HB 3193 — PEN CD-SURS-EARNINGS

The Employer must submit documentation of its compliance with this subsection to the regional superintendent.

Upon receiving satisfactory documentation from the Employer, the regional superintendent shall certify the Employer's compliance with this subsection to the Fund.

(c-15) If a service retirement pension is required to be canceled because the service retirement pensioner worked more than the number of days allowed under this Section in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each day worked in excess of the number of days allowed under this Section.

If a service retirement pensioner who only teaches drivers education courses after regular school hours works more than 900 hours in any school year, the service retirement pension benefit shall be withheld on a pro rata basis for each period of 7.5 hours in excess of 900 hours.

(d) Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section made by Public Act 90-32 apply without regard to whether termination of service occurred before the effective date of that Act and apply retroactively to August HB3193 Enrolled - 8 - LRB104 06092 RPS 16125 b 23, 1989.

Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section and Section 17-106 made by Public Act 92-599 apply without regard to whether termination of service occurred before June 28, 2002 (the effective date of Public Act 92-599).

Notwithstanding Sections 1-103.1 and 17-157, the changes to this Section made by Public Act 97-912 apply without regard to whether termination of service occurred before August 8, 2012 (the effective date of Public Act 97-912).

The changes made by this amendatory Act of the 104th General Assembly are retroactive to July 1, 2020.

All service retirement pensioners whose service retirement pensions were canceled as a result of re-employment as a teacher pursuant to this Section during the period of July 1, 2020 through the effective date of this amendatory Act of the 104th General Assembly shall have their overpayments recalculated on a pro rata basis consistent with the changes made by this amendatory Act of the 104th General Assembly, and the difference between the initial overpayment and the recalculated overpayment shall be refunded to those service retirement pensioners with interest.

(Source:

P.A.

102-1013, eff.

5-27-22;

102-1090, eff.

6-10-22;

103-154, eff.

6-30-23;

103-588, eff.

6-5-24.) Article 2.

HB3193 Enrolled - 9 - LRB104 06092 RPS 16125 b Section 2-5.

The Illinois Pension Code is amended by changing Section 7-137.1 as follows:

(40 ILCS 5/7-137.1) (from Ch.

108 1/2, par.

7-137.1) Sec.

7-137.1.

Elected officials.

(a) A person holding an elective office who has elected to participate in the Fund while in that office may revoke that election and cease participating in the Fund by notifying the Board in writing before January 1, 1992.

Upon such revocation, the person shall forfeit all creditable service earned while holding that office, and the Board shall refund to the person, without interest, all employee contributions paid for the forfeited creditable service.

The Board shall also refund or credit to the employing municipality, without interest, the employer contributions relating to the forfeited service, except those for death and disability.

(b) Notwithstanding the provisions of Sections 7-141 and 7-144, beginning January 1, 1992, a person who holds an elective office and has not elected to participate in the Fund with respect to that office (or has revoked his election to participate with respect to that office under subsection (a) of this Section) shall not be disqualified from receiving a retirement annuity by reason of holding such office, provided that the annuity is not based on any credits received for HB3193 Enrolled - 10 - LRB104 06092 RPS 16125 b participating while holding that office.

(c) Notwithstanding any other provision, a person who holds an elective office and has not elected to participate in the Fund with respect to that office shall not be disqualified from receiving service credit for service in that elected office as long as:

(1) the member participated in a non-elected position with the employer for which the member is now an elected official;

(2) the employer has continued to make member contributions for that period of service;

and (3) there is no gap in service credit between the 2 positions.

(Source:

P.A.

87-740.) Article 3.

Section 3-5.

The Illinois Pension Code is amended by changing Sections 13-207, 13-310, and 13-706 as follows:

(40 ILCS 5/13-207) (from Ch.

108 1/2, par.

13-207) Sec.

13-207.

"Salary":

The salary paid to an employee for service to the District or to the Board, including salary paid for vacation and sick leave and any amounts deferred under a deferred compensation plan established under this Code, but excluding (1) payment for unused vacation or sick leave, (2) HB3193 Enrolled - 11 - LRB104 06092 RPS 16125 b overtime pay, (3) termination pay, and (4) any compensation in the form of benefits other than the salary.

Salary for a member on a disability benefit is the salary on which the disability benefit is based.

(Source:

P.A.

90-12, eff.

6-13-97.) (40 ILCS 5/13-310) (from Ch.

108 1/2, par.

13-310) Sec.

13-310.

Ordinary disability benefit.

(a) Any employee who becomes disabled as the result of any cause other than injury or illness incurred in the performance of duty for the employer or any other employer, or while engaged in self-employment activities, shall be entitled to an ordinary disability benefit.

The eligible period for this benefit shall be 25% of the employee's total actual service prior to the date of disability with a cumulative maximum period of 5 years.

(b) The benefit shall be allowed only if the employee files an application in writing with the Board that includes, and a medical report is submitted by at least one licensed health care professional and the employee is examined, at least annually, by a licensed health care professional appointed by the Board as part of the employee's application.

The benefit is not payable for any disability which begins during any period of unpaid leave of absence.

No benefit shall be allowed for any period of disability prior to 30 days before application is made, unless the Board finds good cause for the HB3193 Enrolled - 12 - LRB104 06092 RPS 16125 b delay in filing the application.

The benefit shall not be paid during any period for which the employee receives or is entitled to receive any part of salary.

The benefit is not payable for any disability which begins during any period of absence from duty other than allowable vacation time in any calendar year.

An employee whose disability begins during any such ineligible period of absence from service may not receive benefits until the employee recovers from the disability and is in service for at least 15 consecutive working days after such recovery.

In the case of an employee who first enters service on or after June 13, 1997, an ordinary disability benefit is not payable for the first 3 days of disability that would otherwise be payable under this Section if the disability does not continue for at least 11 additional days.

Beginning on August 18, 2005 (the effective date of Public Act 94-621) this amendatory Act of the 94th General Assembly, an employee who first entered service on or after June 13, 1997 is also eligible for ordinary disability benefits on the 31st day after the last day worked, provided all sick leave is exhausted.

(c) The benefit shall be 50% of the employee's salary at the date of disability, and shall terminate when the earliest of the following occurs:

(1) The employee returns to work or receives a retirement annuity paid wholly or in part under this HB3193 Enrolled - 13 - LRB104 06092 RPS 16125 b Article;

(2) The disability ceases;

(3) The employee willfully and continuously refuses to follow medical advice and treatment to enable the employee to return to work.

However, this provision does not apply to an employee who relies in good faith on treatment by prayer through spiritual means alone in accordance with the tenets and practice of a recognized church or religious denomination, by a duly accredited practitioner thereof;

(4) The employee (i) refuses to submit to a reasonable physical examination within 30 days of application by a licensed health care professional appointed by the Board, (ii) in the case of chronic alcoholism, the employee refuses to join a rehabilitation program licensed by the Department of Public Health of the State of Illinois and certified by the Joint Commission on the Accreditation of Hospitals, (iii) fails or refuses to consent to and sign an authorization allowing the Board to receive copies of or to examine the employee's medical and hospital records, or (iv) fails or refuses to provide complete information regarding any other employment for compensation he or she has received since becoming disabled;

or (5) The eligibility eligible period for this benefit has been exhausted.

The first payment of the benefit shall be made not later HB3193 Enrolled - 14 - LRB104 06092 RPS 16125 b than one month after the same has been granted, and subsequent payments shall be made at least monthly.

(Source:

P.A.

102-210, eff.

7-30-21;

103-523, eff.

1-1-24;

revised 7-17-24.) (40 ILCS 5/13-706) (from Ch.

108 1/2, par.

13-706) Sec.

13-706.

Board powers and duties.

The Board shall have the powers and duties set forth in this Section, in addition to such other powers and duties as may be provided in this Article and in this Code:

(a) To supervise collections.

To see that all amounts specified in this Article to be applied to the Fund, from any source, are collected and applied.

(b) To notify of deductions.

To notify the Clerk of the Water Reclamation District of the deductions to be made from the salaries of employees.

(c) To accept gifts.

To accept by gift, grant, bequest or otherwise any money or property of any kind and use the same for the purposes of the Fund.

(d) To invest the reserves.

To invest the reserves of the Fund in accordance with the provisions set forth in Section 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Code.

Investments made in accordance with Section 1-113 of Article 1 of this Code shall be deemed prudent.

The Board is also authorized to transfer securities to the Illinois State Board of Investment for HB3193 Enrolled - 15 - LRB104 06092 RPS 16125 b the purpose of participation in any commingled investment fund as provided in Article 22A of this Code.

(e) To authorize payments.

To consider and pass upon all applications for annuities and benefits;

to authorize or suspend the payment of any annuity or benefit;

to inquire into the validity and legality of any grant of annuity or benefit paid from or payable out of the Fund;

to increase, reduce, or suspend any such annuity or benefit whenever the annuity or benefit, or any part thereof, was secured or granted, or the amount thereof fixed, as the result of misrepresentation, fraud, or error.

No such annuity or benefit shall be permanently reduced or suspended until the affected annuitant or beneficiary is first notified of the proposed action and given an opportunity to be heard.

No trustee of the Board shall vote upon that trustee's own personal claim for annuity, benefit or refund, or participate in the deliberations of the Board as to the validity of any such claim.

The Board shall have exclusive original jurisdiction in all matters of claims for annuities, benefits and refunds.

(f) To submit an annual report.

To submit a report in July of each year to the Board of Commissioners of the Water Reclamation District as of the close of business on December 31st of the preceding year.

The report shall include the following:

(1) A balance sheet, showing the financial and HB3193 Enrolled - 16 - LRB104 06092 RPS 16125 b actuarial condition of the Fund as of the end of the calendar year;

(2) A statement of receipts and disbursements during such year;

(3) A statement showing changes in the asset, liability, reserve and surplus accounts during such year;

(4) A detailed statement of investments as of the end of the year;

and (5) Any additional information as is deemed necessary for proper interpretation of the condition of the Fund.

(g) To subpoena witnesses and compel the production of records.

To issue subpoenas to compel the attendance of witnesses to testify before the Board and to compel the production of documents and records upon any matter concerning the Fund, including, but not limited to, in conjunction with:

(1) a disability claim;

(2) an administrative review proceeding;

(3) an attempt to obtain information to assist in the collection of sums due to the Fund;

(4) obtaining any and all personal identifying information necessary for the administration of benefits;

(5) the determination of the death of a benefit HB3193 Enrolled - 17 - LRB104 06092 RPS 16125 b recipient or a potential benefit recipient;

or (6) a felony forfeiture investigation.

The fees of witnesses for attendance and travel shall be the same as the fees of witnesses before the circuit courts of this State and shall be paid by the party seeking the subpoena.

The Board may apply to any circuit court in the State for an order requiring compliance with a subpoena issued under this Section.

Subpoenas issued under this Section shall be subject to the applicable provisions of the Code of Civil Procedure.

The President or other members of the Board may administer oaths to witnesses.

To compel witnesses to attend and testify before it upon any matter concerning the Fund and allow witness fees not in excess of $6 for attendance upon any one day.

The President and other members of the Board may administer oaths to witnesses.

(h) To appoint employees and consultants.

To appoint such actuarial, medical, legal, investigational, clerical or financial employees and consultants as are necessary, and fix their compensation.

(i) To make rules.

To make rules and regulations necessary for the administration of the affairs of the Fund.

(j) To waive guardianship.

To waive the requirement of legal guardianship of a person under legal disability or any minor unmarried beneficiary of the Fund for a representative managing such person or beneficiary's HB3193 Enrolled - 18 - LRB104 06092 RPS 16125 b affairs, whenever the Board deems such waiver to be in the best interest of the person or beneficiary.

(k) To collect amounts due.

To collect any amounts due to the Fund from any participant or beneficiary prior to payment of any annuity, benefit or refund.

(l) To invoke rule of offset.

To offset against any amount payable to an employee or to any other person such sums as may be due to the Fund or may have been paid by the Fund due to misrepresentation, fraud or error.

(m) To assess and collect interest on amounts due to the Fund using the annual rate as shall from time to time be determined by the Board, compounded annually from the date of notification to the date of payment.

(Source:

P.A.

103-523, eff.

1-1-24.) Article 4.

Section 4-5.

The Illinois Pension Code is amended by changing Section 17-114 as follows:

(40 ILCS 5/17-114) (from Ch.

108 1/2, par.

17-114) Sec.

17-114.

Computation of service.

(a) When computing days of validated service, contributors shall receive the greater of:

(1) one day of service credit for each day for which they are paid salary representing a partial or a full day of employment rendered to an Employer or the HB3193 Enrolled - 19 - LRB104 06092 RPS 16125 b Board;

or (2) 10 days of service credit for each 10-day period of employment in which the contributor worked 50% or more of the regularly scheduled hours.

(b) When computing months of validated service, 17 or more days of service rendered to an Employer or the Board in a calendar month shall entitle a contributor to one month of service credit for purposes of this Article.

(c) When computing years of validated service rendered, 170 or more days of service in a fiscal year or 10 or more months of service in a fiscal year shall constitute one year of service credit.

(d) Notwithstanding subsections (b) and (c) of this Section, validated service in any fiscal year shall be that fraction of a year equal to the ratio of the number of days of service to 170 days.

(e) For purposes of this Section, no contributor shall earn (i) more than one year of service credit per fiscal year, (ii) more than one day of service credit per calendar day, or (iii) more than 10 days of service credit in a 2 calendar week period as determined by the Fund.

(Source:

P.A.

99-176, eff.

7-29-15.) Article 8.

Section 8-5.

The Illinois Pension Code is amended by changing Section 1-107 as follows:

HB3193 Enrolled - 20 - LRB104 06092 RPS 16125 b (40 ILCS 5/1-107) (from Ch.

108 1/2, par.

1-107) Sec.

1-107.

Indemnification of trustees, consultants, and employees of retirement systems and pension funds.

Every retirement system, pension fund, or other system or fund established under this Code shall may indemnify and protect the trustees and, staff and consultants against all damage claims and suits, including the defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees.

Every retirement system, pension fund, or other system or fund established under this Code may indemnify and protect its consultants against all damage claims and suits, including the defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees.

However, the trustees, staff, and consultants shall not be indemnified for willful wilful misconduct and gross negligence.

Each board is authorized to insure against loss or liability of the trustees, staff and consultants which may result from these damage claims.

This insurance shall be carried in a company which is licensed to write such coverage in this State.

(Source:

P.A.

80-1364.) Article 9.

HB3193 Enrolled - 21 - LRB104 06092 RPS 16125 b Section 9-5.

The Illinois Pension Code is amended by changing Section 6-151.1 as follows:

(40 ILCS 5/6-151.1) (from Ch.

108 1/2, par.

6-151.1) Sec.

6-151.1.

The General Assembly finds and declares that service in the Fire Department requires that firemen, in times of stress and danger, must perform unusual tasks;

that by reason of their occupation, firemen are subject to exposure to great heat and to extreme cold in certain seasons while in performance of their duties;

that by reason of their employment firemen are required to work in the midst of and are subject to heavy smoke fumes and carcinogenic, poisonous, toxic or chemical gases from fires;

and that in the course of their rescue and paramedic duties firemen are exposed to disabling infectious diseases, including AIDS, hepatitis C, and stroke.

The General Assembly further finds and declares that all the aforementioned conditions exist and arise out of or in the course of such employment.

Any active fireman who has completed 7 or more years of service and is unable to perform his duties in the Fire Department by reason of heart disease, tuberculosis, breast cancer, any disease of the lungs or respiratory tract, AIDS, hepatitis C, stroke, or a contagious staph infection, including methicillin-resistant Staphylococcus aureus (MRSA), resulting from his service as a fireman, shall be entitled to HB3193 Enrolled - 22 - LRB104 06092 RPS 16125 b receive an occupational disease disability benefit during any period of such disability for which he does not have a right to receive salary.

Any active fireman who has completed 7 or more years of service and is unable to perform his duties in the fire department by reason of a disabling cancer, which develops or manifests itself during a period while the fireman is in the service of the department, shall be entitled to receive an occupational disease disability benefit during any period of such disability for which he does not have a right to receive salary.

In order to receive this occupational disease disability benefit, the type of cancer involved must be a type which may be caused by exposure to heat, radiation or a known carcinogen as defined by the International Agency for Research on Cancer.

Any fireman receiving a retirement annuity shall be entitled to an occupational disease disability benefit under this Section if the fireman (1) has not reached the age of compulsory retirement, (2) has not been receiving a retirement annuity for more than 5 years, and (3) has a condition that would have qualified the fireman for an occupational disease disability benefit under this Section if he or she was an active fireman.

A fireman who receives an occupational disease disability benefit in accordance with this paragraph may not receive a retirement annuity during the period in which he or she receives an occupational disease disability benefit.

The HB3193 Enrolled - 23 - LRB104 06092 RPS 16125 b occupational disease disability benefit shall terminate upon the fireman reaching the age of compulsory retirement.

Any fireman who shall enter the service after the effective date of this amendatory Act shall be examined by one or more practicing physicians appointed by the Board, and if that examination discloses impairment of the heart, lungs, or respiratory tract, or the existence of AIDS, hepatitis C, stroke, cancer, or a contagious staph infection, including methicillin-resistant Staphylococcus aureus (MRSA), then the fireman shall not be entitled to receive an occupational disease disability benefit unless and until a subsequent examination reveals no such impairment, AIDS, hepatitis C, stroke, cancer, or contagious staph infection, including methicillin-resistant Staphylococcus aureus (MRSA).

The occupational disease disability benefit shall be 65% of the fireman's salary at the time of his removal from the Department payroll.

However, beginning January 1, 1994, no occupational disease disability benefit that has been payable under this Section for at least 10 years shall be less than 50% of the current salary attached from time to time to the rank and grade held by the fireman at the time of his removal from the Department payroll, regardless of whether that removal occurred before the effective date of this amendatory Act of 1993.

Such fireman also shall have a right to receive child's disability benefit of $30 per month on account of each HB3193 Enrolled - 24 - LRB104 06092 RPS 16125 b unmarried child who is less than 18 years of age or handicapped, dependent upon the fireman for support, and either the issue of the fireman or legally adopted by him.

The total amount of child's disability benefit payable to the fireman, when added to his occupational disease disability benefit, shall not exceed 75% of the amount of salary which he was receiving at the time of the grant of occupational disease disability benefit.

The first payment of occupational disease disability benefit or child's disability benefit shall be made not later than one month after the benefit is granted.

Each subsequent payment shall be made not later than one month after the date of the latest payment.

Occupational disease disability benefit shall be payable during the period of the disability until the fireman reaches the age of compulsory retirement.

Child's disability benefit shall be paid to such a fireman during the period of disability until such child or children attain age 18 or marry, whichever event occurs first;

except that attainment of age 18 by a child who is so physically or mentally handicapped as to be dependent upon the fireman for support, shall not render the child ineligible for child's disability benefit.

The fireman thereafter shall receive such annuity or annuities as are provided for him in accordance with other provisions of this Article.

(Source:

P.A.

102-91, eff.

7-9-21;

102-1064, eff.

6-10-22.) HB3193 Enrolled - 25 - LRB104 06092 RPS 16125 b Article 11.

Section 11-5.

The Illinois Pension Code is amended by changing Section 15-148 as follows:

(40 ILCS 5/15-148) (from Ch.

108 1/2, par.

15-148) Sec.

15-148.

Survivors insurance benefits;

general benefits - General provisions.

The survivors annuity is payable monthly.

Any annuity due but unpaid upon the death of the annuitant, shall be paid to the annuitant's estate.

A person who becomes entitled to more than one survivors insurance benefit because of the death of 2 or more persons shall receive only the largest of the benefits;

except that this limitation does not apply to a survivors insurance beneficiary who is entitled to a survivor's annuity by reason of a mental or physical disability.

A survivors insurance beneficiary or the personal representative of the estate of a deceased survivors insurance beneficiary or the personal representative of a survivors insurance beneficiary who is under a legal disability may waive the right to receive survivorship benefits, provided written notice of the waiver is given by the beneficiary or representative to the board within 6 months after the System notified that person of the benefits payable upon the death of the participant or annuitant and before any payment is made HB3193 Enrolled - 26 - LRB104 06092 RPS 16125 b pursuant to an application filed by such person.

(Source:

P.A.

92-424, eff.

8-17-01.) Article 12.

Section 12-5.

The Illinois Pension Code is amended by changing Section 7-172 as follows:

(40 ILCS 5/7-172) (from Ch.

108 1/2, par.

7-172) Sec.

7-172.

Contributions by participating municipalities and participating instrumentalities.

(a) Each participating municipality and each participating instrumentality shall make payment to the fund as follows:

1.

municipality contributions in an amount determined by applying the municipality contribution rate to each payment of earnings paid to each of its participating employees;

2.

an amount equal to the employee contributions provided by paragraph (a) of Section 7-173, whether or not the employee contributions are withheld as permitted by that Section;

3.

all accounts receivable, together with interest charged thereon, as provided in Section 7-209, and any amounts due under subsection (a-5) of Section 7-144;

4.

if it has no participating employees with current earnings, an amount payable which, over a closed period of HB3193 Enrolled - 27 - LRB104 06092 RPS 16125 b 20 years for participating municipalities and 10 years for participating instrumentalities, will amortize, at the effective rate for that year, any unfunded obligation.

The unfunded obligation shall be computed as provided in paragraph 2 of subsection (b);

5.

if it has fewer than 7 participating employees or a negative balance in its municipality reserve, the greater of (A) an amount payable that, over a period of 20 years, will amortize at the effective rate for that year any unfunded obligation, computed as provided in paragraph 2 of subsection (b) or (B) the amount required by paragraph 1 of this subsection (a).

(b) A separate municipality contribution rate shall be determined for each calendar year for all participating municipalities together with all instrumentalities thereof.

The municipality contribution rate shall be determined for participating instrumentalities as if they were participating municipalities.

The municipality contribution rate shall be the sum of the following percentages:

1.

The percentage of earnings of all the participating employees of all participating municipalities and participating instrumentalities which, if paid over the entire period of their service, will be sufficient when combined with all employee contributions available for the payment of benefits, to provide all annuities for participating employees, and the $3,000 death benefit HB3193 Enrolled - 28 - LRB104 06092 RPS 16125 b payable under Sections 7-158 and 7-164, such percentage to be known as the normal cost rate.

2.

The percentage of earnings of the participating employees of each participating municipality and participating instrumentalities necessary to adjust for the difference between the present value of all benefits, excluding temporary and total and permanent disability and death benefits, to be provided for its participating employees and the sum of its accumulated municipality contributions and the accumulated employee contributions and the present value of expected future employee and municipality contributions pursuant to subparagraph 1 of this paragraph (b).

This adjustment shall be spread over a period determined by the Board, not to exceed 30 years for participating municipalities or 10 years for participating instrumentalities.

3.

The percentage of earnings of the participating employees of all municipalities and participating instrumentalities necessary to provide the present value of all temporary and total and permanent disability benefits granted during the most recent year for which information is available.

4.

The percentage of earnings of the participating employees of all participating municipalities and participating instrumentalities necessary to provide the present value of the net single sum death benefits HB3193 Enrolled - 29 - LRB104 06092 RPS 16125 b expected to become payable from the reserve established under Section 7-206 during the year for which this rate is fixed.

5.

The percentage of earnings necessary to meet any deficiency arising in the Terminated Municipality Reserve.

(c) A separate municipality contribution rate shall be computed for each participating municipality or participating instrumentality for its sheriff's law enforcement employees.

A separate municipality contribution rate shall be computed for the sheriff's law enforcement employees of each forest preserve district that elects to have such employees.

For the period from January 1, 1986 to December 31, 1986, such rate shall be the forest preserve district's regular rate plus 2%.

In the event that the Board determines that there is an actuarial deficiency in the account of any municipality with respect to a person who has elected to participate in the Fund under Section 3-109.1 of this Code, the Board may adjust the municipality's contribution rate so as to make up that deficiency over such reasonable period of time as the Board may determine.

(d) The Board may establish a separate municipality contribution rate for all employees who are program participants employed under the federal Comprehensive Employment Training Act by all of the participating municipalities and instrumentalities.

The Board may also HB3193 Enrolled - 30 - LRB104 06092 RPS 16125 b provide that, in lieu of a separate municipality rate for these employees, a portion of the municipality contributions for such program participants shall be refunded or an extra charge assessed so that the amount of municipality contributions retained or received by the fund for all CETA program participants shall be an amount equal to that which would be provided by the separate municipality contribution rate for all such program participants.

Refunds shall be made to prime sponsors of programs upon submission of a claim therefor and extra charges shall be assessed to participating municipalities and instrumentalities.

In establishing the municipality contribution rate as provided in paragraph (b) of this Section, the use of a separate municipality contribution rate for program participants or the refund of a portion of the municipality contributions, as the case may be, may be considered.

(e) Computations of municipality contribution rates for the following calendar year shall be made prior to the beginning of each year, from the information available at the time the computations are made, and on the assumption that the employees in each participating municipality or participating instrumentality at such time will continue in service until the end of such calendar year at their respective rates of earnings at such time.

(f) Any municipality which is the recipient of State allocations representing that municipality's contributions for HB3193 Enrolled - 31 - LRB104 06092 RPS 16125 b retirement annuity purposes on behalf of its employees as provided in Section 12-21.16 of the Illinois Public Aid Code shall pay the allocations so received to the Board for such purpose.

Estimates of State allocations to be received during any taxable year shall be considered in the determination of the municipality's tax rate for that year under Section 7-171.

If a special tax is levied under Section 7-171, none of the proceeds may be used to reimburse the municipality for the amount of State allocations received and paid to the Board.

Any multiple-county or consolidated health department which receives contributions from a county under Section 11.2 of "An Act in relation to establishment and maintenance of county and multiple-county health departments", approved July 9, 1943, as amended, or distributions under Section 3 of the Department of Public Health Act, shall use these only for municipality contributions by the health department.

(g) Municipality contributions for the several purposes specified shall, for township treasurers and employees in the offices of the township treasurers who meet the qualifying conditions for coverage hereunder, be allocated among the several school districts and parts of school districts serviced by such treasurers and employees in the proportion which the amount of school funds of each district or part of a district handled by the treasurer bears to the total amount of all school funds handled by the treasurer.

From the funds subject to allocation among districts and HB3193 Enrolled - 32 - LRB104 06092 RPS 16125 b parts of districts pursuant to the School Code, the trustees shall withhold the proportionate share of the liability for municipality contributions imposed upon such districts by this Section, in respect to such township treasurers and employees and remit the same to the Board.

The municipality contribution rate for an educational service center shall initially be the same rate for each year as the regional office of education or school district which serves as its administrative agent.

When actuarial data become available, a separate rate shall be established as provided in subparagraph (i) of this Section.

The municipality contribution rate for a public agency, other than a vocational education cooperative, formed under the Intergovernmental Cooperation Act shall initially be the average rate for the municipalities which are parties to the intergovernmental agreement.

When actuarial data become available, a separate rate shall be established as provided in subparagraph (i) of this Section.

(h) Each participating municipality and participating instrumentality shall make the contributions in the amounts provided in this Section in the manner prescribed from time to time by the Board and all such contributions shall be obligations of the respective participating municipalities and participating instrumentalities to this fund.

The failure to deduct any employee contributions shall not relieve the participating municipality or participating instrumentality of HB3193 Enrolled - 33 - LRB104 06092 RPS 16125 b its obligation to this fund.

Delinquent payments of contributions due under this Section may, with interest, be recovered by civil action against the participating municipalities or participating instrumentalities.

Municipality contributions, other than the amount necessary for employee contributions, for periods of service by employees from whose earnings no deductions were made for employee contributions to the fund, may be charged to the municipality reserve for the municipality or participating instrumentality.

(i) Contributions by participating instrumentalities shall be determined as provided herein except that the percentage derived under subparagraph 2 of paragraph (b) of this Section, and the amount payable under subparagraph 4 of paragraph (a) of this Section, shall be based on an amortization period of 10 years.

(j) Notwithstanding the other provisions of this Section, the additional unfunded liability accruing as a result of Public Act 94-712 shall be amortized over a period of 30 years beginning on January 1 of the second calendar year following the calendar year in which Public Act 94-712 takes effect, except that the employer may provide for a longer amortization period by adopting a resolution or ordinance specifying a 35-year or 40-year period and submitting a certified copy of the ordinance or resolution to the fund no later than June 1 of the calendar year following the calendar year in which Public HB3193 Enrolled - 34 - LRB104 06092 RPS 16125 b Act 94-712 takes effect.

(k) If the amount of a participating employee's reported earnings for any of the 12-month periods used to determine the final rate of earnings exceeds the employee's 12-month reported earnings with the same employer for the previous year by the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as established by the United States Department of Labor for the preceding September, the participating municipality or participating instrumentality that paid those earnings shall pay to the Fund, in addition to any other contributions required under this Article, the present value of the increase in the pension resulting from the portion of the increase in reported earnings that is in excess of the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as determined by the Fund.

This present value shall be computed on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the Fund that is available at the time of the computation.

Whenever it determines that a payment is or may be required under this subsection (k), the fund shall calculate the amount of the payment and bill the participating municipality or participating instrumentality for that amount.

The bill shall specify the calculations used to determine the amount due.

If the participating municipality or participating instrumentality disputes the amount of the bill, it may, HB3193 Enrolled - 35 - LRB104 06092 RPS 16125 b within 30 days after receipt of the bill, apply to the fund in writing for a recalculation.

The application must specify in detail the grounds of the dispute.

Upon receiving a timely application for recalculation, the fund shall review the application and, if appropriate, recalculate the amount due.

The participating municipality and participating instrumentality contributions required under this subsection (k) may be paid in the form of a lump sum within 90 days after receipt of the bill.

If the participating municipality and participating instrumentality contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the fund's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill.

Payments must be concluded within 7 3 years after receipt of the bill by the participating municipality or participating instrumentality.

When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from overload or overtime earnings.

When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from payments for unused vacation time, but only for payments for unused vacation time made in the final 3 months of the final rate of earnings period.

When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings increases HB3193 Enrolled - 36 - LRB104 06092 RPS 16125 b attributable to standard employment promotions resulting in increased responsibility and workload.

When assessing payment for any amount due under this subsection (k), the fund shall exclude reportable earnings increases resulting from periods where the member was paid through workers' compensation.

This subsection (k) does not apply to earnings increases due to amounts paid as required by federal or State law or court mandate or to earnings increases due to the participating employee returning to the regular number of hours worked after having a temporary reduction in the number of hours worked.

This subsection (k) does not apply to earnings increases paid to individuals under contracts or collective bargaining agreements entered into, amended, or renewed before January 1, 2012 (the effective date of Public Act 97-609), earnings increases paid to members who are 10 years or more from retirement eligibility, or earnings increases resulting from an increase in the number of hours required to be worked.

When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings attributable to personnel policies adopted before January 1, 2012 (the effective date of Public Act 97-609) as long as those policies are not applicable to employees who begin service on or after January 1, 2012 (the effective date of Public Act 97-609).

HB3193 Enrolled - 37 - LRB104 06092 RPS 16125 b The change made to this Section by Public Act 100-139 is a clarification of existing law and is intended to be retroactive to January 1, 2012 (the effective date of Public Act 97-609).

(Source:

P.A.

102-849, eff.

5-13-22;

103-464, eff.

8-4-23.) Article 13.

Section 13-5.

The Illinois Pension Code is amended by changing Section 16-204 as follows:

(40 ILCS 5/16-204) Sec.

16-204.

Optional defined contribution benefit.

As soon as practicable after the effective date of this amendatory Act of the 100th General Assembly, the System shall offer a defined contribution benefit to active full-time or part-time contractual members of the System who are employed by an employer eligible to participate in the defined contribution benefit under applicable law.

The defined contribution benefit shall be an optional benefit to any full-time or part-time contractual member who chooses to participate.

The defined contribution benefit shall collect optional employee and optional employer contributions into an account and shall offer investment options to the participant.

The benefit under this Section shall be operated in full compliance with any applicable State and federal laws, and the HB3193 Enrolled - 38 - LRB104 06092 RPS 16125 b System shall utilize generally accepted practices in creating and maintaining the benefit for the best interest of the participants.

In administering the defined contribution benefit, the System shall require that the defined contribution benefit recordkeeper agree that, in performing services with respect to the defined contribution benefit, the recordkeeper:

(i) will not use information received as a result of providing services with respect to the defined contribution benefit or the participants in the defined contribution benefit to solicit the participants in the defined contribution benefit for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the defined contribution benefit;

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

The System may use funds from the employee and employer contributions to defray any and all costs of creating and maintaining the benefit.

In addition, the System may use funds provided under Section 16-158 of this Code to defray any and all costs of creating and maintaining the benefit and then shall reimburse HB3193 Enrolled - 39 - LRB104 06092 RPS 16125 b those costs from funds received from the employee and employer contributions under this Section.

All employers must comply with the reporting and administrative functions established by the System and are required to implement the benefits established under this Section.

The System shall produce an annual report on the participation in the benefit and shall make the report public.

As soon as is practicable on or after January 1, 2022, the System shall automatically enroll any employee who first becomes an active full-time or part-time contractual member or participant in the System.

A member automatically enrolled under this Section shall have 3% of his or her pre-tax gross compensation for each compensation period deferred into his or her deferred compensation account, unless the member otherwise instructs the System on forms approved by the System.

A member may elect, in a manner provided for by the System, to not participate in the defined contribution benefit or to increase or reduce the amount of pre-tax gross compensation contributed, consistent with State or federal law.

A member shall be automatically enrolled in the benefit beginning the first day of the pay period following the close of the notice period, or as soon as practicable, unless the employee elects otherwise within the notice period member's 30th day of employment.

For the purposes of this Section, "notice period" means a reasonable period of time after the employee is provided with an automatic enrollment notice as required under HB3193 Enrolled - 40 - LRB104 06092 RPS 16125 b Section 414(w) of the Internal Revenue Code of 1986, as amended.

An active full-time or part-time contractual A member who has been automatically enrolled in the benefit may elect, within 90 days following the member's initial contribution days of enrollment, to withdraw from the contribution benefit and receive a refund of amounts deferred, as adjusted for plus or minus any applicable earnings and fees.

A member making such an election shall forfeit all employer matching contributions, if any, made with respect to the initial contribution and the forfeited amounts shall be used to defray plan expenses earnings, investment fees, and administrative fees.

Any refunded amount shall be included in the member's gross income for the taxable year in which the refund is issued.

On or after January 1, 2023, the System may elect to increase the automatic annual contributions under this Section.

The increase in the rate of contribution, however, shall not exceed 2% of a member's pre-tax gross compensation per year, and at no time shall any total contribution exceed any contribution limits established by State or federal law.

Notwithstanding any other provision of this Section, active members eligible to participate in the defined contribution benefit do not include employees of a department as defined in Section 14-103.04.

(Source:

P.A.

102-540, eff.

8-20-21;

103-552, eff.

8-11-23.) HB3193 Enrolled - 41 - LRB104 06092 RPS 16125 b Article 14.

Section 14-5.

The Illinois Pension Code is amended by changing Sections 3-110.14 and 7-139.1a as follows:

(40 ILCS 5/3-110.14) Sec.

3-110.14.

Transfer to Article 7.

(a) On and after July 1, 2022 but no later than December 1, 2023, a participating employee who is actively employed as a sheriff's law enforcement employee under Article 7 may make a written election to transfer up to 10 years of creditable service from a fund established under this Article to the Illinois Municipal Retirement Fund established under Article 7.

Upon receiving a written election by a participant under this Section, the creditable service shall be transferred to the Illinois Municipal Retirement Fund as soon as practicable upon payment by the police pension fund to the Illinois Municipal Retirement Fund of an amount equal to:

(1) the amounts accumulated to the credit of the applicant on the books of the fund on the date of the transfer;

and (2) employer contributions in an amount equal to the amount determined under paragraph (1).

Participation in the police pension fund with respect to the service to be transferred shall terminate on the date of transfer.

This Section does not allow reinstatement of credits HB3193 Enrolled - 42 - LRB104 06092 RPS 16125 b in this Article that were previously forfeited.

(b) On and after the effective date of this amendatory Act of the 104th General Assembly but no later than 6 months after the effective date of this amendatory Act of the 104th General Assembly, a participating employee who is actively employed as a sheriff's law enforcement employee under Article 7 may make a written election to transfer creditable service from a fund established under this Article to the Illinois Municipal Retirement Fund established under Article 7.

Upon receiving a written election by a participant under this Section, the creditable service shall be transferred to the Illinois Municipal Retirement Fund as soon as practicable upon payment by the police pension fund to the Illinois Municipal Retirement Fund of an amount equal to:

(1) the amounts accumulated to the credit of the applicant on the books of the fund on the date of the transfer;

and (2) employer contributions in an amount equal to the amount determined under paragraph (1).

Participation in the police pension fund with respect to the service to be transferred shall terminate on the date of transfer.

This Section does not allow reinstatement of credits in this Article that were previously forfeited.

(Source:

P.A.

102-1061, eff.

6-10-22.) (40 ILCS 5/7-139.1a) HB3193 Enrolled - 43 - LRB104 06092 RPS 16125 b Sec.

7-139.1a.

Transfer from Article 3.

(a) On and after July 1, 2022 but no later than January 1, 2023, a participating sheriff's law enforcement employee may elect to transfer up to 10 years of service credit to the Fund as set forth in Section 3-110.14.

To establish creditable service under this Section, the sheriff's law enforcement employee may elect to do either of the following:

(1) pay to the Fund an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the Fund under Section 3-110.14 and the amounts that would have been contributed had such contributions been made at the rates applicable to a sheriff's law enforcement employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the date of payment;

or (2) have the amount of his or her creditable service established under this Section reduced by an amount corresponding to the amount by which (i) the employer and employee contributions that would have been required if he or she had participated in the Fund as a sheriff's law enforcement employee during the period for which credit is being transferred, plus interest thereon at the actuarially assumed rate, compounded annually, from the date of termination of the service for which credit is being transferred to the date of payment, exceeds (ii) the HB3193 Enrolled - 44 - LRB104 06092 RPS 16125 b amount actually transferred to the Fund.

Notwithstanding the amount transferred by the Article 3 fund pursuant to Section 3-110.14, in no event shall the service credit established under this Section exceed the lesser of 10 years or the actual amount of service credit that had been earned in the Article 3 fund.

If an amount greater than the amount described under paragraph (1) is transferred to the Fund, the additional amount shall be credited to the account of the sheriff's law enforcement employee's employer.

(b) On and after the effective date of this amendatory Act of the 104th General Assembly but no later than 6 months after the effective date of this amendatory Act of the 104th General Assembly, a participating sheriff's law enforcement employee may elect to transfer service credit to the Fund as set forth in Section 3-110.14.

To establish creditable service under this Section, the sheriff's law enforcement employee may elect to do either of the following:

(1) pay to the Fund an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the Fund under Section 3-110.14 and the amounts that would have been contributed had such contributions been made at the rates applicable to a sheriff's law enforcement employee under this Article, plus (ii) interest thereon at the actuarially assumed rate, compounded annually, from the date of service to the date of payment;

or HB3193 Enrolled - 45 - LRB104 06092 RPS 16125 b (2) have the amount of his or her creditable service established under this Section reduced by an amount corresponding to the amount by which (i) the employer and employee contributions that would have been required if he or she had participated in the Fund as a sheriff's law enforcement employee during the period for which credit is being transferred, plus interest thereon at the actuarially assumed rate, compounded annually, from the date of termination of the service for which credit is being transferred to the date of payment, exceeds (ii) the amount actually transferred to the Fund.

Notwithstanding the amount transferred by the Article 3 fund pursuant to Section 3-110.14, in no event shall the service credit established under this Section exceed the actual amount of service credit that had been earned in the Article 3 fund.

If an amount greater than the amount described under paragraph (1) is transferred to the Fund, the additional amount shall be credited to the account of the sheriff's law enforcement employee's employer.

(Source:

P.A.

102-1061, eff.

6-10-22.) Article 15.

Section 15-5.

The Illinois Pension Code is amended by changing Section 15-112 as follows:

HB3193 Enrolled - 46 - LRB104 06092 RPS 16125 b (40 ILCS 5/15-112) (from Ch.

108 1/2, par.

The earnings of an employee with more than 36 months of service under item (a) of Section 15-113.1 prior to the date of becoming a participant are, for HB3193 Engrossed - 2 - LRB104 06092 RPS 16125 b such period, considered equal to the average earnings during the last 36 months of such service.

For an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the HB3193 Enrolled - 47 - LRB104 06092 RPS 16125 b highest within the last 120 months prior to termination or the average annual earnings during the 8 consecutive academic years of service within the 10 years of service prior to termination in which the employee's earnings were the highest, whichever is greater.

HB3193 Engrossed - 3 - LRB104 06092 RPS 16125 b (c) For an employee on leave of absence with pay, or on leave of absence without pay who makes contributions during such leave, earnings are assumed to be equal to the basic compensation on the date the leave began.

(d) For an employee on disability leave, earnings are assumed to be equal to the basic compensation on the date disability occurs or the average earnings during the 24 months immediately preceding the month in which disability occurs, HB3193 Enrolled - 48 - LRB104 06092 RPS 16125 b whichever is greater.

HB3193 Engrossed - 4 - LRB104 06092 RPS 16125 b (g) In the determination of the final rate of earnings for an employee, that part of an employee's earnings for any academic year beginning after June 30, 1997, which exceeds the employee's earnings with that employer for the preceding year by more than 20% 20 percent shall be excluded;

In making such calculation, only the basic HB3193 Enrolled - 49 - LRB104 06092 RPS 16125 b compensation of employees shall be considered, without regard to vacation or overtime or to contracts for summer employment.

except that, if the benefit has been collectively bargained between the employer and the recognized collective bargaining agent pursuant to the Illinois Educational Labor Relations Act, payment received during a period of up to 2 academic years for unused sick leave may be considered as earnings in accordance HB3193 Engrossed - 5 - LRB104 06092 RPS 16125 b with the applicable collective bargaining agreement, subject to the 20% increase limitation of this Section.

revised 7-18-24.) (40HB3193 ILCSEnrolled 5/15-148)- (from50 Ch.- LRB104 06092 RPS 16125 b Article 17.

Section 17-5.

The Illinois Pension Code is amended by changing Section 22C-116 as follows:

(40 ILCS 5/22C-116) Sec.

22C-116.

Conduct and administration of elections;

terms of office.

(a) For the election of the permanent trustees, the transition board shall administer the initial elections and the permanent board shall administer all subsequent elections.

Each board shall develop and implement such procedures as it determines to be appropriate for the conduct of such elections.

For the purposes of obtaining information necessary to conduct elections under this Section, participating pension funds shall cooperate with the Fund.

(b) All nominations for election shall be by petition.

Each petition for a trustee shall be executed as follows:

(1) for trustees to be elected by the mayors and presidents of municipalities or fire protection districts that have participating pension funds, by at least 20 such mayors and presidents;

except that this item (1) shall apply only with respect to participating pension funds;

(2) for trustees to be elected by participants, by at least 200 400 participants;

and HB3193 Enrolled - 51 - LRB104 06092 RPS 16125 b (3) for trustees to be elected by beneficiaries, by at least 100 beneficiaries.

(c) A separate ballot shall be used for each class of trustee.

The board shall prepare and send ballots and ballot envelopes to eligible voters in accordance with rules adopted by the board.

The ballots shall contain the names of all candidates in alphabetical order.

Eligible voters, upon receipt of the ballot, shall vote the ballot and place it in the ballot envelope, seal the envelope, and return the ballot to the Fund.

The board shall set a final date for ballot return, and ballots received prior to that date in a ballot envelope shall be valid ballots.

The board shall set a day for counting the ballots and name judges and clerks of election to conduct the count of ballots and shall make any rules necessary for the conduct of the count.

The candidate or candidates receiving the highest number of votes for each class of trustee shall be elected.

In the case of a tie vote, the winner shall be determined in accordance with procedures developed by the Department of Insurance.

In lieu of or in addition to conducting elections via mail balloting as described in this Section, the board may instead adopt rules to provide for elections to be carried out solely via Internet balloting, or phone balloting, or a combination HB3193 Enrolled - 52 - LRB104 06092 RPS 16125 b thereof.

Nothing in this Section prohibits the Fund from contracting with a third party to administer the election in accordance with this Section.

(d) At any election, voting shall be as follows:

(1) Each person authorized to vote for an elected trustee may cast one vote for each related position for which such person is entitled to vote and may cast such vote for any candidate or candidates on the ballot for such trustee position.

(2) If only one candidate for each position is properly nominated in petitions received, that candidate shall be deemed the winner and no election under this Section shall be required.

(3) The results shall be entered in the minutes of the first meeting of the board following the tally of votes.

(e) The initial election for permanent trustees shall be held and the permanent board shall be seated no later than 12 months after the effective date of this amendatory Act of the 101st General Assembly.

Each subsequent election shall be held no later than 30 days prior to the end of the term of the incumbent trustees.

(f) The elected trustees shall each serve for terms of 4 years commencing on the first business day of the first month after election;

except that the terms of office of the initially elected trustees shall be as follows:

(1) One trustee elected pursuant to item (1) of HB3193 Enrolled - 53 - LRB104 06092 RPS 16125 b subsection (b) of Section 22C-115 shall serve for a term of 2 years and 2 trustees elected pursuant to item (1) of subsection (b) of Section 22C-115 shall serve for a term of 4 years;

(2) One trustee elected pursuant to item (2) of subsection (b) of Section 22C-115 shall serve for a term of 2 years and 2 trustees elected pursuant to item (2) of subsection (b) of Section 22C-115 shall serve for a term of 4 years;

and (3) The trustee elected pursuant to item (3) of subsection (b) of Section 22C-115 shall serve for a term of 2 years.

(g) The trustees appointed pursuant to items (4) and (5) of subsection (b) of Section 22C-115 shall each serve for a term of 4 years commencing on the first business day of the first month after the election of the elected trustees.

(h) A member of the board who was elected pursuant to item (1) of subsection (b) of Section 22C-115 who ceases to serve as a mayor, president, chief executive officer, chief financial officer, or other officer, executive, or department head of a municipality or fire protection district that has a participating pension fund shall not be eligible to serve as a member of the board and his or her position shall be deemed vacant.

A member of the board who was elected by the participants of participating pension funds who ceases to be a participant may serve the remainder of his or her elected HB3193 Enrolled - 54 - LRB104 06092 RPS 16125 b term.

For a vacancy of an elected trustee, the vacancy shall be filled by appointment by the board as follows:

a vacancy of a member elected pursuant to item (1) of subsection (b) of Section 22C-115 shall be filled by a mayor, president, chief executive officer, chief financial officer, or other officer, executive, or department head of a municipality or fire protection district that has a participating pension fund;

a vacancy of a member elected pursuant to item (2) of subsection (b) of Section 22C-115 shall be filled by a participant of a participating pension fund;

and a vacancy of a member elected under item (3) of subsection (b) of Section 22C-115 shall be filled by a beneficiary of a participating pension fund.

A trustee appointed to fill the vacancy of an elected trustee shall serve until a successor is elected.

Special elections to fill the remainder of an unexpired term vacated by an elected trustee shall be held concurrently with and in the same manner as the next regular election for an elected trustee position.

Vacancies among the appointed trustees shall be filled for unexpired terms by appointment in like manner as for the original appointments.

(Source:

P.A.

103-552, eff.

8-11-23.) Article 18.

Section 18-5.

The Illinois Pension Code is amended by HB3193 Enrolled - 55 - LRB104 06092 RPS 16125 b changing Sections 15-155 and 16-158 as follows:

(40 ILCS 5/15-155) (from Ch.

15-148)15-155) Sec.

15-148.15-155.

SurvivorsEmployer insurancecontributions. benefits;

general(a) benefitsThe -State Generalof provisions.Illinois shall make contributions by appropriations of amounts which, together with the other employer contributions from trust, federal, and other funds, employee contributions, income from investments, and other income of this System, will be sufficient to meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations.

The survivorsBoard annuityshall isdetermine payablethe monthly.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 recommendations of the actuary, using the formula in subsection (a-1).

Any(a-1) annuityFor dueState butfiscal unpaidyears upon2012 through 2045, the deathminimum ofcontribution to the annuitant,System to be made by the State for each fiscal year shall be paidan amount determined by the System to be sufficient to bring the annuitant'stotal estate.assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045.

AIn personmaking whothese becomesdeterminations, entitledthe torequired moreState thancontribution oneshall survivorsbe insurancecalculated benefiteach becauseyear as a level percentage of payroll over the deathyears ofremaining 2to orand moreincluding personsfiscal year 2045 and shall receivebe onlydetermined under the largestprojected ofunit thecredit benefits;actuarial cost method.

exceptHB3193 thatEnrolled this- limitation56 does- notLRB104 apply06092 RPS 16125 b For each of State fiscal years 2018, 2019, and 2020, the State shall make an additional contribution to athe survivorsSystem insuranceequal beneficiaryto 2% of the total payroll of each employee who is entitleddeemed to ahave survivor'selected annuitythe bybenefits reasonunder ofSection a1-161 mental or physicalwho disability.has made the election under subsection (c) of Section 1-161.

A survivorschange insurancein beneficiaryan actuarial or theinvestment personalassumption representativethat ofincreases the estate of a deceased survivors insurance beneficiary or thedecreases personal representative of a survivors insurance beneficiary who is under a legal disability may waive the rightrequired toState receivecontribution survivorshipand benefits,first providedapplies writtenin noticeState offiscal theyear waiver2018 is given by the beneficiary or HB3193thereafter Engrossedshall -be 6implemented -in LRB104equal 06092annual RPSamounts 16125over ba representative5-year toperiod thebeginning boardin within 6 months after the SystemState notifiedfiscal thatyear personin ofwhich the benefitsactuarial payablechange uponfirst theapplies deathto of the participantrequired orState annuitantcontribution. and before any payment is made pursuant to an application filed by such person.

A change in an actuarial or investment assumption that increases or decreases the required State contribution and first applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be implemented:

(i) as already applied in State fiscal years before 2018;

and (ii) in the portion of the 5-year period beginning in the State fiscal year in which the actuarial change first applied that occurs in State fiscal year 2018 or thereafter, by calculating the change in equal annual amounts over that 5-year period and then implementing it at the resulting annual rate in each of the remaining fiscal years in that 5-year period.

For State fiscal years 1996 through 2005, the State contribution to the System, as a percentage of the applicable HB3193 Enrolled - 57 - LRB104 06092 RPS 16125 b employee payroll, shall be increased in equal annual increments 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 $166,641,900.

Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2007 is $252,064,100.

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 $702,514,000 and shall be made from the State Pensions Fund and 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, (iii) any reduction in bond proceeds due to the issuance of discounted bonds, if applicable.

HB3193 Enrolled - 58 - LRB104 06092 RPS 16125 b Notwithstanding any other provision of this Article, the total required State contribution for State fiscal year 2011 is the amount recertified by the System on or before April 1, 2011 pursuant to Section 15-165 and shall be made from the State Pensions Fund and 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.