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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5246

Introduced 2/10/2026, by Rep. Travis Weaver

SYNOPSIS AS INTRODUCED:

40 ILCS 5/1-160
40 ILCS 5/16-203
40 ILCS 5/16-204
30 ILCS 805/8.50 new

Amends the General Provisions and Downstate Teacher Article of the
Illinois Pension Code. Provides that a person who first becomes a member on
or after the effective date of the amendatory Act who (i) is at least 50
years of age and (ii) does not have any service credit in the System or any
other reciprocal System may elect to participate in the defined
contribution benefit in lieu of participation in the defined benefit plan
under the Article. Provides that the member shall contribute an amount
equal to 7.5% of the member's pre-tax salary to the member's defined
contribution account. Provides that, in addition, the employer shall
contribute 6% of the member's pre-tax salary to the defined contribution
account. Provides that a person who participates in the defined
contribution plan in lieu of the defined benefit plan may not establish any
service credit in the System. Provides that any benefit increase that
results from the amendatory Act is excluded from the definition of "new
benefit increase". Makes conforming changes. Amends the State Mandates Act
to require implementation without reimbursement by the State. Effective
immediately.
LRB104 16458 RPS 29851 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

A BILL FOR

HB5246
LRB104 16458 RPS 29851 b
1

AN ACT concerning public employee benefits.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Pension Code is amended by
5
changing Sections 1-160, 16-203, and 16-204 as follows:

6

(40 ILCS 5/1-160)
7

(Text of Section from P.A. 102-719)
8

Sec. 1-160.
Provisions applicable to new hires.

9

(a) The provisions of this Section apply to a person who,
10
on or after January 1, 2011, first becomes a member or a
11
participant under any reciprocal retirement system or pension
12
fund established under this Code, other than a retirement
13
system or pension fund established under Article 2, 3, 4, 5, 6,
14
7, 15, or 18 of this Code, notwithstanding any other provision
15
of this Code to the contrary, but do not apply to any
16
self-managed plan established under this Code or to any
17
participant of the retirement plan established under Section
18
22-101; except that this Section applies to a person who
19
elected to establish alternative credits by electing in
20
writing after January 1, 2011, but before August 8, 2011,
21
under Section 7-145.1 of this Code. Notwithstanding anything
22
to the contrary in this Section, for purposes of this Section,
23
a person who is a Tier 1 regular employee as defined in Section

HB5246
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LRB104 16458 RPS 29851 b
1
7-109.4 of this Code or who participated in a retirement
2
system under Article 15 prior to January 1, 2011 shall be
3
deemed a person who first became a member or participant prior
4
to January 1, 2011 under any retirement system or pension fund
5
subject to this Section. The changes made to this Section by
6
Public Act 98-596 are a clarification of existing law and are
7
intended to be retroactive to January 1, 2011 (the effective
8
date of Public Act 96-889), notwithstanding the provisions of
9
Section 1-103.1 of this Code.
10

This Section does not apply to a person who first becomes a
11
noncovered employee under Article 14 on or after the
12
implementation date of the plan created under Section 1-161
13
for that Article, unless that person elects under subsection
14
(b) of Section 1-161 to instead receive the benefits provided
15
under this Section and the applicable provisions of that
16
Article.
17

This Section does not apply to a person who first becomes a
18
member under Article 16 on or after the effective date of this
19
amendatory Act of the 104th General Assembly if that person
20
(i) is at least 50 years of age, (ii) does not have any service
21
credit under Article 16 or any reciprocal retirement system or
22
pension fund, and (iii) makes the election under subsection
23
(b) of Section 16-204.

24

This Section does not apply to a person who first becomes a
25
member or participant under Article 16 on or after the
26
implementation date of the plan created under Section 1-161

HB5246
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LRB104 16458 RPS 29851 b
1
for that Article, unless that person elects under subsection
2
(b) of Section 1-161 to instead receive the benefits provided
3
under this Section and the applicable provisions of that
4
Article.
5

This Section does not apply to a person who elects under
6
subsection (c-5) of Section 1-161 to receive the benefits
7
under Section 1-161.
8

This Section does not apply to a person who first becomes a
9
member or participant of an affected pension fund on or after 6
10
months after the resolution or ordinance date, as defined in
11
Section 1-162, unless that person elects under subsection (c)
12
of Section 1-162 to receive the benefits provided under this
13
Section and the applicable provisions of the Article under
14
which he or she is a member or participant.
15

(b) "Final average salary" means, except as otherwise
16
provided in this subsection, the average monthly (or annual)
17
salary obtained by dividing the total salary or earnings
18
calculated under the Article applicable to the member or
19
participant during the 96 consecutive months (or 8 consecutive
20
years) of service within the last 120 months (or 10 years) of
21
service in which the total salary or earnings calculated under
22
the applicable Article was the highest by the number of months
23
(or years) of service in that period. For the purposes of a
24
person who first becomes a member or participant of any
25
retirement system or pension fund to which this Section
26
applies on or after January 1, 2011, in this Code, "final

HB5246
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LRB104 16458 RPS 29851 b
1
average salary" shall be substituted for the following:
2

(1) (Blank).
3

(2) In Articles 8, 9, 10, 11, and 12, "highest average
4

annual salary for any 4 consecutive years within the last
5

10 years of service immediately preceding the date of
6

withdrawal".
7

(3) In Article 13, "average final salary".
8

(4) In Article 14, "final average compensation".
9

(5) In Article 17, "average salary".
10

(6) In Section 22-207, "wages or salary received by
11

him at the date of retirement or discharge".
12

A member of the Teachers' Retirement System of the State
13
of Illinois who retires on or after June 1, 2021 and for whom
14
the 2020-2021 school year is used in the calculation of the
15
member's final average salary shall use the higher of the
16
following for the purpose of determining the member's final
17
average salary:
18

(A) the amount otherwise calculated under the first
19

paragraph of this subsection; or
20

(B) an amount calculated by the Teachers' Retirement
21

System of the State of Illinois using the average of the
22

monthly (or annual) salary obtained by dividing the total
23

salary or earnings calculated under Article 16 applicable
24

to the member or participant during the 96 months (or 8
25

years) of service within the last 120 months (or 10 years)
26

of service in which the total salary or earnings

HB5246
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LRB104 16458 RPS 29851 b
1

calculated under the Article was the highest by the number
2

of months (or years) of service in that period.
3

(b-5) Beginning on January 1, 2011, for all purposes under
4
this Code (including without limitation the calculation of
5
benefits and employee contributions), the annual earnings,
6
salary, or wages (based on the plan year) of a member or
7
participant to whom this Section applies shall not exceed
8
$106,800; however, that amount shall annually thereafter be
9
increased by the lesser of (i) 3% of that amount, including all
10
previous adjustments, or (ii) one-half the annual unadjusted
11
percentage increase (but not less than zero) in the consumer
12
price index-u for the 12 months ending with the September
13
preceding each November 1, including all previous adjustments.
14

For the purposes of this Section, "consumer price index-u"
15
means the index published by the Bureau of Labor Statistics of
16
the United States Department of Labor that measures the
17
average change in prices of goods and services purchased by
18
all urban consumers, United States city average, all items,
19
1982-84 = 100. The new amount resulting from each annual
20
adjustment shall be determined by the Public Pension Division
21
of the Department of Insurance and made available to the
22
boards of the retirement systems and pension funds by November
23
1 of each year.
24

(b-10) Beginning on January 1, 2024, for all purposes
25
under this Code (including, without limitation, the
26
calculation of benefits and employee contributions), the

HB5246
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LRB104 16458 RPS 29851 b
1
annual earnings, salary, or wages (based on the plan year) of a
2
member or participant under Article 9 to whom this Section
3
applies shall include an annual earnings, salary, or wage cap
4
that tracks the Social Security wage base. Maximum annual
5
earnings, wages, or salary shall be the annual contribution
6
and benefit base established for the applicable year by the
7
Commissioner of the Social Security Administration under the
8
federal Social Security Act.
9

However, in no event shall the annual earnings, salary, or
10
wages for the purposes of this Article and Article 9 exceed any
11
limitation imposed on annual earnings, salary, or wages under
12
Section 1-117. Under no circumstances shall the maximum amount
13
of annual earnings, salary, or wages be greater than the
14
amount set forth in this subsection (b-10) as a result of
15
reciprocal service or any provisions regarding reciprocal
16
services, nor shall the Fund under Article 9 be required to pay
17
any refund as a result of the application of this maximum
18
annual earnings, salary, and wage cap.
19

Nothing in this subsection (b-10) shall cause or otherwise
20
result in any retroactive adjustment of any employee
21
contributions. Nothing in this subsection (b-10) shall cause
22
or otherwise result in any retroactive adjustment of
23
disability or other payments made between January 1, 2011 and
24
January 1, 2024.
25

(c) A member or participant is entitled to a retirement
26
annuity upon written application if he or she has attained age

HB5246
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LRB104 16458 RPS 29851 b
1
67 (age 65, with respect to service under Article 12 that is
2
subject to this Section, for a member or participant under
3
Article 12 who first becomes a member or participant under
4
Article 12 on or after January 1, 2022 or who makes the
5
election under item (i) of subsection (d-15) of this Section)
6
and has at least 10 years of service credit and is otherwise
7
eligible under the requirements of the applicable Article.
8

A member or participant who has attained age 62 (age 60,
9
with respect to service under Article 12 that is subject to
10
this Section, for a member or participant under Article 12 who
11
first becomes a member or participant under Article 12 on or
12
after January 1, 2022 or who makes the election under item (i)
13
of subsection (d-15) of this Section) and has at least 10 years
14
of service credit and is otherwise eligible under the
15
requirements of the applicable Article may elect to receive
16
the lower retirement annuity provided in subsection (d) of
17
this Section.
18

(c-5) A person who first becomes a member or a participant
19
subject to this Section on or after July 6, 2017 (the effective
20
date of Public Act 100-23), notwithstanding any other
21
provision of this Code to the contrary, is entitled to a
22
retirement annuity under Article 8 or Article 11 upon written
23
application if he or she has attained age 65 and has at least
24
10 years of service credit and is otherwise eligible under the
25
requirements of Article 8 or Article 11 of this Code,
26
whichever is applicable.

HB5246
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LRB104 16458 RPS 29851 b
1

(d) The retirement annuity of a member or participant who
2
is retiring after attaining age 62 (age 60, with respect to
3
service under Article 12 that is subject to this Section, for a
4
member or participant under Article 12 who first becomes a
5
member or participant under Article 12 on or after January 1,
6
2022 or who makes the election under item (i) of subsection
7
(d-15) of this Section) with at least 10 years of service
8
credit shall be reduced by one-half of 1% for each full month
9
that the member's age is under age 67 (age 65, with respect to
10
service under Article 12 that is subject to this Section, for a
11
member or participant under Article 12 who first becomes a
12
member or participant under Article 12 on or after January 1,
13
2022 or who makes the election under item (i) of subsection
14
(d-15) of this Section).
15

(d-5) The retirement annuity payable under Article 8 or
16
Article 11 to an eligible person subject to subsection (c-5)
17
of this Section who is retiring at age 60 with at least 10
18
years of service credit shall be reduced by one-half of 1% for
19
each full month that the member's age is under age 65.
20

(d-10) Each person who first became a member or
21
participant under Article 8 or Article 11 of this Code on or
22
after January 1, 2011 and prior to July 6, 2017 (the effective
23
date of Public Act 100-23) shall make an irrevocable election
24
either:
25

(i) to be eligible for the reduced retirement age
26

provided in subsections (c-5) and (d-5) of this Section,

HB5246
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LRB104 16458 RPS 29851 b
1

the eligibility for which is conditioned upon the member
2

or participant agreeing to the increases in employee
3

contributions for age and service annuities provided in
4

subsection (a-5) of Section 8-174 of this Code (for
5

service under Article 8) or subsection (a-5) of Section
6

11-170 of this Code (for service under Article 11); or
7

(ii) to not agree to item (i) of this subsection
8

(d-10), in which case the member or participant shall
9

continue to be subject to the retirement age provisions in
10

subsections (c) and (d) of this Section and the employee
11

contributions for age and service annuity as provided in
12

subsection (a) of Section 8-174 of this Code (for service
13

under Article 8) or subsection (a) of Section 11-170 of
14

this Code (for service under Article 11).
15

The election provided for in this subsection shall be made
16
between October 1, 2017 and November 15, 2017. A person
17
subject to this subsection who makes the required election
18
shall remain bound by that election. A person subject to this
19
subsection who fails for any reason to make the required
20
election within the time specified in this subsection shall be
21
deemed to have made the election under item (ii).
22

(d-15) Each person who first becomes a member or
23
participant under Article 12 on or after January 1, 2011 and
24
prior to January 1, 2022 shall make an irrevocable election
25
either:
26

(i) to be eligible for the reduced retirement age

HB5246
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LRB104 16458 RPS 29851 b
1

specified in subsections (c) and (d) of this Section, the
2

eligibility for which is conditioned upon the member or
3

participant agreeing to the increase in employee
4

contributions for service annuities specified in
5

subsection (b) of Section 12-150; or
6

(ii) to not agree to item (i) of this subsection
7

(d-15), in which case the member or participant shall not
8

be eligible for the reduced retirement age specified in
9

subsections (c) and (d) of this Section and shall not be
10

subject to the increase in employee contributions for
11

service annuities specified in subsection (b) of Section
12

12-150.
13

The election provided for in this subsection shall be made
14
between January 1, 2022 and April 1, 2022. A person subject to
15
this subsection who makes the required election shall remain
16
bound by that election. A person subject to this subsection
17
who fails for any reason to make the required election within
18
the time specified in this subsection shall be deemed to have
19
made the election under item (ii).
20

(e) Any retirement annuity or supplemental annuity shall
21
be subject to annual increases on the January 1 occurring
22
either on or after the attainment of age 67 (age 65, with
23
respect to service under Article 12 that is subject to this
24
Section, for a member or participant under Article 12 who
25
first becomes a member or participant under Article 12 on or
26
after January 1, 2022 or who makes the election under item (i)

HB5246
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LRB104 16458 RPS 29851 b
1
of subsection (d-15); and beginning on July 6, 2017 (the
2
effective date of Public Act 100-23), age 65 with respect to
3
service under Article 8 or Article 11 for eligible persons
4
who: (i) are subject to subsection (c-5) of this Section; or
5
(ii) made the election under item (i) of subsection (d-10) of
6
this Section) or the first anniversary of the annuity start
7
date, whichever is later. Each annual increase shall be
8
calculated at 3% or one-half the annual unadjusted percentage
9
increase (but not less than zero) in the consumer price
10
index-u for the 12 months ending with the September preceding
11
each November 1, whichever is less, of the originally granted
12
retirement annuity. If the annual unadjusted percentage change
13
in the consumer price index-u for the 12 months ending with the
14
September preceding each November 1 is zero or there is a
15
decrease, then the annuity shall not be increased.
16

For the purposes of Section 1-103.1 of this Code, the
17
changes made to this Section by Public Act 102-263 are
18
applicable without regard to whether the employee was in
19
active service on or after August 6, 2021 (the effective date
20
of Public Act 102-263).
21

For the purposes of Section 1-103.1 of this Code, the
22
changes made to this Section by Public Act 100-23 are
23
applicable without regard to whether the employee was in
24
active service on or after July 6, 2017 (the effective date of
25
Public Act 100-23).
26

(f) The initial survivor's or widow's annuity of an

HB5246
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LRB104 16458 RPS 29851 b
1
otherwise eligible survivor or widow of a retired member or
2
participant who first became a member or participant on or
3
after January 1, 2011 shall be in the amount of 66 2/3% of the
4
retired member's or participant's retirement annuity at the
5
date of death. In the case of the death of a member or
6
participant who has not retired and who first became a member
7
or participant on or after January 1, 2011, eligibility for a
8
survivor's or widow's annuity shall be determined by the
9
applicable Article of this Code. The initial benefit shall be
10
66 2/3% of the earned annuity without a reduction due to age. A
11
child's annuity of an otherwise eligible child shall be in the
12
amount prescribed under each Article if applicable. Any
13
survivor's or widow's annuity shall be increased (1) on each
14
January 1 occurring on or after the commencement of the
15
annuity if the deceased member died while receiving a
16
retirement annuity or (2) in other cases, on each January 1
17
occurring after the first anniversary of the commencement of
18
the annuity. Each annual increase shall be calculated at 3% or
19
one-half the annual unadjusted percentage increase (but not
20
less than zero) in the consumer price index-u for the 12 months
21
ending with the September preceding each November 1, whichever
22
is less, of the originally granted survivor's annuity. If the
23
annual unadjusted percentage change in the consumer price
24
index-u for the 12 months ending with the September preceding
25
each November 1 is zero or there is a decrease, then the
26
annuity shall not be increased.

HB5246
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LRB104 16458 RPS 29851 b
1

(g) The benefits in Section 14-110 apply if the person is a
2
fire fighter in the fire protection service of a department, a
3
security employee of the Department of Corrections or the
4
Department of Juvenile Justice, or a security employee of the
5
Department of Innovation and Technology, as those terms are
6
defined in subsection (b) and subsection (c) of Section
7
14-110. A person who meets the requirements of this Section is
8
entitled to an annuity calculated under the provisions of
9
Section 14-110, in lieu of the regular or minimum retirement
10
annuity, only if the person has withdrawn from service with
11
not less than 20 years of eligible creditable service and has
12
attained age 60, regardless of whether the attainment of age
13
60 occurs while the person is still in service.
14

(g-5) The benefits in Section 14-110 apply if the person
15
is a State policeman, investigator for the Secretary of State,
16
conservation police officer, investigator for the Department
17
of Revenue or the Illinois Gaming Board, investigator for the
18
Office of the Attorney General, Commerce Commission police
19
officer, or arson investigator, as those terms are defined in
20
subsection (b) and subsection (c) of Section 14-110. A person
21
who meets the requirements of this Section is entitled to an
22
annuity calculated under the provisions of Section 14-110, in
23
lieu of the regular or minimum retirement annuity, only if the
24
person has withdrawn from service with not less than 20 years
25
of eligible creditable service and has attained age 55,
26
regardless of whether the attainment of age 55 occurs while

HB5246
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LRB104 16458 RPS 29851 b
1
the person is still in service.
2

(h) If a person who first becomes a member or a participant
3
of a retirement system or pension fund subject to this Section
4
on or after January 1, 2011 is receiving a retirement annuity
5
or retirement pension under that system or fund and becomes a
6
member or participant under any other system or fund created
7
by this Code and is employed on a full-time basis, except for
8
those members or participants exempted from the provisions of
9
this Section under subsection (a) of this Section, then the
10
person's retirement annuity or retirement pension under that
11
system or fund shall be suspended during that employment. Upon
12
termination of that employment, the person's retirement
13
annuity or retirement pension payments shall resume and be
14
recalculated if recalculation is provided for under the
15
applicable Article of this Code.
16

If a person who first becomes a member of a retirement
17
system or pension fund subject to this Section on or after
18
January 1, 2012 and is receiving a retirement annuity or
19
retirement pension under that system or fund and accepts on a
20
contractual basis a position to provide services to a
21
governmental entity from which he or she has retired, then
22
that person's annuity or retirement pension earned as an
23
active employee of the employer shall be suspended during that
24
contractual service. A person receiving an annuity or
25
retirement pension under this Code shall notify the pension
26
fund or retirement system from which he or she is receiving an

HB5246
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LRB104 16458 RPS 29851 b
1
annuity or retirement pension, as well as his or her
2
contractual employer, of his or her retirement status before
3
accepting contractual employment. A person who fails to submit
4
such notification shall be guilty of a Class A misdemeanor and
5
required to pay a fine of $1,000. Upon termination of that
6
contractual employment, the person's retirement annuity or
7
retirement pension payments shall resume and, if appropriate,
8
be recalculated under the applicable provisions of this Code.
9

(i) (Blank).
10

(j) In the case of a conflict between the provisions of
11
this Section and any other provision of this Code, the
12
provisions of this Section shall control.
13
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
14
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
15
5-6-22; 103-529, eff. 8-11-23.)

16

(Text of Section from P.A. 102-813)
17

Sec. 1-160.
Provisions applicable to new hires.

18

(a) The provisions of this Section apply to a person who,
19
on or after January 1, 2011, first becomes a member or a
20
participant under any reciprocal retirement system or pension
21
fund established under this Code, other than a retirement
22
system or pension fund established under Article 2, 3, 4, 5, 6,
23
7, 15, or 18 of this Code, notwithstanding any other provision
24
of this Code to the contrary, but do not apply to any
25
self-managed plan established under this Code or to any

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1
participant of the retirement plan established under Section
2
22-101; except that this Section applies to a person who
3
elected to establish alternative credits by electing in
4
writing after January 1, 2011, but before August 8, 2011,
5
under Section 7-145.1 of this Code. Notwithstanding anything
6
to the contrary in this Section, for purposes of this Section,
7
a person who is a Tier 1 regular employee as defined in Section
8
7-109.4 of this Code or who participated in a retirement
9
system under Article 15 prior to January 1, 2011 shall be
10
deemed a person who first became a member or participant prior
11
to January 1, 2011 under any retirement system or pension fund
12
subject to this Section. The changes made to this Section by
13
Public Act 98-596 are a clarification of existing law and are
14
intended to be retroactive to January 1, 2011 (the effective
15
date of Public Act 96-889), notwithstanding the provisions of
16
Section 1-103.1 of this Code.
17

This Section does not apply to a person who first becomes a
18
noncovered employee under Article 14 on or after the
19
implementation date of the plan created under Section 1-161
20
for that Article, unless that person elects under subsection
21
(b) of Section 1-161 to instead receive the benefits provided
22
under this Section and the applicable provisions of that
23
Article.
24

This Section does not apply to a person who first becomes a
25
member under Article 16 on or after the effective date of this
26
amendatory Act of the 104th General Assembly if that person

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1
(i) is at least 50 years of age, (ii) does not have any service
2
credit under Article 16 or any reciprocal retirement system or
3
pension fund, and (iii) makes the election under subsection
4
(b) of Section 16-204.

5

This Section does not apply to a person who first becomes a
6
member or participant under Article 16 on or after the
7
implementation date of the plan created under Section 1-161
8
for that Article, unless that person elects under subsection
9
(b) of Section 1-161 to instead receive the benefits provided
10
under this Section and the applicable provisions of that
11
Article.
12

This Section does not apply to a person who elects under
13
subsection (c-5) of Section 1-161 to receive the benefits
14
under Section 1-161.
15

This Section does not apply to a person who first becomes a
16
member or participant of an affected pension fund on or after 6
17
months after the resolution or ordinance date, as defined in
18
Section 1-162, unless that person elects under subsection (c)
19
of Section 1-162 to receive the benefits provided under this
20
Section and the applicable provisions of the Article under
21
which he or she is a member or participant.
22

(b) "Final average salary" means, except as otherwise
23
provided in this subsection, the average monthly (or annual)
24
salary obtained by dividing the total salary or earnings
25
calculated under the Article applicable to the member or
26
participant during the 96 consecutive months (or 8 consecutive

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1
years) of service within the last 120 months (or 10 years) of
2
service in which the total salary or earnings calculated under
3
the applicable Article was the highest by the number of months
4
(or years) of service in that period. For the purposes of a
5
person who first becomes a member or participant of any
6
retirement system or pension fund to which this Section
7
applies on or after January 1, 2011, in this Code, "final
8
average salary" shall be substituted for the following:
9

(1) (Blank).
10

(2) In Articles 8, 9, 10, 11, and 12, "highest average
11

annual salary for any 4 consecutive years within the last
12

10 years of service immediately preceding the date of
13

withdrawal".
14

(3) In Article 13, "average final salary".
15

(4) In Article 14, "final average compensation".
16

(5) In Article 17, "average salary".
17

(6) In Section 22-207, "wages or salary received by
18

him at the date of retirement or discharge".
19

A member of the Teachers' Retirement System of the State
20
of Illinois who retires on or after June 1, 2021 and for whom
21
the 2020-2021 school year is used in the calculation of the
22
member's final average salary shall use the higher of the
23
following for the purpose of determining the member's final
24
average salary:
25

(A) the amount otherwise calculated under the first
26

paragraph of this subsection; or

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1

(B) an amount calculated by the Teachers' Retirement
2

System of the State of Illinois using the average of the
3

monthly (or annual) salary obtained by dividing the total
4

salary or earnings calculated under Article 16 applicable
5

to the member or participant during the 96 months (or 8
6

years) of service within the last 120 months (or 10 years)
7

of service in which the total salary or earnings
8

calculated under the Article was the highest by the number
9

of months (or years) of service in that period.
10

(b-5) Beginning on January 1, 2011, for all purposes under
11
this Code (including without limitation the calculation of
12
benefits and employee contributions), the annual earnings,
13
salary, or wages (based on the plan year) of a member or
14
participant to whom this Section applies shall not exceed
15
$106,800; however, that amount shall annually thereafter be
16
increased by the lesser of (i) 3% of that amount, including all
17
previous adjustments, or (ii) one-half the annual unadjusted
18
percentage increase (but not less than zero) in the consumer
19
price index-u for the 12 months ending with the September
20
preceding each November 1, including all previous adjustments.
21

For the purposes of this Section, "consumer price index-u"
22
means the index published by the Bureau of Labor Statistics of
23
the United States Department of Labor that measures the
24
average change in prices of goods and services purchased by
25
all urban consumers, United States city average, all items,
26
1982-84 = 100. The new amount resulting from each annual

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1
adjustment shall be determined by the Public Pension Division
2
of the Department of Insurance and made available to the
3
boards of the retirement systems and pension funds by November
4
1 of each year.
5

(b-10) Beginning on January 1, 2024, for all purposes
6
under this Code (including, without limitation, the
7
calculation of benefits and employee contributions), the
8
annual earnings, salary, or wages (based on the plan year) of a
9
member or participant under Article 9 to whom this Section
10
applies shall include an annual earnings, salary, or wage cap
11
that tracks the Social Security wage base. Maximum annual
12
earnings, wages, or salary shall be the annual contribution
13
and benefit base established for the applicable year by the
14
Commissioner of the Social Security Administration under the
15
federal Social Security Act.
16

However, in no event shall the annual earnings, salary, or
17
wages for the purposes of this Article and Article 9 exceed any
18
limitation imposed on annual earnings, salary, or wages under
19
Section 1-117. Under no circumstances shall the maximum amount
20
of annual earnings, salary, or wages be greater than the
21
amount set forth in this subsection (b-10) as a result of
22
reciprocal service or any provisions regarding reciprocal
23
services, nor shall the Fund under Article 9 be required to pay
24
any refund as a result of the application of this maximum
25
annual earnings, salary, and wage cap.
26

Nothing in this subsection (b-10) shall cause or otherwise

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1
result in any retroactive adjustment of any employee
2
contributions. Nothing in this subsection (b-10) shall cause
3
or otherwise result in any retroactive adjustment of
4
disability or other payments made between January 1, 2011 and
5
January 1, 2024.
6

(c) A member or participant is entitled to a retirement
7
annuity upon written application if he or she has attained age
8
67 (age 65, with respect to service under Article 12 that is
9
subject to this Section, for a member or participant under
10
Article 12 who first becomes a member or participant under
11
Article 12 on or after January 1, 2022 or who makes the
12
election under item (i) of subsection (d-15) of this Section)
13
and has at least 10 years of service credit and is otherwise
14
eligible under the requirements of the applicable Article.
15

A member or participant who has attained age 62 (age 60,
16
with respect to service under Article 12 that is subject to
17
this Section, for a member or participant under Article 12 who
18
first becomes a member or participant under Article 12 on or
19
after January 1, 2022 or who makes the election under item (i)
20
of subsection (d-15) of this Section) and has at least 10 years
21
of service credit and is otherwise eligible under the
22
requirements of the applicable Article may elect to receive
23
the lower retirement annuity provided in subsection (d) of
24
this Section.
25

(c-5) A person who first becomes a member or a participant
26
subject to this Section on or after July 6, 2017 (the effective

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1
date of Public Act 100-23), notwithstanding any other
2
provision of this Code to the contrary, is entitled to a
3
retirement annuity under Article 8 or Article 11 upon written
4
application if he or she has attained age 65 and has at least
5
10 years of service credit and is otherwise eligible under the
6
requirements of Article 8 or Article 11 of this Code,
7
whichever is applicable.
8

(d) The retirement annuity of a member or participant who
9
is retiring after attaining age 62 (age 60, with respect to
10
service under Article 12 that is subject to this Section, for a
11
member or participant under Article 12 who first becomes a
12
member or participant under Article 12 on or after January 1,
13
2022 or who makes the election under item (i) of subsection
14
(d-15) of this Section) with at least 10 years of service
15
credit shall be reduced by one-half of 1% for each full month
16
that the member's age is under age 67 (age 65, with respect to
17
service under Article 12 that is subject to this Section, for a
18
member or participant under Article 12 who first becomes a
19
member or participant under Article 12 on or after January 1,
20
2022 or who makes the election under item (i) of subsection
21
(d-15) of this Section).
22

(d-5) The retirement annuity payable under Article 8 or
23
Article 11 to an eligible person subject to subsection (c-5)
24
of this Section who is retiring at age 60 with at least 10
25
years of service credit shall be reduced by one-half of 1% for
26
each full month that the member's age is under age 65.

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1

(d-10) Each person who first became a member or
2
participant under Article 8 or Article 11 of this Code on or
3
after January 1, 2011 and prior to July 6, 2017 (the effective
4
date of Public Act 100-23) shall make an irrevocable election
5
either:
6

(i) to be eligible for the reduced retirement age
7

provided in subsections (c-5) and (d-5) of this Section,
8

the eligibility for which is conditioned upon the member
9

or participant agreeing to the increases in employee
10

contributions for age and service annuities provided in
11

subsection (a-5) of Section 8-174 of this Code (for
12

service under Article 8) or subsection (a-5) of Section
13

11-170 of this Code (for service under Article 11); or
14

(ii) to not agree to item (i) of this subsection
15

(d-10), in which case the member or participant shall
16

continue to be subject to the retirement age provisions in
17

subsections (c) and (d) of this Section and the employee
18

contributions for age and service annuity as provided in
19

subsection (a) of Section 8-174 of this Code (for service
20

under Article 8) or subsection (a) of Section 11-170 of
21

this Code (for service under Article 11).
22

The election provided for in this subsection shall be made
23
between October 1, 2017 and November 15, 2017. A person
24
subject to this subsection who makes the required election
25
shall remain bound by that election. A person subject to this
26
subsection who fails for any reason to make the required

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1
election within the time specified in this subsection shall be
2
deemed to have made the election under item (ii).
3

(d-15) Each person who first becomes a member or
4
participant under Article 12 on or after January 1, 2011 and
5
prior to January 1, 2022 shall make an irrevocable election
6
either:
7

(i) to be eligible for the reduced retirement age
8

specified in subsections (c) and (d) of this Section, the
9

eligibility for which is conditioned upon the member or
10

participant agreeing to the increase in employee
11

contributions for service annuities specified in
12

subsection (b) of Section 12-150; or
13

(ii) to not agree to item (i) of this subsection
14

(d-15), in which case the member or participant shall not
15

be eligible for the reduced retirement age specified in
16

subsections (c) and (d) of this Section and shall not be
17

subject to the increase in employee contributions for
18

service annuities specified in subsection (b) of Section
19

12-150.
20

The election provided for in this subsection shall be made
21
between January 1, 2022 and April 1, 2022. A person subject to
22
this subsection who makes the required election shall remain
23
bound by that election. A person subject to this subsection
24
who fails for any reason to make the required election within
25
the time specified in this subsection shall be deemed to have
26
made the election under item (ii).

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1

(e) Any retirement annuity or supplemental annuity shall
2
be subject to annual increases on the January 1 occurring
3
either on or after the attainment of age 67 (age 65, with
4
respect to service under Article 12 that is subject to this
5
Section, for a member or participant under Article 12 who
6
first becomes a member or participant under Article 12 on or
7
after January 1, 2022 or who makes the election under item (i)
8
of subsection (d-15); and beginning on July 6, 2017 (the
9
effective date of Public Act 100-23), age 65 with respect to
10
service under Article 8 or Article 11 for eligible persons
11
who: (i) are subject to subsection (c-5) of this Section; or
12
(ii) made the election under item (i) of subsection (d-10) of
13
this Section) or the first anniversary of the annuity start
14
date, whichever is later. Each annual increase shall be
15
calculated at 3% or one-half the annual unadjusted percentage
16
increase (but not less than zero) in the consumer price
17
index-u for the 12 months ending with the September preceding
18
each November 1, whichever is less, of the originally granted
19
retirement annuity. If the annual unadjusted percentage change
20
in the consumer price index-u for the 12 months ending with the
21
September preceding each November 1 is zero or there is a
22
decrease, then the annuity shall not be increased.
23

For the purposes of Section 1-103.1 of this Code, the
24
changes made to this Section by Public Act 102-263 are
25
applicable without regard to whether the employee was in
26
active service on or after August 6, 2021 (the effective date

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1
of Public Act 102-263).
2

For the purposes of Section 1-103.1 of this Code, the
3
changes made to this Section by Public Act 100-23 are
4
applicable without regard to whether the employee was in
5
active service on or after July 6, 2017 (the effective date of
6
Public Act 100-23).
7

(f) The initial survivor's or widow's annuity of an
8
otherwise eligible survivor or widow of a retired member or
9
participant who first became a member or participant on or
10
after January 1, 2011 shall be in the amount of 66 2/3% of the
11
retired member's or participant's retirement annuity at the
12
date of death. In the case of the death of a member or
13
participant who has not retired and who first became a member
14
or participant on or after January 1, 2011, eligibility for a
15
survivor's or widow's annuity shall be determined by the
16
applicable Article of this Code. The initial benefit shall be
17
66 2/3% of the earned annuity without a reduction due to age. A
18
child's annuity of an otherwise eligible child shall be in the
19
amount prescribed under each Article if applicable. Any
20
survivor's or widow's annuity shall be increased (1) on each
21
January 1 occurring on or after the commencement of the
22
annuity if the deceased member died while receiving a
23
retirement annuity or (2) in other cases, on each January 1
24
occurring after the first anniversary of the commencement of
25
the annuity. Each annual increase shall be calculated at 3% or
26
one-half the annual unadjusted percentage increase (but not

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LRB104 16458 RPS 29851 b
1
less than zero) in the consumer price index-u for the 12 months
2
ending with the September preceding each November 1, whichever
3
is less, of the originally granted survivor's annuity. If the
4
annual unadjusted percentage change in the consumer price
5
index-u for the 12 months ending with the September preceding
6
each November 1 is zero or there is a decrease, then the
7
annuity shall not be increased.
8

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

(h) If a person who first becomes a member or a participant

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1
of a retirement system or pension fund subject to this Section
2
on or after January 1, 2011 is receiving a retirement annuity
3
or retirement pension under that system or fund and becomes a
4
member or participant under any other system or fund created
5
by this Code and is employed on a full-time basis, except for
6
those members or participants exempted from the provisions of
7
this Section under subsection (a) of this Section, then the
8
person's retirement annuity or retirement pension under that
9
system or fund shall be suspended during that employment. Upon
10
termination of that employment, the person's retirement
11
annuity or retirement pension payments shall resume and be
12
recalculated if recalculation is provided for under the
13
applicable Article of this Code.
14

If a person who first becomes a member of a retirement
15
system or pension fund subject to this Section on or after
16
January 1, 2012 and is receiving a retirement annuity or
17
retirement pension under that system or fund and accepts on a
18
contractual basis a position to provide services to a
19
governmental entity from which he or she has retired, then
20
that person's annuity or retirement pension earned as an
21
active employee of the employer shall be suspended during that
22
contractual service. A person receiving an annuity or
23
retirement pension under this Code shall notify the pension
24
fund or retirement system from which he or she is receiving an
25
annuity or retirement pension, as well as his or her
26
contractual employer, of his or her retirement status before

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1
accepting contractual employment. A person who fails to submit
2
such notification shall be guilty of a Class A misdemeanor and
3
required to pay a fine of $1,000. Upon termination of that
4
contractual employment, the person's retirement annuity or
5
retirement pension payments shall resume and, if appropriate,
6
be recalculated under the applicable provisions of this Code.
7

(i) (Blank).
8

(j) In the case of a conflict between the provisions of
9
this Section and any other provision of this Code, the
10
provisions of this Section shall control.
11
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
12
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
13
5-13-22; 103-529, eff. 8-11-23.)

14

(Text of Section from P.A. 102-956)
15

Sec. 1-160.
Provisions applicable to new hires.

16

(a) The provisions of this Section apply to a person who,
17
on or after January 1, 2011, first becomes a member or a
18
participant under any reciprocal retirement system or pension
19
fund established under this Code, other than a retirement
20
system or pension fund established under Article 2, 3, 4, 5, 6,
21
7, 15, or 18 of this Code, notwithstanding any other provision
22
of this Code to the contrary, but do not apply to any
23
self-managed plan established under this Code or to any
24
participant of the retirement plan established under Section
25
22-101; except that this Section applies to a person who

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LRB104 16458 RPS 29851 b
1
elected to establish alternative credits by electing in
2
writing after January 1, 2011, but before August 8, 2011,
3
under Section 7-145.1 of this Code. Notwithstanding anything
4
to the contrary in this Section, for purposes of this Section,
5
a person who is a Tier 1 regular employee as defined in Section
6
7-109.4 of this Code or who participated in a retirement
7
system under Article 15 prior to January 1, 2011 shall be
8
deemed a person who first became a member or participant prior
9
to January 1, 2011 under any retirement system or pension fund
10
subject to this Section. The changes made to this Section by
11
Public Act 98-596 are a clarification of existing law and are
12
intended to be retroactive to January 1, 2011 (the effective
13
date of Public Act 96-889), notwithstanding the provisions of
14
Section 1-103.1 of this Code.
15

This Section does not apply to a person who first becomes a
16
noncovered employee under Article 14 on or after the
17
implementation date of the plan created under Section 1-161
18
for that Article, unless that person elects under subsection
19
(b) of Section 1-161 to instead receive the benefits provided
20
under this Section and the applicable provisions of that
21
Article.
22

This Section does not apply to a person who first becomes a
23
member under Article 16 on or after the effective date of this
24
amendatory Act of the 104th General Assembly if that person
25
(i) is at least 50 years of age, (ii) does not have any service
26
credit under Article 16 or any reciprocal retirement system or

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1
pension fund, and (iii) makes the election under subsection
2
(b) of Section 16-204.

3

This Section does not apply to a person who first becomes a
4
member or participant under Article 16 on or after the
5
implementation date of the plan created under Section 1-161
6
for that Article, unless that person elects under subsection
7
(b) of Section 1-161 to instead receive the benefits provided
8
under this Section and the applicable provisions of that
9
Article.
10

This Section does not apply to a person who elects under
11
subsection (c-5) of Section 1-161 to receive the benefits
12
under Section 1-161.
13

This Section does not apply to a person who first becomes a
14
member or participant of an affected pension fund on or after 6
15
months after the resolution or ordinance date, as defined in
16
Section 1-162, unless that person elects under subsection (c)
17
of Section 1-162 to receive the benefits provided under this
18
Section and the applicable provisions of the Article under
19
which he or she is a member or participant.
20

(b) "Final average salary" means, except as otherwise
21
provided in this subsection, the average monthly (or annual)
22
salary obtained by dividing the total salary or earnings
23
calculated under the Article applicable to the member or
24
participant during the 96 consecutive months (or 8 consecutive
25
years) of service within the last 120 months (or 10 years) of
26
service in which the total salary or earnings calculated under

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1
the applicable Article was the highest by the number of months
2
(or years) of service in that period. For the purposes of a
3
person who first becomes a member or participant of any
4
retirement system or pension fund to which this Section
5
applies on or after January 1, 2011, in this Code, "final
6
average salary" shall be substituted for the following:
7

(1) (Blank).
8

(2) In Articles 8, 9, 10, 11, and 12, "highest average
9

annual salary for any 4 consecutive years within the last
10

10 years of service immediately preceding the date of
11

withdrawal".
12

(3) In Article 13, "average final salary".
13

(4) In Article 14, "final average compensation".
14

(5) In Article 17, "average salary".
15

(6) In Section 22-207, "wages or salary received by
16

him at the date of retirement or discharge".
17

A member of the Teachers' Retirement System of the State
18
of Illinois who retires on or after June 1, 2021 and for whom
19
the 2020-2021 school year is used in the calculation of the
20
member's final average salary shall use the higher of the
21
following for the purpose of determining the member's final
22
average salary:
23

(A) the amount otherwise calculated under the first
24

paragraph of this subsection; or
25

(B) an amount calculated by the Teachers' Retirement
26

System of the State of Illinois using the average of the

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1

monthly (or annual) salary obtained by dividing the total
2

salary or earnings calculated under Article 16 applicable
3

to the member or participant during the 96 months (or 8
4

years) of service within the last 120 months (or 10 years)
5

of service in which the total salary or earnings
6

calculated under the Article was the highest by the number
7

of months (or years) of service in that period.
8

(b-5) Beginning on January 1, 2011, for all purposes under
9
this Code (including without limitation the calculation of
10
benefits and employee contributions), the annual earnings,
11
salary, or wages (based on the plan year) of a member or
12
participant to whom this Section applies shall not exceed
13
$106,800; however, that amount shall annually thereafter be
14
increased by the lesser of (i) 3% of that amount, including all
15
previous adjustments, or (ii) one-half the annual unadjusted
16
percentage increase (but not less than zero) in the consumer
17
price index-u for the 12 months ending with the September
18
preceding each November 1, including all previous adjustments.
19

For the purposes of this Section, "consumer price index-u"
20
means the index published by the Bureau of Labor Statistics of
21
the United States Department of Labor that measures the
22
average change in prices of goods and services purchased by
23
all urban consumers, United States city average, all items,
24
1982-84 = 100. The new amount resulting from each annual
25
adjustment shall be determined by the Public Pension Division
26
of the Department of Insurance and made available to the

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1
boards of the retirement systems and pension funds by November
2
1 of each year.
3

(b-10) Beginning on January 1, 2024, for all purposes
4
under this Code (including, without limitation, the
5
calculation of benefits and employee contributions), the
6
annual earnings, salary, or wages (based on the plan year) of a
7
member or participant under Article 9 to whom this Section
8
applies shall include an annual earnings, salary, or wage cap
9
that tracks the Social Security wage base. Maximum annual
10
earnings, wages, or salary shall be the annual contribution
11
and benefit base established for the applicable year by the
12
Commissioner of the Social Security Administration under the
13
federal Social Security Act.
14

However, in no event shall the annual earnings, salary, or
15
wages for the purposes of this Article and Article 9 exceed any
16
limitation imposed on annual earnings, salary, or wages under
17
Section 1-117. Under no circumstances shall the maximum amount
18
of annual earnings, salary, or wages be greater than the
19
amount set forth in this subsection (b-10) as a result of
20
reciprocal service or any provisions regarding reciprocal
21
services, nor shall the Fund under Article 9 be required to pay
22
any refund as a result of the application of this maximum
23
annual earnings, salary, and wage cap.
24

Nothing in this subsection (b-10) shall cause or otherwise
25
result in any retroactive adjustment of any employee
26
contributions. Nothing in this subsection (b-10) shall cause

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or otherwise result in any retroactive adjustment of
2
disability or other payments made between January 1, 2011 and
3
January 1, 2024.
4

(c) A member or participant is entitled to a retirement
5
annuity upon written application if he or she has attained age
6
67 (age 65, with respect to service under Article 12 that is
7
subject to this Section, for a member or participant under
8
Article 12 who first becomes a member or participant under
9
Article 12 on or after January 1, 2022 or who makes the
10
election under item (i) of subsection (d-15) of this Section)
11
and has at least 10 years of service credit and is otherwise
12
eligible under the requirements of the applicable Article.
13

A member or participant who has attained age 62 (age 60,
14
with respect to service under Article 12 that is subject to
15
this Section, for a member or participant under Article 12 who
16
first becomes a member or participant under Article 12 on or
17
after January 1, 2022 or who makes the election under item (i)
18
of subsection (d-15) of this Section) and has at least 10 years
19
of service credit and is otherwise eligible under the
20
requirements of the applicable Article may elect to receive
21
the lower retirement annuity provided in subsection (d) of
22
this Section.
23

(c-5) A person who first becomes a member or a participant
24
subject to this Section on or after July 6, 2017 (the effective
25
date of Public Act 100-23), notwithstanding any other
26
provision of this Code to the contrary, is entitled to a

HB5246
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1
retirement annuity under Article 8 or Article 11 upon written
2
application if he or she has attained age 65 and has at least
3
10 years of service credit and is otherwise eligible under the
4
requirements of Article 8 or Article 11 of this Code,
5
whichever is applicable.
6

(d) The retirement annuity of a member or participant who
7
is retiring after attaining age 62 (age 60, with respect to
8
service under Article 12 that is subject to this Section, for a
9
member or participant under Article 12 who first becomes a
10
member or participant under Article 12 on or after January 1,
11
2022 or who makes the election under item (i) of subsection
12
(d-15) of this Section) with at least 10 years of service
13
credit shall be reduced by one-half of 1% for each full month
14
that the member's age is under age 67 (age 65, with respect to
15
service under Article 12 that is subject to this Section, for a
16
member or participant under Article 12 who first becomes a
17
member or participant under Article 12 on or after January 1,
18
2022 or who makes the election under item (i) of subsection
19
(d-15) of this Section).
20

(d-5) The retirement annuity payable under Article 8 or
21
Article 11 to an eligible person subject to subsection (c-5)
22
of this Section who is retiring at age 60 with at least 10
23
years of service credit shall be reduced by one-half of 1% for
24
each full month that the member's age is under age 65.
25

(d-10) Each person who first became a member or
26
participant under Article 8 or Article 11 of this Code on or

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1
after January 1, 2011 and prior to July 6, 2017 (the effective
2
date of Public Act 100-23) shall make an irrevocable election
3
either:
4

(i) to be eligible for the reduced retirement age
5

provided in subsections (c-5) and (d-5) of this Section,
6

the eligibility for which is conditioned upon the member
7

or participant agreeing to the increases in employee
8

contributions for age and service annuities provided in
9

subsection (a-5) of Section 8-174 of this Code (for
10

service under Article 8) or subsection (a-5) of Section
11

11-170 of this Code (for service under Article 11); or
12

(ii) to not agree to item (i) of this subsection
13

(d-10), in which case the member or participant shall
14

continue to be subject to the retirement age provisions in
15

subsections (c) and (d) of this Section and the employee
16

contributions for age and service annuity as provided in
17

subsection (a) of Section 8-174 of this Code (for service
18

under Article 8) or subsection (a) of Section 11-170 of
19

this Code (for service under Article 11).
20

The election provided for in this subsection shall be made
21
between October 1, 2017 and November 15, 2017. A person
22
subject to this subsection who makes the required election
23
shall remain bound by that election. A person subject to this
24
subsection who fails for any reason to make the required
25
election within the time specified in this subsection shall be
26
deemed to have made the election under item (ii).

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1

(d-15) Each person who first becomes a member or
2
participant under Article 12 on or after January 1, 2011 and
3
prior to January 1, 2022 shall make an irrevocable election
4
either:
5

(i) to be eligible for the reduced retirement age
6

specified in subsections (c) and (d) of this Section, the
7

eligibility for which is conditioned upon the member or
8

participant agreeing to the increase in employee
9

contributions for service annuities specified in
10

subsection (b) of Section 12-150; or
11

(ii) to not agree to item (i) of this subsection
12

(d-15), in which case the member or participant shall not
13

be eligible for the reduced retirement age specified in
14

subsections (c) and (d) of this Section and shall not be
15

subject to the increase in employee contributions for
16

service annuities specified in subsection (b) of Section
17

12-150.
18

The election provided for in this subsection shall be made
19
between January 1, 2022 and April 1, 2022. A person subject to
20
this subsection who makes the required election shall remain
21
bound by that election. A person subject to this subsection
22
who fails for any reason to make the required election within
23
the time specified in this subsection shall be deemed to have
24
made the election under item (ii).
25

(e) Any retirement annuity or supplemental annuity shall
26
be subject to annual increases on the January 1 occurring

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1
either on or after the attainment of age 67 (age 65, with
2
respect to service under Article 12 that is subject to this
3
Section, for a member or participant under Article 12 who
4
first becomes a member or participant under Article 12 on or
5
after January 1, 2022 or who makes the election under item (i)
6
of subsection (d-15); and beginning on July 6, 2017 (the
7
effective date of Public Act 100-23), age 65 with respect to
8
service under Article 8 or Article 11 for eligible persons
9
who: (i) are subject to subsection (c-5) of this Section; or
10
(ii) made the election under item (i) of subsection (d-10) of
11
this Section) or the first anniversary of the annuity start
12
date, whichever is later. Each annual increase shall be
13
calculated at 3% or one-half the annual unadjusted percentage
14
increase (but not less than zero) in the consumer price
15
index-u for the 12 months ending with the September preceding
16
each November 1, whichever is less, of the originally granted
17
retirement annuity. If the annual unadjusted percentage change
18
in the consumer price index-u for the 12 months ending with the
19
September preceding each November 1 is zero or there is a
20
decrease, then the annuity shall not be increased.
21

For the purposes of Section 1-103.1 of this Code, the
22
changes made to this Section by Public Act 102-263 are
23
applicable without regard to whether the employee was in
24
active service on or after August 6, 2021 (the effective date
25
of Public Act 102-263).
26

For the purposes of Section 1-103.1 of this Code, the

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1
changes made to this Section by Public Act 100-23 are
2
applicable without regard to whether the employee was in
3
active service on or after July 6, 2017 (the effective date of
4
Public Act 100-23).
5

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

HB5246
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1
is less, of the originally granted survivor's annuity. If the
2
annual unadjusted percentage change in the consumer price
3
index-u for the 12 months ending with the September preceding
4
each November 1 is zero or there is a decrease, then the
5
annuity shall not be increased.
6

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

(h) If a person who first becomes a member or a participant
26
of a retirement system or pension fund subject to this Section

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LRB104 16458 RPS 29851 b
1
on or after January 1, 2011 is receiving a retirement annuity
2
or retirement pension under that system or fund and becomes a
3
member or participant under any other system or fund created
4
by this Code and is employed on a full-time basis, except for
5
those members or participants exempted from the provisions of
6
this Section under subsection (a) of this Section, then the
7
person's retirement annuity or retirement pension under that
8
system or fund shall be suspended during that employment. Upon
9
termination of that employment, the person's retirement
10
annuity or retirement pension payments shall resume and be
11
recalculated if recalculation is provided for under the
12
applicable Article of this Code.
13

If a person who first becomes a member of a retirement
14
system or pension fund subject to this Section on or after
15
January 1, 2012 and is receiving a retirement annuity or
16
retirement pension under that system or fund and accepts on a
17
contractual basis a position to provide services to a
18
governmental entity from which he or she has retired, then
19
that person's annuity or retirement pension earned as an
20
active employee of the employer shall be suspended during that
21
contractual service. A person receiving an annuity or
22
retirement pension under this Code shall notify the pension
23
fund or retirement system from which he or she is receiving an
24
annuity or retirement pension, as well as his or her
25
contractual employer, of his or her retirement status before
26
accepting contractual employment. A person who fails to submit

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1
such notification shall be guilty of a Class A misdemeanor and
2
required to pay a fine of $1,000. Upon termination of that
3
contractual employment, the person's retirement annuity or
4
retirement pension payments shall resume and, if appropriate,
5
be recalculated under the applicable provisions of this Code.
6

(i) (Blank).
7

(j) In the case of a conflict between the provisions of
8
this Section and any other provision of this Code, the
9
provisions of this Section shall control.
10
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
11
102-263, eff. 8-6-21; 102-956, eff. 5-27-22
; 103-529, eff.
12
8-11-23.)

13

(40 ILCS 5/16-203)
14

Sec. 16-203.
Application and expiration of new benefit
15
increases.
16

(a) As used in this Section, "new benefit increase" means
17
an increase in the amount of any benefit provided under this
18
Article, or an expansion of the conditions of eligibility for
19
any benefit under this Article, that results from an amendment
20
to this Code that takes effect after June 1, 2005 (the
21
effective date of Public Act 94-4). "New benefit increase",
22
however, does not include any benefit increase resulting from
23
the changes made to Article 1 or this Article by Public Act
24
95-910, Public Act 100-23, Public Act 100-587, Public Act
25
100-743, Public Act 100-769, Public Act 101-10, Public Act

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LRB104 16458 RPS 29851 b
1
101-49, Public Act 102-16,
or
Public Act 102-871
, or this
2
amendatory Act of the 104th General Assembly
.
3

(b) Notwithstanding any other provision of this Code or
4
any subsequent amendment to this Code, every new benefit
5
increase is subject to this Section and shall be deemed to be
6
granted only in conformance with and contingent upon
7
compliance with the provisions of this Section.
8

(c) The Public Act enacting a new benefit increase must
9
identify and provide for payment to the System of additional
10
funding at least sufficient to fund the resulting annual
11
increase in cost to the System as it accrues.
12

Every new benefit increase is contingent upon the General
13
Assembly providing the additional funding required under this
14
subsection. The Commission on Government Forecasting and
15
Accountability shall analyze whether adequate additional
16
funding has been provided for the new benefit increase and
17
shall report its analysis to the Public Pension Division of
18
the Department of Insurance. A new benefit increase created by
19
a Public Act that does not include the additional funding
20
required under this subsection is null and void. If the Public
21
Pension Division determines that the additional funding
22
provided for a new benefit increase under this subsection is
23
or has become inadequate, it may so certify to the Governor and
24
the State Comptroller and, in the absence of corrective action
25
by the General Assembly, the new benefit increase shall expire
26
at the end of the fiscal year in which the certification is

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LRB104 16458 RPS 29851 b
1
made.
2

(d) Every new benefit increase shall expire 5 years after
3
its effective date or on such earlier date as may be specified
4
in the language enacting the new benefit increase or provided
5
under subsection (c). This does not prevent the General
6
Assembly from extending or re-creating a new benefit increase
7
by law.
8

(e) Except as otherwise provided in the language creating
9
the new benefit increase, a new benefit increase that expires
10
under this Section continues to apply to persons who applied
11
and qualified for the affected benefit while the new benefit
12
increase was in effect and to the affected beneficiaries and
13
alternate payees of such persons, but does not apply to any
14
other person, including, without limitation, a person who
15
continues in service after the expiration date and did not
16
apply and qualify for the affected benefit while the new
17
benefit increase was in effect.
18
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
19
102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff.
20
6-30-23.)

21

(40 ILCS 5/16-204)
22

Sec. 16-204.
Optional defined contribution benefit.
23

(a)
As soon as practicable after the effective date of
24
this amendatory Act of the 100th General Assembly, the System
25
shall offer a defined contribution benefit to active full-time

HB5246
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LRB104 16458 RPS 29851 b
1
or part-time contractual members of the System who are
2
employed by an employer eligible to participate in the defined
3
contribution benefit under applicable law. The defined
4
contribution benefit shall be an optional benefit to any
5
full-time or part-time contractual member who chooses to
6
participate. The defined contribution benefit shall collect
7
optional employee and optional employer contributions into an
8
account and shall offer investment options to the participant.
9

(b) In this subsection:
10

"Defined benefit plan" means the retirement plan available
11
under this Article for members who do not make the election
12
under this subsection.
13

"Eligible member" means a person who first becomes a
14
member on or after the effective date of this amendatory Act of
15
the 104th General Assembly who (i) is at least 50 years of age
16
and (ii) does not have any service credit in this System or any
17
other reciprocal retirement system or pension fund.
18

An eligible member may elect to participate in the defined
19
contribution benefit under this Section in lieu of
20
participation in the defined benefit plan under this Article.
21
The election to participate in the defined contribution
22
benefit is irrevocable and must be made in writing in the
23
manner prescribed by the System. Participation in the defined
24
contribution plan shall begin as soon as practical after the
25
member makes the election under this subsection.
26

A member participating under this subsection may not

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LRB104 16458 RPS 29851 b
1
establish service credit under this Article and is not
2
eligible for any other benefit under this Article. If that
3
member terminates service and thereafter returns to service
4
under this Article, that member may not participate in the
5
defined benefit plan and shall continue participating under
6
this subsection.
7

The member shall contribute an amount equal to 7.5% of the
8
member's pre-tax salary to the member's defined contribution
9
account. In addition, the employer shall contribute 6% of the
10
member's pre-tax salary to the member's defined contribution
11
account.

12

(c)
The benefit under this Section shall be operated in
13
full compliance with any applicable State and federal laws,
14
and the System shall utilize generally accepted practices in
15
creating and maintaining the benefit for the best interest of
16
the participants.
17

(d)
In administering the defined contribution benefit, the
18
System shall require that the defined contribution benefit
19
recordkeeper agree that, in performing services with respect
20
to the defined contribution benefit, the recordkeeper: (i)
21
will not use information received as a result of providing
22
services with respect to the defined contribution benefit or
23
the participants in the defined contribution benefit to
24
solicit the participants in the defined contribution benefit
25
for the purpose of cross-selling nonplan products and
26
services, unless in response to a request by a participant in

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1
the defined contribution benefit; and (ii) will not promote,
2
recommend, endorse, or solicit participants in the defined
3
contribution benefit to purchase any financial products or
4
services outside of the defined contribution benefit, except
5
that links to parts of the recordkeeper's website that are
6
generally available to the public, are about commercial
7
products, and may be encountered by a participant in the
8
regular course of navigating the recordkeeper's website will
9
not constitute a violation of this item (ii).
10

(e)
The System may use funds from the employee and
11
employer contributions to defray any and all costs of creating
12
and maintaining the benefit. In addition, the System may use
13
funds provided under Section 16-158 of this Code to defray any
14
and all costs of creating and maintaining the benefit and then
15
shall reimburse those costs from funds received from the
16
employee and employer contributions under this Section. All
17
employers must comply with the reporting and administrative
18
functions established by the System and are required to
19
implement the benefits established under this Section. The
20
System shall produce an annual report on the participation in
21
the benefit and shall make the report public.
22

(f)
As soon as is practicable on or after January 1, 2022,
23
the System shall automatically enroll any employee who first
24
becomes an active full-time or part-time contractual member in
25
the System. A member automatically enrolled under this Section
26
shall have 3% of his or her pre-tax compensation deferred into

HB5246
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1
his or her deferred compensation account. A member may elect,
2
in a manner provided for by the System, to not participate in
3
the defined contribution benefit or to increase or reduce the
4
amount of pre-tax compensation contributed, consistent with
5
State or federal law. A member shall be automatically enrolled
6
in the benefit beginning the first day of the pay period
7
following the close of the notice period, or as soon as
8
practicable, unless the employee elects otherwise within the
9
notice period. For the purposes of this Section, "notice
10
period" means a reasonable period of time after the employee
11
is provided with an automatic enrollment notice as required
12
under Section 414(w) of the Internal Revenue Code of 1986, as
13
amended. An active full-time or part-time contractual member
14
who has been automatically enrolled in the benefit may elect,
15
within 90 days following the member's initial contribution, to
16
withdraw the contribution and receive a refund of amounts
17
deferred, as adjusted for applicable earnings and fees. A
18
member making such an election shall forfeit all employer
19
matching contributions, if any, made with respect to the
20
initial contribution and the forfeited amounts shall be used
21
to defray plan expenses. Any refunded amount shall be included
22
in the member's gross income for the taxable year in which the
23
refund is issued.
24

This subsection does not apply to a member who makes the
25
election under subsection (b).

26

(g)
On or after January 1, 2023, the System may elect to

HB5246
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LRB104 16458 RPS 29851 b
1
increase the automatic annual contributions under this
2
Section. The increase in the rate of contribution, however,
3
shall not exceed 2% of a member's pre-tax compensation per
4
year, and at no time shall any total contribution exceed any
5
contribution limits established by State or federal law.
6

This subsection does not apply to a member who makes the
7
election under subsection (b).

8

(h)
Notwithstanding any other provision of this Section,
9
active members eligible to participate in the defined
10
contribution benefit do not include employees of a department
11
as defined in Section 14-103.04.
12
(Source: P.A. 103-552, eff. 8-11-23; 104-284, eff. 1-1-26
.)

13

Section 90.
The State Mandates Act is amended by adding
14
Section 8.50 as follows:

15

(30 ILCS 805/8.50 new)
16

Sec. 8.50.
Exempt mandate.
Notwithstanding Sections 6 and
17
8 of this Act, no reimbursement by the State is required for
18
the implementation of any mandate created by this amendatory
19
Act of the 104th General Assembly.

20

Section 99.
Effective date.
This Act takes effect upon
21
becoming law.

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