40 ILCS 5/5-238 — Illinois Code / Chapter 40 / Act 5 / Section 5-238
Section 5-238
Status: in_force

(40 ILCS 5/5-238) Sec. 5-238. Provisions applicable to new hires; Tier 2. (a) Notwithstanding any other provision of this Article, the provisions of this Section apply to a person who first becomes a policeman under this Article on or after January 1, 2011, and to certain qualified survivors of such a policeman. Such persons, and the benefits and restrictions that apply specifically to them under this Article, may be referred to as "Tier 2". (b) A policeman who has withdrawn from service, has attained age 50 or more, and has 10 or more years of service in that capacity shall be entitled, upon proper application being received by the Fund, to receive a Tier 2 monthly retirement annuity for his service as a police officer. The Tier 2 monthly retirement annuity shall be computed by multiplying 2.5% for each year of such service by his or her final average salary, subject to an annuity reduction factor of one-half of 1% for each month that the police officer's age at retirement is under age 55. The Tier 2 monthly retirement annuity is in lieu of any age and service annuity or other form of retirement annuity under this Article. The maximum retirement annuity under this subsection (b) shall be 75% of final average salary. For the purposes of this subsection (b), "final average salary" means the greater of: (i) the average monthly salary obtained by dividing the total salary of the policeman during the 96 consecutive months of service within the last 120 months of service in which the total salary was the highest by the number of months of service in that period; or (ii) the average monthly salary obtained by dividing the total salary of the policeman during the 48 consecutive months of service within the last 60 months of service in which the total salary was the highest by the number of months of service in that period. Beginning on January 1, 2011, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual salary based on the plan year of a member or participant to whom this Section applies shall not exceed $106,800; however, beginning July 1, 2025, the annual salary shall not exceed $141,407.74 and that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments. Nothing in this amendatory Act of the 104th General Assembly shall cause or otherwise result in any retroactive adjustment of any employee contributions. (c) Notwithstanding any other provision of this Article, for a person who first becomes a policeman under this Article on or after January 1, 2011, eligibility for and the amount of the annuity to which the qualified surviving spouse, children, and parents are entitled under this subsection (c) shall be determined as follows: (1) The surviving spouse of a deceased policeman to whom this Section applies shall be