection may be used by the fund for any
of the purposes for which the proceeds of the taxes tax levied
by the city under this Section may be used, including the
payment of any amount that is otherwise required by this
Article to be paid from the proceeds of those taxes that tax.
(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/11-169.1 new)
Sec. 11-169.1. Funding Obligation.
(a) Beginning January 1, 2015, the city shall be obligated

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to contribute to the Fund in each fiscal year an amount not
less than the amount determined annually under subsections (a)
through (a-2) of Section 11-169 of this Code. Notwithstanding
any other provision of law, if the city fails to pay the amount
guaranteed under this Section on or before December 31 of the
year in which such amount is due, the retirement board may
bring a mandamus action in the Circuit Court of Cook County to
compel the city to make the required payment, irrespective of
other remedies that may be available to the Fund. The
obligations and causes of action created under this Section
shall be in addition to any other right or remedy otherwise
accorded by common law or State or federal law, and nothing in
this Section shall be construed to deny, abrogate, impair, or
waive any such common law or statutory right or remedy.
(b) In ordering the city to make the required payment, the
court may order a reasonable payment schedule to enable the
city to make the required payment without significantly
imperiling the public health, safety, or welfare. Any payments
required to be made by the city pursuant to this Section are
expressly subordinated to the payment of the principal,
interest, premium, if any, and other payments on or related to
any bonded debt obligation of the city, either currently
outstanding or to be issued, for which the source of repayment
or security thereon is derived directly or indirectly from any
funds collected or received by the city or collected or
received on behalf of the city. Payments on such bonded

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obligations include any statutory fund transfers or other
prefunding mechanisms or formulas set forth, now or hereafter,
in State law, city ordinance, or bond indentures, into debt
service funds or accounts of the city related to such bonded
obligations, consistent with the payment schedules associated
with such obligations.
(40 ILCS 5/11-170) (from Ch. 108 1/2, par. 11-170)
Sec. 11-170. Contributions for age and service annuities
for present employees, future entrants and re-entrants.
(a) Beginning on the effective date and prior to July 1,
1947, 3 1/4%; and beginning on July 1, 1947 and prior to July
1, 1953, 5%; and beginning July 1, 1953 and prior to January 1,
1972, 6%; and beginning January 1, 1972, 6.5%; and beginning
January 1, 2015, and prior to January 1, 2016, 7.0%; and
beginning January 1, 2016, and prior to January 1, 2017, 7.5%;
and, beginning January 1, 2017, and prior to January 1, 2018,
8.0%; and beginning January 1, 2018, and prior to January 1,
2019, 8.5%; and beginning January 1, 2019, and thereafter, 9.0%
6 1/2% of each payment of the salary of each present employee,
future entrant and re-entrant shall be contributed to the fund
as a deduction from salary for age and service annuity;
provided, however, that beginning with the first pay period on
or after the date when the funded ratio of the Fund is first
determined to have reached the 90% funding goal set forth in
subsection (a-2) of Section 11-169 of this Code, and each pay

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period thereafter for as long as the Fund maintains a funding
ratio of 90% or more, employee contributions shall be 7.75% of
salary for the age and service annuity. If the funding ratio
falls below 90%, then employee contributions for the age and
service annuity shall revert to 9.0% of salary until such time
as the Fund once again is determined to have reached a funding
ratio of at least 90%, at which time employee contributions of
7.75% shall resume for the age and service annuity. Such
deductions beginning on the effective date and prior to June
30, 1947, inclusive shall be made for a future entrant while he
is in service until he attains age 65, and for a present
employee while he is in service until the amount so deducted
from his salary with interest at the rate of 4% per annum shall
be equal to the sum which would have accumulated to his credit
from sums deducted from his salary if deductions at the rate
herein stated had been made during his entire service until he
attained age 65 with interest at 4% per annum for the period
subsequent to his attainment of age 65. Such deductions
beginning July 1, 1947 shall be made and continued for
employees while in the service.
Notwithstanding Section 1-103.1, the changes to this
Section made by this amendatory Act of the 98th General
Assembly apply regardless of whether the employee was in active
service on or after the effective date of this amendatory Act.
(b) Concurrently with each employee contribution, the city
shall contribute beginning on the effective date and prior to

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July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to
July 1, 1953, 7%; and beginning July 1, 1953, 6% of each
payment of such salary until the employee attains age 65.
(c) Each employee contribution made prior to the date age
and service annuity for an employee is fixed and each
corresponding city contribution shall be allocated to the
account of and credited to the employee for whose benefit it is
made.
(Source: P.A. 81-1536.)
(40 ILCS 5/11-179.1 new)
Sec. 11-179.1. Use of contributions for health care
subsidies. Except as may be required pursuant to Sections
11-160.1 and 11-160.2 of this Code, the Fund shall not use any
contribution received by the Fund under this Article to provide
a subsidy for the cost of participation in a retiree health
care program.
(40 ILCS 5/11-185) (from Ch. 108 1/2, par. 11-185)
Sec. 11-185. Board meetings.
The board shall hold regular meetings in each month and
special meetings as it deems necessary. A majority of the
members shall constitute a quorum for the transaction of
business at any meeting, but no annuity or benefit shall be
granted or payments made by the fund unless ordered by a vote
of a majority of the board members as shown by roll call

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entered upon the official record of the meeting.
The board shall not change the discount rate, rate of
return, mortality assumptions, or any other assumption that
materially affects the City's contribution obligation pursuant
to subsection (a-2) of Section 11-169 without the approval of
at least 6 of the board's 8 members.
All meetings of the board shall be open to the public.
(Source: Laws 1963, p. 161.)
Section 90. The State Mandates Act is amended by adding
Section 8.38 as follows:
(30 ILCS 805/8.38 new)
Sec. 8.38. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 98th General Assembly.
Section 93. Inseverability and severability. The
provisions of this amendatory Act of 2013 set forth in Secs.
1-160, 8-137, 8-137.1, 8-173, 8-173.1, 8-174, 11-134.1,
11-134.3, 11-169, 11-169.1, and 11-170 of the Illinois Pension
Code are mutually dependent and inseverable. If any of those
provisions is held invalid other than as applied to a
particular person or circumstance, then all of those provisions
are invalid. The remaining provisions of this Act are severable

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under Section 1.31 of the Statute on Statutes, and are not
mutually dependent upon the provisions set forth in any other
Section of this Act.
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.".