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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3412

Introduced 2/4/2026, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

40 ILCS 5/1-160
30 ILCS 805/8.50 new

Amends the General Provisions Article of the Illinois Pension Code.
Provides that a Tier 2 participant who is (i) a deputy sheriff under the
Cook County Article, (ii) a member of the Cook County Police Department
under the Cook County Article, (iii) a correctional officer under the Cook
County Article, or (iv) a police officer with the Cook County Forest
Preserve District under the Cook County Forest Preserve Article is
entitled to a retirement annuity upon written application if he or she has
attained age 55, has at least 20 years of service credit for service in any
combination of those positions, and is otherwise eligible under the
applicable Article of the Code. Amends the State Mandates Act to require
implementation without reimbursement.
LRB104 18615 RPS 32058 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

A BILL FOR

SB3412
LRB104 18615 RPS 32058 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 Section 1-160 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

SB3412
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LRB104 18615 RPS 32058 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 or participant under Article 16 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 elects under
25
subsection (c-5) of Section 1-161 to receive the benefits
26
under Section 1-161.

SB3412
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LRB104 18615 RPS 32058 b
1

This Section does not apply to a person who first becomes a
2
member or participant of an affected pension fund on or after 6
3
months after the resolution or ordinance date, as defined in
4
Section 1-162, unless that person elects under subsection (c)
5
of Section 1-162 to receive the benefits provided under this
6
Section and the applicable provisions of the Article under
7
which he or she is a member or participant.
8

(b) "Final average salary" means, except as otherwise
9
provided in this subsection, the average monthly (or annual)
10
salary obtained by dividing the total salary or earnings
11
calculated under the Article applicable to the member or
12
participant during the 96 consecutive months (or 8 consecutive
13
years) of service within the last 120 months (or 10 years) of
14
service in which the total salary or earnings calculated under
15
the applicable Article was the highest by the number of months
16
(or years) of service in that period. For the purposes of a
17
person who first becomes a member or participant of any
18
retirement system or pension fund to which this Section
19
applies on or after January 1, 2011, in this Code, "final
20
average salary" shall be substituted for the following:
21

(1) (Blank).
22

(2) In Articles 8, 9, 10, 11, and 12, "highest average
23

annual salary for any 4 consecutive years within the last
24

10 years of service immediately preceding the date of
25

withdrawal".
26

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

SB3412
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LRB104 18615 RPS 32058 b
1

(4) In Article 14, "final average compensation".
2

(5) In Article 17, "average salary".
3

(6) In Section 22-207, "wages or salary received by
4

him at the date of retirement or discharge".
5

A member of the Teachers' Retirement System of the State
6
of Illinois who retires on or after June 1, 2021 and for whom
7
the 2020-2021 school year is used in the calculation of the
8
member's final average salary shall use the higher of the
9
following for the purpose of determining the member's final
10
average salary:
11

(A) the amount otherwise calculated under the first
12

paragraph of this subsection; or
13

(B) an amount calculated by the Teachers' Retirement
14

System of the State of Illinois using the average of the
15

monthly (or annual) salary obtained by dividing the total
16

salary or earnings calculated under Article 16 applicable
17

to the member or participant during the 96 months (or 8
18

years) of service within the last 120 months (or 10 years)
19

of service in which the total salary or earnings
20

calculated under the Article was the highest by the number
21

of months (or years) of service in that period.
22

(b-5) Beginning on January 1, 2011, for all purposes under
23
this Code (including without limitation the calculation of
24
benefits and employee contributions), the annual earnings,
25
salary, or wages (based on the plan year) of a member or
26
participant to whom this Section applies shall not exceed

SB3412
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LRB104 18615 RPS 32058 b
1
$106,800; however, that amount shall annually thereafter be
2
increased by the lesser of (i) 3% of that amount, including all
3
previous adjustments, or (ii) one-half the annual unadjusted
4
percentage increase (but not less than zero) in the consumer
5
price index-u for the 12 months ending with the September
6
preceding each November 1, including all previous adjustments.
7

For the purposes of this Section, "consumer price index-u"
8
means the index published by the Bureau of Labor Statistics of
9
the United States Department of Labor that measures the
10
average change in prices of goods and services purchased by
11
all urban consumers, United States city average, all items,
12
1982-84 = 100. The new amount resulting from each annual
13
adjustment shall be determined by the Public Pension Division
14
of the Department of Insurance and made available to the
15
boards of the retirement systems and pension funds by November
16
1 of each year.
17

(b-10) Beginning on January 1, 2024, for all purposes
18
under this Code (including, without limitation, the
19
calculation of benefits and employee contributions), the
20
annual earnings, salary, or wages (based on the plan year) of a
21
member or participant under Article 9 to whom this Section
22
applies shall include an annual earnings, salary, or wage cap
23
that tracks the Social Security wage base. Maximum annual
24
earnings, wages, or salary shall be the annual contribution
25
and benefit base established for the applicable year by the
26
Commissioner of the Social Security Administration under the

SB3412
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LRB104 18615 RPS 32058 b
1
federal Social Security Act.
2

However, in no event shall the annual earnings, salary, or
3
wages for the purposes of this Article and Article 9 exceed any
4
limitation imposed on annual earnings, salary, or wages under
5
Section 1-117. Under no circumstances shall the maximum amount
6
of annual earnings, salary, or wages be greater than the
7
amount set forth in this subsection (b-10) as a result of
8
reciprocal service or any provisions regarding reciprocal
9
services, nor shall the Fund under Article 9 be required to pay
10
any refund as a result of the application of this maximum
11
annual earnings, salary, and wage cap.
12

Nothing in this subsection (b-10) shall cause or otherwise
13
result in any retroactive adjustment of any employee
14
contributions. Nothing in this subsection (b-10) shall cause
15
or otherwise result in any retroactive adjustment of
16
disability or other payments made between January 1, 2011 and
17
January 1, 2024.
18

(c) A member or participant is entitled to a retirement
19
annuity upon written application if he or she has attained age
20
67 (age 65, with respect to service under Article 12 that is
21
subject to this Section, for a member or participant under
22
Article 12 who first becomes a member or participant under
23
Article 12 on or after January 1, 2022 or who makes the
24
election under item (i) of subsection (d-15) of this Section)
25
and has at least 10 years of service credit and is otherwise
26
eligible under the requirements of the applicable Article.

SB3412
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LRB104 18615 RPS 32058 b
1

A member or participant who has attained age 62 (age 60,
2
with respect to service under Article 12 that is subject to
3
this 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) of this Section) and has at least 10 years
7
of service credit and is otherwise eligible under the
8
requirements of the applicable Article may elect to receive
9
the lower retirement annuity provided in subsection (d) of
10
this Section.
11

(c-5) A person who first becomes a member or a participant
12
subject to this Section on or after July 6, 2017 (the effective
13
date of Public Act 100-23), notwithstanding any other
14
provision of this Code to the contrary, is entitled to a
15
retirement annuity under Article 8 or Article 11 upon written
16
application if he or she has attained age 65 and has at least
17
10 years of service credit and is otherwise eligible under the
18
requirements of Article 8 or Article 11 of this Code,
19
whichever is applicable.
20

(c-10) Notwithstanding any other provision of this Code to
21
the contrary, a participant who is subject to this Section and
22
is (i) a deputy sheriff under Article 9, (ii) a member of the
23
Cook County Police Department under Article 9, (iii) a
24
correctional officer under Article 9, or (iv) a police officer
25
with the Cook County Forest Preserve District under Article 10
26
is entitled to a retirement annuity upon written application

SB3412
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LRB104 18615 RPS 32058 b
1
if he or she has attained age 55, has at least 20 years of
2
service credit for service in any combination of those
3
positions, and is otherwise eligible under the applicable
4
Article of this Code.

5

(d) The retirement annuity of a member or participant who
6
is retiring after attaining age 62 (age 60, with respect to
7
service under Article 12 that is subject to this Section, for a
8
member or participant under Article 12 who first becomes a
9
member or participant under Article 12 on or after January 1,
10
2022 or who makes the election under item (i) of subsection
11
(d-15) of this Section) with at least 10 years of service
12
credit shall be reduced by one-half of 1% for each full month
13
that the member's age is under age 67 (age 65, with respect to
14
service under Article 12 that is subject to this Section, for a
15
member or participant under Article 12 who first becomes a
16
member or participant under Article 12 on or after January 1,
17
2022 or who makes the election under item (i) of subsection
18
(d-15) of this Section).
19

(d-5) The retirement annuity payable under Article 8 or
20
Article 11 to an eligible person subject to subsection (c-5)
21
of this Section who is retiring at age 60 with at least 10
22
years of service credit shall be reduced by one-half of 1% for
23
each full month that the member's age is under age 65.
24

(d-10) Each person who first became a member or
25
participant under Article 8 or Article 11 of this Code on or
26
after January 1, 2011 and prior to July 6, 2017 (the effective

SB3412
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LRB104 18615 RPS 32058 b
1
date of Public Act 100-23) shall make an irrevocable election
2
either:
3

(i) to be eligible for the reduced retirement age
4

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

the eligibility for which is conditioned upon the member
6

or participant agreeing to the increases in employee
7

contributions for age and service annuities provided in
8

subsection (a-5) of Section 8-174 of this Code (for
9

service under Article 8) or subsection (a-5) of Section
10

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

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

(d-10), in which case the member or participant shall
13

continue to be subject to the retirement age provisions in
14

subsections (c) and (d) of this Section and the employee
15

contributions for age and service annuity as provided in
16

subsection (a) of Section 8-174 of this Code (for service
17

under Article 8) or subsection (a) of Section 11-170 of
18

this Code (for service under Article 11).
19

The election provided for in this subsection shall be made
20
between October 1, 2017 and November 15, 2017. A person
21
subject to this subsection who makes the required election
22
shall remain bound by that election. A person subject to this
23
subsection who fails for any reason to make the required
24
election within the time specified in this subsection shall be
25
deemed to have made the election under item (ii).
26

(d-15) Each person who first becomes a member or

SB3412
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LRB104 18615 RPS 32058 b
1
participant under Article 12 on or after January 1, 2011 and
2
prior to January 1, 2022 shall make an irrevocable election
3
either:
4

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

specified in subsections (c) and (d) of this Section, the
6

eligibility for which is conditioned upon the member or
7

participant agreeing to the increase in employee
8

contributions for service annuities specified in
9

subsection (b) of Section 12-150; or
10

(ii) to not agree to item (i) of this subsection
11

(d-15), in which case the member or participant shall not
12

be eligible for the reduced retirement age specified in
13

subsections (c) and (d) of this Section and shall not be
14

subject to the increase in employee contributions for
15

service annuities specified in subsection (b) of Section
16

12-150.
17

The election provided for in this subsection shall be made
18
between January 1, 2022 and April 1, 2022. A person subject to
19
this subsection who makes the required election shall remain
20
bound by that election. A person subject to this subsection
21
who fails for any reason to make the required election within
22
the time specified in this subsection shall be deemed to have
23
made the election under item (ii).
24

(e) Any retirement annuity or supplemental annuity shall
25
be subject to annual increases on the January 1 occurring
26
either on or after the attainment of age 67 (age 65, with

SB3412
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LRB104 18615 RPS 32058 b
1
respect to service under Article 12 that is subject to this
2
Section, for a member or participant under Article 12 who
3
first becomes a member or participant under Article 12 on or
4
after January 1, 2022 or who makes the election under item (i)
5
of subsection (d-15); and beginning on July 6, 2017 (the
6
effective date of Public Act 100-23), age 65 with respect to
7
service under Article 8 or Article 11 for eligible persons
8
who: (i) are subject to subsection (c-5) of this Section; or
9
(ii) made the election under item (i) of subsection (d-10) of
10
this Section) or the first anniversary of the annuity start
11
date, whichever is later. Each annual increase shall be
12
calculated at 3% or one-half the annual unadjusted percentage
13
increase (but not less than zero) in the consumer price
14
index-u for the 12 months ending with the September preceding
15
each November 1, whichever is less, of the originally granted
16
retirement annuity. If the annual unadjusted percentage change
17
in the consumer price index-u for the 12 months ending with the
18
September preceding each November 1 is zero or there is a
19
decrease, then the annuity shall not be increased.
20

For the purposes of Section 1-103.1 of this Code, the
21
changes made to this Section by Public Act 102-263 are
22
applicable without regard to whether the employee was in
23
active service on or after August 6, 2021 (the effective date
24
of Public Act 102-263).
25

For the purposes of Section 1-103.1 of this Code, the
26
changes made to this Section by Public Act 100-23 are

SB3412
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LRB104 18615 RPS 32058 b
1
applicable without regard to whether the employee was in
2
active service on or after July 6, 2017 (the effective date of
3
Public Act 100-23).
4

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

SB3412
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LRB104 18615 RPS 32058 b
1
annual unadjusted percentage change in the consumer price
2
index-u for the 12 months ending with the September preceding
3
each November 1 is zero or there is a decrease, then the
4
annuity shall not be increased.
5

(g) The benefits in Section 14-110 apply if the person is a
6
fire fighter in the fire protection service of a department, a
7
security employee of the Department of Corrections or the
8
Department of Juvenile Justice, or a security employee of the
9
Department of Innovation and Technology, as those terms are
10
defined in subsection (b) and subsection (c) of Section
11
14-110. A person who meets the requirements of this Section is
12
entitled to an annuity calculated under the provisions of
13
Section 14-110, in lieu of the regular or minimum retirement
14
annuity, only if the person has withdrawn from service with
15
not less than 20 years of eligible creditable service and has
16
attained age 60, regardless of whether the attainment of age
17
60 occurs while the person is still in service.
18

(g-5) The benefits in Section 14-110 apply if the person
19
is a State policeman, investigator for the Secretary of State,
20
conservation police officer, investigator for the Department
21
of Revenue or the Illinois Gaming Board, investigator for the
22
Office of the Attorney General, Commerce Commission police
23
officer, or arson investigator, as those terms are defined in
24
subsection (b) and subsection (c) of Section 14-110. A person
25
who meets the requirements of this Section is entitled to an
26
annuity calculated under the provisions of Section 14-110, in

SB3412
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LRB104 18615 RPS 32058 b
1
lieu of the regular or minimum retirement annuity, only if the
2
person has withdrawn from service with not less than 20 years
3
of eligible creditable service and has attained age 55,
4
regardless of whether the attainment of age 55 occurs while
5
the person is still in service.
6

(h) If a person who first becomes a member or a participant
7
of a retirement system or pension fund subject to this Section
8
on or after January 1, 2011 is receiving a retirement annuity
9
or retirement pension under that system or fund and becomes a
10
member or participant under any other system or fund created
11
by this Code and is employed on a full-time basis, except for
12
those members or participants exempted from the provisions of
13
this Section under subsection (a) of this Section, then the
14
person's retirement annuity or retirement pension under that
15
system or fund shall be suspended during that employment. Upon
16
termination of that employment, the person's retirement
17
annuity or retirement pension payments shall resume and be
18
recalculated if recalculation is provided for under the
19
applicable Article of this Code.
20

If a person who first becomes a member of a retirement
21
system or pension fund subject to this Section on or after
22
January 1, 2012 and is receiving a retirement annuity or
23
retirement pension under that system or fund and accepts on a
24
contractual basis a position to provide services to a
25
governmental entity from which he or she has retired, then
26
that person's annuity or retirement pension earned as an

SB3412
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LRB104 18615 RPS 32058 b
1
active employee of the employer shall be suspended during that
2
contractual service. A person receiving an annuity or
3
retirement pension under this Code shall notify the pension
4
fund or retirement system from which he or she is receiving an
5
annuity or retirement pension, as well as his or her
6
contractual employer, of his or her retirement status before
7
accepting contractual employment. A person who fails to submit
8
such notification shall be guilty of a Class A misdemeanor and
9
required to pay a fine of $1,000. Upon termination of that
10
contractual employment, the person's retirement annuity or
11
retirement pension payments shall resume and, if appropriate,
12
be recalculated under the applicable provisions of this Code.
13

(i) (Blank).
14

(j) In the case of a conflict between the provisions of
15
this Section and any other provision of this Code, the
16
provisions of this Section shall control.
17
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
18
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
19
5-6-22; 103-529, eff. 8-11-23.)

20

(Text of Section from P.A. 102-813)
21

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

22

(a) The provisions of this Section apply to a person who,
23
on or after January 1, 2011, first becomes a member or a
24
participant under any reciprocal retirement system or pension
25
fund established under this Code, other than a retirement

SB3412
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LRB104 18615 RPS 32058 b
1
system or pension fund established under Article 2, 3, 4, 5, 6,
2
7, 15, or 18 of this Code, notwithstanding any other provision
3
of this Code to the contrary, but do not apply to any
4
self-managed plan established under this Code or to any
5
participant of the retirement plan established under Section
6
22-101; except that this Section applies to a person who
7
elected to establish alternative credits by electing in
8
writing after January 1, 2011, but before August 8, 2011,
9
under Section 7-145.1 of this Code. Notwithstanding anything
10
to the contrary in this Section, for purposes of this Section,
11
a person who is a Tier 1 regular employee as defined in Section
12
7-109.4 of this Code or who participated in a retirement
13
system under Article 15 prior to January 1, 2011 shall be
14
deemed a person who first became a member or participant prior
15
to January 1, 2011 under any retirement system or pension fund
16
subject to this Section. The changes made to this Section by
17
Public Act 98-596 are a clarification of existing law and are
18
intended to be retroactive to January 1, 2011 (the effective
19
date of Public Act 96-889), notwithstanding the provisions of
20
Section 1-103.1 of this Code.
21

This Section does not apply to a person who first becomes a
22
noncovered employee under Article 14 on or after the
23
implementation date of the plan created under Section 1-161
24
for that Article, unless that person elects under subsection
25
(b) of Section 1-161 to instead receive the benefits provided
26
under this Section and the applicable provisions of that

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1
Article.
2

This Section does not apply to a person who first becomes a
3
member or participant under Article 16 on or after the
4
implementation date of the plan created under Section 1-161
5
for that Article, unless that person elects under subsection
6
(b) of Section 1-161 to instead receive the benefits provided
7
under this Section and the applicable provisions of that
8
Article.
9

This Section does not apply to a person who elects under
10
subsection (c-5) of Section 1-161 to receive the benefits
11
under Section 1-161.
12

This Section does not apply to a person who first becomes a
13
member or participant of an affected pension fund on or after 6
14
months after the resolution or ordinance date, as defined in
15
Section 1-162, unless that person elects under subsection (c)
16
of Section 1-162 to receive the benefits provided under this
17
Section and the applicable provisions of the Article under
18
which he or she is a member or participant.
19

(b) "Final average salary" means, except as otherwise
20
provided in this subsection, the average monthly (or annual)
21
salary obtained by dividing the total salary or earnings
22
calculated under the Article applicable to the member or
23
participant during the 96 consecutive months (or 8 consecutive
24
years) of service within the last 120 months (or 10 years) of
25
service in which the total salary or earnings calculated under
26
the applicable Article was the highest by the number of months

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

(1) (Blank).
7

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

annual salary for any 4 consecutive years within the last
9

10 years of service immediately preceding the date of
10

withdrawal".
11

(3) In Article 13, "average final salary".
12

(4) In Article 14, "final average compensation".
13

(5) In Article 17, "average salary".
14

(6) In Section 22-207, "wages or salary received by
15

him at the date of retirement or discharge".
16

A member of the Teachers' Retirement System of the State
17
of Illinois who retires on or after June 1, 2021 and for whom
18
the 2020-2021 school year is used in the calculation of the
19
member's final average salary shall use the higher of the
20
following for the purpose of determining the member's final
21
average salary:
22

(A) the amount otherwise calculated under the first
23

paragraph of this subsection; or
24

(B) an amount calculated by the Teachers' Retirement
25

System of the State of Illinois using the average of the
26

monthly (or annual) salary obtained by dividing the total

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1

salary or earnings calculated under Article 16 applicable
2

to the member or participant during the 96 months (or 8
3

years) of service within the last 120 months (or 10 years)
4

of service in which the total salary or earnings
5

calculated under the Article was the highest by the number
6

of months (or years) of service in that period.
7

(b-5) Beginning on January 1, 2011, for all purposes under
8
this Code (including without limitation the calculation of
9
benefits and employee contributions), the annual earnings,
10
salary, or wages (based on the plan year) of a member or
11
participant to whom this Section applies shall not exceed
12
$106,800; however, that amount shall annually thereafter be
13
increased by the lesser of (i) 3% of that amount, including all
14
previous adjustments, or (ii) one-half the annual unadjusted
15
percentage increase (but not less than zero) in the consumer
16
price index-u for the 12 months ending with the September
17
preceding each November 1, including all previous adjustments.
18

For the purposes of this Section, "consumer price index-u"
19
means the index published by the Bureau of Labor Statistics of
20
the United States Department of Labor that measures the
21
average change in prices of goods and services purchased by
22
all urban consumers, United States city average, all items,
23
1982-84 = 100. The new amount resulting from each annual
24
adjustment shall be determined by the Public Pension Division
25
of the Department of Insurance and made available to the
26
boards of the retirement systems and pension funds by November

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1
1 of each year.
2

(b-10) Beginning on January 1, 2024, for all purposes
3
under this Code (including, without limitation, the
4
calculation of benefits and employee contributions), the
5
annual earnings, salary, or wages (based on the plan year) of a
6
member or participant under Article 9 to whom this Section
7
applies shall include an annual earnings, salary, or wage cap
8
that tracks the Social Security wage base. Maximum annual
9
earnings, wages, or salary shall be the annual contribution
10
and benefit base established for the applicable year by the
11
Commissioner of the Social Security Administration under the
12
federal Social Security Act.
13

However, in no event shall the annual earnings, salary, or
14
wages for the purposes of this Article and Article 9 exceed any
15
limitation imposed on annual earnings, salary, or wages under
16
Section 1-117. Under no circumstances shall the maximum amount
17
of annual earnings, salary, or wages be greater than the
18
amount set forth in this subsection (b-10) as a result of
19
reciprocal service or any provisions regarding reciprocal
20
services, nor shall the Fund under Article 9 be required to pay
21
any refund as a result of the application of this maximum
22
annual earnings, salary, and wage cap.
23

Nothing in this subsection (b-10) shall cause or otherwise
24
result in any retroactive adjustment of any employee
25
contributions. Nothing in this subsection (b-10) shall cause
26
or otherwise result in any retroactive adjustment of

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1
disability or other payments made between January 1, 2011 and
2
January 1, 2024.
3

(c) A member or participant is entitled to a retirement
4
annuity upon written application if he or she has attained age
5
67 (age 65, with respect to service under Article 12 that is
6
subject to this Section, for a member or participant under
7
Article 12 who first becomes a member or participant under
8
Article 12 on or after January 1, 2022 or who makes the
9
election under item (i) of subsection (d-15) of this Section)
10
and has at least 10 years of service credit and is otherwise
11
eligible under the requirements of the applicable Article.
12

A member or participant who has attained age 62 (age 60,
13
with respect to service under Article 12 that is subject to
14
this Section, for a member or participant under Article 12 who
15
first becomes a member or participant under Article 12 on or
16
after January 1, 2022 or who makes the election under item (i)
17
of subsection (d-15) of this Section) and has at least 10 years
18
of service credit and is otherwise eligible under the
19
requirements of the applicable Article may elect to receive
20
the lower retirement annuity provided in subsection (d) of
21
this Section.
22

(c-5) A person who first becomes a member or a participant
23
subject to this Section on or after July 6, 2017 (the effective
24
date of Public Act 100-23), notwithstanding any other
25
provision of this Code to the contrary, is entitled to a
26
retirement annuity under Article 8 or Article 11 upon written

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

(c-10) Notwithstanding any other provision of this Code to
6
the contrary, a participant who is subject to this Section and
7
is (i) a deputy sheriff under Article 9, (ii) a member of the
8
Cook County Police Department under Article 9, (iii) a
9
correctional officer under Article 9, or (iv) a police officer
10
with the Cook County Forest Preserve District under Article 10
11
is entitled to a retirement annuity upon written application
12
if he or she has attained age 55, has at least 20 years of
13
service credit for service in any combination of those
14
positions, and is otherwise eligible under the applicable
15
Article of this Code.

16

(d) The retirement annuity of a member or participant who
17
is retiring after attaining age 62 (age 60, with respect to
18
service under Article 12 that is subject to this Section, for a
19
member or participant under Article 12 who first becomes a
20
member or participant under Article 12 on or after January 1,
21
2022 or who makes the election under item (i) of subsection
22
(d-15) of this Section) with at least 10 years of service
23
credit shall be reduced by one-half of 1% for each full month
24
that the member's age is under age 67 (age 65, with respect to
25
service under Article 12 that is subject to this Section, for a
26
member or participant under Article 12 who first becomes a

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1
member or participant under Article 12 on or after January 1,
2
2022 or who makes the election under item (i) of subsection
3
(d-15) of this Section).
4

(d-5) The retirement annuity payable under Article 8 or
5
Article 11 to an eligible person subject to subsection (c-5)
6
of this Section who is retiring at age 60 with at least 10
7
years of service credit shall be reduced by one-half of 1% for
8
each full month that the member's age is under age 65.
9

(d-10) Each person who first became a member or
10
participant under Article 8 or Article 11 of this Code on or
11
after January 1, 2011 and prior to July 6, 2017 (the effective
12
date of Public Act 100-23) shall make an irrevocable election
13
either:
14

(i) to be eligible for the reduced retirement age
15

provided in subsections (c-5) and (d-5) of this Section,
16

the eligibility for which is conditioned upon the member
17

or participant agreeing to the increases in employee
18

contributions for age and service annuities provided in
19

subsection (a-5) of Section 8-174 of this Code (for
20

service under Article 8) or subsection (a-5) of Section
21

11-170 of this Code (for service under Article 11); or
22

(ii) to not agree to item (i) of this subsection
23

(d-10), in which case the member or participant shall
24

continue to be subject to the retirement age provisions in
25

subsections (c) and (d) of this Section and the employee
26

contributions for age and service annuity as provided in

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1

subsection (a) of Section 8-174 of this Code (for service
2

under Article 8) or subsection (a) of Section 11-170 of
3

this Code (for service under Article 11).
4

The election provided for in this subsection shall be made
5
between October 1, 2017 and November 15, 2017. A person
6
subject to this subsection who makes the required election
7
shall remain bound by that election. A person subject to this
8
subsection who fails for any reason to make the required
9
election within the time specified in this subsection shall be
10
deemed to have made the election under item (ii).
11

(d-15) Each person who first becomes a member or
12
participant under Article 12 on or after January 1, 2011 and
13
prior to January 1, 2022 shall make an irrevocable election
14
either:
15

(i) to be eligible for the reduced retirement age
16

specified in subsections (c) and (d) of this Section, the
17

eligibility for which is conditioned upon the member or
18

participant agreeing to the increase in employee
19

contributions for service annuities specified in
20

subsection (b) of Section 12-150; or
21

(ii) to not agree to item (i) of this subsection
22

(d-15), in which case the member or participant shall not
23

be eligible for the reduced retirement age specified in
24

subsections (c) and (d) of this Section and shall not be
25

subject to the increase in employee contributions for
26

service annuities specified in subsection (b) of Section

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1

12-150.
2

The election provided for in this subsection shall be made
3
between January 1, 2022 and April 1, 2022. A person subject to
4
this subsection who makes the required election shall remain
5
bound by that election. A person subject to this subsection
6
who fails for any reason to make the required election within
7
the time specified in this subsection shall be deemed to have
8
made the election under item (ii).
9

(e) Any retirement annuity or supplemental annuity shall
10
be subject to annual increases on the January 1 occurring
11
either on or after the attainment of age 67 (age 65, with
12
respect to service under Article 12 that is subject to this
13
Section, for a member or participant under Article 12 who
14
first becomes a member or participant under Article 12 on or
15
after January 1, 2022 or who makes the election under item (i)
16
of subsection (d-15); and beginning on July 6, 2017 (the
17
effective date of Public Act 100-23), age 65 with respect to
18
service under Article 8 or Article 11 for eligible persons
19
who: (i) are subject to subsection (c-5) of this Section; or
20
(ii) made the election under item (i) of subsection (d-10) of
21
this Section) or the first anniversary of the annuity start
22
date, whichever is later. Each annual increase shall be
23
calculated at 3% or one-half the annual unadjusted percentage
24
increase (but not less than zero) in the consumer price
25
index-u for the 12 months ending with the September preceding
26
each November 1, whichever is less, of the originally granted

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

For the purposes of Section 1-103.1 of this Code, the
6
changes made to this Section by Public Act 102-263 are
7
applicable without regard to whether the employee was in
8
active service on or after August 6, 2021 (the effective date
9
of Public Act 102-263).
10

For the purposes of Section 1-103.1 of this Code, the
11
changes made to this Section by Public Act 100-23 are
12
applicable without regard to whether the employee was in
13
active service on or after July 6, 2017 (the effective date of
14
Public Act 100-23).
15

(f) The initial survivor's or widow's annuity of an
16
otherwise eligible survivor or widow of a retired member or
17
participant who first became a member or participant on or
18
after January 1, 2011 shall be in the amount of 66 2/3% of the
19
retired member's or participant's retirement annuity at the
20
date of death. In the case of the death of a member or
21
participant who has not retired and who first became a member
22
or participant on or after January 1, 2011, eligibility for a
23
survivor's or widow's annuity shall be determined by the
24
applicable Article of this Code. The initial benefit shall be
25
66 2/3% of the earned annuity without a reduction due to age. A
26
child's annuity of an otherwise eligible child shall be in the

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1
amount prescribed under each Article if applicable. Any
2
survivor's or widow's annuity shall be increased (1) on each
3
January 1 occurring on or after the commencement of the
4
annuity if the deceased member died while receiving a
5
retirement annuity or (2) in other cases, on each January 1
6
occurring after the first anniversary of the commencement of
7
the annuity. Each annual increase shall be calculated at 3% or
8
one-half the annual unadjusted percentage increase (but not
9
less than zero) in the consumer price index-u for the 12 months
10
ending with the September preceding each November 1, whichever
11
is less, of the originally granted survivor's annuity. If the
12
annual unadjusted percentage change in the consumer price
13
index-u for the 12 months ending with the September preceding
14
each November 1 is zero or there is a decrease, then the
15
annuity shall not be increased.
16

(g) The benefits in Section 14-110 apply only if the
17
person is a State policeman, a fire fighter in the fire
18
protection service of a department, a conservation police
19
officer, an investigator for the Secretary of State, an arson
20
investigator, a Commerce Commission police officer,
21
investigator for the Department of Revenue or the Illinois
22
Gaming Board, a security employee of the Department of
23
Corrections or the Department of Juvenile Justice, or a
24
security employee of the Department of Innovation and
25
Technology, as those terms are defined in subsection (b) and
26
subsection (c) of Section 14-110. A person who meets the

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1
requirements of this Section is entitled to an annuity
2
calculated under the provisions of Section 14-110, in lieu of
3
the regular or minimum retirement annuity, only if the person
4
has withdrawn from service with not less than 20 years of
5
eligible creditable service and has attained age 60,
6
regardless of whether the attainment of age 60 occurs while
7
the person is still in service.
8

(h) If a person who first becomes a member or a participant
9
of a retirement system or pension fund subject to this Section
10
on or after January 1, 2011 is receiving a retirement annuity
11
or retirement pension under that system or fund and becomes a
12
member or participant under any other system or fund created
13
by this Code and is employed on a full-time basis, except for
14
those members or participants exempted from the provisions of
15
this Section under subsection (a) of this Section, then the
16
person's retirement annuity or retirement pension under that
17
system or fund shall be suspended during that employment. Upon
18
termination of that employment, the person's retirement
19
annuity or retirement pension payments shall resume and be
20
recalculated if recalculation is provided for under the
21
applicable Article of this Code.
22

If a person who first becomes a member of a retirement
23
system or pension fund subject to this Section on or after
24
January 1, 2012 and is receiving a retirement annuity or
25
retirement pension under that system or fund and accepts on a
26
contractual basis a position to provide services to a

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1
governmental entity from which he or she has retired, then
2
that person's annuity or retirement pension earned as an
3
active employee of the employer shall be suspended during that
4
contractual service. A person receiving an annuity or
5
retirement pension under this Code shall notify the pension
6
fund or retirement system from which he or she is receiving an
7
annuity or retirement pension, as well as his or her
8
contractual employer, of his or her retirement status before
9
accepting contractual employment. A person who fails to submit
10
such notification shall be guilty of a Class A misdemeanor and
11
required to pay a fine of $1,000. Upon termination of that
12
contractual employment, the person's retirement annuity or
13
retirement pension payments shall resume and, if appropriate,
14
be recalculated under the applicable provisions of this Code.
15

(i) (Blank).
16

(j) In the case of a conflict between the provisions of
17
this Section and any other provision of this Code, the
18
provisions of this Section shall control.
19
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
20
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
21
5-13-22; 103-529, eff. 8-11-23.)

22

(Text of Section from P.A. 102-956)
23

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

24

(a) The provisions of this Section apply to a person who,
25
on or after January 1, 2011, first becomes a member or a

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

This Section does not apply to a person who first becomes a
24
noncovered employee under Article 14 on or after the
25
implementation date of the plan created under Section 1-161
26
for that Article, unless that person elects under subsection

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1
(b) of Section 1-161 to instead receive the benefits provided
2
under this Section and the applicable provisions of that
3
Article.
4

This Section does not apply to a person who first becomes a
5
member or participant under Article 16 on or after the
6
implementation date of the plan created under Section 1-161
7
for that Article, unless that person elects under subsection
8
(b) of Section 1-161 to instead receive the benefits provided
9
under this Section and the applicable provisions of that
10
Article.
11

This Section does not apply to a person who elects under
12
subsection (c-5) of Section 1-161 to receive the benefits
13
under Section 1-161.
14

This Section does not apply to a person who first becomes a
15
member or participant of an affected pension fund on or after 6
16
months after the resolution or ordinance date, as defined in
17
Section 1-162, unless that person elects under subsection (c)
18
of Section 1-162 to receive the benefits provided under this
19
Section and the applicable provisions of the Article under
20
which he or she is a member or participant.
21

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

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

(1) (Blank).
9

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

annual salary for any 4 consecutive years within the last
11

10 years of service immediately preceding the date of
12

withdrawal".
13

(3) In Article 13, "average final salary".
14

(4) In Article 14, "final average compensation".
15

(5) In Article 17, "average salary".
16

(6) In Section 22-207, "wages or salary received by
17

him at the date of retirement or discharge".
18

A member of the Teachers' Retirement System of the State
19
of Illinois who retires on or after June 1, 2021 and for whom
20
the 2020-2021 school year is used in the calculation of the
21
member's final average salary shall use the higher of the
22
following for the purpose of determining the member's final
23
average salary:
24

(A) the amount otherwise calculated under the first
25

paragraph of this subsection; or
26

(B) an amount calculated by the Teachers' Retirement

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1

System of the State of Illinois using the average of the
2

monthly (or annual) salary obtained by dividing the total
3

salary or earnings calculated under Article 16 applicable
4

to the member or participant during the 96 months (or 8
5

years) of service within the last 120 months (or 10 years)
6

of service in which the total salary or earnings
7

calculated under the Article was the highest by the number
8

of months (or years) of service in that period.
9

(b-5) Beginning on January 1, 2011, for all purposes under
10
this Code (including without limitation the calculation of
11
benefits and employee contributions), the annual earnings,
12
salary, or wages (based on the plan year) of a member or
13
participant to whom this Section applies shall not exceed
14
$106,800; however, that amount shall annually thereafter be
15
increased by the lesser of (i) 3% of that amount, including all
16
previous adjustments, or (ii) one-half the annual unadjusted
17
percentage increase (but not less than zero) in the consumer
18
price index-u for the 12 months ending with the September
19
preceding each November 1, including all previous adjustments.
20

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

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1
of the Department of Insurance and made available to the
2
boards of the retirement systems and pension funds by November
3
1 of each year.
4

(b-10) Beginning on January 1, 2024, for all purposes
5
under this Code (including, without limitation, the
6
calculation of benefits and employee contributions), the
7
annual earnings, salary, or wages (based on the plan year) of a
8
member or participant under Article 9 to whom this Section
9
applies shall include an annual earnings, salary, or wage cap
10
that tracks the Social Security wage base. Maximum annual
11
earnings, wages, or salary shall be the annual contribution
12
and benefit base established for the applicable year by the
13
Commissioner of the Social Security Administration under the
14
federal Social Security Act.
15

However, in no event shall the annual earnings, salary, or
16
wages for the purposes of this Article and Article 9 exceed any
17
limitation imposed on annual earnings, salary, or wages under
18
Section 1-117. Under no circumstances shall the maximum amount
19
of annual earnings, salary, or wages be greater than the
20
amount set forth in this subsection (b-10) as a result of
21
reciprocal service or any provisions regarding reciprocal
22
services, nor shall the Fund under Article 9 be required to pay
23
any refund as a result of the application of this maximum
24
annual earnings, salary, and wage cap.
25

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

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

(c) A member or participant is entitled to a retirement
6
annuity upon written application if he or she has attained age
7
67 (age 65, with respect to service under Article 12 that is
8
subject to this Section, for a member or participant under
9
Article 12 who first becomes a member or participant under
10
Article 12 on or after January 1, 2022 or who makes the
11
election under item (i) of subsection (d-15) of this Section)
12
and has at least 10 years of service credit and is otherwise
13
eligible under the requirements of the applicable Article.
14

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

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

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

(c-10) Notwithstanding any other provision of this Code to
8
the contrary, a participant who is subject to this Section and
9
is (i) a deputy sheriff under Article 9, (ii) a member of the
10
Cook County Police Department under Article 9, (iii) a
11
correctional officer under Article 9, or (iv) a police officer
12
with the Cook County Forest Preserve District under Article 10
13
is entitled to a retirement annuity upon written application
14
if he or she has attained age 55, has at least 20 years of
15
service credit for service in any combination of those
16
positions, and is otherwise eligible under the applicable
17
Article of this Code.

18

(d) The retirement annuity of a member or participant who
19
is retiring after attaining age 62 (age 60, with respect to
20
service under Article 12 that is subject to this Section, for a
21
member or participant under Article 12 who first becomes a
22
member or participant under Article 12 on or after January 1,
23
2022 or who makes the election under item (i) of subsection
24
(d-15) of this Section) with at least 10 years of service
25
credit shall be reduced by one-half of 1% for each full month
26
that the member's age is under age 67 (age 65, with respect to

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1
service under Article 12 that is subject to this Section, for a
2
member or participant under Article 12 who first becomes a
3
member or participant under Article 12 on or after January 1,
4
2022 or who makes the election under item (i) of subsection
5
(d-15) of this Section).
6

(d-5) The retirement annuity payable under Article 8 or
7
Article 11 to an eligible person subject to subsection (c-5)
8
of this Section who is retiring at age 60 with at least 10
9
years of service credit shall be reduced by one-half of 1% for
10
each full month that the member's age is under age 65.
11

(d-10) Each person who first became a member or
12
participant under Article 8 or Article 11 of this Code on or
13
after January 1, 2011 and prior to July 6, 2017 (the effective
14
date of Public Act 100-23) shall make an irrevocable election
15
either:
16

(i) to be eligible for the reduced retirement age
17

provided in subsections (c-5) and (d-5) of this Section,
18

the eligibility for which is conditioned upon the member
19

or participant agreeing to the increases in employee
20

contributions for age and service annuities provided in
21

subsection (a-5) of Section 8-174 of this Code (for
22

service under Article 8) or subsection (a-5) of Section
23

11-170 of this Code (for service under Article 11); or
24

(ii) to not agree to item (i) of this subsection
25

(d-10), in which case the member or participant shall
26

continue to be subject to the retirement age provisions in

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1

subsections (c) and (d) of this Section and the employee
2

contributions for age and service annuity as provided in
3

subsection (a) of Section 8-174 of this Code (for service
4

under Article 8) or subsection (a) of Section 11-170 of
5

this Code (for service under Article 11).
6

The election provided for in this subsection shall be made
7
between October 1, 2017 and November 15, 2017. A person
8
subject to this subsection who makes the required election
9
shall remain bound by that election. A person subject to this
10
subsection who fails for any reason to make the required
11
election within the time specified in this subsection shall be
12
deemed to have made the election under item (ii).
13

(d-15) Each person who first becomes a member or
14
participant under Article 12 on or after January 1, 2011 and
15
prior to January 1, 2022 shall make an irrevocable election
16
either:
17

(i) to be eligible for the reduced retirement age
18

specified in subsections (c) and (d) of this Section, the
19

eligibility for which is conditioned upon the member or
20

participant agreeing to the increase in employee
21

contributions for service annuities specified in
22

subsection (b) of Section 12-150; or
23

(ii) to not agree to item (i) of this subsection
24

(d-15), in which case the member or participant shall not
25

be eligible for the reduced retirement age specified in
26

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

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1

subject to the increase in employee contributions for
2

service annuities specified in subsection (b) of Section
3

12-150.
4

The election provided for in this subsection shall be made
5
between January 1, 2022 and April 1, 2022. A person subject to
6
this subsection who makes the required election shall remain
7
bound by that election. A person subject to this subsection
8
who fails for any reason to make the required election within
9
the time specified in this subsection shall be deemed to have
10
made the election under item (ii).
11

(e) Any retirement annuity or supplemental annuity shall
12
be subject to annual increases on the January 1 occurring
13
either on or after the attainment of age 67 (age 65, with
14
respect to service under Article 12 that is subject to this
15
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); and beginning on July 6, 2017 (the
19
effective date of Public Act 100-23), age 65 with respect to
20
service under Article 8 or Article 11 for eligible persons
21
who: (i) are subject to subsection (c-5) of this Section; or
22
(ii) made the election under item (i) of subsection (d-10) of
23
this Section) or the first anniversary of the annuity start
24
date, whichever is later. Each annual increase shall be
25
calculated at 3% or one-half the annual unadjusted percentage
26
increase (but not less than zero) in the consumer price

SB3412
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1
index-u for the 12 months ending with the September preceding
2
each November 1, whichever is less, of the originally granted
3
retirement annuity. If the annual unadjusted percentage change
4
in the consumer price index-u for the 12 months ending with the
5
September preceding each November 1 is zero or there is a
6
decrease, then the annuity shall not be increased.
7

For the purposes of Section 1-103.1 of this Code, the
8
changes made to this Section by Public Act 102-263 are
9
applicable without regard to whether the employee was in
10
active service on or after August 6, 2021 (the effective date
11
of Public Act 102-263).
12

For the purposes of Section 1-103.1 of this Code, the
13
changes made to this Section by Public Act 100-23 are
14
applicable without regard to whether the employee was in
15
active service on or after July 6, 2017 (the effective date of
16
Public Act 100-23).
17

(f) The initial survivor's or widow's annuity of an
18
otherwise eligible survivor or widow of a retired member or
19
participant who first became a member or participant on or
20
after January 1, 2011 shall be in the amount of 66 2/3% of the
21
retired member's or participant's retirement annuity at the
22
date of death. In the case of the death of a member or
23
participant who has not retired and who first became a member
24
or participant on or after January 1, 2011, eligibility for a
25
survivor's or widow's annuity shall be determined by the
26
applicable Article of this Code. The initial benefit shall be

SB3412
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1
66 2/3% of the earned annuity without a reduction due to age. A
2
child's annuity of an otherwise eligible child shall be in the
3
amount prescribed under each Article if applicable. Any
4
survivor's or widow's annuity shall be increased (1) on each
5
January 1 occurring on or after the commencement of the
6
annuity if the deceased member died while receiving a
7
retirement annuity or (2) in other cases, on each January 1
8
occurring after the first anniversary of the commencement of
9
the annuity. Each annual increase shall be calculated at 3% or
10
one-half the annual unadjusted percentage increase (but not
11
less than zero) in the consumer price index-u for the 12 months
12
ending with the September preceding each November 1, whichever
13
is less, of the originally granted survivor's annuity. If the
14
annual unadjusted percentage change in the consumer price
15
index-u for the 12 months ending with the September preceding
16
each November 1 is zero or there is a decrease, then the
17
annuity shall not be increased.
18

(g) The benefits in Section 14-110 apply only if the
19
person is a State policeman, a fire fighter in the fire
20
protection service of a department, a conservation police
21
officer, an investigator for the Secretary of State, an
22
investigator for the Office of the Attorney General, an arson
23
investigator, a Commerce Commission police officer,
24
investigator for the Department of Revenue or the Illinois
25
Gaming Board, a security employee of the Department of
26
Corrections or the Department of Juvenile Justice, or a

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1
security employee of the Department of Innovation and
2
Technology, as those terms are defined in subsection (b) and
3
subsection (c) of Section 14-110. A person who meets the
4
requirements of this Section is entitled to an annuity
5
calculated under the provisions of Section 14-110, in lieu of
6
the regular or minimum retirement annuity, only if the person
7
has withdrawn from service with not less than 20 years of
8
eligible creditable service and has attained age 60,
9
regardless of whether the attainment of age 60 occurs while
10
the person is still in service.
11

(h) If a person who first becomes a member or a participant
12
of a retirement system or pension fund subject to this Section
13
on or after January 1, 2011 is receiving a retirement annuity
14
or retirement pension under that system or fund and becomes a
15
member or participant under any other system or fund created
16
by this Code and is employed on a full-time basis, except for
17
those members or participants exempted from the provisions of
18
this Section under subsection (a) of this Section, then the
19
person's retirement annuity or retirement pension under that
20
system or fund shall be suspended during that employment. Upon
21
termination of that employment, the person's retirement
22
annuity or retirement pension payments shall resume and be
23
recalculated if recalculation is provided for under the
24
applicable Article of this Code.
25

If a person who first becomes a member of a retirement
26
system or pension fund subject to this Section on or after

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1
January 1, 2012 and is receiving a retirement annuity or
2
retirement pension under that system or fund and accepts on a
3
contractual basis a position to provide services to a
4
governmental entity from which he or she has retired, then
5
that person's annuity or retirement pension earned as an
6
active employee of the employer shall be suspended during that
7
contractual service. A person receiving an annuity or
8
retirement pension under this Code shall notify the pension
9
fund or retirement system from which he or she is receiving an
10
annuity or retirement pension, as well as his or her
11
contractual employer, of his or her retirement status before
12
accepting contractual employment. A person who fails to submit
13
such notification shall be guilty of a Class A misdemeanor and
14
required to pay a fine of $1,000. Upon termination of that
15
contractual employment, the person's retirement annuity or
16
retirement pension payments shall resume and, if appropriate,
17
be recalculated under the applicable provisions of this Code.
18

(i) (Blank).
19

(j) In the case of a conflict between the provisions of
20
this Section and any other provision of this Code, the
21
provisions of this Section shall control.
22
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
23
102-263, eff. 8-6-21; 102-956, eff. 5-27-22
; 103-529, eff.
24
8-11-23.)

25

Section 90.
The State Mandates Act is amended by adding

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LRB104 18615 RPS 32058 b
1
Section 8.50 as follows:

2

(30 ILCS 805/8.50 new)
3

Sec. 8.50.
Exempt mandate.
Notwithstanding Sections 6 and
4
8 of this Act, no reimbursement by the State is required for
5
the implementation of any mandate created by this amendatory
6
Act of the 104th General Assembly.

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