HB 4045 — PEN CD-VARIOUS

(1) to interfere with, restrain or coerce public employees in the exercise of the rights guaranteed in this Act or to dominate or interfere with the formation, existence or administration of any labor organization or contribute financial or other support to it;

provided, an employer shall not be prohibited from permitting employees to confer with him during working hours without loss of time or pay;

(2) to discriminate in regard to hire or tenure of employment or any term or condition of employment in order to encourage or discourage membership in or other support for any labor organization.

Nothing in this Act or any other law precludes a public employer from making an HB4045 - 4 - LRB100 12674 RPS 26063 b agreement with a labor organization to require as a condition of employment the payment of a fair share under paragraph (e) of Section 6;

(3) to discharge or otherwise discriminate against a public employee because he has signed or filed an affidavit, petition or charge or provided any information or testimony under this Act;

(4) subject to and except as provided in Section 7.6, to refuse to bargain collectively in good faith with a labor organization which is the exclusive representative of public employees in an appropriate unit, including, but not limited to, the discussing of grievances with the exclusive representative;

however, no actions of the employer taken to implement or otherwise comply with the provisions of subsection (a) of Section 7.6 shall constitute or give rise to an unfair labor practice under this Act;

(5) to violate any of the rules and regulations established by the Board with jurisdiction over them relating to the conduct of representation elections or the conduct affecting the representation elections;

(6) to expend or cause the expenditure of public funds to any external agent, individual, firm, agency, partnership or association in any attempt to influence the outcome of representational elections held pursuant to Section 9 of this Act;

provided, that nothing in this HB4045 - 5 - LRB100 12674 RPS 26063 b subsection shall be construed to limit an employer's right to internally communicate with its employees as provided in subsection (c) of this Section, to be represented on any matter pertaining to unit determinations, unfair labor practice charges or pre-election conferences in any formal or informal proceeding before the Board, or to seek or obtain advice from legal counsel.

Nothing in this paragraph shall be construed to prohibit an employer from expending or causing the expenditure of public funds on, or seeking or obtaining services or advice from, any organization, group, or association established by and including public or educational employers, whether covered by this Act, the Illinois Educational Labor Relations Act or the public employment labor relations law of any other state or the federal government, provided that such services or advice are generally available to the membership of the organization, group or association, and are not offered solely in an attempt to influence the outcome of a particular representational election;

or (7) to refuse to reduce a collective bargaining agreement to writing or to refuse to sign such agreement.

(b) It shall be an unfair labor practice for a labor organization or its agents:

(1) to restrain or coerce public employees in the exercise of the rights guaranteed in this Act, provided, (i) that this paragraph shall not impair the right of a HB4045 - 6 - LRB100 12674 RPS 26063 b labor organization to prescribe its own rules with respect to the acquisition or retention of membership therein or the determination of fair share payments and (ii) that a labor organization or its agents shall commit an unfair labor practice under this paragraph in duty of fair representation cases only by intentional misconduct in representing employees under this Act;

(2) to restrain or coerce a public employer in the selection of his representatives for the purposes of collective bargaining or the settlement of grievances;

or (3) to cause, or attempt to cause, an employer to discriminate against an employee in violation of subsection (a)(2);

(4) to refuse to bargain collectively in good faith with a public employer, if it has been designated in accordance with the provisions of this Act as the exclusive representative of public employees in an appropriate unit;

(5) to violate any of the rules and regulations established by the boards with jurisdiction over them relating to the conduct of representation elections or the conduct affecting the representation elections;

(6) to discriminate against any employee because he has signed or filed an affidavit, petition or charge or provided any information or testimony under this Act;

(7) to picket or cause to be picketed, or threaten to picket or cause to be picketed, any public employer where HB4045 - 7 - LRB100 12674 RPS 26063 b an object thereof is forcing or requiring an employer to recognize or bargain with a labor organization of the representative of its employees, or forcing or requiring the employees of an employer to accept or select such labor organization as their collective bargaining representative, unless such labor organization is currently certified as the representative of such employees:

(A) where the employer has lawfully recognized in accordance with this Act any labor organization and a question concerning representation may not appropriately be raised under Section 9 of this Act;

(B) where within the preceding 12 months a valid election under Section 9 of this Act has been conducted;

or (C) where such picketing has been conducted without a petition under Section 9 being filed within a reasonable period of time not to exceed 30 days from the commencement of such picketing;

provided that when such a petition has been filed the Board shall forthwith, without regard to the provisions of subsection (a) of Section 9 or the absence of a showing of a substantial interest on the part of the labor organization, direct an election in such unit as the Board finds to be appropriate and shall certify the results thereof;

provided further, that nothing in HB4045 - 8 - LRB100 12674 RPS 26063 b this subparagraph shall be construed to prohibit any picketing or other publicity for the purpose of truthfully advising the public that an employer does not employ members of, or have a contract with, a labor organization unless an effect of such picketing is to induce any individual employed by any other person in the course of his employment, not to pick up, deliver, or transport any goods or not to perform any services;

or (8) to refuse to reduce a collective bargaining agreement to writing or to refuse to sign such agreement.

(c) The expressing of any views, argument, or opinion or the dissemination thereof, whether in written, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this Act, if such expression contains no threat of reprisal or force or promise of benefit.

(Source:

P.A.

86-412;

87-736.) (5 ILCS 315/15) (from Ch.

48, par.

1615) (Text of Section WITHOUT the changes made by P.A.

98-599, which has been held unconstitutional) Sec.

15.

Act Takes Precedence.

(a) In case of any conflict between the provisions of this Act and any other law (other than Section 5 of the State Employees Group Insurance Act of 1971 and other than the HB4045 - 9 - LRB100 12674 RPS 26063 b changes made to the Illinois Pension Code by this amendatory Act of the 96th General Assembly), executive order or administrative regulation relating to wages, hours and conditions of employment and employment relations, the provisions of this Act or any collective bargaining agreement negotiated thereunder shall prevail and control.

Nothing in this Act shall be construed to replace or diminish the rights of employees established by Sections 28 and 28a of the Metropolitan Transit Authority Act, Sections 2.15 through 2.19 of the Regional Transportation Authority Act.

The provisions of this Act are subject to Section 5 of the State Employees Group Insurance Act of 1971.

Nothing in this Act shall be construed to replace the necessity of complaints against a sworn peace officer, as defined in Section 2(a) of the Uniform Peace Officer Disciplinary Act, from having a complaint supported by a sworn affidavit.

(b) Except as provided in subsection (a) above, any collective bargaining contract between a public employer and a labor organization executed pursuant to this Act shall supersede any contrary statutes, charters, ordinances, rules or regulations relating to wages, hours and conditions of employment and employment relations adopted by the public employer or its agents.

Any collective bargaining agreement entered into prior to the effective date of this Act shall remain in full force during its duration.

(c) It is the public policy of this State, pursuant to HB4045 - 10 - LRB100 12674 RPS 26063 b paragraphs (h) and (i) of Section 6 of Article VII of the Illinois Constitution, that the provisions of this Act are the exclusive exercise by the State of powers and functions which might otherwise be exercised by home rule units.

Such powers and functions may not be exercised concurrently, either directly or indirectly, by any unit of local government, including any home rule unit, except as otherwise authorized by this Act.

(d) Notwithstanding any other provision of law, no collective bargaining agreement entered into, renewed, or extended after the effective date of this amendatory Act of the 100th General Assembly or any arbitration award issued under such collective bargaining agreement may violate or conflict with the changes made by this amendatory Act of the 100th General Assembly.

(Source:

P.A.

95-331, eff.

8-21-07;

96-889, eff.

1-1-11.) Section 10.

The Department may define these and other words and phrases separately for the purpose of implementing specific programs providing benefits under this HB4045 - 11 - LRB100 12674 RPS 26063 b Act.

(b) "Annuitant" means (1) an employee who retires, or has retired, on or after January 1, 1966 on an immediate annuity under the provisions of Articles 2, 14 (including an employee who has elected to receive an alternative retirement cancellation payment under Section 14-108.5 of the Illinois Pension Code in lieu of an annuity or who meets the criteria HB4045 Engrossed - 2 - LRB100 12674 RPS 26063 b for retirement, but in lieu of receiving an annuity under that Article has elected to receive an accelerated pension benefit payment under Section 14-147.5 of that Article), 15 (including an employee who has retired under the optional retirement program established under Section 15-158.2 or who meets the criteria for retirement but in lieu of receiving an annuity under that Article has elected to receive an accelerated pension benefit payment under Section 15-185.5 of the Article), paragraphs (2), (3), or (5) of Section 16-106 (including an employee who meets the criteria for retirement, but in lieu of receiving an annuity under that Article has elected to receive an accelerated pension benefit payment under Section 16-190.5 of the Illinois Pension Code), or Article 18 of the Illinois Pension Code;

(2) any person who was receiving group insurance HB4045 - 12 - LRB100 12674 RPS 26063 b coverage under this Act as of March 31, 1978 by reason of his status as an annuitant, even though the annuity in relation to which such coverage was provided is a proportional annuity based on less than the minimum period of service required for a retirement annuity in the system involved;

(4) the spouse of any person who is receiving a retirement annuity under Article 18 of the Illinois Pension Code and who is covered under a group health insurance program sponsored by a governmental employer HB4045 Engrossed - 3 - LRB100 12674 RPS 26063 b other than the State of Illinois and who has irrevocably elected to waive his or her coverage under this Act and to have his or her spouse considered as the "annuitant" under this Act and not as a "dependent";

(c) "Carrier" means (1) an insurance company, a corporation HB4045 - 13 - LRB100 12674 RPS 26063 b organized under the Limited Health Service Organization Act or the Voluntary Health Services Plan Act, a partnership, or other nongovernmental organization, which is authorized to do group life or group health insurance business in Illinois, or (2) the State of Illinois as a self-insurer.

(d) "Compensation" means salary or wages payable on a regular payroll by the State Treasurer on a warrant of the State Comptroller out of any State, trust or federal fund, or by the Governor of the State through a disbursing officer of the State out of a trust or out of federal funds, or by any Department out of State, trust, federal or other funds held by the State Treasurer or the Department, to any person for HB4045 Engrossed - 4 - LRB100 12674 RPS 26063 b personal services currently performed, and ordinary or accidental disability benefits under Articles 2, 14, 15 (including ordinary or accidental disability benefits under the optional retirement program established under Section 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of the Illinois Pension Code, for disability incurred after January 1, 1966, or benefits payable under the Workers' Compensation or Occupational Diseases Act or benefits payable under a sick pay plan established in accordance with Section 36 of the State Finance Act.

HB4045 - 14 - LRB100 12674 RPS 26063 b (e) "Commission" means the State Employees Group Insurance Advisory Commission authorized by this Act.

(f) "Contributory", when referred to as contributory coverage, shall mean optional coverages or benefits elected by the member toward the cost of which such member makes contribution, or which are funded in whole or in part through the acceptance of a reduction in earnings or the foregoing of an increase in earnings by an employee, as distinguished from noncontributory coverage or benefits which are paid entirely by HB4045 Engrossed - 5 - LRB100 12674 RPS 26063 b the State of Illinois without reduction of the member's salary.

(h) "Dependent", when the term is used in the context of HB4045 - 15 - LRB100 12674 RPS 26063 b the health and life plan, means a member's spouse and any child (1) from birth to age 26 including an adopted child, a child who lives with the member from the time of the filing of a petition for adoption until entry of an order of adoption, a stepchild or adjudicated child, or a child who lives with the member if such member is a court appointed guardian of the child or (2) age 19 or over who has a mental or physical disability from a cause originating prior to the age of 19 (age 26 if enrolled as an adult child dependent).

For the health plan only, the term "dependent" also includes (1) any person enrolled prior to the effective date of this Section who is dependent upon the member to the extent that the member may HB4045 Engrossed - 6 - LRB100 12674 RPS 26063 b claim such person as a dependent for income tax deduction purposes and (2) any person who has received after June 30, 2000 an organ transplant and who is financially dependent upon the member and eligible to be claimed as a dependent for income tax purposes.

(k) "Employee" means and includes each officer or employee HB4045 - 16 - LRB100 12674 RPS 26063 b in the service of a department who (1) receives his compensation for service rendered to the department on a warrant issued pursuant to a payroll certified by a department or on a warrant or check issued and drawn by a department upon a trust, federal or other fund or on a warrant issued pursuant to a payroll certified by an elected or duly appointed officer of the State or who receives payment of the performance of personal services on a warrant issued pursuant to a payroll certified by a Department and drawn by the Comptroller upon the State Treasurer against appropriations made by the General Assembly from any fund or against trust funds held by the State Treasurer, and (2) is employed full-time or part-time in a HB4045 Engrossed - 7 - LRB100 12674 RPS 26063 b position normally requiring actual performance of duty during not less than 1/2 of a normal work period, as established by the Director in cooperation with each department, except that persons elected by popular vote will be considered employees during the entire term for which they are elected regardless of hours devoted to the service of the State, and (3) except that "employee" does not include any person who is not eligible by reason of such person's employment to participate in one of the State retirement systems under Articles 2, 14, 15 (either the regular Article 15 system or the optional retirement program established under Section 15-158.2) or 18, or under paragraph (2), (3), or (5) of Section 16-106, of the Illinois Pension Code, but such term does include persons who are employed during the 6 month qualifying period under Article 14 of the HB4045 - 17 - LRB100 12674 RPS 26063 b Illinois Pension Code.

Such term also includes any person who (1) after January 1, 1966, is receiving ordinary or accidental disability benefits under Articles 2, 14, 15 (including ordinary or accidental disability benefits under the optional retirement program established under Section 15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of the Illinois Pension Code, for disability incurred after January 1, 1966, (2) receives total permanent or total temporary disability under the Workers' Compensation Act or Occupational Disease Act as a result of injuries sustained or illness contracted in the course of employment with the State of Illinois, or (3) is not otherwise covered under this Act and HB4045 Engrossed - 8 - LRB100 12674 RPS 26063 b has retired as a participating member under Article 2 of the Illinois Pension Code but is ineligible for the retirement annuity under Section 2-119 of the Illinois Pension Code.

"Employee" also includes (i) each officer or employee in the service of a qualified local government, including persons appointed as trustees of sanitary districts regardless of hours devoted to HB4045 - 18 - LRB100 12674 RPS 26063 b the service of the sanitary district, (ii) each employee in the service of a qualified rehabilitation facility, (iii) each full-time employee in the service of a qualified domestic violence shelter or service, and (iv) each full-time employee in the service of a qualified child advocacy center, as determined according to rules promulgated by the Director.

In the case of an annuitant or retired employee who first becomes an annuitant or retired employee on or after the effective date of this amendatory Act of the 97th General Assembly, the individual must meet the minimum vesting requirements of the applicable retirement system in order to be HB4045 Engrossed - 9 - LRB100 12674 RPS 26063 b eligible for group insurance benefits under that system.

HB4045 - 19 - LRB100 12674 RPS 26063 b (o) "Health plan" means a health benefits program offered by the State of Illinois for persons eligible for the plan.

(q) "Survivor" means a person receiving an annuity as a HB4045 Engrossed - 10 - LRB100 12674 RPS 26063 b survivor of an employee or of an annuitant.

and (3) the surviving dependent of a person who was an annuitant under this Act by virtue of receiving an alternative retirement cancellation payment under Section HB4045 - 20 - LRB100 12674 RPS 26063 b 14-108.5 of the Illinois Pension Code.

HB4045 Engrossed - 11 - LRB100 12674 RPS 26063 b (r) "Medical services" means the services provided within the scope of their licenses by practitioners in all categories licensed under the Medical Practice Act of 1987.

(s) "Unit of local government" means any county, municipality, township, school district (including a combination of school districts under the Intergovernmental Cooperation Act), special district or other unit, designated as a unit of local government by law, which exercises limited governmental powers or powers in respect to limited governmental subjects, any not-for-profit association with a membership that primarily includes townships and township officials, that has duties that include provision of research service, dissemination of information, and other acts for the purpose of improving township government, and that is funded HB4045 - 21 - LRB100 12674 RPS 26063 b wholly or partly in accordance with Section 85-15 of the Township Code;

and any hospital provider that is owned by a county that has 100 or fewer hospital beds and HB4045 Engrossed - 12 - LRB100 12674 RPS 26063 b has not already joined the program.

HB4045 - 22 - LRB100 12674 RPS 26063 b (u) "Qualified domestic violence shelter or service" means any Illinois domestic violence shelter or service and its administrative offices funded by the Department of Human Services (as successor to the Illinois Department of Public Aid), approved by the Director and participating in a program created under subsection (k) of Section 10.

and (3) either (i) has at least 8 years of creditable service under Article 16 of the Illinois Pension Code, or HB4045 Engrossed - 13 - LRB100 12674 RPS 26063 b (ii) was enrolled in the health insurance program offered under that Article on January 1, 1996, or (iii) is the survivor of a benefit recipient who had at least 8 years of creditable service under Article 16 of the Illinois Pension Code or was enrolled in the health insurance program offered under that Article on the effective date of this amendatory Act of 1995, or (iv) is a recipient or survivor of a recipient of a disability benefit under Article 16 of the Illinois Pension Code.

(A) spouse, (B) dependent parent who is receiving at least half of his or HB4045 - 23 - LRB100 12674 RPS 26063 b her support from the TRS benefit recipient, or (C) natural, step, adjudicated, or adopted child who is (i) under age 26, (ii) was, on January 1, 1996, participating as a dependent beneficiary in the health insurance program offered under Article 16 of the Illinois Pension Code, or (iii) age 19 or over who has a mental or physical disability from a cause originating prior to the age of 19 (age 26 if enrolled as an adult child).

"TRS dependent beneficiary" does not include, as indicated under paragraph (2) of this subsection (w), a dependent of the survivor of a TRS benefit recipient who first becomes a dependent of a survivor of a TRS benefit recipient on or after HB4045 Engrossed - 14 - LRB100 12674 RPS 26063 b the effective date of this amendatory Act of the 97th General Assembly unless that dependent would have been eligible for coverage as a dependent of the deceased TRS benefit recipient upon whom the survivor benefit is based.

and (2) is receiving a monthly survivor's annuity or HB4045 - 24 - LRB100 12674 RPS 26063 b retirement annuity under Article 15 of the Illinois Pension Code;

and (3) either (i) was a full-time employee of a community college district or an association of community college boards created under the Public Community College Act (other than an employee whose last employer under Article 15 of the Illinois Pension Code was a community college district subject to Article VII of the Public Community College Act) and was eligible to participate in a group health benefit plan as an employee during the time of employment with a community college district (other than a community college district subject to Article VII of the HB4045 Engrossed - 15 - LRB100 12674 RPS 26063 b Public Community College Act) or an association of community college boards, or (ii) is the survivor of a person described in item (i).

(A) spouse, (B) dependent parent who is receiving at least half of his or her support from the community college benefit recipient, or (C) natural, step, adjudicated, or adopted child who is (i) under age 26, or (ii) age 19 or over and has a mental or physical disability from a cause originating prior to the age of 19 (age 26 if enrolled as HB4045 - 25 - LRB100 12674 RPS 26063 b an adult child).

(bb) "Qualified child advocacy center" means any Illinois child advocacy center and its administrative offices funded by HB4045 Engrossed - 16 - LRB100 12674 RPS 26063 b the Department of Children and Family Services, as defined by the Children's Advocacy Center Act (55 ILCS 80/), approved by the Director and participating in a program created under subsection (n) of Section 10.

(a) The State shall pay the cost of basic non-contributory group life insurance and, subject to member paid contributions set by the Department or required by this Section and except as provided in this Section, the basic program of group health benefits on each eligible member, except a member, not otherwise covered by this Act, who has retired as a HB4045 - 26 - LRB100 12674 RPS 26063 b participating member under Article 2 of the Illinois Pension Code but is ineligible for the retirement annuity under Section 2-119 of the Illinois Pension Code, and part of each eligible member's and retired member's premiums for health insurance coverage for enrolled dependents as provided by Section 9.

The State shall pay the cost of the basic program of group health benefits only after benefits are reduced by the amount of benefits covered by Medicare for all members and dependents who are eligible for benefits under Social Security or the Railroad Retirement system or who had sufficient Medicare-covered government employment, except that such reduction in benefits shall apply only to those members and dependents who (1) first HB4045 Engrossed - 17 - LRB100 12674 RPS 26063 b become eligible for such Medicare coverage on or after July 1, 1992;

The cost of participation in the basic program of group health benefits for the dependent or survivor of a living or deceased retired employee who was formerly employed by the University of Illinois in the Cooperative Extension Service and HB4045 - 27 - LRB100 12674 RPS 26063 b would be an annuitant but for the fact that he or she was made ineligible to participate in the State Universities Retirement System by clause (4) of subsection (a) of Section 15-107 of the Illinois Pension Code shall not be greater than the cost of participation that would otherwise apply to that dependent or survivor if he or she were the dependent or survivor of an annuitant under the State Universities Retirement System.

HB4045 Engrossed - 18 - LRB100 12674 RPS 26063 b (a-6) (Blank).

(a-8.5) Beginning on the effective date of this amendatory Act of the 97th General Assembly, the Director of Central Management Services shall, on an annual basis, determine the HB4045 - 28 - LRB100 12674 RPS 26063 b amount that the State shall contribute toward the basic program of group health benefits on behalf of annuitants (including individuals who (i) participated in the General Assembly Retirement System, the State Employees' Retirement System of Illinois, the State Universities Retirement System, the Teachers' Retirement System of the State of Illinois, or the Judges Retirement System of Illinois and (ii) qualify as annuitants under subsection (b) of Section 3 of this Act), survivors (including individuals who (i) receive an annuity as a survivor of an individual who participated in the General Assembly Retirement System, the State Employees' Retirement System of Illinois, the State Universities Retirement System, HB4045 Engrossed - 19 - LRB100 12674 RPS 26063 b the Teachers' Retirement System of the State of Illinois, or the Judges Retirement System of Illinois and (ii) qualify as survivors under subsection (q) of Section 3 of this Act), and retired employees (as defined in subsection (p) of Section 3 of this Act).

Contributions may be based on annuitants', survivors', or HB4045 - 29 - LRB100 12674 RPS 26063 b retired employees' Medicare eligibility, but may not be based on Social Security eligibility.

The Director of Central Management Services shall provide HB4045 Engrossed - 20 - LRB100 12674 RPS 26063 b to the Executive Secretary of the State Employees' Retirement System of Illinois such information, statistics, and other data as he or she may require to review the premium amounts certified by the Director of Central Management Services.

The Department may promulgate HB4045 - 30 - LRB100 12674 RPS 26063 b rules further defining the methodology for the transfers.

HB4045 Engrossed - 21 - LRB100 12674 RPS 26063 b (a-10) To the extent that participation, benefits, or premiums under this Act are based on a person's service credit under an Article of the Illinois Pension Code, service credit terminated in exchange for an accelerated pension benefit payment under Section 14-147.5, 15-185.5, or 16-190.5 of that Code shall be included in determining a person's service credit for the purposes of this Act.

If the employee elects coverage, the State shall contribute on behalf of such employee to the cost of the employee's benefit and any HB4045 - 31 - LRB100 12674 RPS 26063 b applicable dependent supplement, that sum which bears the same percentage as that percentage of time the employee regularly works when compared to normal work period.

This 24-month limitation and the requirement of returning to active HB4045 Engrossed - 22 - LRB100 12674 RPS 26063 b service shall not apply to persons receiving ordinary or accidental disability benefits or retirement benefits through the appropriate State retirement system or benefits under the Workers' Compensation or Occupational Disease Act.

(e) Where the person is in non-pay status for a period in excess of 30 days or on leave of absence, other than by reason of disability, educational or sabbatical leave, or military leave, such person may continue coverage only by making personal payment equal to the amount normally contributed by HB4045 - 32 - LRB100 12674 RPS 26063 b the State on such person's behalf.

(g) The State shall not pay the cost of the basic non-contributory group life insurance, program of health benefits and other employee benefits for members who are HB4045 Engrossed - 23 - LRB100 12674 RPS 26063 b survivors as defined by paragraphs (1) and (2) of subsection (q) of Section 3 of this Act.

Such persons electing coverage may HB4045 - 33 - LRB100 12674 RPS 26063 b participate only by making payment equal to the amount normally contributed by the State for similarly situated employees.

To participate, a unit of local government must agree to enroll all of its employees, who may select coverage under either the State group HB4045 Engrossed - 24 - LRB100 12674 RPS 26063 b health benefits plan or a health maintenance organization that has contracted with the State to be available as a health care provider for employees as defined in this Act.

A unit of local government must remit the entire cost of providing coverage under the State group health benefits plan or, for coverage under a health maintenance organization, an amount determined by the Director based on an analysis of the sex, age, geographic location, or other relevant demographic variables for its employees, except that the unit of local government shall not be required to enroll those of its employees who are covered spouses or dependents under this plan or another group policy or plan providing health benefits as long as (1) an appropriate official from the unit of local government attests that each employee not enrolled is a covered spouse or HB4045 - 34 - LRB100 12674 RPS 26063 b dependent under this plan or another group policy or plan, and (2) at least 50% of the employees are enrolled and the unit of local government remits the entire cost of providing coverage to those employees, except that a participating school district must have enrolled at least 50% of its full-time employees who have not waived coverage under the district's group health plan by participating in a component of the district's cafeteria plan.

A participating school district is not required to enroll a full-time employee who has waived coverage under the district's health plan, provided that an appropriate official from the participating school district attests that the full-time employee has waived coverage by participating in a HB4045 Engrossed - 25 - LRB100 12674 RPS 26063 b component of the district's cafeteria plan.

The unit of local HB4045 - 35 - LRB100 12674 RPS 26063 b government shall be responsible for timely collection and transmission of dependent premiums.

(1) In the first year of coverage, the rates shall be equal to the amount normally charged to State employees for elected optional coverages or for enrolled dependents coverages or other contributory coverages, or contributed by the State for basic insurance coverages on behalf of its employees, adjusted for differences between State employees and employees of the local government in age, sex, geographic location or other relevant demographic HB4045 Engrossed - 26 - LRB100 12674 RPS 26063 b variables, plus an amount sufficient to pay for the additional administrative costs of providing coverage to employees of the unit of local government and their dependents.

In the case of coverage of local government employees under a health maintenance organization, the Director shall annually determine for each participating unit of local government the maximum monthly amount the unit may contribute toward that coverage, based on an analysis of (i) the age, sex, geographic location, and other relevant demographic variables of the unit's employees and (ii) the cost to cover those employees HB4045 - 36 - LRB100 12674 RPS 26063 b under the State group health benefits plan.

The Local Government Health Insurance Reserve Fund HB4045 Engrossed - 27 - LRB100 12674 RPS 26063 b shall be a continuing fund not subject to fiscal year limitations.

All expenditures from this Fund shall be used for payments for health care benefits for local government and rehabilitation facility employees, annuitants, and dependents, and to reimburse the Department or its administrative service organization for all expenses incurred HB4045 - 37 - LRB100 12674 RPS 26063 b in the administration of benefits.

To participate, a rehabilitation facility must agree to enroll all HB4045 Engrossed - 28 - LRB100 12674 RPS 26063 b of its employees and remit the entire cost of providing such coverage for its employees, except that the rehabilitation facility shall not be required to enroll those of its employees who are covered spouses or dependents under this plan or another group policy or plan providing health benefits as long as (1) an appropriate official from the rehabilitation facility attests that each employee not enrolled is a covered spouse or dependent under this plan or another group policy or plan, and (2) at least 50% of the employees are enrolled and the rehabilitation facility remits the entire cost of providing coverage to those employees.

Employees of a participating rehabilitation facility who are not enrolled due to coverage under another group health policy or plan may enroll in the event of a qualifying change in status, special enrollment, HB4045 - 38 - LRB100 12674 RPS 26063 b special circumstance as defined by the Director, or during the annual Benefit Choice Period.

(1) In the first year of coverage, the rates shall be equal to the amount normally charged to State employees for HB4045 Engrossed - 29 - LRB100 12674 RPS 26063 b elected optional coverages or for enrolled dependents coverages or other contributory coverages on behalf of its employees, adjusted for differences between State employees and employees of the rehabilitation facility in age, sex, geographic location or other relevant demographic variables, plus an amount sufficient to pay for the additional administrative costs of providing coverage to employees of the rehabilitation facility and their dependents.

Monthly payments by the rehabilitation facility or its employees for group health benefits shall be deposited in the HB4045 - 39 - LRB100 12674 RPS 26063 b Local Government Health Insurance Reserve Fund.

The domestic violence shelter shall not be required to enroll those of its employees who are covered spouses or dependents under this plan or another group policy or plan providing health benefits as long as (1) an appropriate official from the domestic violence HB4045 Engrossed - 30 - LRB100 12674 RPS 26063 b shelter attests that each employee not enrolled is a covered spouse or dependent under this plan or another group policy or plan and (2) at least 50% of the employees are enrolled and the domestic violence shelter remits the entire cost of providing coverage to those employees.

The domestic violence HB4045 - 40 - LRB100 12674 RPS 26063 b shelter or service shall be responsible for timely collection and transmission of dependent premiums.

(1) In the first year of coverage, the rates shall be equal to the amount normally charged to State employees for elected optional coverages or for enrolled dependents coverages or other contributory coverages on behalf of its employees, adjusted for differences between State employees and employees of the domestic violence shelter or service in age, sex, geographic location or other relevant demographic variables, plus an amount sufficient to pay for HB4045 Engrossed - 31 - LRB100 12674 RPS 26063 b the additional administrative costs of providing coverage to employees of the domestic violence shelter or service and their dependents.

(l) A public community college or entity organized pursuant to the Public Community College Act may apply to the Director initially to have only annuitants not covered prior to July 1, HB4045 - 41 - LRB100 12674 RPS 26063 b 1992 by the district's health plan provided health coverage under this Act on a non-insured basis.

for those community colleges with annuitants only enrolled, first year rates shall be equal to the average cost to cover claims for a State member adjusted for demographics, Medicare HB4045 Engrossed - 32 - LRB100 12674 RPS 26063 b participation, and other factors;

The child HB4045 - 42 - LRB100 12674 RPS 26063 b advocacy center shall not be required to enroll those of its employees who are covered spouses or dependents under this plan or another group policy or plan providing health benefits as long as (1) an appropriate official from the child advocacy center attests that each employee not enrolled is a covered spouse or dependent under this plan or another group policy or plan and (2) at least 50% of the employees are enrolled and the child advocacy center remits the entire cost of providing coverage to those employees.

Employees of a participating child advocacy center who are not enrolled due to coverage under another group health policy or plan may enroll in the event of a qualifying change in status, special enrollment, or special HB4045 Engrossed - 33 - LRB100 12674 RPS 26063 b circumstance as defined by the Director or during the annual Benefit Choice Period.

(1) In the first year of coverage, the rates shall be equal to the amount normally charged to State employees for elected optional coverages or for enrolled dependents coverages or other contributory coverages on behalf of its HB4045 - 43 - LRB100 12674 RPS 26063 b employees, adjusted for differences between State employees and employees of the child advocacy center in age, sex, geographic location, or other relevant demographic variables, plus an amount sufficient to pay for the additional administrative costs of providing coverage to employees of the child advocacy center and their dependents.

Monthly payments by the child advocacy center or its employees for group health insurance shall be deposited into HB4045 Engrossed - 34 - LRB100 12674 RPS 26063 b the Local Government Health Insurance Reserve Fund.

8-16-13.) Section 15.10.

The AttorneyIllinois GeneralPension ActCode is amended by changing Sections 1-160, 1-167 2-108, 2-119.1, 2-126, 2-162, 14-103.10, 14-114, 14-133, 14-152.1, 15-108.1, 15-108.2, 15-111, 15-136, 15-155, 15-157, 15-165, 15-198, 16-121, 16-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-130, 20-121, 20-123, 20-124, and 20-125 and by adding Section1-161, 51-167, 1-162, 2-105.3, 2-110.3, 2-165.1, 2-166.1, 14-103.41, 14-106.5, 14-147.5, 14-155.1, 14-155.2, 14-156.1, 15-132.9, 15-155.2, 15-185.5, 15-200.1, 15-201.1, 16-107.1, 16-122.9, 16-158.3, 16-190.5, 16-205.1, 16-206.1, 17-106.05, 17-113.4, 17-115.5, and 17-119.2 as follows:

(15(40 ILCS 205/55/1-160) new)(Text Sec.of Section WITHOUT the changes made by P.A.

5.

Future increases in income.

The Office of the Attorney General must not pay, offer, or agree to pay any future increase in income, as that term is defined in Section 14-103.42 of the Illinois Pension Code, to any person in a manner that violates Section 14-106.5 of the Illinois Pension Code.

HB4045 - 44 - LRB100 12674 RPS 26063 b Section 20.

The Secretary of State Merit Employment Code is amended by adding Section 13a as follows:

(15 ILCS 310/13a new) Sec.

13a.

Future increases in income.

The Office of the Secretary of State must not pay, offer, or agree to pay any future increase in income, as that term is defined in Section 14-103.42 of the Illinois Pension Code, to any person in a manner that violates Section 14-106.5 of the Illinois Pension Code.

Section 25.

The Comptroller Merit Employment Code is amended by adding Section 13a as follows:

(15 ILCS 410/13a new) Sec.

13a.

Future increases in income.

The Office of the Comptroller must not pay, offer, or agree to pay any future increase in income, as that term is defined in Section 14-103.42 of the Illinois Pension Code, to any person in a manner that violates Section 14-106.5 of the Illinois Pension Code.

Section 30.

The State Treasurer Employment Code is amended by adding Section 12a as follows:

(15 ILCS 510/12a new) HB4045 - 45 - LRB100 12674 RPS 26063 b Sec.

12a.

Future increases in income.

The Office of the State Treasurer must not pay, offer, or agree to pay any future increase in income, as that term is defined in Section 14-103.42 of the Illinois Pension Code, to any person in a manner that violates Section 14-106.5 of the Illinois Pension Code.

Section 35.

The Civil Administrative Code of Illinois is amended by adding Section 5-647 as follows:

(20 ILCS 5/5-647 new) Sec.

5-647.

Future increases in income.

A Department must not pay, offer, or agree to pay any future increase in income, as that term is defined in Section 14-103.42, 15-112.1, or 16-121.1 of the Illinois Pension Code, to any person in a manner that violates Section 14-106.5, 15-132.9, or 16-122.9 of the Illinois Pension Code.

Section 40.

The Budget Stabilization Act is amended by changing Section 20 as follows:

(30 ILCS 122/20) (Text of Section WITHOUT the changes made by P.A.

98-599, which has been held unconstitutional) Sec.

20.

Pension Stabilization Fund.

(a) The Pension Stabilization Fund is hereby created as a HB4045 - 46 - LRB100 12674 RPS 26063 b special fund in the State treasury.

Moneys in the fund shall be used for the sole purpose of making payments to the designated retirement systems as provided in Section 25.

(b) For each fiscal year through State fiscal year 2020, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 99% of the estimated general funds revenues pursuant to subsection (a) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 0.5% of the estimated general funds revenues to the Pension Stabilization Fund.

(c) For each fiscal year through State fiscal year 2020, when the General Assembly's appropriations and transfers or diversions as required by law from general funds do not exceed 98% of the estimated general funds revenues pursuant to subsection (b) of Section 10, the Comptroller shall transfer from the General Revenue Fund as provided by this Section a total amount equal to 1.0% of the estimated general funds revenues to the Pension Stabilization Fund.

(c-5) In addition to any other amounts required to be transferred under this Section, in State fiscal year 2021 and each fiscal year thereafter through State fiscal year 2045, or when each of the designated retirement systems, as defined in Section 25, has achieved 100% funding, whichever occurs first, the State Comptroller shall order transferred and the State Treasurer shall transfer from the General Revenue Fund to the HB4045 - 47 - LRB100 12674 RPS 26063 b Pension Stabilization Fund an amount equal to (1) the sum of the amounts certified by the designated retirement systems under subsection (a-10) of Section 14-135.08, subsection (a-10) of Section 15-165, and subsection (a-10) of Section 16-158 of this Code for that fiscal year minus (2) the sum of the required State contributions certified by the retirement systems under subsection (a-5) of Section 14-135.08, subsection (a-5) of Section 15-165, and subsection (a-5) of Section 16-158 of this Code for that fiscal year.

The transferred amount is intended to represent the annual savings to the State resulting from the enactment of Section 1-161 and Section 14-155.2, the enactment of subsection (a-2) of Section 15-155 and subsection (b-4) of Section 16-158, and the changes made to Section 1-160 by this amendatory Act of the 100th General Assembly.

(d) The Comptroller shall transfer 1/12 of the total amount to be transferred each fiscal year under this Section into the Pension Stabilization Fund on the first day of each month of that fiscal year or as soon thereafter as possible;

except that the final transfer of the fiscal year shall be made as soon as practical after the August 31 following the end of the fiscal year.

Until State fiscal year 2021, before Before the final transfer for a fiscal year is made, the Comptroller shall reconcile the estimated general funds revenues used in calculating the other transfers under this Section for that HB4045 - 48 - LRB100 12674 RPS 26063 b fiscal year with the actual general funds revenues for that fiscal year.

The final transfer for the fiscal year shall be adjusted so that the total amount transferred under this Section for that fiscal year is equal to the percentage specified in subsection (b) or (c) of this Section, whichever is applicable, of the actual general funds revenues for that fiscal year.

The actual general funds revenues for the fiscal year shall be calculated in a manner consistent with subsection (c) of Section 10 of this Act.

(Source:

P.A.

94-839, eff.

6-6-06.) Section 45.

The Illinois Pension Code is amended by changing Sections 1-160, 2-101, 2-105, 2-107, 2-108, 2-119.1, 2-124, 2-126, 2-134, 2-162, 14-103.10, 14-114, 14-131, 14-133, 14-135.08, 14-152.1, 15-108.1, 15-108.2, 15-111, 15-136, 15-155, 15-157, 15-165, 15-198, 16-121, 16-133.1, 16-136.1, 16-152, 16-158, 16-203, 17-116, 17-127, 17-129, 17-130, 18-131, 18-140, 20-121, 20-123, 20-124, and 20-125 and by adding Sections 1-161, 1-162, 2-105.3, 2-107.9, 2-107.10, 2-110.3, 2-165.1, 2-166.1, 14-103.41, 14-103.42, 14-103.43, 14-106.5, 14-147.5, 14-155.1, 14-155.2, 14-156.1, 15-112.1, 15-112.2, 15-132.9, 15-185.5, 15-200.1, 15-201.1, 16-107.1, 16-121.1, 16-121.2, 16-122.9, 16-190.5, 16-205.1, 16-206.1, 17-106.05, 17-113.4, 17-113.5, 17-113.6, 17-115.5, and 17-119.2 as follows:

HB4045 - 49 - LRB100 12674 RPS 26063 b (40 ILCS 5/1-160) (Text of Section WITHOUT the changes made by P.A.

(a) The provisions of this Section apply to a person who, on or after January 1, 2011, first becomes a member or a participant under any reciprocal retirement system or pension fund established under this Code, other than a retirement system or pension fund established under Article 2, 3, 4, 5, 6, 15 or 18 of this Code, notwithstanding any other provision of this Code to the contrary, but do not apply to any self-managed HB4045 Engrossed - 35 - LRB100 12674 RPS 26063 b plan established under this Code, to any person with respect to service as a sheriff's law enforcement employee under Article 7, or to any participant of the retirement plan established under Section 22-101.

This Section does not apply to a person who, on or after 6July HB40451, -2018, 50 - LRB100 12674 RPS 26063 b months after the effective date of this amendatory Act of the 100th General Assembly, first becomes a member or participant under Article 14 or 16, unless that person (i) is a covered employee under Article 14 who has not electedmade the election to participate in the defined contribution plan under Section 14-155.2 or (ii) elects under subsection (b) of Section 1-161 to receive the benefits provided under this Section and the applicable provisions of the Article under which he or she is a member or participant.

This Section also does not apply to a person who first becomes a member or participant of an affected pension fund on or after 6 months after the resolution or ordinance date, as defined in HB4045 Engrossed - 36 - LRB100 12674 RPS 26063 b Section 1-162, unless that person elects under subsection (c) of Section 1-162 to receive the benefits provided under this Section and the applicable provisions of the Article under which he or she is a member or participant.

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

For the purposes of a person who first becomes a member or participant of any retirement system or pension fund to which this Section applies on or after January 1, 2011, in this Code, "final HB4045 - 51 - LRB100 12674 RPS 26063 b average salary" shall be substituted for the following:

HB4045 Engrossed - 37 - LRB100 12674 RPS 26063 b (4) In Article 14, "final average compensation".

For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average HB4045 - 52 - LRB100 12674 RPS 26063 b change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.

(c) A member or participant is entitled to a retirement annuity upon written application if he or she has attained age HB4045 Engrossed - 38 - LRB100 12674 RPS 26063 b 67 (beginning January 1, 2015, age 65 with respect to service under Article 12 of this Code that is subject to this Section) and has at least 10 years of service credit and is otherwise eligible under the requirements of the applicable Article.

(d) The retirement annuity of a member or participant who is retiring after attaining age 62 (beginning January 1, 2015, age 60 with respect to service under Article 12 of this Code that is subject to this Section) with at least 10 years of service credit shall be reduced by one-half of 1% for each full month that the member's age is under age 67 (beginning January 1, 2015, age 65 with respect to service under Article 12 of HB4045 - 53 - LRB100 12674 RPS 26063 b this Code that is subject to this Section).

Each annual increase shall be calculated at 3% or one-half the annual HB4045 Engrossed - 39 - LRB100 12674 RPS 26063 b unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity.

The initial benefit shall be HB4045 - 54 - LRB100 12674 RPS 26063 b 66 2/3% of the earned annuity without a reduction due to age.

HB4045 Engrossed - 40 - LRB100 12674 RPS 26063 b Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted survivor's annuity.

A person who meets the requirements of this Section is entitled to an annuity calculated under the provisions of Section 14-110, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from HB4045 - 55 - LRB100 12674 RPS 26063 b service with not less than 20 years of eligible creditable service and has attained age 60, regardless of whether the attainment of age 60 occurs while the person is still in service.

(h) If a person who first becomes a member or a participant of a retirement system or pension fund subject to this Section on or after January 1, 2011 is receiving a retirement annuity or retirement pension under that system or fund and becomes a HB4045 Engrossed - 41 - LRB100 12674 RPS 26063 b member or participant under any other system or fund created by this Code and is employed on a full-time basis, except for those members or participants exempted from the provisions of this Section under subsection (a) of this Section, then the person's retirement annuity or retirement pension under that system or fund shall be suspended during that employment.

If a person who first becomes a member of a retirement system or pension fund subject to this Section on or after January 1, 2012 and is receiving a retirement annuity or retirement pension under that system or fund and accepts on a contractual basis a position to provide services to a governmental entity from which he or she has retired, then that person's annuity or retirement pension earned as an active employee of the employer shall be suspended during that HB4045 - 56 - LRB100 12674 RPS 26063 b contractual service.

Upon termination of that HB4045 Engrossed - 42 - LRB100 12674 RPS 26063 b contractual employment, the person's retirement annuity or retirement pension payments shall resume and, if appropriate, be recalculated under the applicable provisions of this Code.

(a) Notwithstanding any other provision of this Code to the contrary, the provisions of this Section apply to a person who,who on or after 6 months after the effective date of this amendatory Act of the 100th General Assembly, first becomes a HB4045 - 57 - LRB100 12674 RPS 26063 b member or a participant under Article 14, 15, or 16 on or after July 1, 2018 and who does not make the election under subsection (b) or (c), whichever is applicable.

The provisions of this Section apply to a person who makes the election under subsection (c-5).

(b) In lieu of the benefits provided under this Section, a member or participant, except for a participant under Article 15, may irrevocably elect the benefits under Section 1-160 and HB4045 Engrossed - 43 - LRB100 12674 RPS 26063 b the benefits otherwise applicable to that member or participant.

(c) A participant under Article 15 may irrevocably elect the benefits otherwise provided to a Tier 2 participantmember under Article 15.

The election must be made within 30 days after becoming a participant.member.

(c-5) A non-covered participant under Article 14 to whom Section 1-160 applies, a Tier 2 member under Article 15, or a participant under Article 16 to whom Section 1-160 applies may irrevocably elect to receive the benefits under this Section in lieu of the benefits under Section 1-160 or the benefits otherwise available to a Tier 2 member under Article 15, whichever is applicable.

Each retirement System shall establish procedures for making this election.

For the purposes of a person whoto firstwhom becomesthis aSection memberapplies, orin participantthis ofCode, any"final retirementaverage systemsalary" toshall whichbe thissubstituted Sectionfor applies"final onaverage or after 6 HB4045 Engrossed - 5844 - LRB100 12674 RPS 26063 b months after the effective date of this amendatory Act of the 100th General Assembly, in this Code, "final average salary" shall be substituted for "final average compensation" in Article 14.

(e) Beginning 6July months1, after2018, the effective date of this amendatory Act of the 100th General Assembly, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings, salary, compensation, or wages (based on the plan year) of a member or participant to whom this Section applies shall not at any time exceed the federal Social Security Wage Base then in effect.

Each annual increase shall be one-half the annual unadjusted percentage increase (but not less than zero) HB4045 - 59 - LRB100 12674 RPS 26063 b in the consumer price index-w for the 12 months ending with the September preceding each November 1 of the originally granted retirement annuity.

If the annual unadjusted percentage change in the consumer price index-w for the 12 months ending with the HB4045 Engrossed - 45 - LRB100 12674 RPS 26063 b September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased.

(i) The initial survivor's or widow's annuity of an otherwise eligible survivor or widow of a retired member or participant whoto firstwhom became a member or participant on or after 6 months after the effective date of this amendatorySection Actapplies of the 100th General Assembly shall be in the amount of 66 2/3% of the retired member's or participant's retirement annuity at the date of death.

In the case of the death of a member or participant who has not retired and whoto firstwhom became a member or participant on or after 6 months after the effective date of this amendatorySection Actapplies, of the 100th General Assembly, eligibility HB4045 - 60 - LRB100 12674 RPS 26063 b for a survivor's or widow's annuity shall be determined by the applicable Article of this Code.

(j) In lieu of any other employee contributions, except for the contribution to the defined contribution plan under HB4045 Engrossed - 46 - LRB100 12674 RPS 26063 b subsection (k) of this Section, each employee shall contribute 6.2% of his her or salary to the retirement system.

However, the employee contribution under this subsection shall not exceed the amount of the total normal cost of the benefits for all members making contributions under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll and determinedcertified on or before NovemberJanuary 115 of each year by the board of trustees of the retirement system.

If the board of trustees of the retirement system determinescertifies that the 6.2% employee contribution rate exceeds the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), then on or before December 1 of that year, the board of trustees shall certify the amount of the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll, to the State Actuary and the Commission on Government Forecasting and Accountability, and the employee contribution under this subsection shall be reduced to that HB4045 - 61 - LRB100 12674 RPS 26063 b amount beginning JanuaryJuly 1 of thethat following year.

Thereafter, if the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll and determinedcertified on or before NovemberJanuary 1 of each year by the board of trustees of the retirement system, exceeds 6.2% of salary, then on or before DecemberJanuary 115 of that year, the board of HB4045 Engrossed - 47 - LRB100 12674 RPS 26063 b trustees shall certify the normal cost to the State Actuary and the Commission on Government Forecasting and Accountability, and the employee contributions shall revert back to 6.2% of salary beginning January 1 of the following year.

(k) No later than 5July months1, after2018, the effective date of this amendatory Act of the 100th General Assembly, each retirement system under Article 14, 15, or 16 shall prepare and implement a defined contribution plan for members or participants who are subject to this Section.

(2) For each participant in the defined contribution plan who has been employed with the same employer for at HB4045 - 62 - LRB100 12674 RPS 26063 b least one year, employer contributions shall be paid into that participant's accounts at a rate expressed as a percentage of salary.

HB4045 Engrossed - 48 - LRB100 12674 RPS 26063 b (4) The defined contribution plan shall provide a variety of options for investments.

(7) Each retirement system shall reduce the employee contributions credited to the member's defined contribution plan account by an amount determined by that retirement system to cover the cost of offering the benefits under this subsection and any applicable HB4045 - 63 - LRB100 12674 RPS 26063 b administrative fees.

(l) ByIn accepting the benefitscase underof this Section, a memberconflict orbetween participant acknowledges and consents that benefits once earned may not be diminished, but that future benefits may be modified, including, but not limited to, changes in the retirementprovisions ageof atthis whichSection aand memberany orother participantprovision becomes eligible to receive future benefits, changes in the amount of thethis automaticCode, annual increase for those future benefits, or the amountprovisions of thethis retirementSection annuity.shall control.

AnyHB4045 increaseEngrossed in- benefits49 under- thisLRB100 Section12674 applicableRPS to26063 personsb under(40 ArticleILCS 155/1-162 ornew) 16Sec. does not apply unless it is approved by resolution or ordinance of the governing body of the unit of local government with regard to the members or participants under that unit of local government.

(m) In the case of a conflict between the provisions of this Section and any other provision of this Code, the provisions of this Section shall control.

(40 ILCS 5/1-162 new) Sec.

Optional benefits for certain Tier 2 members of pension funds under Articles 7, 8, 9, 10, 11, 12, 13, and 17.

HB4045 - 64 - LRB100 12674 RPS 26063 b "Affected pension fund" means a pension fund established under Article 7, 8, 9, 10, 11, 12, 13, or 17 that the governing body of the unit of local government has designated as an affected pension fund by adoption of a resolution or ordinance.

"Resolution or ordinance date" means the date on which the governing body of the unit of local government designates a pension fund under Article 7, 8, 9, 10, 11, 12, 13, or 17 as an affected pension fund by adoption of a resolution or ordinance.ordinance or July 1, 2018, whichever is later.

The provisions of this Section do not apply to a sheriff's law enforcement employee under Article 7.

(d) "Final average salary" means the average monthly (or HB4045 Engrossed - 50 - LRB100 12674 RPS 26063 b annual) salary obtained by dividing the total salary or earnings calculated under the Article applicable to the member or participant during the last 120 months (or 10 years) of service in which the total salary or earnings calculated under HB4045 - 65 - LRB100 12674 RPS 26063 b the applicable Article was the highest by the number of months (or years) of service in that period.

(1) In ArticleArticles 7,8, (except9, 10, 11, and 12, "highest average annual salary for serviceany as4 sheriff'sconsecutive lawyears enforcementwithin employees),the "finallast rate10 years of earnings".service immediately preceding the date of withdrawal".

(2) In ArticlesArticle 8,17, 9,"average 10,salary". 11, and 12, "highest average annual salary for any 4 consecutive years within the last 10 years of service immediately preceding the date of withdrawal".

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

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

(f) A member or participant is entitled to a retirement annuity upon written application if he or she has attained the normal retirement age determined by the Social Security Administration for that member or participant's year of birth, HB4045 Engrossed - 51 - LRB100 12674 RPS 26063 b but no earlier than 67 years of age, and has at least 10 years HB4045 - 66 - LRB100 12674 RPS 26063 b of service credit and is otherwise eligible under the requirements of the applicable Article.

The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of HB4045 Engrossed - 52 - LRB100 12674 RPS 26063 b each year.

HB4045 - 67 - LRB100 12674 RPS 26063 b (i) The initial survivor's or widow's annuity of an otherwise eligible survivor or widow of a retired member or participant who first became a member or participant on or after 6 months after the resolution or ordinance date shall be in the amount of 66 2/3% of the retired member's or participant's retirement annuity at the date of death.

If the board of trustees of the affected pension fund determines that HB4045 Engrossed - 53 - LRB100 12674 RPS 26063 b the 6.2% employee contribution rate exceeds the normal cost of HB4045 - 68 - LRB100 12674 RPS 26063 b the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), then on or before December 1 of that year, the board of trustees shall certify the amount of the normal cost of the benefits under this Section (except for the defined contribution plan under subsection (k) of this Section), expressed as a percentage of payroll, to the State Actuary and the Commission on Government Forecasting and Accountability, and the employee contribution under this subsection shall be reduced to that amount beginning January 1 of the following year.

The defined contribution plan developed under this subsection shall be a plan that aggregates employer and employee contributions in HB4045 Engrossed - 6954 - LRB100 12674 RPS 26063 b plan that aggregates employer and employee contributions in individual participant accounts which, after meeting any other requirements, are used for payouts after retirement in accordance with this subsection and any other applicable laws.

(6) To the extent authorized under federal law and as authorized by the affected pension fund, the defined contribution plan shall allow former participants in the HB4045 Engrossed - 7055 - LRB100 12674 RPS 26063 b contribution plan shall allow former participants in the plan to transfer or roll over employee and employer contributions, and the earnings thereon, into other qualified retirement plans.

(l) ByIn accepting the benefitscase underof this Section, a memberconflict orbetween participant acknowledges and consents that benefits once earned may not be diminished, but that future benefits may be modified, including, but not limited to, changes in the retirementprovisions ageof atthis whichSection aand memberany orother participantprovision becomes eligible to receive future benefits, changes in the amount of thethis automaticCode, annual increase for those future benefits, or the amountprovisions of thethis retirementSection annuity.shall control.

Any(40 increaseILCS in5/1-167 benefitsnew) underSec. this Section does not apply unless it is approved by resolution or ordinance of the governing body of the unit of local government with regard to the members or participants under that unit of local government.

(m)1-167. In the case of a conflict between the provisions of HB4045 - 71 - LRB100 12674 RPS 26063 b this Section and any other provision of this Code, the provisions of this Section shall control.

(40Election ILCSby 5/2-101)Tier (from1 Ch.employees.

108(a) 1/2,The par.Board of any pension fund or retirement system established under this Code may, by resolution, provide Tier 1 employees with the opportunity to make an irrevocable election in accordance with this Section.

2-101)The Sec.fund or system shall adopt rules for the administration of the election.

2-101.(b) If approved by the Board of the applicable pension fund HB4045 Engrossed - 56 - LRB100 12674 RPS 26063 b or retirement system, an active Tier 1 employee may make an irrevocable election to agree to delay his or her eligibility for automatic annual increases in retirement annuity and to reduce the amount of the automatic annual increases in his or her retirement annuity and survivor's annuity as provided in subsection (e) of Section 1-160.

Creation(c) As adequate and legal consideration provided under this amendatory Act of system.the 100th General Assembly for making an election under subsection (b) of this Section, a Tier 1 employee shall be entitled to receive:

A(1) retirementa systemconsideration ispayment createdequal to provide10% retirementof annuities,the survivor'scontributions annuitiesmade andby otheror benefitson forbehalf certain members of the Generalemployee Assembly,before certainthe electedeffective statedate officials,of andthat theirelection; beneficiaries.

Theand system(2) shalla be10% knownreduction asin thefuture "Generalemployee Assemblypension Retirementcontributions System".under the applicable Article.

All(d) itsEach fundsfund andor propertysystem shallthat beconducts athe trustelection separateshall frommake alla othergood entities,faith maintainedeffort forto thecontact purposeTier of1 securingmembers paymentsubject ofto annuities and benefits under this Article.Section.

ParticipationThe infund theor retirement system createdshall underdescribe thisthe Articleelection, ispublish restrictedthe todetails personson whoits becamewebsite, participantsand beforepublish thethose effectivedetails datein ofa thisregularly amendatorypublished Actnewsletter ofor theother 100thexisting Generalpublic Assembly.forum.

BeginningUpon onrequest, thatthe date,fund theor Systemsystem shall notoffer acceptTier any1 newemployees participants.an opportunity to receive information before making the election.

(Source:The information may be provided through video materials, group presentations, individual consultation with a member or authorized representative of the fund or system in person or by telephone or other electronic means, or any HB4045 Engrossed - 57 - LRB100 12674 RPS 26063 b combination of those methods.

P.A.The fund or system shall inform Tier 1 members that the member may also wish to obtain information and counsel relating to the election under this Section from any other available source, including, but not limited to, labor organizations and private counsel.

83-1440.)(e) (40The ILCSfund 5/2-105)or (fromsystem Ch.shall not provide advice or counseling with respect to the legal or tax circumstances of or consequences of making the election in subsection (b) this Section.

108In 1/2,no par.event shall the System, its staff, or the Board be held liable for any information given to a member regarding the election under this Section.

2-105)(f) Sec.This subsection does not apply to Articles 2, 14, 15, 16, and 17.

2-105.(40 ILCS 5/2-105.3 new) Sec.

Member.

"Member":

Members of the General Assembly of this State, including persons who enter military service while a member of the General Assembly, and any person serving as Governor, Lieutenant Governor, Secretary of State, Treasurer, Comptroller, or Attorney General for the period of service in such office.

HB4045 - 72 - LRB100 12674 RPS 26063 b Any person who has served for 10 or more years as Clerk or Assistant Clerk of the House of Representatives, Secretary or Assistant Secretary of the Senate, or any combination thereof, may elect to become a member of this system while thenceforth engaged in such service by filing a written election with the board.

Any person so electing shall be deemed an active member of the General Assembly for the purpose of validating and transferring any service credits earned under any of the funds and systems established under Articles 3 through 18 of this Code.

However, notwithstanding any other provision of this Article, a person shall not be deemed a member for the purposes of this Article unless he or she became a participant of the System before the effective date of this amendatory Act of the 100th General Assembly.

(Source:

P.A.

85-1008.) (40 ILCS 5/2-105.3 new) Sec.

(40 ILCS 5/2-107)5/2-108) (from Ch.

2-107) Sec.

2-107.

Participant.

"Participant":

Any member who elects to participate;

and any former member who elects to continue participation under Section 2-117.1, for the duration HB4045 - 73 - LRB100 12674 RPS 26063 b of such continued participation.

However, notwithstanding any other provision of this Article, a person shall not be deemed a participant for the purposes of this Article unless he or she became a participant of the System before the effective date of this amendatory Act of the 100th General Assembly.

(Source:

P.A.

86-1488.) (40 ILCS 5/2-107.9 new) Sec.

2-107.9.

Future increase in income.

"Future increase in income" means an increase to a Tier 1 employee's base pay that is offered to the Tier 1 employee for service under this Article after June 30, 2018 that qualifies as "salary", as defined in Section 2-108, or would qualify as "salary" but for the fact that it was offered to and accepted by the Tier 1 employee under the condition set forth in subsection (c) of Section 2-110.3.

(40 ILCS 5/2-107.10 new) Sec.

2-107.10.

Base pay.

As used in Section 2-107.9 of this Code, "base pay" means the Tier 1 employee's annualized rate of salary as of June 30, 2018.

For a person returning to active service as a Tier 1 employee after June 30, 2018, however, "base pay" means the employee's annualized rate of salary as of the employee's last date of service prior to July 1, 2018.

The System shall calculate the base pay of each Tier 1 employee pursuant to this Section.

HB4045 - 74 - LRB100 12674 RPS 26063 b (40 ILCS 5/2-108) (from Ch.

108 1/2, par.

(1) For members of the General Assembly, the total compensation paid to the member by the State for one year of service, including the additional amounts, if any, paid to the HB4045 Engrossed - 58 - LRB100 12674 RPS 26063 b member as an officer pursuant to Section 1 of "An Act in relation to the compensation and emoluments of the members of the General Assembly", approved December 6, 1907, as now or hereafter amended.

HB4045 - 75 - LRB100 12674 RPS 26063 b Notwithstanding any other provision of this Section, "salary" does not include any future increase in income that is offered for service to a Tier 1 employee under this Article pursuant to the condition set forth in subsection (c) of Section 2-110.3 and accepted under that condition by a Tier 1 employee who has made the election under paragraph (2) of subsection (a) of Section 2-110.3.

(a) EachIf approved by resolution of the Board, an active Tier HB4045 Engrossed - 59 - LRB100 12674 RPS 26063 b 1 employee shallmay make an irrevocable election either:to agree to delay his or her eligibility for automatic annual increases in retirement annuity as provided in subsection (a-1) of Section 2-119.1 and to have the amount of the automatic annual increases in his or her retirement annuity and survivor's annuity that are otherwise provided for in this Article calculated, instead, as provided in subsection (a-1) of Section 2-119.1.

(1)(b) toAs agreeadequate toand delaylegal hisconsideration orprovided herunder eligibilitythis foramendatory automaticAct annualof increasesthe in100th retirementGeneral annuityAssembly asfor providedmaking inan election under subsection (a-1)(a) of Sectionthis 2-119.1Section, andeach toTier have1 theemployee amountwho has made an election under subsection (a) of thethis automaticSection annualshall increasesreceive ina hisconsideration orpayment herequal retirementto annuity10% andof survivor'sthe annuitycontributions thatmade areby otherwiseor providedon forbehalf inof thisthe Articleemployee calculated,under instead,Section as2-126 providedbefore inthe subsectioneffective (a-1)date of Sectionthat 2-119.1;election.

orThe (2)System toshall notpay agreethe toamount paragraph (1) of thisthe subsection.consideration payment.

The(c) electionA required under this subsection (a) shall be HB4045 - 76 - LRB100 12674 RPS 26063 b made by each active Tier 1 employee no earlier than January 1, 2018 and no later than March 31, 2018, except that a person who returnsdoes to active service as a Tier 1 employee under this Article on or after January 1, 2018 and has not yet made an election under this Section must make the election under this subsection (a) withinof 60this daysSection aftershall returningnot be subject to activethe servicebenefits asof asubsection Tier(b) 1of employee.this Section.

If a Tier 1 employee fails for any reason to make a required election under this subsection within the time specified, then the employee shall be deemed to have made the election under paragraph (2) of this subsection.

(a-5) If this Section is enjoined or stayed by an Illinois court or a court of competent jurisdiction pending the entry of a final and unappealable decision, and this Section is determined to be constitutional or otherwise valid by a final unappealable decision of an Illinois court or a court of competent jurisdiction, then the election procedure set forth in subsection (a) of this Section shall commence on the 180th calendar day after the date of the issuance of the final unappealable decision and shall conclude at the end of the 270th calendar day after that date.

(a-10) All elections under subsection (a) that are made or deemed to be made before July 1, 2018 shall take effect on July 1, 2018.

Elections that are made or deemed to be made on or after July 1, 2018 shall take effect on the first day of the month following the month in which the election is made or HB4045 - 77 - LRB100 12674 RPS 26063 b deemed to be made.

(b) As adequate and legal consideration provided under this amendatory Act of the 100th General Assembly for making an election under paragraph (1) of subsection (a) of this Section, the State of Illinois shall be expressly and irrevocably prohibited from offering any future increases in income to a Tier 1 employee who has made an election under paragraph (1) of subsection (a) of this Section on the condition of not constituting salary under Section 2-108.

As adequate and legal consideration provided under this amendatory Act of the 100th General Assembly for making an election under paragraph (1) of subsection (a) of this Section, each Tier 1 employee who has made an election under paragraph (1) of subsection (a) of this Section shall receive a consideration payment equal to 10% of the contributions made by or on behalf of the employee under Section 2-126 before the effective date of that election.

The State Comptroller shall pay the consideration payment to the Tier 1 employee out of funds appropriated for that purpose under Section 1.9 of the State Pension Funds Continuing Appropriation Act.

The System shall calculate the amount of each consideration payment and, by July 1, 2018, shall certify to the State Comptroller the amount of the consideration payment, together with the name, address, and any other available payment information of the Tier 1 employee as found in the records of the System.

The System shall make additional calculations and certifications HB4045 - 78 - LRB100 12674 RPS 26063 b of consideration payments to the State Comptroller as the System deems necessary.

(c) A Tier 1 employee who makes the election under paragraph (2) of subsection (a) of this Section shall not be subject to paragraph (1) of subsection (a) of this Section.

However, each future increase in income offered for service as a member under this Article to a Tier 1 employee who has made the election under paragraph (2) of subsection (a) of this Section shall be offered expressly and irrevocably on the condition of not constituting salary under Section 2-108 and that the Tier 1 employee's acceptance of the offered future increase in income shall constitute his or her agreement to that condition.

TheSuch Systemcorrespondence shall maildescribe information describing the required election to each Tier 1 employeeemployee. by United States Postal Service mail to his or her last known address on file with the System.

If the Tier 1 employee is not responsiveresponsive, to other means of contact, it is sufficient for the System to publish the details of any required elections on its website or to publish those details in a regularly published newsletter or other existing public forum.

HB4045 Engrossed - 60 - LRB100 12674 RPS 26063 b Tier 1 employees who are subject to this Section shall be provided with an election packet containing information regarding their options, as well as the forms necessary to make HB4045 - 79 - LRB100 12674 RPS 26063 b the required election.

Upon request, the System shall offer Tier 1 employees an opportunity to receive information from the System before making the required election.

The System shall not provide advice or counseling with respect to which election a Tier 1 employee should make or specific to the legal or tax circumstances of or consequences toof making the Tierelection 1in employee.subsection (a) of this Section.

The System shall inform Tier 1 employees in the election packet required under this subsection that the Tier 1 employee may also wish to obtain information and counsel relating to the election required under this Section from any other available source, including, but not limited to, labor organizations and private counsel.

In no event shall the System, its staff, or the Board be held liable for any information given to a member regarding the electionselection under this Section.

The System shall coordinate with the Illinois Department of Central Management Services and each other retirement systemsystems administering an election in accordance with this amendatory Act of the 100th General Assembly to provide information concerning the impact of the election set forth in this Section.

(e) Notwithstanding any other provision of law, each future HB4045 Engrossed - 8061 - LRB100 12674 RPS 26063 b increase(d-5) inTo income offered by the Stateextent ofauthorized Illinoisunder forfederal servicelaw as a member must be offered expressly and irrevocablyas onauthorized by the conditionretirement ofsystem, nota constituting "salary" under Section 2-108 to any Tier 1 employee whomay hastransfer madeor anroll electionover underthe paragraphconsideration (2)payment ofinto subsectionother (a)qualified ofretirement thisplans. Section.

The(e) offerA shallmember's alsoelection provideunder thatthis theSection Tieris 1not employee'sa acceptanceprohibited ofelection theunder offeredsubdivision future(j)(1) increaseof inSection income1-119 shallof constitute his or her agreement to the condition set forth in this subsection.Code.

For(f) purposesNo provision of legislative intent, the condition set forth in this subsectionSection shall be construedinterpreted in a mannerway that ensureswould thatcause the conditionSystem isto notcease violatedto orbe circumventeda throughqualified anyplan contrivanceunder Section 401(a) of anythe kind.Internal Revenue Code of 1986.

(f) A member's election under this Section is not a prohibited election under subdivision (j)(1) of Section 1-119 of this Code.

(g) No provision of this Section shall be interpreted in a way that would cause the System to cease to be a qualified plan under Section 401(a) of the Internal Revenue Code of 1986.

(h) If an election created by this amendatory Act in any other Article of this Code or any change deriving from that election is determined to be unconstitutional or otherwise invalid by a final unappealable decision of an Illinois court or a court of competent jurisdiction, the invalidity of that HB4045 - 81 - LRB100 12674 RPS 26063 b provision shall not in any way affect the validity of this Section or the changes deriving from the election required under this Section.

HB4045 Engrossed - 62 - LRB100 12674 RPS 26063 b for each year through 1971, 1 1/2%;

(a-1) Notwithstanding any other provision of this Article, for a Tier 1 employee who made the election under paragraph (1) of subsection (a) of Section 2-110.3:

(1) The initial increase in retirement annuity under HB4045 - 82 - LRB100 12674 RPS 26063 b this Section shall occur on the January 1 occurring either on or after the attainment of age 67 or the fifth anniversary of the annuity start date, whichever is earlier.

If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be HB4045 Engrossed - 63 - LRB100 12674 RPS 26063 b increased.

HB4045 - 83 - LRB100 12674 RPS 26063 b (b) Beginning January 1, 1990, for eligible participants who remain in service after attaining 20 years of creditable service, the 3% increases provided under subsection (a) shall begin to accrue on the January 1 next following the date upon which the participant (1) attains age 55, or (2) attains 20 years of creditable service, whichever occurs later, and shall continue to accrue while the participant remains in service;

This subsection (b) does not apply to any person who first becomes a member of the System after August 8, 2003 (the HB4045 Engrossed - 64 - LRB100 12674 RPS 26063 b effective date of Public Act 93-494) this amendatory Act of the 93rd General Assembly.

(b-5) Notwithstanding any other provision of this Article, a participant who first becomes a participant on or after January 1, 2011 (the effective date of Public Act 96-889) shall, in January or July next following the first anniversary of retirement, whichever occurs first, and in the same month of each year thereafter, but in no event prior to age 67, have the amount of the retirement annuity then being paid increased by 3% or the annual unadjusted percentage increase in the Consumer HB4045 - 84 - LRB100 12674 RPS 26063 b Price Index for All Urban Consumers as determined by the Public Pension Division of the Department of Insurance under subsection (a) of Section 2-108.1, whichever is less.

(d) A participant who terminated service prior to July 1, 1967, with at least 14 years of service is entitled to an increase in retirement annuity beginning January, 1976, and to HB4045 Engrossed - 65 - LRB100 12674 RPS 26063 b additional increases in January of each year thereafter.

(e) Beginning January 1, 1990, and except as provided in HB4045 - 85 - LRB100 12674 RPS 26063 b subsection (a-1), all automatic annual increases payable under this Section shall be calculated as a percentage of the total annuity payable at the time of the increase, including previous increases granted under this Article.

1-1-11.) (40 ILCS 5/2-124)5/2-126) (from Ch.

2-124) (Text of Section WITHOUT the changes made by P.A.

98-599, which has been held unconstitutional) Sec.

2-124.

Contributions by State.

(a) The State shall make contributions to the System by appropriations of amounts which, together with the contributions of participants, interest earned on investments, and other income will meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations.

(b) The Board shall determine the amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the prescribed rate of interest, using the formula in subsection (c).

(c) For State fiscal years 2018 through 2045 (except as otherwise provided for fiscal year 2019), the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of HB4045 - 86 - LRB100 12674 RPS 26063 b the total actuarial liabilities of the System by the end of State fiscal year 2045.

In making these determinations, the required State contribution shall be calculated each year as a level percentage of total payroll, including payroll that is not deemed pensionable, but excluding payroll attributable to participants in the defined contribution plan under Section 2-165.1, over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method.

For State fiscal year 2019:

(1) The initial calculation and certification shall be based on the amount determined above.

(2) For purposes of the recertification due on or before May 1, 2018, the recalculation of the required State contribution for fiscal year 2019 shall take into account the effect on the System's liabilities of the elections made under Section 2-110.3.

(3) For purposes of the recertification due on or before October 1, 2018, the total required State contribution for fiscal year 2019 shall be reduced by the amount of the consideration payments made to Tier 1 employees who made the election under paragraph (1) of subsection (a) of Section 2-110.3.

Beginning in State fiscal year 2018, any increase or decrease in State contribution over the prior fiscal year due exclusively to changes in actuarial or investment assumptions HB4045 - 87 - LRB100 12674 RPS 26063 b adopted by the Board shall be included in the State contribution to the System, as a percentage of the applicable employee payroll, and shall be increased in equal annual increments so that by the State fiscal year occurring 5 years after the adoption of the actuarial or investment assumptions, the State is contributing at the rate otherwise required under this Section.

If Section 2-110.3 is determined to be unconstitutional or otherwise invalid by a final unappealable decision of an Illinois court or a court of competent jurisdiction, then the changes made to this Section by this amendatory Act of the 100th General Assembly shall not take effect and are repealed by operation of law.

For State fiscal years 2012 through 2017 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045.

In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method.

For State fiscal years 1996 through 2005, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments HB4045 - 88 - LRB100 12674 RPS 26063 b so that by State fiscal year 2011, the State is contributing at the rate required under this Section.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2006 is $4,157,000.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2007 is $5,220,300.

For each of State fiscal years 2008 through 2009, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments from the required State contribution for State fiscal year 2007, so that by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2010 is $10,454,000 and shall be made from the proceeds of bonds sold in fiscal year 2010 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2010, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2011 is HB4045 - 89 - LRB100 12674 RPS 26063 b the amount recertified by the System on or before April 1, 2011 pursuant to Section 2-134 and shall be made from the proceeds of bonds sold in fiscal year 2011 pursuant to Section 7.2 of the General Obligation Bond Act, less (i) the pro rata share of bond sale expenses determined by the System's share of total bond proceeds, (ii) any amounts received from the General Revenue Fund in fiscal year 2011, and (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.

Beginning in State fiscal year 2046, the minimum State contribution for each fiscal year shall be the amount needed to maintain the total assets of the System at 90% of the total actuarial liabilities of the System.

Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year.

Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%.

A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.

Notwithstanding any other provision of this Section, the HB4045 - 90 - LRB100 12674 RPS 26063 b required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as calculated under this Section and certified under Section 2-134, shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act.

In determining this maximum for State fiscal years 2008 through 2010, however, the amount referred to in item (i) shall be increased, as a percentage of the applicable employee payroll, in equal increments calculated from the sum of the required State contribution for State fiscal year 2007 plus the applicable portion of the State's total debt service payments for fiscal year 2007 on the bonds issued in fiscal year 2003 for the purposes of Section 7.2 of the General Obligation Bond Act, so that, by State fiscal year 2011, the State is contributing at the rate otherwise required under this Section.

(d) For purposes of determining the required State contribution to the System, the value of the System's assets HB4045 - 91 - LRB100 12674 RPS 26063 b shall be equal to the actuarial value of the System's assets, which shall be calculated as follows:

As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date.

In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year.

(e) For purposes of determining the required State contribution to the system for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the system's actuarially assumed rate of return.

(Source:

P.A.

96-43, eff.

7-15-09;

96-1497, eff.

1-14-11;

96-1511, eff.

1-27-11;

96-1554, eff.

3-18-11;

97-813, eff.

7-13-12.) (40 ILCS 5/2-126) (from Ch.

108 1/2, par.

for service between January 1, 1959 and June 30, HB4045 - 92 - LRB100 12674 RPS 26063 b 1969, 6%;

for service between July 1, 1969 and January 10, HB4045 Engrossed - 66 - LRB100 12674 RPS 26063 b 1973, 6 1/2%;

If the participant serves as an officer for at least 2 but less than 4 HB4045 - 93 - LRB100 12674 RPS 26063 b years, he or she shall contribute an amount equal to the amount HB4045 Engrossed - 67 - LRB100 12674 RPS 26063 b that would have been contributed had the participant served as an officer for 4 years.

(f) BeginningAs Julyadequate 1,and 2018legal orconsideration provided under this amendatory Act of the 100th General Assembly for making an election under subsection (a) of Section 2-110.3, beginning on the effective date of the Tier 1 employee's election under paragraph (1) of subsection (a) of Section 2-110.3, whichever is later, in lieu of the contributions otherwise required under this Section, each Tier 1 employee who made the election under paragraph (1) of subsection (a) of Section 2-110.3 shall contribute 8.5% of each payment of salary toward the cost of his or her retirement HB4045 Engrossed - 9468 - LRB100 12674 RPS 26063 b his or her retirement annuity and 1.85% of each payment of salary toward the cost of the survivor's annuity.

(g) NotwithstandingAs adequate and legal consideration provided under this amendatory Act of the 100th General Assembly for making an election under subsection (a) of Section 2-110.3, notwithstanding subsection (f) of this Section, beginning Julyon 1, 2018 or the effective date of the Tier 1 employee's election under paragraph (1) of subsection (a) of Section 2-110.3, whichever is later, in lieu of the contributions otherwise required under this Section, each Tier 1 employee who made the election under paragraph (1) of subsection (a) of Section 2-110.3 and has elected to cease making contributions for survivor's annuity under subsection (b) of this Section, shall contribute 8.55% of each payment of salary toward the cost of his or her retirement annuity.

1-1-11.) (40 ILCS 5/2-134)5/2-162) (from(Text Ch.of Section WITHOUT the changes made by P.A.

108 1/2, par.

2-134) (Text of Section WITHOUT the changes made by P.A.

2-134.

To certify required State contributions and submit vouchers.

(a) The Board shall certify to the Governor on or before December 15 of each year until December 15, 2011 the amount of the required State contribution to the System for the next fiscal year and shall specifically identify the System's projected State normal cost for that fiscal year.

The certification shall include a copy of the actuarial recommendations upon which it is based and shall specifically HB4045 - 95 - LRB100 12674 RPS 26063 b identify the System's projected State normal cost for that fiscal year.

On or before November 1 of each year, beginning November 1, 2012, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the System for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based.

On or before January 1 of each year beginning January 1, 2013, the State Actuary shall issue a preliminary report concerning the proposed certification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions.

On or before January 15, 2013 and every January 15 thereafter, the Board shall certify to the Governor and the General Assembly the amount of the required State contribution for the next fiscal year.

The Board's certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.

On or before May 1, 2004, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2005, taking into account the amounts appropriated to and received by the HB4045 - 96 - LRB100 12674 RPS 26063 b System under subsection (d) of Section 7.2 of the General Obligation Bond Act.

On or before July 1, 2005, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly.

On or before April 1, 2011, the Board shall recalculate and recertify to the Governor the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date.

As soon as practical after the effective date of this amendatory Act of the 100th General Assembly, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly.

The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions.

The Board's final HB4045 - 97 - LRB100 12674 RPS 26063 b certification must note any deviations from the State Actuary's recommended changes, the reason or reasons for not following the State Actuary's recommended changes, and the fiscal impact of not following the State Actuary's recommended changes on the required State contribution.

On or before May 1, 2018, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the required State contribution to the System for State fiscal year 2019, taking into account the effect on the System's liabilities of the elections made under Section 2-110.3.

On or before October 1, 2018, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the required State contribution to the System for State fiscal year 2019, taking into account the reduction specified under item (3) of subsection (c) of Section 2-124.

(b) Beginning in State fiscal year 1996, on or as soon as possible after the 15th day of each month the Board shall submit vouchers for payment of State contributions to the System, in a total monthly amount of one-twelfth of the required annual State contribution certified under subsection (a).

From the effective date of this amendatory Act of the 93rd General Assembly through June 30, 2004, the Board shall not submit vouchers for the remainder of fiscal year 2004 in excess of the fiscal year 2004 certified contribution amount determined under this Section after taking into consideration HB4045 - 98 - LRB100 12674 RPS 26063 b the transfer to the System under subsection (d) of Section 6z-61 of the State Finance Act.

These vouchers shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the System for that fiscal year.

If in any month the amount remaining unexpended from all other appropriations to the System for the applicable fiscal year (including the appropriations to the System under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act) is less than the amount lawfully vouchered under this Section, the difference shall be paid from the General Revenue Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act.

(c) The full amount of any annual appropriation for the System for State fiscal year 1995 shall be transferred and made available to the System at the beginning of that fiscal year at the request of the Board.

Any excess funds remaining at the end of any fiscal year from appropriations shall be retained by the System as a general reserve to meet the System's accrued liabilities.

(Source:

P.A.

96-1497, eff.

1-14-11;

96-1511, eff.

1-27-11;

97-694, eff.

6-18-12.) (40 ILCS 5/2-162) (Text of Section WITHOUT the changes made by P.A.

98-599, which has been held unconstitutional) HB4045 - 99 - LRB100 12674 RPS 26063 b Sec.

(a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after the effective date of this HB4045 Engrossed - 69 - LRB100 12674 RPS 26063 b amendatory Act of the 94th General Assembly.

The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the HB4045 - 100 - LRB100 12674 RPS 26063 b Department of Insurance Financial and Professional Regulation.

If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the HB4045 Engrossed - 70 - LRB100 12674 RPS 26063 b absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.

HB4045 - 101 - LRB100 12674 RPS 26063 b (Source:

The System shall determine the 5% cap HB4045 Engrossed - 71 - LRB100 12674 RPS 26063 b by the number of active Tier 1 employees on the effective date of this Section.

(2) Participants in the defined contribution plan HB4045 - 102 - LRB100 12674 RPS 26063 b shall pay employee contributions at the same rate as Tier 1 employees in this System who do not participate in the defined contribution plan.

This rate shall be no higher than HB4045 Engrossed - 72 - LRB100 12674 RPS 26063 b the employer's normal cost for Tier 1 employees in the defined benefit plan for that year, as determined by the System and expressed as a percentage of compensation, and shall be no lower than 3% of compensation.

These options shall include investments handled by the Illinois State Board of HB4045 - 103 - LRB100 12674 RPS 26063 b Investment as well as private sector investment options.

(8) To the extent authorized under federal law and as authorized by the System, the plan shall allow former participants in the plan to transfer or roll over employee HB4045 Engrossed - 73 - LRB100 12674 RPS 26063 b and vested State contributions, and the earnings thereon, into other qualified retirement plans.

(c) An eligible active Tier 1 employee may irrevocably elect to participate in the defined contribution plan by filing with the System a written application to participate that is received by the System prior to its determination that 5% of eligible persons have elected to participate in the defined HB4045 - 104 - LRB100 12674 RPS 26063 b contribution plan.

(d) The System shall make a good faith effort to contact HB4045 Engrossed - 74 - LRB100 12674 RPS 26063 b each active Tier 1 employee who is eligible to participate in the defined contribution plan.

TheSuch Systemcorrespondence shall maildescribe information describing the option to join the defined contribution plan to each of these employeesemployees. to his or her last known address on file with the System.

The System shall inform Tier 1 employees who are eligible to participate in the defined contribution plan that HB4045 - 105 - LRB100 12674 RPS 26063 b they may also wish to obtain information and counsel relating to their option from any other available source, includingincluding, but not limited toto, labor organizations, private counsel, and financial advisors.

The System may coordinate with theother Illinoisretirement Departmentsystems ofadministering Centrala ManagementHB4045 ServicesEngrossed and- other75 retirement- systemsLRB100 administering12674 aRPS 26063 b defined contribution plan in accordance with this amendatory Act of the 100th General Assembly to provide information concerning the impact of the option set forth in this Section.

(g) The System shall report on its progress under this Section, including the available details of the defined contribution plan and the System's plans for informing eligible Tier 1 employees about the plan, to the Governor and the General AssemblyAssembly. on or before January 15, 2018.

(i) The intent of this amendatory Act of the 100th General Assembly is to ensure that the State's normal cost of HB4045 - 106 - LRB100 12674 RPS 26063 b participation in the defined contribution plan is similar, and if possible equal, to the State's normal cost of participation in the defined benefit plan, unless a lower State's normal cost is necessary to ensure cost neutrality.

If the defined contribution plan is terminated or becomes inoperative pursuant to law, then each participant in the plan HB4045 Engrossed - 76 - LRB100 12674 RPS 26063 b shall automatically be deemed to have been a contributing Tier 1 employee in the System's defined benefit plan during the time in which he or she participated in the defined contribution plan, and for that purpose the System shall be entitled to recover the amounts in the participant's defined contribution accounts.

(2) between July 1, 1951 and June 30, 1957 HB4045 - 107 - LRB100 12674 RPS 26063 b inclusive, $625 per month or $7,500 per year;

(b) For periods of service on and after January 1, 1978, all remuneration for personal services performed defined as "wages" under the Social Security Enabling Act, including that part of such remuneration which is in excess of any maximum HB4045 Engrossed - 77 - LRB100 12674 RPS 26063 b limitation provided in such Act, and including any benefits received by an employee under a sick pay plan in effect before January 1, 1981, but excluding lump sum salary payments:

(d) For periods of service after September 30, 1985, compensation also includes any remuneration for personal services not included as "wages" under the Social Security Enabling Act, which is deducted for purposes of participation in a program established pursuant to Section 125 of the HB4045 - 108 - LRB100 12674 RPS 26063 b Internal Revenue Code or its successor laws.

Compensation shall HB4045 Engrossed - 78 - LRB100 12674 RPS 26063 b exclude lump sum salary payments:

(g) Notwithstanding any other provision of this Section, "compensation" does not include any futureconsideration increasepayment inmade income that is offered for service by a department to a Tier 1 employeeemployee. under this Article pursuant to the condition set forth in subsection (c) of Section 14-106.5 and accepted under that condition by a Tier 1 employee who has made the election under paragraph (2) of subsection (a) of Section 14-106.5.

(h) Notwithstanding any other provision of this Section, HB4045 - 109 - LRB100 12674 RPS 26063 b "compensation" does not include any consideration payment made to a Tier 1 employee.

(40 ILCS 5/14-103.42 new) Sec.

14-103.42.

Future increase in income.

"Future increase in income" means an increase to a Tier 1 employee's base pay that is offered by a department to the Tier 1 employee for service under this Article after June 30, 2019 that qualifies as "compensation", as defined in Section 14-103.10, or would qualify as "compensation" but for the fact that it was offered to and accepted by the Tier 1 employee under the condition set forth in subsection (c) of Section 14-106.5.

The term "future increase in income" includes an increase to a Tier 1 employee's base pay that is paid to the Tier 1 employee pursuant to an extension, amendment, or renewal of any employment contract or collective bargaining agreement after the effective date of this Section.

HB4045 - 110 - LRB100 12674 RPS 26063 b (40 ILCS 5/14-103.43 new) Sec.

14-103.43.

Base pay.

As used in Section 14-103.42 of this Code, "base pay" means the greater of either (i) the Tier 1 employee's annualized rate of compensation as of June 30, 2019, or (ii) the Tier 1 employee's annualized rate of compensation immediately preceding the expiration, renewal, or amendment of an employment contract or collective bargaining agreement in effect on the effective date of this Section.

For a person returning to active service as a Tier 1 employee after June 30, 2019, however, "base pay" means the employee's annualized rate of compensation as of the employee's last date of service prior to July 1, 2019.

The System shall calculate the base pay of each Tier 1 employee pursuant to this Section.

(a) EachIf approved by resolution of the Board, an active Tier 1 employee shallmay make an irrevocable election either:to agree to delay HB4045 Engrossed - 79 - LRB100 12674 RPS 26063 b his or her eligibility for automatic annual increases in retirement annuity as provided in subsection (a-1) of Section 14-114 and to have the amount of the automatic annual increases in his or her retirement annuity and survivors or widow's annuity that are otherwise provided for in this Article calculated, instead, as provided in subsection (a-1) of Section 14-114.

(1)(b) toAs agreeadequate toand delaylegal hisconsideration orprovided herunder eligibilitythis foramendatory automaticAct annualof increasesthe in100th retirementGeneral annuityAssembly asfor providedmaking inan election under subsection (a-1)(a) of Sectionthis 14-114Section, andeach toTier have1 theemployee amountwho ofhas themade automatican annualelection increasesunder insubsection his(a) orof herthis retirementSection annuityshall andreceive survivorsa orconsideration widow'spayment annuityequal thatto are10% otherwiseof providedthe forcontributions inmade thisby Articleor calculated,on instead,behalf asof providedthe inemployee subsectionbefore (a-1)the effective date of Sectionthat 14-114;election.

HB4045The -System 111shall -pay LRB100the 12674amount RPS 26063 b or (2) to not agree to paragraph (1) of thisthe subsection.consideration payment.

The(c) electionA requiredTier under1 thisemployee subsectionwho (a)does shallnot bemake madethe byelection eachunder activesubsection Tier(a) 1of employeethis noSection earliershall thannot Januarybe 1,subject 2019to andthe nobenefits laterof thansubsection March(b) 31,of 2019,this exceptSection. that:

(i) a person who becomes a Tier 1 employee under this Article on or after January 1, 2019 must make the election under this subsection (a) within 60 days after becoming a Tier 1 employee;

and (ii) a person who returns to active service as a Tier 1 employee under this Article on or after January 1, 2019 and has not yet made an election under this Section must make the election under this subsection (a) within 60 days after returning to active service as a Tier 1 employee.

If a Tier 1 employee fails for any reason to make a required election under this subsection within the time specified, then the employee shall be deemed to have made the election under paragraph (2) of this subsection.

(a-5) If this Section is enjoined or stayed by an Illinois court or a court of competent jurisdiction pending the entry of a final and unappealable decision, and this Section is determined to be constitutional or otherwise valid by a final unappealable decision of an Illinois court or a court of competent jurisdiction, then the election procedure set forth in subsection (a) of this Section shall commence on the 180th calendar day after the date of the issuance of the final HB4045 - 112 - LRB100 12674 RPS 26063 b unappealable decision and shall conclude at the end of the 270th calendar day after that date.

(a-10) All elections under subsection (a) that are made or deemed to be made before July 1, 2019 shall take effect on July 1, 2019.

Elections that are made or deemed to be made on or after July 1, 2019 shall take effect on the first day of the month following the month in which the election is made or deemed to be made.

(b) As adequate and legal consideration provided under this amendatory Act of the 100th General Assembly for making an election under paragraph (1) of subsection (a) of this Section, the department shall be expressly and irrevocably prohibited from offering any future increases in income to a Tier 1 employee who has made an election under paragraph (1) of subsection (a) of this Section on the condition of not constituting compensation under Section 14-103.10.

As adequate and legal consideration provided under this amendatory Act of the 100th General Assembly for making an election under paragraph (1) of subsection (a) of this Section, each Tier 1 employee who has made an election under paragraph (1) of subsection (a) of this Section shall receive a consideration payment equal to 10% of the contributions made by or on behalf of the employee before the effective date of that election.

The State Comptroller shall pay the consideration payment to the Tier 1 employee out of funds appropriated for that purpose under Section 1.9 of the State Pension Funds HB4045 - 113 - LRB100 12674 RPS 26063 b Continuing Appropriation Act.

The System shall calculate the amount of each consideration payment and, by July 1, 2019, shall certify to the State Comptroller the amount of the consideration payment, together with the name, address, and any other available payment information of the Tier 1 employee as found in the records of the System.

The System shall make additional calculations and certifications of consideration payments to the State Comptroller as it deems necessary.

(c) A Tier 1 employee who makes the election under paragraph (2) of subsection (a) of this Section shall not be subject to paragraph (1) of subsection (a) of this Section.

However, each future increase in income offered by a department under this Article to a Tier 1 employee who has made the election under paragraph (2) of subsection (a) of this Section shall be offered by the department expressly and irrevocably on the condition of not constituting compensation under Section 14-103.10 and that the Tier 1 employee's acceptance of the offered future increase in income shall constitute his or her agreement to that condition.

TheSuch Systemcorrespondence shall maildescribe information describing the required election to each Tier 1 employeeemployee. by United States Postal Service mail to his or her last known address on file with the System.

If the Tier 1 employee is not responsiveresponsive, to other means of contact, it is sufficient for the System to publish the details of any HB4045 - 114 - LRB100 12674 RPS 26063 b required elections on its website or to publish those details in a regularly published newsletter or other existing public forum.

Tier 1 employees who are subject to this Section shall be HB4045 Engrossed - 80 - LRB100 12674 RPS 26063 b provided with an election packet containing information regarding their options, as well as the forms necessary to make the required election.

Upon request, the System shall offer Tier 1 employees an opportunity to receive information from the System before making the required election.

The information may consistbe ofprovided through video materials, group presentations, individual consultation with a member or authorized representative of the System in person or by telephone or other electronic means, or any combination of those methods.

The System shall not provide advice or counseling with respect to which election a Tier 1 employee should make or specific to the legal or tax circumstances of or consequences toof making the Tierelection 1in employee.subsection (a) of this Section.

The System shall inform Tier 1 employees in the election packet required under this subsection that the Tier 1 employee may also wish to obtain information and counsel relating to the election required under this Section from any other available source, including, but not limited to, labor organizations and private counsel.

In no event shall the System, its staff, or the Board be held liable for any information given to a member regarding the electionselection under this Section.

The System shall coordinate with the Illinois Department of Central Management Services and each HB4045 - 115 - LRB100 12674 RPS 26063 b other retirement systemsystems administering an election in accordance with this amendatory Act of the 100th General Assembly to provide information concerning the impact of the election set forth in this Section.

(e)(d-5) NotwithstandingTo anythe otherextent provisionauthorized of law, a department under thisfederal Articlelaw isand requiredas toHB4045 offerEngrossed each- future81 increase- inLRB100 income12674 expresslyRPS and26063 irrevocablyb onauthorized by the conditionretirement ofsystem, nota constituting "compensation" under Section 14-103.10 to any Tier 1 employee whomay hastransfer madeor anroll electionover underthe paragraphconsideration (2)payment ofinto subsectionother (a)qualified ofretirement thisplans. Section.

The(e) offerA shallmember's alsoelection provideunder thatthis theSection Tieris 1not employee'sa acceptanceprohibited ofelection theunder offeredsubdivision future(j)(1) increaseof inSection income1-119 shallof constitute his or her agreement to the condition set forth in this subsection.Code.