2023 Illinois Compiled Statutes › Chapter 40 - PENSIONS › 40 ILCS 5/ - Illinois Pension Code. › Article 15 - State Universities Retirement System

(40 ILCS 5/Art. 15 heading)
ARTICLE 15.  
		STATE UNIVERSITIES RETIREMENT SYSTEM
(40 ILCS 5/15-101) (from Ch. 108 1/2, par. 15-101)
Sec. 15-101. 
		Creation of system. 
		A
retirement system is created to provide
retirement annuities and other benefits for employees,
as defined in this
Article, and their dependents.
The system shall be known and may be cited as State Universities Retirement
System. All the business of the system
shall be transacted in that name.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-102) (from Ch. 108 1/2, par. 15-102)
Sec. 15-102. Terms defined. The terms used in this Article shall have the
meanings ascribed to them in Sections 15-103 through 15-198,
except when the context otherwise requires.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-103) (from Ch. 108 1/2, par. 15-103)
Sec. 15-103. 
		System. 
		"System":  The State Universities Retirement System.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-103.1)
Sec. 15-103.1. 
		Traditional Benefit Package. 
		"Traditional benefit
package":
The defined benefit retirement program maintained under the System which
includes retirement annuities payable directly from the System as provided in
Sections 15-135 through 15-140 (but disregarding Section 15-136.4), disability
retirement annuities payable under Section 15-153.2, death benefits payable
directly from the System as provided in Sections 15-141 through 15-144,
survivors insurance benefits payable directly from the System as provided in
Sections 15-145 through 15-149, and contribution refunds as provided in Section
15-154.  The traditional benefit package also includes disability benefits as
provided in Sections 15-150 through 15-153.3.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/15-103.2)
Sec. 15-103.2. 
		Portable Benefit Package. 
		"Portable benefit package": The
defined benefit retirement program maintained under the System which includes
retirement annuities payable directly from the System as provided in Sections
15-135 through 15-139 (specifically including Section 15-136.4), disability
retirement annuities payable under Section 15-153.2, death benefits payable
directly from the System as provided in Sections 15-141 through 15-144, and
contribution refunds as provided in Section 15-154.  The portable benefit
package also includes disability benefits as provided in Sections 15-150
through 15-153.3.  The portable benefit package does not include the survivors
insurance benefits payable directly from the System as provided in Sections
15-145 through 15-149.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/15-103.3)
Sec. 15-103.3. 
		Self-Managed Plan. 
		"Self-managed plan": The defined
contribution retirement program maintained under the System as described in
Section 15-158.2.  The self-managed plan also includes disability benefits as
provided in Sections 15-150 through 15-153.3 (but disregarding disability
retirement annuities under Section 15-153.2).  The self-managed plan does not
include retirement annuities, death benefits, or survivors insurance benefits
payable directly from the System as provided in Sections 15-135 through 15-149
and Section 15-153.2, or refunds determined under Section 15-154.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/15-104) (from Ch. 108 1/2, par. 15-104)
Sec. 15-104. 
		The 1941 Act. 
		"The 1941 Act": "An Act to provide for the creation, maintenance and
administration of a Retirement System for the benefit of the staff members
and employees of the state universities and certain affiliated
organizations, certain other state educational and scientific agencies, and
the survivors, dependents and other beneficiaries of such employees",
approved July 21, 1941 as amended, and repealed in 1963.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-105) (from Ch. 108 1/2, par. 15-105)
Sec. 15-105. 
		Board.
"Board": The Board of Trustees of the System.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
Sec. 15-106. Employer. "Employer": The University of Illinois, Southern
Illinois University, Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University, Northeastern Illinois
University, Northern Illinois University, Western Illinois University, the
State Board of Higher Education, the Illinois Mathematics and Science Academy,
 the University Civil Service Merit Board, the Board of
Trustees of the State Universities Retirement System, the Illinois Community
College Board, community college
boards, any association of community college boards organized under Section
3-55 of the Public Community College Act, the Board of Examiners established
under the Illinois Public Accounting Act, and, only during the period for which
employer contributions required under Section 15-155 are paid, the following
organizations: the alumni associations, the foundations and the athletic
associations which are affiliated with the universities and colleges included
in this Section as employers.  An individual who begins employment on or after the effective date of this amendatory Act of the 99th General Assembly with any association of community college boards organized under Section 3-55 of the Public Community College Act, the Association of Illinois Middle-Grade Schools, the Illinois Association of School Administrators, the Illinois Association for Supervision and Curriculum Development, the Illinois Principals Association, the Illinois Association of School Business Officials, the Illinois Special Olympics, or an entity not defined as an employer in this Section shall not be deemed an employee for the purposes of this Article with respect to that employment and shall not be eligible to participate in the System with respect to that employment; provided, however, that those individuals who are both employed by such an entity and are participating in the System with respect to that employment on the effective date of this amendatory Act of the 99th General Assembly shall be allowed to continue as participants in the System for the duration of that employment.
A department as defined in Section 14-103.04 is
an employer for any person appointed by the Governor under the Civil
Administrative Code of Illinois who is a participating employee as defined in
Section 15-109.  The Department of Central Management Services is an employer with respect to persons employed by the State Board of Higher Education in positions with the Illinois Century Network as of June 30, 2004 who remain continuously employed after that date by the Department of Central Management Services in positions with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau or the Department of Innovation and Technology.
The cities of Champaign and Urbana shall be considered
employers, but only during the period for which contributions are required to
be made under subsection (b-1) of Section 15-155 and only with respect to
individuals described in subsection (h) of Section 15-107.
(Source: P.A. 99-830, eff. 1-1-17; 99-897, eff. 1-1-17; 100-611, eff. 7-20-18.)
(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
Sec. 15-107. Employee.
(a) "Employee" means any member of the educational, administrative,
secretarial, clerical, mechanical, labor or other staff of an employer
whose employment is permanent and continuous or who is employed in a
position in which services are expected to be rendered on a continuous
basis for at least 4 months or one academic term, whichever is less, who
(A) receives payment for personal services on a warrant issued pursuant to
a payroll voucher certified by an employer and drawn by the State
Comptroller upon the State Treasurer or by an employer upon trust, federal
or other funds, or (B) is on a leave of absence without pay.  Employment
which is irregular, intermittent or temporary shall not be considered
continuous for purposes of this paragraph.
However, a person is not an "employee" if he or she:
(1) is a student enrolled in and regularly attending     classes in a college or university which is an employer, and is employed on a temporary basis at less than full time;
(2) is currently receiving a retirement annuity or a     disability retirement annuity under Section 15-153.2 from this System;
(3) is on a military leave of absence;
(4) is eligible to participate in the Federal Civil     Service Retirement System and is currently making contributions to that system based upon earnings paid by an employer;
(5) is on leave of absence without pay for more than     60 days immediately following termination of disability benefits under this Article;
(6) is hired after June 30, 1979 as a public service     employment program participant under the Federal Comprehensive Employment and Training Act and receives earnings in whole or in part from funds provided under that Act; or
(7) is employed on or after July 1, 1991 to perform     services that are excluded by subdivision (a)(7)(f) or (a)(19) of Section 210 of the federal Social Security Act from the definition of employment given in that Section (42 U.S.C. 410).
(b) Any employer may, by filing a written notice with the board, exclude
from the definition of "employee" all persons employed pursuant to a federally
funded contract entered into after July 1, 1982 with a federal military
department in a program providing training in military courses to federal
military personnel on a military site owned by the United States Government,
if this exclusion is not prohibited by the federally funded contract or
federal laws or rules governing the administration of the contract.
(c) Any person appointed by the Governor under the Civil Administrative
Code of Illinois is an employee, if he or she is a participant in this
system on the effective date of the appointment.
(d) A participant on lay-off status under civil service rules is
considered an employee for not more than 120 days from the date of the lay-off.
(e) A participant is considered an employee during (1) the first 60 days
of disability leave, (2) the period, not to exceed one year, in which his
or her eligibility for disability benefits is being considered by the board
or reviewed by the courts, and (3) the period he or she receives disability
benefits under the provisions of Section 15-152, workers' compensation or
occupational disease benefits, or disability income under an insurance
contract financed wholly or partially by the employer.
(f) Absences without pay, other than formal leaves of absence, of less
than 30 calendar days, are not considered as an interruption of a person's
status as an employee.  If such absences during any period of 12 months
exceed 30 work days, the employee status of the person is considered as
interrupted as of the 31st work day.
(g) A staff member whose employment contract requires services during
an academic term is to be considered an employee during the summer and
other vacation periods, unless he or she declines an employment contract
for the succeeding academic term or his or her employment status is
otherwise terminated, and he or she receives no earnings during these periods.
(h) An individual who was a participating employee employed in the fire
department of the University of Illinois's Champaign-Urbana campus immediately
prior to the elimination of that fire department and who immediately after the
elimination of that fire department became employed by the fire department of
the City of Urbana or the City of Champaign shall continue to be considered as
an employee for purposes of this Article for so long as the individual remains
employed as a firefighter by the City of Urbana or the City of Champaign.  The
individual shall cease to be considered an employee under this subsection (h)
upon the first termination of the individual's employment as a firefighter by
the City of Urbana or the City of Champaign.
(i) An individual who is employed on a full-time basis as an officer
or employee of a statewide teacher organization that serves System
participants or an officer of a national teacher organization that serves
System participants may participate in the System and shall be deemed an
employee, provided that (1) the individual has previously earned
creditable service under this Article, (2) the individual files with the
System an irrevocable election to become a participant before January 5, 2012 (the effective date of Public Act 97-651), (3) the
individual does not receive credit for that employment under any other Article
of this Code, and (4) the individual first became a full-time employee  of the teacher organization and becomes a participant before January 5, 2012 (the effective date of Public Act 97-651).  An employee under this subsection (i) is responsible for paying
to the System both (A) employee contributions based on the actual compensation
received for service with the teacher organization and (B) employer
contributions equal to the normal costs (as defined in Section 15-155)
resulting from that service; all or any part of these contributions may be
paid on the employee's behalf or picked up for tax purposes (if authorized
under federal law) by the teacher organization.
A person who is an employee as defined in this subsection (i) may establish
service credit for similar employment prior to becoming an employee under this
subsection by paying to the System for that employment the contributions
specified in this subsection, plus interest at the effective rate from the
date of service to the date of payment.  However, credit shall not be granted
under this subsection for any such prior employment for which the applicant
received credit under any other provision of this Code, or during which
the applicant was on a leave of absence under Section 15-113.2.
(j) A person employed by the State Board of Higher Education in a position with the Illinois Century Network as of June 30, 2004 shall be considered to be an employee for so long as he or she remains continuously employed after that date by the Department of Central Management Services in a position with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau
or the Department of Innovation and Technology and meets the requirements of subsection (a).
(k)  The Board shall promulgate rules with respect to determining whether any person is an employee within the meaning of this Section. In the case of doubt as to whether any person is an employee within the meaning of this
Section or any rule adopted by the Board, the decision of the Board shall be
final.
(Source: P.A. 101-81, eff. 7-12-19; 101-321, eff. 8-9-19.)
(40 ILCS 5/15-108) (from Ch. 108 1/2, par. 15-108)
Sec. 15-108. 
		Participant. 
		"Participant":  A person participating
in this system as specified in Section 15-134.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-108.1)
Sec. 15-108.1. Tier 1 member. "Tier 1 member": A participant or an annuitant of a retirement annuity under this Article, other than a participant in the self-managed plan under Section 15-158.2, who first became a participant or member before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code, other than a retirement system or pension fund established under Articles 2, 3, 4, 5, 6, or 18 of this Code.  "Tier 1 member"  includes a person who first became a participant under this System before January 1, 2011 and who accepts a refund and is subsequently reemployed by an employer on or after January 1, 2011.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-108.2)
Sec. 15-108.2. Tier 2 member. "Tier 2 member": A  person who first becomes a participant under this Article on or after January 1, 2011 and before the implementation date, as defined under subsection (a) of Section 1-161, determined by the Board, other than a person in the self-managed plan established under Section  15-158.2 or a person who makes the election under subsection (c) of Section 1-161, unless the person is otherwise a Tier 1 member. The changes made to this Section by this amendatory Act of the 98th General Assembly are a correction of existing law and are intended to be retroactive to the effective date of Public Act 96-889, notwithstanding the provisions of Section 1-103.1 of this Code.
(Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.)
(40 ILCS 5/15-109) (from Ch. 108 1/2, par. 15-109)
Sec. 15-109. 
		Participating employee. 
		"Participating employee":  A
participant who at the time is an employee.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
Sec. 15-110. Basic compensation. "Basic compensation": Subject to Section 15-111.5, the gross
basic rate of salary or wages payable by an employer, including:
(1) the value of maintenance, board, living quarters,     personal laundry, or other allowances furnished in lieu of salary which are considered gross income under the federal Internal Revenue Code of 1986, as amended;
(2) the employee contributions required under Section     15-157;
(3) the amount paid by any employer to a custodial     account for investment in regulated investment company stocks for the benefit of the employee pursuant to the University Employees Custodial Accounts Act;
(4) the amount of the premium payable by any employer     to an insurance company or companies on an annuity contract, pursuant to the employee's election to accept a reduction in earnings or forego an increase in earnings under Section 30c of the State Finance Act, or a tax-sheltered annuity plan approved by any employer; and
(5) the amount of any elective deferral to a deferred     compensation plan established under this Article or Article 24 of this Code pursuant to Section 457(b) of the federal Internal Revenue Code of 1986, as amended.
Basic compensation does not include (1)
salary or wages for overtime or other extra service; (2) prospective salary
or wages under a summer teaching contract not yet entered upon; and (3)
overseas differential allowances, quarters allowances, post allowances,
educational allowances and transportation allowances paid by an employer
under a contract with the federal government or its agencies for
services rendered in other countries. If an employee elects to receive in
lieu of cash salary or wages, fringe benefits which are not taxable under
the federal Internal Revenue Code of 1986, as amended, the amount of the cash salary or wages
which is waived shall be included in determining basic compensation.
(Source: P.A. 101-321, eff. 8-9-19.)
(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
Sec. 15-111. Earnings.
(a) "Earnings": Subject to Section 15-111.5, an amount paid for personal services equal to the sum of
the basic compensation plus extra compensation for summer teaching,
overtime or other extra service.  For periods for which an employee receives
service credit under subsection (c) of Section 15-113.1 or Section 15-113.2,
earnings are equal to the basic compensation on which contributions are
paid by the employee during such periods.  Compensation for employment which is
irregular, intermittent and temporary shall not be considered earnings, unless
the participant is also receiving earnings from the employer as an employee
under Section 15-107.
With respect to transition pay paid by the University of Illinois to a
person who was a participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus immediately prior to
the elimination of that fire department:
(1) "Earnings" includes transition pay paid to the     employee on or after the effective date of this amendatory Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the     employee before the effective date of this amendatory Act of the 91st General Assembly only if (i) employee contributions under Section 15-157 have been withheld from that transition pay or (ii) the employee pays to the System before January 1, 2001 an amount representing employee contributions under Section 15-157 on that transition pay.  Employee contributions under item (ii) may be paid in a lump sum, by withholding from additional transition pay accruing before January 1, 2001, or in any other manner approved by the System.  Upon payment of the employee contributions on transition pay, the corresponding employer contributions become an obligation of the State.
(b) For a Tier 2 member, the annual earnings shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) 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, including all previous adjustments.
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 change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. 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 each year.
(c) With each submission of payroll information in the manner prescribed by the System, the
employer shall certify that the payroll information is correct and complies with all applicable
State and federal laws.
(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
(40 ILCS 5/15-111.5)
Sec. 15-111.5. Basic compensation and earnings restrictions. For an employee who first
becomes a participant on or after the effective date of this amendatory Act of the 99th General
Assembly, basic compensation under Section 15-110 and earnings under Section 15-111 shall
not include bonuses, housing allowances, vehicle allowances, social  club dues, or athletic club dues.
(Source: P.A. 99-897, eff. 1-1-17.)
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of earnings":
(a) This subsection (a) applies only to a Tier 1 member.
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 during the 48 consecutive calendar month period ending with the last
day of final termination of employment or the 4 consecutive academic years of
service in which the employee's earnings were the highest, whichever is
greater.
For any other employee, the average annual earnings during the 4 consecutive
academic years of service in which his or her earnings were the highest.
For an employee with less than 48 months or 4 consecutive academic years of
service, the average earnings during his or her entire period of service.
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 such period, considered equal to the
average earnings during the last 36 months of such service.
(b)  This subsection (b) applies to a Tier 2 member.
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 highest within the last 120 months prior to termination.
For any other employee, the average annual earnings during the 8 consecutive academic years within the 10 years prior to termination in which the employee's earnings were the highest. For an employee with less than 96 consecutive months or 8 consecutive academic years of service, whichever is necessary, the average earnings during his or her entire period of service.
(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, whichever is
greater.
(e) For a Tier 1 member who retires on or after the effective date of this
amendatory Act of 1997 with at least 20 years of service as a firefighter or
police officer under this Article, the final rate of earnings shall be the
annual rate of earnings received by the participant on his or her last day as a
firefighter or police officer under this Article, if that is greater than the
final rate of earnings as calculated under the other provisions of this
Section.
(f) If a Tier 1 member is an employee for at least
6 months during the academic year in which his or her employment
is terminated, the annual final rate of earnings shall be 25% of the sum
of (1) the annual basic compensation for that year, and (2) the amount
earned during the 36 months immediately preceding that year, if this is
greater than the final rate of earnings as calculated under the other
provisions of this Section.
(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 percent shall be excluded; in the event
that an employee has more than one employer
this limitation shall be calculated separately for the earnings with
each employer.  In making such calculation, only the basic compensation of
employees shall be considered, without regard to vacation or overtime or to
contracts for summer employment. Beginning September 1, 2024, this subsection (g) also applies to an employee who has been employed at 1/2 time or less for 3 or more years.
(h) The following are not considered as earnings in determining final rate of
earnings: (1) severance or separation pay, (2) retirement pay, (3)
payment for unused sick leave, and (4) payments from an employer for
the period used in determining final rate of earnings for any purpose other
than (i) services rendered, (ii) leave of absence or vacation granted
during that period, and (iii) vacation of up to 56 work days allowed upon
termination of 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 with the applicable collective bargaining
agreement, subject to the 20% increase limitation of this Section.  Any unused
sick leave considered as earnings under this Section shall not be taken into
account in calculating service credit under Section 15-113.4.
(i) Intermittent periods of service shall be considered as consecutive in
determining final rate of earnings.
(Source: P.A. 103-548, eff. 8-11-23.)
(40 ILCS 5/15-113) (from Ch. 108 1/2, par. 15-113)
Sec. 15-113. Service. "Service":  The periods defined in Sections
15-113.1 through 15-113.9 and Sections 15-113.11 through 15-113.12.
(Source: P.A. 100-556, eff. 12-8-17.)
(40 ILCS 5/15-113.1) (from Ch. 108 1/2, par. 15-113.1)
Sec. 15-113.1. 
		
		Service for employment with an employer defined under
Section 15-106.  "Service for employment with an employer defined under
Section 15-106":  Includes the following periods:
(a) periods prior to September 1, 1941 during which a person was permanently
and continuously employed by an employer.
(b) periods after August 31, 1941 during which a person was an employee
except (1) those during which the employee elected not to participate or
was ineligible to participate, (2) those during which the employee was
on leave of absence at less than 50% pay, except military and disability
leave, but failed, in accordance with rules prescribed by the board, to
elect to make and to pay the contributions required under Section 15-157,
and (3) those during which the employee's eligibility for disability
benefit was being considered by the board or reviewed by the courts, if the
disability benefit was denied.
(c) periods after August 31, 1941 during which a person was employed at
least one-half time for an employer preceding the date of becoming a
participant or during which a person was employed at least one-half time for an employer
not subject to "The 1941 Act" which employer has since been included as
an employer under "The 1941 Act", or this Article, provided the person makes
the contributions required under Section 15-157 based on the rate of earnings
during this period equal to the basic compensation on the date of becoming
a participating employee together with compound interest from the date participation
began to the date payment is received by the board at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date,
and provided that the contributions required under Section 15-155
are also made.  However, no service credit shall be allowed for any period
of employment during which an individual is excluded from the definition
of an employee as provided under subsection (b) of Section 15-107.
(Source: P.A. 84-1028.)
(40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
Sec. 15-113.2. 
		Service for leaves of absence. 
		"Service for leaves of
absence" includes those periods of leaves of absence at less than 50%
pay, except military leave and periods of disability leave in excess of 60
days, for which the employee pays the contributions required under Section
15-157 in accordance with rules prescribed by the board based upon the
employee's basic compensation on the date the leave begins, or in the case
of leave for service with a teacher organization, based upon the actual
compensation received by the employee for such service after January 26,
1988, if the employee so elects within 30 days of that date or the date the
leave for service with a teacher organization begins, whichever is later;
provided that the employee (1) returns to employment covered by this system
at the expiration of the leave, or within 30 days after the termination of
a disability which occurs during the leave and continues this employment
at a percentage of time equal to or greater than the percentage of time
immediately preceding the leave of absence for at least 8 consecutive
months or a period equal to the period of the leave,
whichever is less, or (2) is precluded from meeting the foregoing
conditions because of disability or death.  If service credit is denied
because the employee fails to meet these conditions, the contributions
covering the leave of absence shall be refunded without interest.  The
return to employment condition does not apply if the leave of absence is
for service with a teacher organization.
Service credit provided under this Section shall not exceed 3 years in
any period of 10 years, unless the employee is on special leave granted
by the employer for service with a teacher organization.  Commencing with
the fourth year in any period of 10 years, a participant on such special
leave is also required to pay employer contributions equal to the normal
cost as defined in Section 15-155, based upon the employee's basic compensation
on the date the leave begins, or based upon the actual compensation
received by the employee for service with a teacher organization if the
employee has so elected.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
Sec. 15-113.3. 
		Service for periods of military service. 
		"Service for
periods of military service":  Those periods, not exceeding 5 years, during
which a person served in the armed forces of the United States, of which
all but 2 years must have immediately followed a period of employment
with an employer under this System or the State Employees' Retirement
System of Illinois; provided that the person received a discharge other
than dishonorable and again became an employee under this System within one
year after discharge.  However, for the up to 2 years of military service
not immediately following employment, the applicant must make contributions
to the System equal to (1) 8% of the employee's basic compensation on the last date as a
participating employee prior to such military service, or on the first date as
a participating employee after such military service, whichever is greater,
plus (2) an amount determined by the board to be equal to the employer's normal
cost of the benefits accrued for such military service, plus (3) interest on
items (1) and (2) at the effective rate from the later of the date of first
membership in the System or the date of conclusion of military service to the
date of payment.  The change in the required contribution for purchased
military credit made by this amendatory Act of 1993 does not entitle any person
to a refund of contributions already paid.  The contributions paid under this
Section are not normal contributions as defined in Section 15-114 or additional
contributions as defined in Section 15-115.
The changes to this Section made by this amendatory Act of 1991 shall
apply not only to persons who on or after its effective date are in service
under the System, but also to persons whose employment terminated prior to
that date, whether or not the person is an annuitant on that date.  In the
case of an annuitant who applies for credit allowable under this Section
for a period of military service that did not immediately follow
employment, and who has made the required contributions for such credit,
the annuity shall be recalculated to include the additional service credit,
with the increase taking effect on the date the System received written
notification of the annuitant's intent to purchase the credit, if
payment of all the required contributions is made within 60 days of such
notice, or else on the first annuity payment date following the date of
payment of the required contributions.  In calculating the automatic annual
increase for an annuity that has been recalculated under this Section, the
increase attributable to the additional service allowable under this
amendatory Act of 1991 shall be included in the calculation of automatic
annual increases accruing after the effective date of the recalculation.
(Source: P.A. 93-347, eff. 7-24-03.)
(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-113.4. Service for unused sick leave. "Service for unused
sick leave":  A person who first becomes a participant before the effective date of this amendatory Act of the 98th
General Assembly and who is an employee under this System or one of
the other systems subject to Article 20 of this Code within 60 days
immediately preceding the date on which his or her retirement annuity
begins, is entitled to credit for service for that portion of unused sick
leave earned in the course of employment with an employer and  credited on
the date of termination of employment by an employer for which payment is
not received, in accordance with the following schedule:  30 through 90
full calendar days and 20 through 59 full work days of unused sick leave,
1/4 of a year of service; 91 through 180 full calendar days and 60 through
119 full work days, 1/2 of a year of service; 181 through 270 full calendar
days and 120 through 179 full work days, 3/4 of a year of service;  271
through 360 full calendar days and 180 through 240 full work days, one year
of service.
Only uncompensated, unused sick leave earned in accordance with an
employer's sick leave accrual policy generally applicable to employees or a
class of employees shall be taken into account in calculating service credit
under this Section.  Any uncompensated, unused sick leave granted by an
employer to facilitate the hiring, retirement, termination, or other special
circumstances of an employee shall not be taken into account in calculating
service credit under this Section.
If a participant transfers from one employer to another, the
unused sick leave credited by the previous employer shall be considered in
determining service to be credited under this Section, even if the
participant terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall be
recalculated to reflect such sick leave credit.  Each employer shall
certify to the board the number of days of unused sick leave accrued to the
participant's credit on the date that the participant's status as an
employee terminated.  This period of unused sick leave shall not be
considered in determining the date the retirement annuity begins. A person
who first becomes a participant on or after the effective date
of this amendatory Act of the 98th General Assembly shall not
receive service credit for unused sick leave.
(Source: P.A. 98-599, eff. 6-1-14.)
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-113.4. 
		Service for unused sick leave. 
		"Service for unused
sick leave":  A participant who is an employee under this System or one of
the other systems subject to Article 20 of this Code within 60 days
immediately preceding the date on which his or her retirement annuity
begins, is entitled to credit for service for that portion of unused sick
leave earned in the course of employment with an employer and  credited on
the date of termination of employment by an employer for which payment is
not received, in accordance with the following schedule:  30 through 90
full calendar days and 20 through 59 full work days of unused sick leave,
1/4 of a year of service; 91 through 180 full calendar days and 60 through
119 full work days, 1/2 of a year of service; 181 through 270 full calendar
days and 120 through 179 full work days, 3/4 of a year of service;  271
through 360 full calendar days and 180 through 240 full work days, one year
of service.
Only uncompensated, unused sick leave earned in accordance with an
employer's sick leave accrual policy generally applicable to employees or a
class of employees shall be taken into account in calculating service credit
under this Section.  Any uncompensated, unused sick leave granted by an
employer to facilitate the hiring, retirement, termination, or other special
circumstances of an employee shall not be taken into account in calculating
service credit under this Section.
If a participant transfers from one employer to another, the
unused sick leave credited by the previous employer shall be considered in
determining service to be credited under this Section, even if the
participant terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall be
recalculated to reflect such sick leave credit.  Each employer shall
certify to the board the number of days of unused sick leave accrued to the
participant's credit on the date that the participant's status as an
employee terminated.  This period of unused sick leave shall not be
considered in determining the date the retirement annuity begins.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5)
Sec. 15-113.5. 
		
		Service for employment with other public agencies in
this State.  "Service for employment with other public agencies in
this State" includes the following periods:
(a) periods during which a person rendered services for the State of
Illinois, prior to January 1, 1944, under employment not covered by this
Article, if (1) such periods would have been considered creditable service
under the State Employees' Retirement System of Illinois had that system been
in effect at that time, and (2) service credit for such periods has not been
granted under the State Employees' Retirement System of Illinois.
(b) periods credited under the State Employees' Retirement System of
Illinois on the date an employee became eligible for participation in the State
Universities Retirement System as a result of a transfer of a State function
from a department, commission or other agency of this State to an employer,
excluding periods as a "covered employee" as defined in Article 14 of this
Code, provided the employee has received a refund of his or her contributions
from the State Employees' Retirement System of Illinois and pays to this system
contributions equal to the amount of the refund together with compound interest
at the rate required for repayment of a refund under Section 15-154 from the
date the refund is received to the date payment is made.
(c) periods credited in a retirement system covering a governmental unit,
as defined in Section 20-107 on the date a person becomes a participant,
if (1) a function of this governmental unit is transferred in whole or in
part to an employer, and (2) the person transfers employment from the
governmental unit to such employer within 6 months after the employer
begins operation of this function, and (3) the person cannot qualify for
a proportional retirement annuity from the retirement system covering this
governmental unit, and (4) the participant receives a refund of his or her
contributions from the retirement system covering this governmental unit
and pays to this system contributions equal to the amount of the refund
together with compound interest from the date the refund is made by the
system to the date payment is received by the board at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date.
(d) periods during which a participant contributed to the Park Policemen's
Annuity Fund as defined in Section 5-219, provided the participant
and the Chicago Policemen's Annuity Fund pay to this system the required
employee and employer contributions.
(e) periods during which a person rendered services for an athletic
association affiliated with the University of Illinois, provided that (1) the
employee was employed by that athletic association on January 1, 1960, (2)
annuity contracts covering that employment have been purchased by other
retirement systems covering employees of the athletic association, and (3) the
employee files with the board an election to become a participant and assigns
to the board his or her right, title, and interest in those annuity
contracts.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
Sec. 15-113.6. Service for employment in public schools. "Service for
employment in public schools":  Includes
those periods not exceeding the lesser of 10 years or 2/3 of the service
granted under other Sections of this Article dealing with service credit,
during which a person who entered the system after September 1, 1974 was
employed full time by a public common school, public college and public
university, or by an agency or instrumentality of any of the foregoing,
of any state, territory, dependency or possession of the United States of
America, including the Philippine Islands, or a school
operated by or under
the auspices of any agency or department of any other state, if the person
(1) cannot qualify for a retirement pension or other benefit based upon
employer
contributions from another retirement system, exclusive of federal social
security, based in whole or in part upon this employment, and (2) pays the
lesser of  (A) an amount equal to 8% of his or her annual basic compensation
on the date of becoming a participating employee subsequent to this service
multiplied by the number of years of such service, together with compound
interest from the date participation begins to the date payment is received
by the board at the rate of 6% per annum through August 31, 1982, and at
the effective rates after that date, and (B) 50% of the actuarial value
of the increase in the retirement annuity provided by this service, and
(3) contributes for at least 5 years subsequent to this employment to one
or more of the following systems: the State Universities Retirement System,
the Teachers' Retirement System of the State of Illinois, and the Public
School Teachers' Pension and Retirement Fund of Chicago.
The service granted under this Section shall not be considered in determining
whether the person has the minimum of 8 years of service required to qualify
for a retirement annuity at age 55 or the 5 years of service required to
qualify for a retirement annuity at age 62 or the 10 years of service required to qualify for a retirement annuity at age 67, as provided in Section 15-135.
The maximum allowable service of 10 years for this governmental employment
shall be reduced by the service credit which is validated under paragraph
(2) of  subsection (b) of Section 16-127 and paragraph 1 of Section 17-133.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
Sec. 15-113.7. Service for other public employment. "Service for
other public employment":  Includes those periods not exceeding the lesser of
10 years or 2/3 of the service granted under other Sections of this Article
dealing with service credit, during which a person was employed full time by
the United States government, or by the government of a state, or by a
political subdivision of a state, or by an agency or instrumentality of any of
the foregoing, if the person (1) cannot qualify for a retirement pension or
other benefit based upon employer contributions from another retirement system,
exclusive of federal social security, based in whole or in part upon this
employment, and (2) pays the lesser of (A) an amount equal to 8% of his or her
annual basic compensation on the date of becoming a participating employee
subsequent to this service multiplied by the number of years of such service,
together with compound interest from the date participation begins to the date
payment is received by the board at the rate of 6% per annum through August 31,
1982, and at the effective rates after that date, and (B) 50% of the actuarial
value of the increase in the retirement annuity provided by this service, and
(3) contributes for at least 5 years subsequent to this employment to one or
more of the following systems:  the State Universities Retirement System, the
Teachers' Retirement System of the State of Illinois, and the Public School
Teachers' Pension and Retirement Fund of Chicago.  If a function of a
governmental unit as defined by Section 20-107 is transferred by law, in whole
or in part to an employer, and an employee transfers employment from this
governmental unit to such employer within 6 months of the transfer of the
function, the payment for service authorized under this Section shall not
exceed the amount which would have been payable for this service to the
retirement system covering the governmental unit from which the function was
transferred.
The service granted under this Section shall not be considered in determining
whether the person has the minimum of 8 years of service required to qualify
for a retirement annuity at age 55 or the 5 years of service required to
qualify for a retirement annuity at age 62, as provided in Section 15-135.
The maximum allowable service of 10 years for this governmental employment
shall be reduced by the service credit which is validated under paragraph
(2) of subsection (b) of Section 16-127 and paragraph one of Section 17-133.
Except as hereinafter provided, this Section shall not apply to
persons who become participants in the system after September 1, 1974.
(Source: P.A. 95-83, eff. 8-13-07.)
(40 ILCS 5/15-113.8) (from Ch. 108 1/2, par. 15-113.8)
Sec. 15-113.8. 
		
		Previous service with employer affiliated alumni and
athletic associations and foundations.  "Previous service with employer
affiliated alumni and
athletic associations and foundations":  Includes the following periods:
(a) Periods of service prior to October 1, 1959 for employer affiliated
alumni associations and foundations for which service credit has been granted
under the provisions relating to this service in effect on January 1, 1984.
(b) Periods of service prior to October 1, 1966 for affiliated athletic
associations for which service credit has been granted under the provisions
relating to this service in effect on January 1, 1984.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-113.9) (from Ch. 108 1/2, par. 15-113.9)
Sec. 15-113.9. 
		
		Service for employment with the Illinois Mathematics
and Science Academy.  A participating employee who was employed by the
Illinois Mathematics and Science Academy prior to February 1, 1987 shall be
entitled to receive service credit under this System for any period of such
employment prior to February 1, 1987 for which the required contributions have
been received by this System.  If credit for such employment has
been granted under any other retirement system governed by this Code,
credit for such employment shall not be granted under this System unless
(1) the employee so elects in writing prior to April 1, 1987, and (2) the
credit granted for such employment in the other retirement system has been
terminated, and any employee and employer contributions received therefor
by the other retirement system have been
transmitted by that retirement system to this System.  Such other
retirement system shall terminate such credit, and transfer the associated
contributions, upon receiving notice of the election from the Board of this System.
(Source: P.A. 84-1472.)
(40 ILCS 5/15-113.10) (from Ch. 108 1/2, par. 15-113.10)
Sec. 15-113.10. 
		
		Transfer of creditable service to Article 8, 9 or 13
fund.
(a) Any city officer as defined in Section 8-243.2
of this Code, any county officer elected by vote of the
people who is a participant in the pension fund established under Article 9
of this Code, any chief of the County Police Department or undersheriff
of the County Sheriff's Department who has elected under subparagraph (j) of
Section 9-128.1 to be included within the provisions of Section 9-128.1 of
Article 9 of this Code, and any elected sanitary district commissioner who is
a participant in a pension fund established under Article 13 of this Code,
may apply to transfer his or her credits and creditable service accumulated
under this System to such Article 8, 9 or 13 fund. Such creditable
service shall be transferred forthwith. Payment by this System to the
Article 8, 9 or 13 Fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the     applicant through employee contribution, including interest, as of the date of transfer; and
(2) employer contributions equal in amount to the     accumulated employee contributions as determined in item (1) above. 
		Participation in this System shall terminate on the date of transfer.
(b) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a
refund, by payment to the System of the amount of the refund together with
interest at the rate required for repayment of a refund under Section
15-154 from the date the refund was received to the date of payment.
(c) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or sanitary
district commissioner who has credits and creditable service under the System
may establish additional credits and creditable service for periods during
which he or she could have elected to participate but did not so elect.
Credits and creditable service may be established by payment to the System of
an amount equal to the contributions that he or she would have made if he or
she had elected to participate, plus regular interest to the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
(40 ILCS 5/15-113.11)
Sec. 15-113.11. Service for periods of voluntary or involuntary furlough.
(a) A participant may establish creditable service and earnings credit for periods of furlough beginning on or after July 1, 2009 and ending on or before June 30, 2011. To receive this credit, the participant must (i) apply in writing to the System before December 31, 2011; (ii) not receive compensation from an employer for any furlough period; and (iii) make, on an after-tax basis, employee contributions required under Section 15-157 based on the rate of basic compensation during the periods of furlough, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary or involuntary furlough to the date of payment. The participant shall provide, at the time of application, written certification from the employer providing the total number of furlough days a participant has been required to take.
(b)       A participant may establish creditable service and earnings credit for periods of furlough beginning on or after July 1, 2015 and ending on or before June 30, 2017. To receive this credit, the participant must (i) apply in writing to the System before December 31, 2018; (ii) not receive compensation from an employer for any furlough period; and (iii) make, on an after-tax basis, employee contributions required under Section 15-157 based on the rate of basic compensation during the periods of furlough, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary or involuntary furlough to the date of payment. The participant shall provide, at the time of application, written certification from the employer providing the total number of furlough days a participant has been required to take.
(Source: P.A. 99-897, eff. 1-1-17.)
(40 ILCS 5/15-113.12)
Sec. 15-113.12. Earnings for periods of voluntary pay reduction taken in lieu of furlough. A participant may establish earnings credit for periods of voluntary pay reduction, taken in lieu of furlough, beginning on or after July 1, 2015 and ending on or before June 30, 2017.  To receive this credit, the participant must: (1) apply in writing to the System before December 31, 2018; and (2) make, on an after-tax basis, employee contributions required under Section 15-157 based on the voluntary reduction in pay, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary reduction in pay to the date of payment.  The participant shall provide, at the time of application, (i) written certification from the employer providing the total voluntary reduction in pay per pay period for each pay period with a voluntary reduction in pay and (ii) written certification from the employer stating that the voluntary reduction in pay was taken in lieu of furlough.
(Source: P.A. 99-897, eff. 1-1-17.)
(40 ILCS 5/15-114) (from Ch. 108 1/2, par. 15-114)
Sec. 15-114. 
		Normal contributions. 
		"Normal contributions": The required
contributions specified under Section
15-157 as normal contributions and amounts paid by a
participant for annuity contracts assigned
to the board in order to obtain service credit for employment by affiliated
alumni associations, foundations, and athletic associations,
and amounts contributed by a participant under Section 15-113.5, Section
15-113.6 and Section 15-113.7.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-115) (from Ch. 108 1/2, par. 15-115)
Sec. 15-115. 
		Additional contributions. 
		"Additional contributions": The
amounts paid by a participating employee which are specified under Section
15-157 as additional contributions.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-116) (from Ch. 108 1/2, par. 15-116)
Sec. 15-116. 
		Accumulated normal contributions. 
		"Accumulated normal
contributions": The sum of all normal contributions credited
to an employee's account, together with interest
thereon at the effective rate for the respective years.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-117) (from Ch. 108 1/2, par. 15-117)
Sec. 15-117. 
		Accumulated additional contributions. 
		"Accumulated
additional contributions": The sum of all additional contributions credited
to an employee's account,
together with interest
thereon at the effective rate for the respective years.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-118) (from Ch. 108 1/2, par. 15-118)
Sec. 15-118. 
		Annuity. 
		"Annuity": A series of monthly payments,
payable as of the first
day of each calendar month during the annuity payment period, the first
payment to be made as of the first day of the calendar month coincidental
with or next following the first day of the annuity payment period and the
last payment to be made as of the first day of the calendar month in which
the annuitant dies or the annuity
payment period ends. An annuitant may
authorize the board to deduct from the annuity, premiums due under any
group hospital-medical insurance program which is sponsored or approved by
any employer.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-119) (from Ch. 108 1/2, par. 15-119)
Sec. 15-119. 
		Annuitant. 
		"Annuitant": A person receiving a retirement,
reversionary, survivors or beneficiary annuity or disability retirement
annuity from this System.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
Sec. 15-120. Beneficiary; survivor annuitant under portable benefit
package. "Beneficiary": The person or persons designated
by the participant or annuitant in the last written designation on file
with the board; or if no person so designated survives, or if no designation
is on file, the estate of the participant or annuitant. Acceptance by the
participant of a refund of accumulated contributions or an accelerated pension benefit payment under Section 15-185.5
shall result in cancellation of all beneficiary designations previously
filed. A spouse whose marriage was dissolved shall be disqualified
as beneficiary unless the spouse was designated as beneficiary after the
effective date of the dissolution of marriage.
After a joint and survivor annuity commences under the portable benefit
package, the survivor annuitant of a joint and survivor annuity is not
disqualified, and may not be removed, as the survivor annuitant by a
dissolution of the survivor's marriage with the participant or annuitant.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/15-121) (from Ch. 108 1/2, par. 15-121)
Sec. 15-121. 
		Additional annuity.
"Additional annuity": The portion of a retirement annuity derived from
accumulated additional contributions.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-122) (from Ch. 108 1/2, par. 15-122)
Sec. 15-122. 
		Reversionary annuity. 
		
		"Reversionary annuity": The annuity payable to a beneficiary after the
death of the annuitant as specified in Section 15-140.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-123) (from Ch. 108 1/2, par. 15-123)
Sec. 15-123. 
		Beneficiary annuity. 
		
		"Beneficiary annuity": The annuity payable to a beneficiary after the
death of a participant or annuitant as specified in Section 15-144.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-124) (from Ch. 108 1/2, par. 15-124)
Sec. 15-124. 
		Actuarial tables.
"Actuarial tables": Such tabular listings of assumed rates of decrement
such as death, disability, retirement and withdrawal from service,
according to age and sex, including mathematical functions derived from the
rates of probability, combined with an interest discount factor, as are
adopted by the board based upon the experience of the system.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-125. "Prescribed Rate of Interest; Effective Rate of Interest".
(1) "Prescribed rate of interest": The rate of interest to be used in
actuarial valuations and in development of actuarial tables as determined
by the board on the basis of the probable average rate of
interest on a long term basis, based on factors including the expected investment experience; historical and expected fluctuations in the market value of investments; the desirability of minimizing volatility in the rate of investment earnings from year to year; and the provision of reserves for anticipated losses upon sales, redemptions, or other disposition of investments and for variations in interest experience.
(2) "Effective rate of interest": For a fiscal year concluding no later than June 30, 2014, the interest rate for all or any part of
a fiscal year that is determined by the board based
on factors including the system's past and expected investment experience;
historical and expected fluctuations in the market value of investments; the
desirability of minimizing volatility in the effective rate of interest from
year to year; and the provision of reserves for anticipated losses upon sales,
redemptions, or other disposition of investments and for variations in interest
experience; except that for the purpose of determining the accumulated normal contributions used in calculating retirement annuities under Rule 2 of Section 15-136, the effective rate of interest shall be determined by the State  Comptroller rather than the board. For a fiscal year concluding no later than June 30, 2014, the State Comptroller shall determine the effective rate of interest to be used for this purpose using the factors listed above, and shall certify to the board and the Commission on Government Forecasting and Accountability the rate to be used for this purpose for fiscal year 2006 as soon as possible after the effective date of this amendatory Act of the 94th General Assembly, and for each fiscal year thereafter no later than the January 31 immediately preceding the start of that fiscal year.
For a fiscal year that begins on or after July 1, 2014, the effective rate of interest for a given fiscal year shall be equal to the interest rate of 30-year United States Treasury bonds as of the beginning of that given fiscal year, plus 75 basis points.  This effective rate of interest shall not be used in determining the prescribed rate of interest as defined in paragraph (1) of this Section.
(3) The change made to this Section by Public Acts 90-65 and 90-511 is a clarification of existing law.
(Source: P.A. 98-599, eff. 6-1-14.)
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-125. "Prescribed Rate of Interest; Effective Rate of Interest".
(1) "Prescribed rate of interest": The rate of interest to be used in
actuarial valuations and in development of actuarial tables as determined
by the board on the basis of the probable average effective rate of
interest on a long term basis.
(2) "Effective rate of interest": The interest rate for all or any part of
a fiscal year that is determined by the board based
on factors including the system's past and expected investment experience;
historical and expected fluctuations in the market value of investments; the
desirability of minimizing volatility in the effective rate of interest from
year to year; and the provision of reserves for anticipated losses upon sales,
redemptions, or other disposition of investments and for variations in interest
experience; except that for the purpose of determining the accumulated normal contributions used in calculating retirement annuities under Rule 2 of Section 15-136, the effective rate of interest shall be determined by the State  Comptroller rather than the board.  The State Comptroller shall determine the effective rate of interest to be used for this purpose using the factors listed above, and shall certify to the board and the Commission on Government Forecasting and Accountability the rate to be used for this purpose for fiscal year 2006 as soon as possible after the effective date of this amendatory Act of the 94th General Assembly, and for each fiscal year thereafter no later than the January 31 immediately preceding the start of that fiscal year.
(3) The change made to this Section by Public Acts 90-65 and 90-511 is a clarification of existing law.
(Source: P.A. 94-4, eff. 6-1-05; 94-982, eff. 6-30-06.)
(40 ILCS 5/15-126) (from Ch. 108 1/2, par. 15-126)
Sec. 15-126. 
		Fiscal year. 
		"Fiscal year": Until July 1, 1987, the period
beginning on September 1 in any year, and ending on August 31 of the
succeeding year, except that the 1987 fiscal year shall end on June 30.
Beginning July 1, 1987, "fiscal year" means the period beginning on July 1
in any year, and ending on June 30 of the succeeding year.
(Source: P.A. 84-1472.)
(40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
Sec. 15-126.1. Academic year. "Academic year": The 12-month period
beginning on the first day of the fall term as determined
by each employer, or if the employer does not have an academic program
divided into terms, then beginning September 1. For the purposes of  Section 15-139.5 and subsection (b) of Section 15-139, however, "academic year" means the 12-month period beginning September 1.
(Source: P.A. 98-596, eff. 11-19-13.)
(40 ILCS 5/15-126.2)
Sec. 15-126.2. Plan year. "Plan year": The 12-month period beginning on July 1 in any year, and ending on June 30 of the succeeding year.
(Source: P.A. 99-450, eff. 8-24-15.)
(40 ILCS 5/15-127) (from Ch. 108 1/2, par. 15-127)
Sec. 15-127. 
		Surviving spouse. 
		"Surviving spouse": (a) The surviving wife or husband
of a participant, but only if she or he (1) is the mother or father
of the participant's son or daughter, (2) legally adopted the son
or daughter while married to the participant and while the son or daughter
was under age 18, (3) was married
to the participant at the time both of them legally adopted
a child under age 18, or (4) was married to the participant
for not less than one year immediately prior to
the day the participant died; and (b) The surviving
wife or husband of an annuitant, if their marriage occurred at least
one year prior to the date the annuitant died.
The change in this Section made by Public Act 82-478 shall be applicable
to annuitants whose employment status terminated before September 15, 1981
as well as those who terminate employment after that date but not to annuitants
who pass away before that date.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-129) (from Ch. 108 1/2, par. 15-129)
Sec. 15-129. Child.
"Child": The child of a participant or an annuitant, including a child born out of wedlock, a stepchild who has been such for not less than 1 year
immediately preceding the death of the participant or annuitant, and an
adopted child.
(Source: P.A. 94-229, eff. 1-1-06; 95-279, eff. 1-1-08.)
(40 ILCS 5/15-130) (from Ch. 108 1/2, par. 15-130)
Sec. 15-130. 
		Parent. 
		"Parent": The mother or father of a participant or annuitant, a
stepparent of a participant or an annuitant by a marriage contracted before
the participant or annuitant attained age 16, or an adopting parent by whom
the participant or annuitant was adopted before he or she reached age 16.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
Sec. 15-131. 
		Survivors insurance beneficiary. 
		"Survivors insurance
beneficiary": The spouse, dependent unmarried child under age 18 (under age
22 if a full-time student), unmarried child over age 18 who is dependent by
reason of a physical or mental disability which began prior to attainment of
that age, or dependent parent, who could qualify for survivors insurance
payments under this Article.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-132) (from Ch. 108 1/2, par. 15-132)
Sec. 15-132. 
		Accumulated survivors insurance contributions. 
		"Accumulated survivors insurance contributions": The sum of all
survivors insurance contributions received from a participating
employee, together with interest at the prescribed rate.
(Source: P.A. 81-1165.)
(40 ILCS 5/15-132.1) (from Ch. 108 1/2, par. 15-132.1)
Sec. 15-132.1. 
		Police officer. 
		"Police officer": a participant who is
a peace officer empowered to make arrests to protect the property,
interests, students and personnel of an employer.
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/15-132.2)
Sec. 15-132.2. 
		Retire and retirement. 
		A participant "retires", and his or
her "retirement" begins, when his or her annuity payment period begins.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/15-133) (from Ch. 108 1/2, par. 15-133)
Sec. 15-133. 
		Employer participation.
Each employer shall participate in and be subject to the provisions of
this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
Sec. 15-134. Participant.
(a) Each person shall, as a condition of employment, become a participant
and be subject to this Article on the date that he or she becomes an
employee, makes an election to participate in, or otherwise becomes a
participant in one of the retirement programs offered under this Article,
whichever date is later.
An employee who becomes a participant shall continue to be a participant
until he or she becomes an annuitant, dies or accepts a refund of
contributions.
(b) A person employed concurrently by 2 or more employers is
eligible to participate in the system on compensation received from all
employers.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-134.1) (from Ch. 108 1/2, par. 15-134.1)
Sec. 15-134.1. Service calculation and adjustment.
(a) For the purposes of computing service for academic years for any participant, the following schedule shall govern: one month of service means
a calendar month during which a participant (i) qualifies as an employee
under Section 15-107 for at least 15 or more days, and (ii) receives any
earnings as an employee; 8 or more
months of service during an academic year shall constitute a year of service;
6 or more but less than 8 months of service during an academic year
shall constitute 3/4 of a year of service; 3 or more but less than 6 months
of service during an academic year shall constitute 1/2 of a
year of service; and one or more but less than 3 months of service during
an academic year shall constitute 1/4 of a year of service. No more than
one year of service may be granted per academic year, regardless of the
number of hours or percentage of time worked. This subsection (a) does not apply to service periods to which subsection (a-5) applies.
(a-5) For the purposes of computing service for academic years for any participant, the following schedule shall govern: one month of service means a calendar month during which a participant (i) qualifies as an employee under Section 15-107 and contributes to the System, and (ii) receives any earnings as an employee; 8 or more months of service during an academic year shall constitute a year of service; 6 or more but less than 8 months of service during an academic year shall constitute 3/4 of a year of service; 3 or more but less than 6 months of service during an academic year shall constitute 1/2 of a year of service; and one or more but less than 3 months of service during an academic year shall constitute 1/4 of a year of service. No more than one year of service may be granted per academic year, regardless of the number of hours or percentage of time worked.
This subsection (a-5) applies to all service periods of a member who is a participant on or after September 1, 2024; except that such changes shall not apply to service periods that were subject to: (1) a purchase under subsection (i) of Section 15-107, subsection (c) of Section 15-113.1, or Section 15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7, or 15-113.11; (2) a repayment of a refund under subsection (b) of Section 15-154 or a distribution under subsection (j) of Section 15-158.2; or (3) a transfer under Section 15-113.10, 15-134.2, or 15-134.4 if payment for such purchase, repayment, or transfer commenced prior to September 1, 2024.
(b) In calculating a retirement annuity, if a participant has been employed
at 1/2 time or less for 3 or more years after September 1, 1959, service
shall be granted for such employment in excess of 3 years, in the proportion
that the percentage of time employed for each such year of employment
bears to the average annual percentage of time employed during
the period on which the final rate of earnings is based.  This adjustment
shall not be made, however, in determining the eligibility for a retirement
annuity, disability benefits, additional death benefits, or survivors'
insurance. The percentage of time employed shall be as reported by the
employer. This subsection (b) shall not apply to a member who is a participant on or after September 1, 2024.
(Source: P.A. 103-548, eff. 8-11-23.)
(40 ILCS 5/15-134.2) (from Ch. 108 1/2, par. 15-134.2)
Sec. 15-134.2. 
		
		Transfer of creditable service to the General Assembly
Retirement System. (a) An active member of the General Assembly Retirement
System may apply to transfer his or her credits and creditable service accumulated
under this system to the General Assembly Retirement System.  The credits
and creditable service shall be transferred forthwith.  Payment by this
system to the General Assembly Retirement System shall be made at the same
time and shall consist of:  (1) the amounts credited to the applicant, through
employee contributions, including interest, as of the date of transfer;
and (2) employer contributions equal in amount to the accumulated employee
contributions as determined in subparagraph (1) above.  Participation in
this system shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service credits
terminated upon receipt of a refund by payment to the system of the amount
of the refund together with compound interest at the rate required for repayment
of a refund under Section 15-154 from the date the refund was received to
the date of payment.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-134.3) (from Ch. 108 1/2, par. 15-134.3)
Sec. 15-134.3. 
		
		(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in this System for the
duration of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this System,
upon payment to this System of the amount by which (1) the employer and
employee contributions that would have been required if he had participated
in this System during the period for which credit under Section 2-117.1
is being transferred, plus interest thereon at the effective rate from the
date of such participation to the date of payment, exceeds (2) the amounts
actually transferred under that Section to this System.
(Source: P.A. 86-272.)
(40 ILCS 5/15-134.4) (from Ch. 108 1/2, par. 15-134.4)
Sec. 15-134.4. Transfer of creditable service to an Article 3 pension fund, the
Article 5 Pension Fund, or the Article 14 System.
(a) An active member of the Pension Fund established under Article 5 of this
Code may apply, not later than January 1, 1990, to transfer his or her
credits and creditable service
accumulated under this System for service with the City Colleges of Chicago
teaching  in the Criminal Justice Program, to the Article 5 Fund. Such
credits and creditable service shall be transferred forthwith.
Payment by this
System to the Article 5 Fund shall be made at the same time and shall
consist of:
(1) the amounts credited to the applicant for such     service through employee contributions, including interest, as of the date of transfer; and
(2) employer contributions equal in amount to the     accumulated employee contributions as determined in item (1).
Participation in this
System with respect to such credits shall terminate on the date of transfer.
(b) Any active member of the State Employees' Retirement System who is
a State policeman, an investigator for the Secretary of State, or a conservation police officer, and who is not a participating employee in this System, may apply for transfer of
 some or all of his or her creditable service accumulated
in this System for service as a police officer to the State Employees'
Retirement System in accordance with Section 14-110.  The creditable service shall be transferred only upon payment
by this System to the State Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the     applicant for the service to be transferred, including interest, as of the date of transfer, and any interest paid by the applicant to reinstate such service; and
(2)  employer contributions equal in amount to the     accumulated employee contributions as determined in item (1).

Participation in this System as to any credits transferred under this
Section shall terminate on the date of transfer.
(c) Any person applying to transfer service under subsection (b) may reinstate credits and
creditable service terminated upon receipt of a refund by paying
to the System the amount of the refund plus interest thereon at the
rate of 6% per year from the date of the refund to the date of payment.
(d) No later than June 30, 2023, any active member of a pension fund established under Article 3 of this Code who is not a participating employee in this System may apply for transfer of some or all of his or her creditable service accumulated in this System for service as a police officer to that Article 3 pension fund in accordance with Section 3-110.13.  The creditable service shall be transferred only upon payment by this System to that Article 3 pension fund of an amount equal to:
(1) the amounts accumulated to the credit of the     applicant for the service to be transferred, including interest, as of the date of transfer, and any interest paid by the applicant to reinstate such service; and
(2) employer contributions equal in amount to the     accumulated employee contributions as determined in item (1).
Participation in this System as to any credits transferred under this Section shall terminate on the date of transfer.
(e) An application to transfer credits and creditable service under this Section shall be irrevocable.
(Source: P.A. 102-1061, eff. 1-1-23.)
(40 ILCS 5/15-134.5)
Sec. 15-134.5. 
		Retirement program elections.
(a) All participating employees are participants under the traditional
benefit package prior to January 1, 1998.
Effective as of the date that an employer elects, as described in Section
15-158.2, to offer to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package, each of
that employer's eligible employees (as defined in subsection (b)) shall be
given the choice to elect which retirement program he or she wishes to
participate in with respect to all periods of covered employment occurring on
and after the effective date of the employee's election.  The retirement
program election made by an eligible employee must be made in writing, in the
manner prescribed by the System, and within the time period described in
subsection (d) or (d-1).
The employee election authorized by this Section is a one-time, irrevocable
election.  If an employee terminates employment after making the election
provided under this subsection (a), then upon his or her subsequent
re-employment with an employer the original election shall automatically apply
to him or her, provided that the employer is then a participating employer as
described in Section 15-158.2.
An eligible employee who fails to make this election shall, by default,
participate in the traditional benefit package.
(b) "Eligible employee" means an employee (as defined in Section
15-107) who is either a currently eligible employee or a newly eligible
employee.  For purposes of this Section, a "currently eligible employee"
is an employee who is employed by an employer on the effective date on which
the employer offers to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package.  A "newly
eligible employee" is an employee who first becomes employed by an employer
after the effective date on which the employer offers its employees the
portable benefit package and the self-managed plan as alternatives to the
traditional benefit package.
A newly eligible employee participates in the traditional benefit package
until he or she makes an election to participate in the portable benefit
package or the self-managed plan.  If an employee does not elect to participate
in the portable benefit package or the self-managed plan, he or she shall
continue to participate in the
traditional benefit package by default.
(c) An eligible employee who at the time he or she is first eligible to
make the election described in subsection (a) does not have sufficient age and
service to qualify for a retirement annuity under Section 15-135 may elect to
participate in the traditional benefit package, the portable benefit package,
or the self-managed plan.  An eligible employee who has sufficient age and
service to qualify for a retirement annuity under Section 15-135 at the time he
or she is first eligible to make the election described in subsection (a) may
elect to participate in the traditional benefit package or the portable benefit
package, but may not elect to participate in the self-managed plan.
(d) A currently eligible employee must make this election within one year
after the effective date of the employer's adoption of the self-managed plan.
A newly eligible employee must make this election within
6 months after the date on which the System receives the report of status
certification from the employer.
If an employee elects to participate in the self-managed plan, no employer
contributions shall be remitted to the self-managed plan when the employee's
account balance transfer is made.  Employer contributions to the self-managed
plan shall commence as of the first pay period that begins after the System
receives the employee's election.
(d-1) A newly eligible employee who, prior to the effective date of this
amendatory Act of the 91st General Assembly, fails to make the election within
the period provided under subsection (d) and participates by default in the
traditional benefit package may make a late election to participate in the
portable benefit package or the self-managed plan instead of the traditional
benefit package at any time within 6 months after the effective date of this
amendatory Act of the 91st General Assembly.
(e) If a currently eligible employee elects the portable benefit
package, that
election shall not become effective until the one-year anniversary of the date
on which the election is filed with the System, provided the employee remains
continuously employed by the employer throughout the one-year waiting period,
and any benefits payable to or on account of the employee before such one-year
waiting period has ended shall not be determined under the provisions
applicable to the portable benefit package but shall instead be determined in
accordance with the traditional benefit package.  If a currently
eligible employee who
has elected the portable benefit package terminates employment covered by the
System before the one-year waiting period has ended, then no
benefits shall be determined under the portable benefit package provisions
while he or she is inactive in the System and upon re-employment with an
employer covered by the System he or she shall begin a new one-year waiting
period before the provisions of the portable benefit
package become effective.
(f) An eligible employee shall be provided with written information prepared
or prescribed by the System which describes the employee's retirement program
choices.  The eligible employee shall be offered an opportunity to
receive counseling from the System prior to making his or her election.  This
counseling may consist of videotaped materials, group presentations, individual
consultation with an employee or authorized representative of the System in
person or by telephone or other electronic means, or any combination of these
methods.
(Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities; conditions.
(a) This subsection (a) applies only to a Tier 1 member. A participant who retires in one of the following specified years with
the specified amount of service is entitled to a retirement annuity at any age
under the retirement program applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.
A participant with 8 or more years of service after September 1, 1941, is
entitled to a retirement annuity on or after attainment of age 55.
A participant with at least 5 but less than 8 years
of service after September 1, 1941, is entitled to a retirement annuity on
or after attainment of age 62.
A participant who has at least 25 years of service in this system as a
police officer or firefighter is entitled to a retirement
annuity on or after the attainment of age 50, if Rule 4 of Section
15-136 is applicable to the participant.
(a-5)  A Tier 2 member is entitled to a retirement annuity upon written application if he or she has attained age 67 and has at least 10 years of service credit and is otherwise eligible under the requirements of this Article. A Tier 2 member who has attained age 62 and has at least 10 years of service credit and is otherwise eligible under the requirements of this Article may elect to receive the lower retirement annuity provided in subsection (b-5) of Section 15-136 of this Article.
(a-10) A Tier 2 member who has at least 20 years of service in this system as a police officer or firefighter is entitled to a retirement annuity upon written application on or after the attainment of age 60 if Rule 4 of Section 15-136 is applicable to the participant.  The changes made to this subsection by this amendatory Act of the 101st General Assembly apply retroactively to January 1, 2011.
(b) The annuity payment period shall begin on the date specified by the
participant or the recipient of a disability retirement annuity submitting a written application. For a participant, the date on which the annuity payment period begins shall not be prior
to termination of employment or more than one year before the application is
received by the board; however, if the participant is not an employee of an
employer participating in this System or in a participating system as defined
in Article 20 of this Code on April 1 of the calendar year next following
the calendar year in which the participant attains the age specified under Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, the annuity
payment period shall begin on that date regardless of whether an application
has been filed. For a recipient of a disability retirement annuity, the date on which the annuity payment period begins shall not be prior to the discontinuation of the disability retirement annuity under Section 15-153.2.
(c) An annuity is not payable if the amount provided under Section
15-136 is less than $10 per month.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
(40 ILCS 5/15-135.1)
Sec. 15-135.1. 
		Election to avoid application of P.A. 
		90-65.
(a) A participant who was an employee on July 7, 1997 and retires on or
after the effective date of this amendatory Act of the 91st General Assembly
may elect in writing at the time of retirement to have
the retirement annuity calculated in accordance with the provisions of Sections
15-135 and 15-136 as they existed immediately prior to amendment by Public Act
90-65.  This election, once made, is irrevocable.
(b) The fact that a person has elected to participate in the optional
retirement program under Section 15-158.2 or has elected the portability
option under subsection (a-1) of Section 15-154 does not prevent the person
from making an election under subsection (a) of this Section; the fact that
such a person makes an election under subsection (a) does not allow the person
to change the irrevocable election that he or she made under Section 15-158.2
or subsection (a-1) of Section 15-154.
(c) The System shall promptly notify the Department of Central Management
Services of each election made under this Section.
(Source: P.A. 91-395, eff. 7-30-99.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities - Amount. The provisions of this
Section 15-136 apply only to those participants who are participating in the
traditional benefit package or the portable benefit package and do not
apply to participants who are participating in the self-managed plan.
(a) The amount of a participant's retirement annuity, expressed in the form
of a single-life annuity, shall be determined by whichever of the following
rules is applicable and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final rate of earnings for
each of the first 10 years of service, 1.90% for each of the next 10 years of
service, 2.10% for each year of service in excess of 20 but not exceeding 30,
and 2.30% for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for each year of
service.
Rule 2: The retirement annuity shall be the sum of the following,
determined from amounts credited to the participant in accordance with the
actuarial tables and the effective rate of interest in effect at the
time the retirement annuity begins:
(i) the normal annuity which can be provided on an     actuarially equivalent basis, by the accumulated normal contributions as of the date the annuity begins;
(ii) an annuity from employer contributions of an     amount equal to that which can be provided on an actuarially equivalent basis from the accumulated normal contributions made by the participant under Section 15-113.6 and Section 15-113.7 plus 1.4 times all other accumulated normal contributions made by the participant; and
(iii) the annuity that can be provided on an     actuarially equivalent basis from the entire contribution made by the participant under Section 15-113.3.
With respect to a police officer or firefighter who retires on or after
August 14, 1998, the accumulated normal contributions taken into account under
clauses (i) and (ii) of this Rule 2 shall include the additional normal
contributions made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this Rule 2 shall
be computed solely on the basis of the participant's accumulated normal
contributions, as specified in this Rule and defined in Section 15-116.
Neither an employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be used in the
calculation of the amount of a retirement annuity under this Rule 2.
This amendatory Act of the 91st General Assembly is a clarification of
existing law and applies to every participant and annuitant without regard to
whether status as an employee terminates before the effective date of this
amendatory Act.
This Rule 2 does not apply to a person who first becomes an employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is employed
at least one-half time during the period on which his or her final rate of
earnings is based, shall be equal to the participant's years of service
not to exceed 30, multiplied by (1) $96 if the participant's final rate
of earnings is less than $3,500, (2) $108 if the final rate of earnings is
at least $3,500 but less than $4,500, (3) $120 if the final rate of earnings
is at least $4,500 but less than $5,500, (4) $132 if the final rate
of earnings is at least $5,500 but less than $6,500, (5)
$144 if the final rate of earnings is at least $6,500 but less than
$7,500, (6) $156 if the final rate of earnings is at least $7,500 but less
than $8,500, (7) $168 if the final rate of earnings is at least $8,500 but
less than $9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an election under
Section 15-154(a-1) shall be calculated and payable under the portable
retirement benefit program pursuant to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or more years of
service as a police officer or firefighter, and a participant who is age 55 or
over and has at least 20 but less than 25 years of service as a police officer
or firefighter, shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of service as a police
officer or firefighter, 2 1/2% for each of the next 10 years of service as a
police officer or firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20.  The retirement annuity for all other
service shall be computed under Rule 1. A Tier 2 member is eligible for a retirement annuity calculated under Rule 4 only if that Tier 2 member meets the service requirements for that benefit calculation as prescribed under this Rule 4 in addition to the applicable age requirement under subsection (a-10) of Section 15-135.
For purposes of this Rule 4, a participant's service as a firefighter
shall also include the following:
(i) service that is performed while the person is an     employee under subsection (h) of Section 15-107; and
(ii) in the case of an individual who was a     participating employee employed in the fire department of the University of Illinois's Champaign-Urbana campus immediately prior to the elimination of that fire department and who immediately after the elimination of that fire department transferred to another job with the University of Illinois, service performed as an employee of the University of Illinois in a position other than police officer or firefighter, from the date of that transfer until the employee's next termination of service with the University of Illinois.
(b) For a Tier 1 member, the retirement annuity provided under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each month the participant is under age 60 at the
time of retirement.  However, this reduction shall not apply in the following
cases:
(1) For a disabled participant whose disability     benefits have been discontinued because he or she has exhausted eligibility for disability benefits under clause (6) of Section 15-152;
(2) For a participant who has at least the number of     years of service required to retire at any age under subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which     has been provided on account of service of the participant during periods when he or she performed the duties of a police officer or firefighter, if these duties were performed for at least 5 years immediately preceding the date the retirement annuity is to begin.
(b-5)  The retirement annuity of a Tier 2 member who is retiring under Rule 1 or 3 after attaining age 62 with at least 10 years of service credit shall be reduced by 1/2 of 1% for each full month that the member's age is under age 67.
(c) The maximum retirement annuity provided under Rules 1, 2, 4,
and 5
shall be the lesser of (1) the annual limit of benefits as specified in
Section 415 of the Internal Revenue Code of 1986, as such Section may be
amended from time to time and as such benefit limits shall be adjusted by
the Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) A Tier 1 member whose status as an employee terminates after August 14,
1969 shall receive automatic increases in his or her retirement annuity as
follows:
Effective January 1 immediately following the date the retirement annuity
begins, the annuitant shall receive an increase in his or her monthly
retirement annuity of 0.125% of the monthly retirement annuity provided under
Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section, multiplied by
the number of full months which elapsed from the date the retirement annuity
payments began to January 1, 1972, plus 0.1667% of such annuity, multiplied by
the number of full months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to January 1, 1978, plus
0.25% of such annuity multiplied by the number of full months which elapsed
from January 1, 1978, or the date the retirement annuity payments began,
whichever is later, to the effective date of the increase.
The annuitant shall receive an increase in his or her monthly retirement
annuity on each January 1 thereafter during the annuitant's life of 3% of
the monthly annuity provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this Section.  The change made under this subsection by P.A. 81-970 is
effective January 1, 1980 and applies to each annuitant whose status as
an employee terminates before or after that date.
Beginning January 1, 1990, 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 all increases previously
granted under this Article.
The change made in this subsection by P.A. 85-1008 is effective January
26, 1988, and is applicable without regard to whether status as an employee
terminated before that date.
(d-5)  A retirement annuity of a Tier 2 member shall receive annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. 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 retirement annuity. 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 increased.
(e) If, on January 1, 1987, or the date the retirement annuity payment
period begins, whichever is later, the sum of the retirement annuity
provided under Rule 1 or Rule 2 of this Section
and the automatic annual increases provided under the preceding subsection
or Section 15-136.1, amounts to less than the retirement
annuity which would be provided by Rule 3, the retirement
annuity shall be increased as of January 1, 1987, or the date the
retirement annuity payment period begins, whichever is later, to the amount
which would be provided by Rule 3 of this Section. Such increased
amount shall be considered as the retirement annuity in determining
benefits provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee terminated before the
effective date of this amendatory Act of 1987, provided that the annuitant was
employed at least one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity as may be provided
on an actuarially equivalent basis, by any accumulated
additional contributions to his or her credit.  However,
the additional contributions made by the participant toward the automatic
increases in annuity provided under this Section shall not be taken into
account in determining the amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as defined by Section
20-107 of this Code, is transferred in whole or in part to an employer, and (2)
a participant transfers employment from such governmental unit to such employer
within 6 months after the transfer of the function, and (3) the sum of (A) the
annuity payable to the participant under Rule 1, 2, or 3 of this Section (B)
all proportional annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary insurance amount to
which the participant is entitled under the Social Security Act, is less than
the retirement annuity which would have been payable if all of the
participant's pension credits validated under Section 20-109 had been validated
under this system, a supplemental annuity equal to the difference in such
amounts shall be payable to the participant.
(h) On January 1, 1981, an annuitant who was receiving
a retirement annuity on or before January 1, 1971 shall have his or her
retirement annuity then being paid increased $1 per month for
each year of creditable service. On January 1, 1982, an annuitant whose
retirement annuity began on or before January 1, 1977, shall have his or her
retirement annuity then being paid increased $1 per month for each year of
creditable service.
(i) On January 1, 1987, any annuitant whose retirement annuity began on or
before January 1, 1977, shall have the monthly retirement annuity increased by
an amount equal to 8¢ per year of creditable service times the number of years
that have elapsed since the annuity began.
(j) The changes made to this Section by this amendatory Act of the 101st General Assembly apply retroactively to January 1, 2011.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/15-136.1) (from Ch. 108 1/2, par. 15-136.1)
Sec. 15-136.1. 
		Retirement annuities - Supplemental annuity. 
		(a) An
annuitant whose status as an employee terminated before August 15, 1969
with at least 15 years of service is entitled to a supplemental annuity as follows:
Effective January 1, nearest the first anniversary of retirement, or January
1, nearest the annuitant's 65th birthday, whichever is later, the annuitant
shall receive a supplemental annuity of 0.125% of the monthly retirement
annuity which was provided under Rule 1, Rule 2, or Rule 3 of Section 15-136,
multiplied by the number of full months which elapsed from the date of
retirement through December 31, 1971, 0.1667% of such annuity multiplied by
the number of full months which elapsed from January 1, 1972 through
December 31, 1977, and 0.25% of such annuity multiplied by the number of
full months which elapsed from January 1, 1978 to the effective date of the
supplemental annuity.
On each January 1 thereafter during the annuitant's lifetime, he or she
shall receive an additional supplemental annuity of 3% of the monthly annuity
provided under Rule 1, Rule 2 or Rule 3 of Section 15-136.  The change made
in this Section by P.A. 81-970 is effective January 1, 1980 and applies
to each annuitant whose status as an employee terminated before August
15, 1969.
The supplemental annuity is payable only if the annuitant files with
the board, an agreement to pay to the system, an amount equal to 1%
of his or her monthly final rate of earnings multiplied by the number of
years of service credited on the date of retirement.  The payment shall be
made in a lump sum, and if it is received by the board more than 30 days
after the effective date of the supplemental annuity, the supplemental
annuity shall be deferred to the first day of the month following receipt of the payment.
(b) Each annuitant, whose status as an employee terminated before
August 15, 1969 with less than 15 years of service, is entitled to a monthly
supplemental annuity effective January 1, 1984 or January 1 nearest the
first anniversary of retirement or January 1 nearest his or her
65th birthday, whichever is later, of 3% of the monthly annuity which was
provided by Rule 1, Rule 2, or Rule 3 of Section 15-136.   On each January
1 thereafter during the lifetime of the annuitant, he or she shall be
entitled to an additional monthly supplemental annuity of 3% of the monthly
annuity which was provided by Rule 1, Rule 2, or Rule 3 of Section 15-136.
Beginning January 1, 1990, 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 all increases previously
granted under this Article.
(Source: P.A. 86-273.)
(40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
Sec. 15-136.2. 
		Early retirement without discount. 
		A participant whose
retirement annuity begins after June 1, 1981 and on or before September 1,
2002 and within six months of the last day of employment for which
retirement contributions were required, may elect at the time of
application to make a one time employee contribution to the System and
thereby avoid the early retirement reduction in retirement annuity
specified under subsection (b) of Section 15-136.  The exercise of the
election shall obligate the last employer to also make a one time
non-refundable contribution to the System.
The one time employee and employer contributions shall be a percentage
of the retiring participant's highest full time annual salary rate during
the academic years which were considered in determining his or her final
rate of earnings, or if not full time then the full time equivalent.  The
employee contribution rate shall be 7% multiplied by the lesser of the
following 2 sums: (1) the number of years that the participant is less than
age 60; or (2) the number of years that the participant's creditable
service is less than 35 years.  The employer contribution shall be at the
rate of 20% for each year the participant is less than age 60.  The
employer shall pay the employer contribution from the same source of funds
which is used in paying earnings to employees.
Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions.  The provisions of this
Section shall not be applicable until all the above outlined contributions
have been received by the System; however, the date such contributions are
received shall not be considered in determining the effective date of
retirement.
Employee and employer contributions under this Section shall be used only
to eliminate the reduction for early retirement under Rules 1 and 3 of Section
15-136 and shall not be used in calculating annuities under Rules 2
or 4
set forth in Section 15-136.  This amendatory Act of the 91st General
Assembly is a clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee terminates before
the effective date of this amendatory Act.
For persons who apply to the Board after the effective date of this
amendatory Act of 1993 and before July 1, 1993, requesting a retirement annuity
to begin no earlier than July 1, 1993 and no later than June 30, 1994, the
employer shall pay both the employee and employer contributions required under
this Section.
The number of employees retiring under this Section in any fiscal year
may be limited at the option of the employer to no less than 15% of those
eligible.  The right to elect early retirement without discount shall be
allocated among those applying on the basis of seniority in the service of
the last employer.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97; 91-887, eff. 7-6-00.)
(40 ILCS 5/15-136.3)
Sec. 15-136.3. Minimum retirement annuity.
(a) Beginning January 1, 1997, any person who is receiving a monthly
retirement
annuity under this Article which, after inclusion of (1) all one-time and
automatic annual increases to which the person is entitled, (2) any
supplemental annuity payable under Section 15-136.1, and (3) any amount
deducted under Section 15-138 or 15-140 to provide a reversionary annuity, is
less than the minimum monthly retirement benefit amount specified in subsection
(b) of this Section, shall be entitled to a monthly supplemental payment equal
to the difference.
(b) For purposes of the calculation in subsection (a), the minimum monthly
retirement benefit amount is the sum of $25 for each year of service credit, up
to a maximum of 30 years of service.
(c) This Section applies to all persons receiving a retirement annuity under
this Article, without regard to whether or not employment terminated prior to
the effective date of this Section.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-136.4)
Sec. 15-136.4. Retirement and Survivor Benefits Under Portable
Benefit Package.
(a) This Section 15-136.4 describes the form of annuity and survivor
benefits available to a participant who has elected the portable benefit
package and has completed the one-year waiting period required under subsection
(e) of Section 15-134.5.  For purposes of this Section, the term
"eligible spouse" means the husband or wife of a participant to whom the
participant is married on the date the participant's annuity
payment period begins, provided however, that if the participant should die prior
to the commencement of retirement annuity benefits, then "eligible spouse"
means the husband or wife, if any, to whom
the participant was married throughout the one-year period preceding the date
of his or her death.
(b) This subsection (b) describes the normal form of annuity payable
to a participant subject to this Section 15-136.4.  If the participant is
unmarried on the date his or her annuity payment period begins, then the annuity
payments shall be made in the form of a single-life annuity as described in
Section 15-118.  If the participant is married on the date his or her annuity
payments commence, then the annuity payments shall be paid in the form of a
qualified joint and survivor annuity that is the actuarial equivalent of the
single-life annuity.  Under the "qualified joint and survivor annuity", a
reduced amount shall be paid to the participant for his or her lifetime and his
or her eligible spouse, if surviving at the participant's death, shall be
entitled to receive thereafter a lifetime survivorship annuity in a monthly
amount equal to 50% of the reduced monthly amount that was payable to the
participant.  The last payment of a qualified joint and survivor annuity shall
be made as of the first day of the month in which the death of the survivor
occurs.
(c) Instead of the normal form of annuity that would be paid under
subsection (b), a participant may elect in writing within the 180-day period
prior to the date his or her annuity payments commence to waive the normal form
of annuity payment and receive an optional form of payment as described in
subsection (h).  If the participant is married and elects an optional form of
payment under subsection (h) other than a joint and survivor annuity with the
eligible spouse designated as the contingent annuitant, then such election
shall require the consent of his or her eligible spouse in the manner described
in subsection (d).  At any time during the 180-day period preceding the date the
participant's payment period begins, the participant may revoke the optional form
of payment elected under this subsection (c) and reinstate coverage under the qualified
joint and survivor annuity without the spouse's consent, but an election to
revoke the optional form elected and elect a new optional form of payment or designate a
different contingent annuitant shall not be effective without the eligible
spouse's consent.
(d) The eligible spouse's consent to any election made
pursuant to this Section that requires the eligible spouse's consent shall be
in writing and shall acknowledge the effect of the consent.  In addition, the
eligible spouse's signature on the written consent must be witnessed by a
notary public.  The eligible spouse's consent need not be obtained if the
system is satisfied that there is no eligible spouse, that the eligible spouse
cannot be located, or because of any other relevant circumstances.  An eligible
spouse's consent under this Section is valid only with respect to the specified
optional form of payment and, if applicable, contingent
annuitant designated by the participant.  If the optional form of payment or
the contingent annuitant is subsequently changed (other than
by a revocation of the optional form of payment and reinstatement of the qualified joint
and survivor annuity), a new consent by the eligible spouse is required.  The
eligible spouse's consent to an election made by a participant pursuant to this
Section, once made, may not be revoked by the eligible spouse.
(e) Within a reasonable period of time preceding the date a
participant's annuity commences, a participant shall be supplied with a written
explanation of (1) the terms and conditions of the normal form single-life
annuity and qualified joint and survivor annuity, (2) the
participant's right to elect a single-life annuity or an optional
form of payment under subsection (h) subject to his or her eligible
spouse's consent, if applicable, and (3) the participant's right to
reinstate coverage under the qualified joint and survivor annuity
prior to his or her annuity commencement date by revoking an election of an
optional form of payment under subsection (h).
(f) If a married participant with at least 1.5 years of
service dies prior to commencing retirement annuity payments and prior to
taking a refund under Section 15-154, his or her eligible spouse is entitled
to receive a pre-retirement survivor annuity, if there is not then in effect
a waiver of the pre-retirement survivor annuity.  The pre-retirement survivor
annuity payable under this subsection shall be a monthly annuity payable for
the eligible spouse's life, commencing as of the beginning of the month next
following the later of the date of the participant's death or the date the
participant would have first met the eligibility requirements for retirement,
and continuing through the beginning of the month in which the death of the
eligible spouse occurs.  The monthly amount payable to the spouse under the
pre-retirement survivor annuity shall be equal to the monthly
amount that would be payable as a survivor annuity under the qualified joint
and survivor annuity described in subsection (b) if: (1) in the case of a
participant who dies on or after the date on which the participant has
met the eligibility requirements for retirement, the participant had retired
with an immediate qualified joint and
survivor annuity on the day before the participant's date  of death; or (2) in
the case of a participant who dies before the earliest date on
which the participant would have met the eligibility requirements for retirement age, the participant had separated from
service on the date of death, survived to the earliest retirement age based
on service prior to his or her death, retired with an immediate qualified
joint and survivor annuity at the earliest retirement age, and died on the day
after the day on which the participant would have attained the earliest
retirement age.
(g) A married participant who has not retired may elect at any time to
waive the pre-retirement survivor annuity described in subsection (f).  Any
such election shall require the consent of the participant's eligible spouse
in the manner described in subsection (d).  A waiver of the pre-retirement
survivor annuity shall increase the lump sum death benefit payable under
subsection (b) of Section 15-141.  Prior to electing any waiver of the
pre-retirement survivor annuity, the participant shall be provided with a
written explanation of (1) the terms and conditions of the pre-retirement
survivor annuity and the death benefits payable from the system both with and
without the pre-retirement survivor annuity, (2) the participant's right to
elect a waiver of the pre-retirement survivor annuity coverage subject to his
or her spouse's consent, and (3) the participant's right to reinstate
pre-retirement survivor annuity coverage at any time by revoking a prior waiver
of such coverage.
(h) By filing a timely election with the system, a participant who will
be eligible to receive a retirement annuity under this Section may waive the
normal form of annuity payment described in subsection (b), subject to
obtaining the consent of his or her eligible spouse, if applicable, and elect
to receive any one of the following optional forms of payment:
(1) Joint and Survivor Annuity Options:  The     participant may elect to receive a reduced annuity payable for his or her life and to have a lifetime survivorship annuity in a monthly amount equal to 50%, 75%, or 100% (as elected by the participant) of that reduced monthly amount, to be paid after the participant's death to his or her contingent annuitant, if the contingent annuitant is alive at the time of the participant's death.
(2) Single-Life Annuity Option (optional for married     participants).  The participant may elect to receive a single-life annuity payable for his or her life only.
(3) Lump sum retirement benefit. The participant may     elect to receive a lump sum retirement benefit that is equal to the amount of a refund payable under Section 15-154(a-2).
All joint and survivor annuity forms shall be in an amount that is the actuarial
equivalent of the single-life annuity.
For the purposes of this Section, the term "contingent annuitant" means the
beneficiary who is designated by a participant at the time the participant
elects a joint and survivor annuity to receive the lifetime survivorship
annuity in the event the beneficiary survives the participant at the
participant's death.
(i) Under no circumstances may an option be elected, changed, or revoked
after the date the participant's retirement annuity commences.
(j) An election made pursuant to subsection (h)
shall become inoperative if the participant or the
contingent annuitant dies before the date the participant's annuity payments
commence, or if the eligible spouse's consent is required and not given.
(k) (Blank).
(l) The automatic annual increases described in subsection (d) of Section
15-136 shall apply to retirement benefits under the portable benefit package
and the automatic annual increases described in subsection (j) of Section
15-145 shall apply to survivor benefits under the portable benefit package.
(Source: P.A. 96-586, eff. 8-18-09; 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
(40 ILCS 5/15-137) (from Ch. 108 1/2, par. 15-137)
Sec. 15-137. 
		Retirement annuities-Guarantees. 
		This Article shall not operate to deprive any participant of
eligibility for an annuity or to reduce the annuity to which a participant
would have been entitled under the provisions of "The 1941 Act," in effect
on June 30, 1955, if prior to June 30, 1955, the participant had met
the minimum requirements for an annuity, or was employed
by an employer on that date.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-138) (from Ch. 108 1/2, par. 15-138)
Sec. 15-138. 
		Retirement annuities-Reduction. 
		If a participant elects to have a reversionary annuity under this
Article, the retirement annuity otherwise payable shall be reduced by the
actuarial equivalent of the amount required to provide the reversionary
annuity.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
Sec. 15-139. Retirement annuities; cancellation; suspended during
employment.
(a) If an annuitant returns to employment for an employer
within 60 days after the beginning of the retirement annuity payment
period, the retirement annuity shall be cancelled, and the annuitant shall
refund to the System the total amount of the retirement annuity payments
which he or she received. If the retirement annuity is cancelled, the
participant shall continue to participate in the System.
(b) If an annuitant retires prior to age 60 and receives or becomes
entitled to receive during any month compensation in excess of the monthly
retirement annuity (including any automatic annual increases) for services
performed after the date of retirement for any employer under this System, that
portion of the monthly
retirement annuity provided by employer contributions shall not be payable.
If an annuitant retires at age 60 or over and receives
or becomes entitled to receive during any academic year compensation in
excess of the difference between his or her highest annual earnings prior
to retirement and his or her annual retirement annuity computed under Rule
1, Rule 2, Rule 3, or Rule 4 of Section 15-136, or under Section
15-136.4,
for services performed after
the date of retirement for any employer under this System, that portion of
the monthly retirement annuity provided by employer contributions shall be
reduced by an amount equal to the compensation that exceeds such difference.
However, any remuneration received for serving as a member of the
Illinois Educational Labor Relations Board shall be excluded from
"compensation" for the purposes of this subsection (b), and serving as a
member of the Illinois Educational Labor Relations Board shall not be
deemed to be a return to employment for the purposes of this Section.
This provision applies without regard to whether service was terminated
prior to the effective date of this amendatory Act of 1991.
"Academic year", as used in this subsection (b), means the 12-month period beginning September 1.
(c) If an employer certifies that an annuitant has been reemployed
on a permanent and continuous basis or in a position
in which the annuitant is expected to serve for at least 9 months, the
annuitant shall resume his or her status as a participating employee
and shall be entitled to all rights applicable to
participating employees upon filing with the board an
election to forgo all annuity payments during the period
of reemployment. Upon subsequent retirement, the retirement
annuity shall consist of the annuity which was terminated by the reemployment,
plus the additional retirement annuity based upon service
granted during the period of reemployment, but the combined retirement
annuity shall not exceed the maximum
annuity applicable on the date of the last retirement.
The total service and earnings credited before and after the initial
date of retirement shall be considered in determining eligibility of the
employee or the employee's beneficiary to benefits under this
Article, and in calculating final rate of earnings.
In determining the death benefit
payable to a beneficiary of an annuitant who again becomes a participating
employee under this Section, accumulated normal and additional
contributions shall be considered as the sum of the accumulated normal and
additional contributions at the date of initial retirement and the
accumulated normal and additional contributions credited after that date,
less the sum of the annuity payments received by the annuitant.
The survivors insurance benefits provided under Section 15-145 shall not
be applicable to an annuitant who resumes his or her status as a
participating employee, unless the annuitant, at the time of initial
retirement, has a survivors insurance beneficiary who could qualify
for such benefits or the annuitant repaid the survivors insurance contribution refund or additional annuity under subsection (c-5) of Section 15-154.
If the participant's employment is terminated because of circumstances
other than death before 9 months from the date of reemployment, the
provisions of this Section regarding resumption of status as a
participating employee shall not apply. The normal and survivors insurance
contributions which are deducted during this period shall be refunded to
the annuitant without interest, and subsequent benefits under this Article
shall be the same as those which were applicable prior to the date the
annuitant resumed employment.
The amendments made to this Section by this amendatory Act of the 91st
General Assembly apply without regard to whether the annuitant was in service
on or after the effective date of this amendatory Act.
(Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13; 99-682, eff. 7-29-16.)
(40 ILCS 5/15-139.1)
Sec. 15-139.1. Tier 2 member retirement annuities; suspended during employment. If a Tier 2 member is receiving a retirement annuity under this System and becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, then the person's retirement annuity shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity shall resume and be recalculated if recalculation is provided for under this Article.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-139.5)
Sec. 15-139.5. Return to work by affected annuitant; notice and contribution  by employer.
(a) An employer who employs  or re-employs a person receiving a retirement annuity from the System in an academic year beginning on or  after August 1, 2013 must notify the System of that employment within 60 days after employing the annuitant.  The notice must include a summary of the contract of employment or specify the rate of compensation  and the anticipated length of employment of that annuitant. The notice must specify whether the annuitant will be compensated from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name.  The notice must include the employer's determination of whether or not the annuitant is an "affected annuitant" as defined in subsection (b).
The employer must also record,  document, and certify to the System (i) the amount of compensation paid to the annuitant for  employment during the academic year, and (ii) the amount of that compensation, if any, that comes from either federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name.
As used in this Section, "academic year" means the 12-month period beginning September 1.
For the purposes of this Section, an annuitant whose employment by an employer extends over more than one academic year shall be deemed to be re-employed by that employer in each of those academic years.
The System may specify the time, form, and manner of providing the determinations, notifications, certifications, and documentation required under this Section.
(b) A person receiving a retirement annuity from the System becomes an "affected annuitant" on the first day of the academic year following the academic year in which the annuitant first meets the following conditions:
(1) (Blank).
(2) While receiving a retirement annuity under this     Article, the annuitant was employed on or after August 1, 2013 by one or more employers under this Article and received or became entitled to receive during an academic year compensation for that employment in excess of 40% of his or her highest annual earnings prior to retirement; except that compensation paid from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name is excluded.
(3) The annuitant received an annualized retirement     annuity under this Article of at least $10,000.
A person who becomes an affected annuitant remains an affected annuitant, except for (i) any period during which the person returns to active service and does not receive a retirement annuity from the System or (ii) any period on or after the effective date of this amendatory Act of the 100th General Assembly during which an annuitant received an annualized retirement annuity under this Article that is less than $10,000.
(c) It is the obligation of the employer to determine whether an annuitant is an affected annuitant before employing the annuitant. For that purpose the employer may require the annuitant to disclose and document his or her relevant prior employment and earnings history. Failure of the  employer to make this determination correctly and in a timely manner or to include this determination with the notification required under subsection (a) does not excuse the employer from making the contribution required under subsection (e).
The System may assist the employer in determining whether a person is an affected annuitant. The System shall inform  the employer if it discovers that  the employer's determination is inconsistent with  the employment and earnings information  in the System's records.
(d) Upon the request of an annuitant, the System shall  certify to the annuitant or the employer the following information as reported by the employers,  as that information is indicated in the records of the System: (i) the annuitant's highest annual earnings prior
to retirement, (ii) the compensation paid for that employment in each academic year, and (iii) whether any of that  employment or compensation has been certified to the System as being paid from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name. The System shall only be required to certify information that is received from the employers.
(e) In addition to the requirements of subsection (a), an employer who employs an affected annuitant must pay to the System an employer contribution in the amount and manner provided in this Section, unless the annuitant is compensated by that employer solely from federal, corporate, foundation, or trust funds or grants of State funds that identify the principal investigator by name.
The  employer contribution required under this Section for employment of an affected annuitant in an academic year shall be equal to 12 times the amount of the gross monthly retirement annuity payable to the annuitant for the month in which the first paid day of that employment in that academic year occurs, after  any reduction in that annuity that may be imposed under subsection (b) of Section 15-139.
If an affected annuitant is employed by more than one employer in an academic year, the employer contribution required under this Section shall be divided among those employers in proportion to their respective portions of the total compensation paid to the affected annuitant for that employment  during that academic year.
If the System determines that an employer, without reasonable justification, has failed to make the determination of affected annuitant status  correctly and in a timely manner, or has failed to notify the System or to correctly document or certify to the System any of the information required by this Section, and that failure results  in a delayed determination by the System that a contribution is payable under this Section, then the amount of that employer's  contribution otherwise determined under this Section shall be doubled.
The System shall deem a failure to correctly determine the annuitant's status to be justified  if the employer establishes to the System's satisfaction  that the employer, after due diligence, made an erroneous determination that the annuitant was not an affected annuitant due to reasonable reliance on false or misleading  information provided  by the annuitant or another employer, or  an error in the annuitant's official employment or earnings records.
(f)  Whenever the System determines that an employer is liable for a contribution under this Section, it shall so notify the employer and certify the amount of the contribution. The employer may pay the required contribution without interest at any time within one year after receipt of the certification. If the employer fails to pay within that year, then interest shall be charged at a rate equal to the System's prescribed rate of interest, compounded annually from the 366th day after receipt of the certification from the System.  Payment must be concluded within 2 years after receipt of the certification by the employer.  If the employer fails to make complete payment, including applicable interest,  within 2 years, then the System may, after giving notice to the employer, certify the delinquent amount to the State Comptroller, and the Comptroller shall thereupon deduct the certified delinquent amount from State funds payable to the employer and pay  them instead to the System.
(g) If an employer is required to make a contribution to the System as a result of employing an affected annuitant and the annuitant later elects to forgo his or her annuity in that same academic year pursuant to subsection (c) of Section 15-139, then the required contribution by the employer shall be waived, and if the  contribution has already been paid, it shall be refunded to the employer without interest.
(h) Notwithstanding any other provision of this Article, the  employer contribution required under this Section shall not be included in the determination of any benefit under this Article or any other Article of this Code, regardless of whether the annuitant returns to active service, and is in addition to any other State or employer contribution required under this Article.
(i) Notwithstanding any other provision of this Section to the contrary, if an employer employs an affected annuitant in order to continue critical operations in the event of either an employee's unforeseen illness, accident, or death or a catastrophic incident or disaster, then, for one and only one academic year, the employer is not required to pay the contribution set forth in this Section for that annuitant. The employer shall, however, immediately notify the System upon employing a person subject to this subsection (i). For the purposes of this subsection (i), "critical operations" means teaching services, medical services,  student welfare services, and any other  services that are critical to the mission of the employer.
(j)  This Section shall be applied and coordinated with the regulatory obligations contained in the State Universities Civil Service Act.  This Section shall not apply to an annuitant if the employer of that annuitant provides documentation to the System that (1) the annuitant is employed in a status appointment position, as that term is defined in 80 Ill. Adm. Code 250.80, and (2) due to obligations contained under the State Universities Civil Service Act, the employer does not have the ability to limit the earnings or duration of employment for the annuitant while employed in the status appointment position.
(Source: P.A. 100-556, eff. 12-8-17.)
(40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
Sec. 15-140. 
		Reversionary annuities. 
		A participant in the traditional
benefit package entitled to a retirement
annuity may, prior to retirement, elect to take a reduced retirement annuity
and provide with the actuarial value of the reduction, a reversionary annuity
to a dependent beneficiary, subject to the following conditions: (1) the
participant's written notice of election
to provide such annuity is received by the board at least 30 days before
the retirement annuity payment period begins, and (2) the amount of the
reversionary annuity is not less than $10 per month, and (3) the reversionary
annuity is payable only if the
participant dies after retirement.
The participant may revoke the election by
filing a written notice of revocation with the board. The beneficiary's
death prior to retirement of the participant shall constitute a
revocation of the election.
The amount of the reversionary annuity shall be that specified in the
participant's notice of election, but not more than the amount which when
added to the survivors annuity payable to the dependent beneficiary, would
equal the participant's reduced retirement annuity.
The participant shall specify in the notice of election whether the full
retirement annuity is to be resumed or the reduced retirement annuity is to
be continued, in the event the beneficiary predeceases the annuitant.
The reversionary annuity payment period shall begin on the day following
the annuitant's death. A
reversionary annuity shall not be payable if the beneficiary predeceases
the annuitant.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
Sec. 15-141. Death benefits - Death of participant.
(a) The beneficiary of a participant under the traditional benefit
package is entitled to a death benefit equal to the sum of (1) the employee's
accumulated normal and additional
contributions on the date of death, (2) the employee's accumulated
survivors insurance contributions on the date of death, if a survivors
insurance benefit is not payable, (3) an amount equal to the employee's
final rate of earnings, but not more than $5,000, if
(i) the beneficiary, under rules of the board, was dependent upon the
participant, (ii) the participant was a participating employee
immediately prior to his or her death, and (iii) a survivors insurance benefit
is not payable, and (4) $2,500 if (i) the beneficiary was not dependent
upon the participant, (ii) the participant was a participating employee
immediately prior to his or her death, and (iii) a survivors insurance benefit
is not payable.
(b) If the participant has elected to participate in the
portable benefit package and has completed the one-year waiting period
required under subsection (e) of Section 15-134.5, the death benefit
shall be equal to the employee's accumulated normal and additional
contributions on the date of death plus, if the employee died with 1.5 or more years of service for employment as defined in Section 15-113.1,
employer contributions in an amount equal to the sum of the accumulated normal
and additional contributions;  except that if a pre-retirement survivor annuity
is payable under Section 15-136.4, the death benefit payable under this
paragraph shall be reduced, but to not less than zero, by the actuarial value
of the benefit payable to the surviving spouse.  If the recipient of a
pre-retirement survivor annuity dies before an amount equal to all accumulated
normal and additional contributions as of the date of death have been paid out,
the remaining difference shall be paid to the member's beneficiary.  The
primary beneficiary of the participant must be his or her spouse unless the
spouse has consented to the designation of another beneficiary in the manner
described in subsection (d) of Section 15-136.4.
(c) If payments are made under any State or federal workers'
compensation or occupational diseases law because of the death of an
employee, the portion of the death benefit payable from employer
contributions shall be reduced by the total amount of the payments.
(Source: P.A. 95-83, eff. 8-13-07.)
(40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
Sec. 15-142. 
		Death benefits - Death of annuitant. 
		Upon the death of
an annuitant receiving a retirement annuity or disability retirement annuity,
the annuitant's beneficiary shall, if a survivor's insurance benefit is
not payable under Section 15-145 and an
annuity is not payable under Section 15-136.4, be entitled to a death benefit
equal to the greater of the following: (1) the excess, if any, of the sum of
the accumulated normal, survivors insurance, and additional contributions
as of the date of retirement or the date the disability retirement annuity
began, whichever is earlier, over the sum of all annuity payments made prior to
the date of death, or (2) $1,000.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
(40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
Sec. 15-143. 
		Death benefits - general provisions. 
		All death benefits
shall be paid as a single cash sum.  A death benefit shall be paid as soon
as practicable after receipt by the board of (1) a written application by the
beneficiary and (2) such evidence of death and identification as the board
shall require.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
Sec. 15-144. 
		Beneficiary annuities. 
		This Section applies only to the
death benefits of persons who became participants before August 22, 1997
(the effective date of Public Act 90-511).
If a deceased participant has specified in a written notice on file with the
board prior to his or her death, or if the participant has not so specified,
but the beneficiary specifies in the application for the death benefit that the
benefit be paid as an annuity or as a designated cash payment plus an annuity,
it shall be paid in the manner thus specified, unless the annuity is less than
$10 per month, in which case the death benefit shall be paid in a single cash
sum.  If the death benefit is paid as an annuity, the beneficiary may elect to
take an amount not in excess of $500 in a single cash sum. The annuity payable
to a beneficiary shall be the actuarial equivalent of the death benefit,
determined as of the participant's date of death, on the basis of the age of
the beneficiary at that time.
The beneficiary annuity payment period shall begin on the day following the
death of the deceased and shall terminate on the date of the beneficiary's
death. If the beneficiary may receive the death benefit in a single cash sum,
but elects to receive an annuity, he or she may, within one year after the
death of the participant or annuitant, revoke this election and receive in a
single cash sum the excess of the amount of the death benefit upon which the
annuity was based over the sum of the annuity payments received.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
Sec. 15-145. Survivors insurance benefits; conditions and amounts.
(a) The survivors insurance benefits provided under this Section shall
be payable to the eligible survivors of a Tier 1 member covered under the
traditional benefit package upon the death of (1) a participating employee
with at least 1 1/2 years of service, (2) a participant who terminated
employment with at least 10 years of service, and (3) an annuitant in receipt
of a retirement annuity or disability retirement annuity under this Article.
Service under the State Employees' Retirement System of Illinois, the
Teachers' Retirement System of the State of Illinois and the Public School
Teachers' Pension and Retirement Fund of Chicago shall be considered in
determining eligibility for survivors benefits under this Section.
If by law, a function of a governmental unit, as defined by Section 20-107,
is transferred in whole or in part to an employer, and an employee transfers
employment from this governmental unit to such employer within 6 months after
the transfer of this function, the service credits in the governmental unit's
retirement system which have been validated under Section 20-109 shall be
considered in determining eligibility for survivors benefits under this
Section.
(b) A surviving spouse of a deceased participant, or of a deceased
annuitant who did not take a refund or additional annuity consisting of
accumulated survivors insurance contributions or who repaid the refund or additional annuity, shall receive a survivors
annuity of 30% of the final rate of earnings.  Payments shall begin on the
day following the participant's or annuitant's death or the date the surviving
spouse attains age 50, whichever is later, and continue until the death of the
surviving spouse.  The annuity shall be payable to the surviving spouse prior
to attainment of age 50 if the surviving spouse has in his or her care a
deceased participant's or annuitant's dependent unmarried child under age 18
(under age 22 if a full-time student) who is eligible for a survivors annuity.
Remarriage of a surviving spouse prior to attainment of age 55 that occurs
before the effective date of this amendatory Act of the 91st General Assembly
shall disqualify him or her for the receipt of a survivors annuity until July
6, 2000.
A surviving spouse whose survivors annuity has been terminated due to
remarriage may apply for reinstatement of that
annuity.  The reinstated annuity shall begin to accrue on July 6, 2000, except
that if, on July 6, 2000, the annuity is payable to an eligible surviving
child or parent, payment of the annuity to the surviving spouse shall not be
reinstated until the annuity is no longer payable to any eligible surviving
child or parent.  The reinstated annuity shall include any one-time or annual
increases received prior to the date of termination, as well as any increases
that would otherwise have accrued from the date of termination to the date of
reinstatement.
An eligible surviving spouse whose expectation of receiving a survivors
annuity was lost due to remarriage before attainment of age 50 shall also be
entitled to reinstatement under this subsection, but the resulting survivors
annuity shall not begin to accrue sooner than upon the surviving spouse's
attainment of age 50.
The changes made to this subsection by this amendatory Act of the 92nd
General Assembly (pertaining to remarriage prior to age 55 or 50) apply without
regard to whether the deceased participant or annuitant was in service on or
after the effective date of this amendatory Act.
(c) Each dependent unmarried child under age 18 (under age 22 if a
full-time student) of a deceased participant, or of a deceased annuitant who
did not take a refund or additional annuity consisting of accumulated survivors
insurance contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity equal to the sum of (1) 20% of the final rate
of earnings, and (2) 10% of the final rate of earnings divided by the number of
children entitled to this benefit.  Payments shall begin on the day following
the participant's or annuitant's death and continue until the child marries,
dies, or attains age 18 (age 22 if a full-time student).  If the child
is in the care of a surviving spouse who is eligible for survivors insurance
benefits, the child's benefit shall be paid to the surviving spouse.
Each unmarried child over age 18 of a deceased participant or of a deceased
annuitant who had a survivor's insurance beneficiary at the time of his or her
retirement, and who was dependent upon the participant or annuitant by reason
of a physical or mental disability which began prior to the date the child
attained age 18, shall receive a survivor's
annuity equal to the
sum of (1) 20% of the final rate of earnings, and (2) 10% of the final rate
of earnings divided by the number of children entitled to survivors
benefits.  Payments shall begin on the day following the participant's or
annuitant's death and continue until the child marries, dies, or is no
longer disabled.  If the child is in the care of a surviving spouse who is
eligible for survivors insurance benefits, the child's benefit may be paid
to the surviving spouse.  For the purposes of this Section, disability
means inability to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment that can be
expected to result in death or that has lasted or can be expected to last
for a continuous period of at least one year.
(d) Each dependent parent of a deceased participant, or of a deceased
annuitant who did not take a refund or additional annuity consisting of
accumulated survivors insurance contributions or who repaid the refund or additional annuity, shall receive a survivors
annuity equal to the sum of (1) 20% of
final rate of earnings, and (2) 10% of final rate of earnings divided by the
number of parents who qualify for the benefit.  Payments shall begin when the
parent reaches age 55 or the day following the participant's or annuitant's
death, whichever is later, and continue until the parent dies.  Remarriage of
a parent prior to attainment of age 55 shall disqualify the parent for the
receipt of a survivors annuity.
(e) In addition to the survivors annuity provided above, each
survivors insurance beneficiary shall, upon death of the participant or
annuitant, receive a lump sum payment of $1,000 divided by the number
of such beneficiaries.
(f) The changes made in this Section by Public Act 81-712 pertaining
to survivors annuities in cases of remarriage prior to age 55
shall apply to each survivors insurance beneficiary who
remarries after June 30, 1979, regardless of the date that the
participant or annuitant terminated his employment or died.
The change made to this Section by this amendatory Act of the 91st General
Assembly, pertaining to remarriage prior to age 55, applies without regard to
whether the deceased participant or annuitant was in service on or after the
effective date of this amendatory Act of the 91st General Assembly.
(g) On January 1, 1981, any person who was receiving
a survivors annuity on or before January 1, 1971 shall have the
survivors annuity then being paid increased by 1% for each full year which
has elapsed from the date the annuity began. On January 1, 1982, any
survivor whose annuity began after January 1, 1971, but before January 1,
1981, shall have the survivor's annuity then being paid increased by 1% for
each year which has elapsed from the date the survivor's annuity began.
On January 1, 1987, any survivor who began receiving a survivor's annuity
on or before January 1, 1977, shall have the monthly survivor's annuity
increased by $1 for each full year which has elapsed since the date the
survivor's annuity began.
(h) If the sum of the lump sum and total monthly survivor benefits
payable under this Section upon the death of a participant amounts to less
than the sum of the death benefits payable under items (2) and (3) of
Section 15-141, the difference shall be paid in a lump sum to the
beneficiary of the participant who is living on the date that this
additional amount becomes payable.
(i) If the sum of the lump sum and total monthly survivor benefits payable
under this Section upon the death of an annuitant receiving a retirement
annuity or disability retirement annuity amounts to less than the death
benefit payable under Section 15-142, the difference shall be paid to the
beneficiary of the annuitant who is living on the date that this
additional amount becomes payable.
(j) Effective on the later of (1) January 1, 1990, or (2) the
January 1 on or next after the date on which the survivor annuity begins,
if the deceased member died while receiving a retirement annuity, or in all
other cases the January 1 nearest the first
anniversary of the date the survivor annuity payments begin, every survivors
insurance beneficiary shall receive an increase in
his or her monthly survivors annuity of 3%.  On each January 1 after the
initial increase, the monthly survivors annuity shall be increased by 3% of
the total survivors annuity provided under this Article, including previous
increases provided by this subsection.  Such increases shall apply to the
survivors insurance beneficiaries of each participant and annuitant,
whether or not the employment status of the participant or annuitant
terminates before the effective date of this amendatory Act of 1990.  This
subsection (j) also applies to persons receiving a survivor annuity
under the portable benefit package.
(k) If the Internal Revenue Code of 1986, as amended, requires that the
survivors benefits be payable at an age earlier than that specified in this
Section the benefits shall begin at the earlier age, in which event, the
survivor's beneficiary shall be entitled only to that amount which is equal
to the actuarial equivalent of the benefits provided by this Section.
(l) The changes made to this Section and Section 15-131 by this amendatory
Act of 1997, relating to benefits for certain unmarried children who are
full-time students under age 22, apply without regard to whether the deceased
member was in service on or after the effective date of this amendatory Act
of 1997.  These changes do not authorize the repayment of a refund or a
re-election of benefits, and any benefit or increase in benefits resulting
from these changes is not payable retroactively for any period before the
effective date of this amendatory Act of 1997.
(Source: P.A. 101-321, eff. 8-9-19.)
(40 ILCS 5/15-145.1)
Sec. 15-145.1. Survivor's insurance annuities and lump sum payments for Tier 2 Members; amount. Survivor eligibility, vesting, and conditions for a survivor's insurance annuity and lump sum payment amount payable to a survivor's insurance beneficiary of a deceased Tier 2 member shall be determined under the provisions of this Article applicable to survivor's insurance beneficiaries of a  deceased Tier 1 member; however, the amount of a survivor's insurance annuity, including the annual increases thereon, shall be calculated pursuant to this Section. The initial survivor's insurance annuity of a survivors insurance beneficiary of a Tier 2 annuitant shall be in the amount of 66 2/3% of the Tier 2 member's retirement annuity at the date of death. In the case of the death of a Tier 2 member who has not retired, eligibility for a survivor's insurance benefit shall be determined by the applicable Section of this Article. The initial benefit shall be 66 2/3% of the earned annuity without a reduction due to age. A survivor's insurance annuity shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if the deceased Tier 2 member died while receiving a retirement annuity or (2) in other cases, on each January 1 occurring after the first anniversary of the commencement of the benefit.  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 insurance annuity. 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 survivor's insurance annuity shall not be increased.  A beneficiary of a Tier 2 member who elects the Portable Benefit Package provided under this Article shall not be eligible for the survivor's insurance annuity that is provided under this Section.  If 2 or more persons are eligible to receive survivor's insurance annuities as provided under this Section based on the same deceased Tier 2 member, the calculation of the survivor's insurance annuities shall be based on the total calculation of the survivor's insurance annuity and divided pro rata. The changes made to this Section by this amendatory Act of the 98th General Assembly are a clarification of existing law and are intended to be retroactive to the effective date of Public Act 96-889, notwithstanding the provisions of Section 1-103.1 of this Code.
(Source: P.A. 98-92, eff. 7-16-13; 98-596, eff. 11-19-13.)
(40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
Sec. 15-146. Survivors insurance benefits - Minimum amounts.
(a) The minimum total survivors annuity payable on account of the
death of a participant shall be 50% of the retirement annuity which
would have been provided under Rule 1, Rule 2, or Rule 3 of
Section 15-136 upon the participant's attainment of the minimum
age at which the penalty for early retirement would not be applicable or
the date of the participant's death, whichever is later, on the basis of
credits earned prior to the time of death.
(b) The minimum total survivors annuity payable on account of the death
of an annuitant shall be 50% of the retirement annuity which is payable
under Section 15-136 at the time of death or 50% of the disability retirement
annuity payable under Section 15-153.2. This
minimum survivors annuity shall apply to each participant and
annuitant who dies after September 16, 1979, whether or not
his or her employee status terminates before or after that date.
(c) If an annuitant has elected a reversionary annuity, the retirement
annuity referred to in this Section is that which would have been payable
had such election not been filed.
(d) Beginning January 1, 2002, any person who is receiving a survivors
annuity under this Article which, after inclusion of all one-time and automatic
annual increases to which the person is entitled, is less than the sum of
$17.50 for each year (up to a maximum of 30 years) of the deceased member's
service credit, shall be entitled to a monthly supplemental payment equal to
the difference.
If 2 or more persons are receiving survivors annuities based on the same
deceased member, the calculation of the supplemental payment under this
subsection shall be based on the total of those annuities and divided pro
rata.  The supplemental payment is not subject to any limitation on the
maximum amount of the annuity and shall not be included in the calculation
of any automatic annual increase under Section 15-145.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-146.1) (from Ch. 108 1/2, par. 15-146.1)
Sec. 15-146.1. Survivors insurance benefits-Maximum amounts.
(a) The
maximum total survivors annuity payable on account of any deceased
participating
employee shall be the lesser of:  (1) 80% of the final rate of earnings;
or (2) (A) $400 per month if one survivors insurance beneficiary is entitled
to a survivors annuity, or (B) $600 per month if there are 2 or more such
beneficiaries.
(b) The maximum total survivors annuity payable on account of the death
of any person occurring after retirement or after termination of his or
her employee status shall be the lesser of:  (1) 80% of the final rate of
earnings; (2) (A) $400 per month if one survivors insurance beneficiary
is entitled to a survivors annuity, or (B) $600 per month if there are 2
or more such beneficiaries; or (3) 80% of the retirement annuity payable
to the annuitant at the date of retirement under the provisions of Rule
1, Rule 2, or Rule 3 of Section 15-136, or 80% of the
retirement annuity
which would have been payable to the participant upon attainment of the
minimum age at which the penalty for early retirement would not be applicable
or the date of death, whichever is later, based upon credits earned as of
the date of death.
(c) The maximum total survivors annuity payable on account of the death
of any person whose death occurs while in receipt of a disability retirement
annuity under Section 15-153.2 shall be the lesser of (1) 80% of his or
her final rate of earnings, (2) (A) $400 per month if one survivors insurance
beneficiary is entitled to a survivors annuity, or (B) $600 per month if
2 or more survivors insurance beneficiaries qualify for this benefit, or
(3) 80% of the retirement annuity which would have been payable upon attainment
of the age at which the penalty for early retirement would not be applicable
or the date of death, whichever is later, based upon the participant's credits
on the date of death, or 80% of the disability retirement annuity whichever is greater.
(d) If the minimum annuity provided under Section 15-146 exceeds the maximum
annuity provided under this Section, the minimum annuity shall be payable.
(e) If an annuitant has elected a reversionary annuity, the retirement
annuity referred to in this Section is that which would have been payable
had such election not been filed.
(f) If a survivors insurance beneficiary qualifies for a survivors or
widows  annuity because of pension credits established by the participant
or annuitant in another system covered by Article 20, and the combined survivors
annuities exceed the highest survivors annuity which could be provided by
either system based upon the combined pension credits, the survivors annuity
payable by this system shall be reduced to that amount which, when added
to the survivors annuity payable by the other system, would equal this highest
survivors annuity.  If the other system has a similar provision for adjustment
of the survivors annuity, the respective proportional survivors annuities
shall be reduced proportionately according to the ratio which the amount
of each proportional survivors annuity bears to the aggregate of all proportional
survivors annuities.  If a survivors annuity is payable by another system
covered by Article 20, and the survivor elects to waive the survivors annuity
and accept a lump sum payment or death benefit in lieu of the survivors
annuity, this system shall, for the purpose of adjusting the survivors annuity
under this subsection, assume that the survivor was entitled to a survivors
annuity which, in accordance with actuarial tables of this system, is the
actuarial equivalent of the amount of the lump sum payment or death benefit.
(g) The total monthly survivors annuity payable to the beneficiaries of
any annuitant who terminated employment before July 14, 1959 and whose death
occurs after September 16, 1977 shall not exceed $200.
(h) Whenever a reduction in the survivors annuity is made as
authorized above, the survivors annuity to each dependent parent shall be
proportionately reduced or eliminated, and if further reduction is
necessary, the survivors annuity payable to every other person shall be
proportionately decreased.
(i) This Section applies to the survivors insurance benefits provided to the eligible survivors of a Tier 1 member.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-147) (from Ch. 108 1/2, par. 15-147)
Sec. 15-147. 
		Survivors insurance benefits-Dependency conditions. 
		A child is deemed dependent upon his or her natural or adopting
father or mother if the child is living with or receiving support
from such parent. If the child is not living with or receiving support from
such parent, he or she is deemed dependent upon that parent
if the child (1) has not been adopted
by some other individual, and (2) is not living with or receiving more than
1/2 support from his or her stepparent.
A child is deemed dependent upon his or her stepfather or stepmother if the
child is living with or receiving at least 1/2 support
from the stepparent.
A parent is considered dependent if receiving at least 1/2 of his
or her support from the participant or annuitant at the time of the death of the
participant or annuitant.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-148) (from Ch. 108 1/2, par. 15-148)
Sec. 15-148. 
		Survivors insurance 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 death of the participant or annuitant and
before any payment is made pursuant to an application filed by such person.
(Source: P.A. 92-424, eff. 8-17-01.)
(40 ILCS 5/15-149) (from Ch. 108 1/2, par. 15-149)
Sec. 15-149. 
		Determination of family status. 
		Subject to the definitions contained in Sections 15-127 to 15-130,
inclusive, in determining whether an applicant for
a benefit under this Article is the surviving spouse, child, or parent
of a participant
or annuitant, the board shall apply such law as would be applied by the
courts of this State in determining the devolution of intestate property.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-150) (from Ch. 108 1/2, par. 15-150)
Sec. 15-150. Disability benefits; eligibility. A participant may
be granted a disability benefit if:  (1) while a
participating employee, he or she becomes physically or mentally
incapacitated and unable to perform the duties of his or her assigned
position for any period exceeding 60 days; and (2) the employee had completed
2 years of service at the time of disability, unless the disability is a result
of an accident or the employee is a police officer who qualifies for the calculation under subsection (b) of Section 15-153.
An employee shall be considered disabled only during the period for which
the board determines, based upon the evidence listed below, that the employee is unable
to reasonably perform the duties of his or her assigned position as a result
of a physical or mental disability.  This determination shall be based upon:
(i) a written certificate from one or more licensed     and practicing physicians appointed by or acceptable to the board, stating that the employee is disabled and unable to reasonably perform the duties of his or her assigned position;
(ii) a written certificate from the employer stating     that the employee is unable to perform the duties of his or her assigned position and, if the employee is a police officer, the employer's position on whether the disability qualifies as a line of duty disability;
(iii) any other medical examinations, hospital     records, laboratory results, or other information necessary for determining the employment capacity and condition of the employee; and
(iv)     if the employee is a police officer applying     for a line of duty disability, a written certification from one or more licensed and practicing physicians appointed by or acceptable to the board, stating that the disability qualifies as a line of duty disability under subsection (b) of Section 15-153.
The board shall prescribe rules governing the filing, investigation,
control, and supervision of disability claims.
Costs incurred by a claimant in connection with completing a claim for
disability benefits shall be paid (A) by the claimant, in the case of the one
required medical examination, medical certificate, and employer's certificate
and any other requirements generally imposed by the board on all disability
benefit claimants; and (B) by the System, in the case of any additional medical
examination or other additional requirement imposed on a particular claimant
that is not imposed generally on all disability benefit claimants.
Pregnancy and childbirth shall be considered a disability.
The same application shall be used to determine eligibility for the calculation of disability benefits under subsection (a) or subsection (b) of Section 15-153.
(Source: P.A. 103-80, eff. 6-9-23.)
(40 ILCS 5/15-151) (from Ch. 108 1/2, par. 15-151)
Sec. 15-151. 
		Disability benefits - commencement. 
		Disability benefits shall begin to accrue upon the termination of the
payment of salary or sick leave benefits or the 61st day
after the occurrence of the disability, whichever is later.
However, no benefits
shall be payable covering a period of more than 30 days prior to the
receipt of a written application unless the board finds good cause
for the delay in filing the application. The recurrence within 30 days of a
former disability shall be considered a continuation of the disability. If
a disabled participant returns to his or her assigned position and within 30 days
again becomes disabled from the same cause, the previous period of
disability shall be considered in determining the date benefits may begin,
and the amount of the benefit shall be based upon the basic compensation on
the date the participant first became disabled from this cause.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-152) (from Ch. 108 1/2, par. 15-152)
Sec. 15-152. Disability benefits - Duration. Disability benefits shall be discontinued when the earliest of the following
occurs:  (1) when disability ceases, (2) upon refusal
of the participant to submit to a reasonable physical
examination by a physician approved by the board, (3) upon refusal of
the participant to accept any position, assigned in good faith by an
employer, the duties of which could reasonably be performed by the participant
and the earnings of which would be at least equal to the disability benefit
payable under this Article, (4) upon September 1,
following the participant's 70th birthday,
if the disability benefit commenced prior to attainment of age 65, (5)
the end of the month following the fifth anniversary of the
date disability benefits commenced, if such benefits began after the
attainment of age 65, (6) when the total disability
benefits paid equal 50% of the participant's
total earnings for the entire period of
employment for which service has been granted prior to the date
disability benefits began to accrue, or (7) upon failure of the participant to provide an earnings verification necessary to determine continuance of benefits. If the disability was caused by
an on-the-job accident, and the participant is granted workers'
compensation or occupational disease payments from the employer or the
State of Illinois, the limitation in clause (6) shall not be applicable.
Service and earnings credits under the State Employees' Retirement
System of Illinois and the Teachers' Retirement System of the State of
Illinois shall be considered in determining the employee's eligibility
for, and the duration of disability benefits.
If, by law, a function of a governmental unit, as
defined by Section 20-107 is transferred in whole or in
part to an employer and an employee transfers employment from the
governmental unit to such employer within 6 months after the transfer of
this function, the pension credits in the governmental unit's retirement
system which have been validated under
Section 20-109, shall be treated the same as pension credits in this Section
in determining an employee's eligibility
for, and the duration of disability benefits.
(Source: P.A. 100-556, eff. 12-8-17.)
(40 ILCS 5/15-153) (from Ch. 108 1/2, par. 15-153)
Sec. 15-153. Disability benefits; amount.
(a)    Except as provided in subsection (b), the disability benefit shall
be the greater of (1) 50% of the basic compensation which would have been paid
had the participant continued in service for the entire period during which
disability benefits are payable, excluding wage or salary increases subsequent
to the date of disability or extra prospective earnings on a summer teaching
contract or other extra service not yet entered upon or (2) 50% of the
participant's average earnings during the 24 months immediately preceding the
month in which disability occurs.  In determining the disability benefit, the
basic compensation of a participating employee on leave of absence or on
lay-off status shall be assumed to be equal to his or her basic compensation
on the date the leave of absence or lay-off begins.
(b)    In lieu of the amount of the disability benefit otherwise provided for in subsection (a) of this Section, for a participant who is employed as a police officer and who incurs a line of duty disability, the disability benefit under this Section shall be the greater of: (1) 65% of the basic compensation that would have been paid had the participant continued in employment for the entire period during which disability benefits are payable, excluding wage or salary increases subsequent to the date of disability; or (2) 65% of the participant's average earnings during the 24 months immediately preceding the month in which disability occurs. In determining the disability benefit, the basic compensation of a participating employee on leave of absence or on lay-off status shall be assumed to be equal to his or her basic compensation on the date the leave of absence or lay-off begins.
Any police officer who suffers a heart attack or stroke as a result of the performance and discharge of police duty shall be considered to have been injured in the performance of an act of duty and shall be eligible for the calculation of benefits provided for under this subsection (b).
A police officer shall be considered to be in the performance of an act of duty while on any assignment approved by the police officer's chief, whether the assignment is on or off the employer's property.
The changes made to this Section shall apply to participants whose line of duty disability occurred on or after January 1, 2022.
For the purposes of this Section, "line of duty disability" means that, as the result of sickness, accident, or injury incurred in or resulting from the performance of an act of duty, the police officer is found to be physically or mentally disabled for employment as a police officer so as to render necessary his or her suspension or retirement from employment as a police officer or is found to be unable to perform his or her duties as a police officer by reason of heart disease, stroke, tuberculosis, or any disease of the lungs or respiratory tract, resulting from employment as a police officer.
If the disability benefit is 50% of basic compensation under subsection (a) or 65% of basic compensation under subsection (b), payments during the
academic year shall accrue over the period that the basic
compensation would have been paid had the participant continued in
service.  If the disability benefit is 50% under subsection (a) or 65% under subsection (b) of the average earnings of the
participant during the 24 months immediately preceding the month in
which disability occurs, payments during the year shall accrue
over a period of 12 months. Disability benefits shall be paid as of the
end of each calendar month during which payments accrue. Payments for
fractional parts of a month shall be determined by prorating the total
amount payable for the full month on the basis of days elapsing during
the month.  Any disability benefit accrued but unpaid on the death of
a participant shall be paid to the participant's beneficiary.
(Source: P.A. 103-80, eff. 6-9-23.)
(40 ILCS 5/15-153.1) (from Ch. 108 1/2, par. 15-153.1)
Sec. 15-153.1. 
		Disability benefits - Reduction. 
		(a) If a participant
receiving disability benefits under this Article earns compensation from
any source for personal or professional services in excess of the amount
of the disability benefit, the disability benefit shall be reduced by the
excess of the earnings over the benefit.
(b) If a participant receiving disability benefits under this Article
receives disability income under an insurance contract financed wholly or
partially by the employer, the disability benefit shall be reduced by the
amount so received.
(c) In determining the monthly benefits payable under this Article, a
deduction shall be made equivalent to any benefits payable to any employee
under any State or Federal Worker's Compensation or Occupational Diseases
Acts for any period for which disability benefits are payable.  However,
no deduction shall be made in the case of payment for medical, surgical
and hospital services and artificial members or appliances, fixed statutory
payments for the loss of any bodily member, or the permanent and complete
loss of use of 100% of any bodily member, payments for the loss of industrial
vision or redemption awards payable prior to the date monthly disability
benefits first become payable.  If the benefits deductible under this paragraph
are stated as a specified amount per week for a designated calendar period,
then the monthly amounts shall, for purposes of this Section, be 4 1/3 times
such weekly amount.
For any calendar month during which the amount of benefits deductible when
thus computed on the monthly basis exceeds the amount of the monthly benefit
otherwise payable under this Article for that month, no monthly disability
benefit shall be payable under this Article.  For any calendar month in
which the amount of benefits deductible when computed on a monthly basis
is less than the monthly disability benefit payable for that month, such
lesser amount shall be deducted from the monthly disability benefit payable
for that month.  Lump sum awards provided for the payment in advance of
workers' compensation benefits which are definitely allocable to specific
weeks in a calendar period shall be deducted on the same basis as if the
award had been payable on a weekly basis.
If such workers' compensation is not allocable to any specific calendar
period, including redemption awards payable subsequent to the date monthly
disability benefits first become payable, an equivalent monthly amount of
such awards shall be computed for the purposes of this Section as 4 1/3
times the amount of the weekly workers' compensation benefit provided by
the applicable statute for the participant and his or her dependents.  The
total workers' compensation awards shall be divided by such computed equivalent
monthly amounts to determine the number of months and fractions of months
during which monthly disability benefits shall be reduced.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
Sec. 15-153.2. Disability retirement annuity.
(a)   This subsection (a) applies to a participant receiving benefits calculated under subsection (a) of Section 15-153. A participant whose
disability benefits are discontinued under the provisions of clause (6) of
Section 15-152 and who is not a participant in the optional retirement plan
established under Section 15-158.2 is entitled to a disability
retirement annuity of 35% of the basic compensation which was payable to the
participant at the time that disability began, provided that the board determines that the participant has a medically determinable physical or
mental impairment that prevents him or her from
engaging in any substantial gainful activity, and which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months.
(b)     This subsection (b) applies to a participant receiving benefits calculated under subsection (b) of Section 15-153.  A participant whose disability benefits are discontinued under clause (6) of Section 15-152 and who is not a participant in the optional retirement plan established under Section 15-158.2 is entitled to a disability retirement annuity of 65% of the basic compensation that was payable to the participant at the time that disability began, provided that the board determines that the participant has a medically determinable physical or mental impairment that prevents him or her from engaging in any substantial gainful activity and can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months.
(c) The board's determination of whether a participant is disabled shall be
based upon:
(i) a written certificate from one or more licensed     and practicing physicians appointed by or acceptable to the board, stating that the participant is unable to engage in any substantial gainful activity; and
(ii) any other medical examinations, hospital     records, laboratory results, or other information necessary for determining the employment capacity and condition of the participant.
The terms "medically determinable physical or mental impairment" and
"substantial gainful activity" shall have the meanings ascribed to them in the
federal Social Security Act, as now or hereafter amended, and the
regulations issued thereunder.
(d) The disability retirement annuity payment period shall begin immediately
following the expiration of the disability benefit payments under clause
(6) of Section 15-152 and shall be discontinued for a recipient of a disability retirement annuity when (1) the physical or
mental impairment no longer prevents the recipient from engaging in any
substantial gainful activity, (2) the recipient dies, (3) the recipient
elects to receive a retirement annuity under Sections 15-135 and 15-136, (4) the recipient refuses to submit to a reasonable physical examination by a physician approved by the board, or (5) the recipient fails to provide an earnings verification necessary to determine continuance of benefits.
If a person's disability retirement annuity is discontinued under clause
(1), all rights and credits accrued in the system on the date that the
disability retirement annuity began shall be restored, and the disability
retirement annuity paid shall be considered as disability payments under
clause (6) of Section 15-152.
(e) The board shall adopt rules governing the filing, investigation, control, and supervision of disability retirement annuity claims. Costs incurred by a claimant in connection with completing a claim for a disability retirement annuity shall be paid: (A) by the claimant in the case of the one required medical examination, medical certificate, and any other requirements generally imposed by the board on all disability retirement annuity claimants; and (B) by the System in the case of any additional medical examination or other additional requirement imposed on a particular claimant that is not imposed generally on all disability retirement annuity claimants.
(Source: P.A. 103-80, eff. 6-9-23.)
(40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
Sec. 15-153.3. 
		Automatic increase in disability benefit. 
		Each disability
benefit payable under Section 15-150 and calculated under Section 15-153 or
15-153.2 that has not yet received an initial increase under this Section
shall be increased by 0.25% of the monthly disability benefit multiplied by
the number of full months that have elapsed since the benefit began on January 1, 2002 or
the January 1 next following the
granting of the benefit, whichever occurs later.
On each January 1 following the initial increase under this
Section, the disability benefit shall be increased by 3% of the current
amount of the benefit, including prior increases under this Article.
The changes made to this Section by this amendatory Act of the 92nd
General Assembly apply without regard to whether the benefit recipient
was in service on or after the effective date of this amendatory Act.
(Source: P.A. 92-749, eff. 8-2-02.)
(40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
Sec. 15-154. Refunds.
(a) A participant whose status as an employee is terminated, regardless of
cause, or who has been on lay off status for more than 120 days, and who is not
on leave of absence, is entitled to a refund of contributions upon application;
except that not more than one such refund application may be made during any
academic year.
Except as set forth in subsections (a-1) and (a-2), the refund shall
be the sum of the accumulated normal, additional, and survivors insurance
contributions, plus the entire contribution made by the participant under
Section 15-113.3, less the amount of interest credited on these contributions
each year in excess of 4 1/2% of the amount on which interest was calculated.
(a-1) A person who elects, in accordance with the requirements of Section
15-134.5, to participate in the portable benefit package and who becomes a
participating employee under that retirement program upon the conclusion of
the one-year waiting period applicable to the portable benefit package election
shall have his or her refund calculated in accordance with the provisions of
subsection (a-2).
(a-2) The refund payable to a participant described in subsection (a-1)
shall be the sum of the participant's accumulated normal and additional
contributions, as defined in Sections 15-116 and 15-117, plus the entire
contribution made by the participant under Section 15-113.3.  If the
participant terminates with 5 or more years of service for employment as
defined in Section 15-113.1, he or she shall also be entitled to a distribution
of employer contributions in an amount equal to the sum of the accumulated
normal and additional contributions, as defined in Sections 15-116 and 15-117.
(b) Upon acceptance of a refund, the participant forfeits all
accrued rights and credits in the System, and if subsequently reemployed, the
participant shall be considered a new employee subject to all the qualifying
conditions for participation and eligibility for benefits applicable to new
employees.  If such person again becomes a participating employee and continues
as such for 2 years, or is employed by an employer and participates for at
least 2 years in the Federal Civil Service Retirement System, all such rights,
credits, and previous status as a participant shall be restored upon repayment
of the amount of the refund, together with compound interest thereon from the
date the refund was issued to the date of repayment at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date.
When a participant in the portable benefit package who received a refund
which included a distribution of employer contributions repays a refund
pursuant to this Section, one-half of the amount repaid shall be deemed the
member's reinstated accumulated normal and additional contributions and the
other half shall be allocated as an employer contribution to the System,
except that any amount repaid for previously purchased military service
credit under Section 15-113.3 shall be accounted for as such.
(c) Except as otherwise provided under subsection (c-5), if a participant covered under the traditional
benefit package has made survivors insurance contributions, but has no
survivors insurance beneficiary upon retirement, he or she shall be entitled
to elect a refund of the accumulated survivors insurance contributions, or to
elect an additional annuity the value of which is equal to the accumulated
survivors insurance contributions.  This election must be made prior to the
date the person's retirement annuity is approved by the System.
(c-5) Notwithstanding subsection (c), an annuitant who retired prior to June 1, 2011 and made the election under subsection (c), and who thereafter became, and remains, either:
(1) a party to a civil union or a party to a legal     relationship that is recognized as a civil union or marriage under the Illinois Religious Freedom Protection and Civil Union Act on or after June 1, 2011; or
(2) a party to a marriage  under the Illinois     Marriage and Dissolution of Marriage Act on or after February 26, 2014; or
(3) a party to a marriage, civil union or other legal     relationship that, at the time it was formed,  was not legally recognized in Illinois but was subsequently recognized as a civil union or marriage under the Illinois Religious Freedom Protection and Civil Union Act on or after June 1, 2011,  a marriage under the Illinois Marriage and Dissolution of Marriage Act on or after February 26, 2014, or both;may make a one-time, irrevocable election to repay the refund or additional annuity payments received under subsection (c), together with compound interest thereon at the actuarially assumed rate of return from the date the refund was issued or the date each additional annuity payment was issued to the date of repayment. The annuitant shall submit proof of party status for item (1), (2),  or (3) in the form of a valid marriage certificate or a civil union certificate with any additional requirements the Board prescribes by rulemaking. The election must be received by the System  (i) within a period of one year beginning 5 months after the effective date of this amendatory Act of the 99th General Assembly and (ii) prior to the date of death of the annuitant.
To the extent permitted under the Internal Revenue Code of 1986, as amended, the full repayment shall be made within a period beginning on the date of the election and ending on the earlier of the 24th month thereafter or the date of the annuitant's death.  If an annuitant fails to make the repayment within the required period, any payments made shall be returned, without interest, to the annuitant (or to the annuitant's estate if the payments ceased due to death), and survivors insurance benefits under Section 15-145 shall not be payable upon the annuitant's death.
Upon such repayment, all forfeited survivors insurance benefit rights and credits under Section 15-145 shall be restored. This repayment right shall not alter or modify any eligibility requirement for survivors insurance beneficiaries under this Article applicable upon the annuitant's death. The repayment shall be irrevocable. No person shall have a claim or right to the repaid amounts in a manner not otherwise provided for under this Article in the event that: the marriage, civil union, or other legal relationship described in this subsection is dissolved, annulled, or declared invalid by a court of competent jurisdiction; or the other party to the marriage, civil union, or other legal relationship predeceases the annuitant or otherwise fails to qualify as a survivors insurance beneficiary upon the annuitant's death.
For purposes of this subsection (c-5), the term "annuitant" shall include an annuitant who resumed his or her status as a participating employee under Section 15-139(c).
(d) A participant, upon application, is entitled to a refund of his
or her accumulated additional contributions attributable to the additional
contributions described in the last sentence of subsection (c) of Section
15-157. Upon the acceptance of such a refund of accumulated additional
contributions, the participant forfeits all rights and credits which may
have accrued because of such contributions.
(e) A participant who terminates his or her employee status and elects to
waive service credit under Section 15-154.2, is entitled to a refund of the
accumulated normal, additional and survivors insurance contributions, if any,
which were credited the participant for this service, or to an additional
annuity the value of which is equal to the accumulated normal, additional and
survivors insurance contributions, if any; except that not more than one such
refund application may be made during any academic year. Upon acceptance of
this refund, the participant forfeits all rights and credits accrued because
of this service.
(f) If a police officer or firefighter receives a retirement annuity
under Rule 1 or 3 of Section 15-136, he or she shall be entitled at
retirement to a refund of the difference between his or her accumulated
normal contributions and the normal contributions which would have
accumulated had such person filed a waiver of the retirement formula
provided by Rule 4 of Section 15-136.
(g) If, at the time of retirement, a participant would be entitled to
a retirement annuity under Rule 1, 2, 3, 4, or 5 of Section 15-136, or under
Section 15-136.4,  that exceeds
the maximum specified in clause (1) of subsection (c) of Section 15-136, he
or she shall be entitled to a refund of the employee contributions, if any,
paid under Section 15-157 after the date upon which continuance of such
contributions would have otherwise caused the retirement annuity to exceed
this maximum, plus compound interest at the effective rates.
(Source: P.A. 99-450, eff. 8-24-15; 99-682, eff. 7-29-16.)
(40 ILCS 5/15-154.1) (from Ch. 108 1/2, par. 15-154.1)
Sec. 15-154.1. 
		Maximum benefits. 
		The combined retirement annuity, survivors insurance,
death benefits, or disability benefits under this system and any other
system which is, has been, or may be financed fully or in part by
contributions from any alumni association, foundation or athletic
association affiliated with the universities included as
employers, shall not exceed the largest benefit which could be payable
by this system
or such other system based upon the participant's combined service and
earnings credits.
If the combined benefits exceed the largest benefit as determined
in accordance with this Section, the benefits payable by this system shall
be reduced to that amount which, when added to the benefits payable under
such other system, equals this largest benefit.
If benefits are reduced, this system
shall pay to the alumni association, foundation or athletic association
which financed such other system, that fraction of the reduction, the
numerator of which is the amount of the benefits payable by the other
system prior to the adjustment and the denominator of which is the amount
of the combined benefits which would have been payable prior to the
adjustment. In determining the adjustment of the survivors insurance or
death benefit made under this Section, the benefits payable
under this system and the other systems shall be reduced to common
actuarial equivalents in accordance with the mortality, interest, and
annuity tables adopted by the board and the method of payment required by
this Article.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-154.2) (from Ch. 108 1/2, par. 15-154.2)
Sec. 15-154.2. 
		Waiver of service and benefits. 
		A participant or annuitant
may elect to waive all or any portion of his or her service credit and benefits
which may be payable under this Article; however, service purchased under
the provisions of subsection (c) of Section 15-113.1, subsections (b), (c)
and (d) of Section 15-113.5,
Section 15-113.6, and Section 15-113.7 must be waived before other service
which is granted under this Article.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
Sec. 15-155. Employer contributions.
(a) The State of 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 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 recommendations of the actuary, using the formula
in subsection (a-1).
(a-1) For State fiscal years 2012 through 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 each of State fiscal years 2018,  2019, and 2020, the State shall make an additional contribution to the System equal to 2% of the total payroll of each employee who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161.
A change in an actuarial or investment assumption that increases or
decreases the required State contribution and first
applies in State fiscal year 2018 or thereafter shall be
implemented in equal annual amounts over a 5-year period
beginning in the State fiscal year in which the actuarial
change first applies to the required State contribution.
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 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.
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.
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 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 15-165, 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.
(a-2) Beginning in fiscal year 2018, each employer under this Article shall pay to the System a required contribution determined as a percentage of projected payroll and sufficient to produce an annual amount equal to:
(i) for each of fiscal years 2018,  2019, and 2020,     the defined benefit normal cost of the defined benefit plan, less the employee contribution, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161; for fiscal year 2021 and each fiscal year thereafter, the defined benefit normal cost of the defined benefit plan, less the employee contribution, plus 2%, for each employee of that employer who has elected or who is deemed to have elected the benefits under Section 1-161 or who has made the election under subsection (c) of Section 1-161; plus
(ii) the amount required for that fiscal year to     amortize any unfunded actuarial accrued liability associated with the present value of liabilities attributable to the employer's account under Section 15-155.2, determined as a level percentage of payroll over a 30-year rolling amortization period.
In determining contributions required under item (i) of this subsection, the System shall determine an aggregate rate for all employers, expressed as a percentage of projected payroll.
In determining the contributions required under item (ii) of this subsection, the amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation.
The contributions required under this subsection (a-2) shall be paid by an employer concurrently with that employer's payroll payment period. The State, as the actual employer of an employee, shall make the required contributions under this subsection.
As used in this subsection, "academic year" means the 12-month period beginning September 1.
(b) If an employee is paid from trust or federal funds, the employer
shall pay to the Board contributions from those funds which are
sufficient to cover the accruing normal costs on behalf of the employee.
However, universities having employees who are compensated out of local
auxiliary funds, income funds, or service enterprise funds are not required
to pay such contributions on behalf of those employees.  The local auxiliary
funds, income funds, and service enterprise funds of universities shall not be
considered trust funds for the purpose of this Article, but funds of alumni
associations, foundations, and athletic associations which are affiliated with
the universities included as employers under this Article and other employers
which do not receive State appropriations are considered to be trust funds for
the purpose of this Article.
(b-1) The City of Urbana and the City of Champaign shall each make
employer contributions to this System for their respective firefighter
employees who participate in this System pursuant to subsection (h) of Section
15-107.  The rate of contributions to be made by those municipalities shall
be determined annually by the Board on the basis of the actuarial assumptions
adopted by the Board and the recommendations of the actuary, and shall be
expressed as a percentage of salary for each such employee.  The Board shall
certify the rate to the affected municipalities as soon as may be practical.
The employer contributions required under this subsection shall be remitted by
the municipality to the System at the same time and in the same manner as
employee contributions.
(c) Through State fiscal year 1995: The total employer contribution shall
be apportioned among the various funds of the State and other employers,
whether trust, federal, or other funds, in accordance with actuarial procedures
approved by the Board.  State of Illinois contributions for employers receiving
State appropriations for personal services shall be payable from appropriations
made to the employers or to the System.  The contributions for Class I
community colleges covering earnings other than those paid from trust and
federal funds, shall be payable solely from appropriations to the Illinois
Community College Board or the System for employer contributions.
(d) Beginning in State fiscal year 1996, the required State contributions
to the System shall be appropriated directly to the System and shall be payable
through vouchers issued in accordance with subsection (c) of Section 15-165, except as provided in subsection (g).
(e) The State Comptroller shall draw warrants payable to the System upon
proper certification by the System or by the employer in accordance with the
appropriation laws and this Code.
(f) Normal costs under this Section means liability for
pensions and other benefits which accrues to the System because of the
credits earned for service rendered by the participants during the
fiscal year and expenses of administering the System, but shall not
include the principal of or any redemption premium or interest on any bonds
issued by the Board or any expenses incurred or deposits required in
connection therewith.
(g) If the amount of a participant's earnings for any academic year used to determine the final rate of earnings, determined on a full-time equivalent basis, exceeds the amount of his or her earnings with the same employer for the previous academic year, determined on a full-time equivalent basis, by more than 6%, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, the present value of the increase in benefits resulting from the portion of the increase in earnings that is in excess of 6%.  This present value shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation.   The System may require the employer to provide any pertinent information or documentation.
Whenever it determines that a payment is or may be required under this subsection (g), the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculations used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute and, if the employer asserts that the calculation is subject to subsection (h), (h-5), or (i) of this Section, must include an affidavit setting forth and attesting to all facts within the employer's knowledge that are pertinent to the applicability of that subsection. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection (g) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the employer contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the System'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 3 years after the employer's receipt of the bill.
When assessing payment for any amount due under this subsection (g), the System shall include earnings, to the extent not established by a participant under Section 15-113.11 or 15-113.12, that would have been paid to the participant had the participant not taken (i) periods of voluntary or involuntary furlough occurring on or after July 1, 2015 and on or before June 30, 2017 or (ii) periods of voluntary pay reduction in lieu of furlough occurring on or after July 1, 2015 and on or before June 30, 2017.  Determining earnings that would have been paid to a participant had the participant not taken periods of voluntary or involuntary furlough or periods of voluntary pay reduction shall be the responsibility of the employer, and shall be reported in a manner prescribed by the System.
This subsection (g) does not apply to (1) Tier 2 hybrid plan members and (2) Tier 2 defined benefit members who first participate under this Article on or after the implementation date of the Optional Hybrid Plan.
(g-1) (Blank).
(h) This subsection (h) applies only to payments made or salary increases given on or after June 1, 2005 but before July 1, 2011. The changes made by Public Act 94-1057 shall not require the System to refund any payments received before July 31, 2006 (the effective date of Public Act 94-1057).
When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases paid to participants under contracts or collective bargaining agreements entered into, amended, or renewed before June 1, 2005.
When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases paid to a participant  at a time when the participant is 10 or more years from retirement eligibility under Section 15-135.
When assessing payment for any amount due under subsection (g), the System shall exclude earnings increases resulting from overload work, including a contract for summer teaching, or overtime when the employer has certified to the System, and the System has approved the certification, that: (i) in the case of overloads (A) the overload work is for the sole purpose of academic instruction in excess of the standard number of instruction hours for a full-time employee occurring during the academic year that the overload is paid and (B) the earnings increases are equal to or less than the rate of pay for academic instruction computed using the participant's current salary rate and work schedule; and (ii) in the case of overtime, the overtime was necessary for the educational mission.
When assessing payment for any amount due under subsection (g), the System shall exclude any earnings increase resulting from (i) a promotion for which the employee moves from one classification to a higher classification under the State Universities Civil Service System, (ii) a promotion in academic rank for a tenured or tenure-track faculty position, or (iii) a promotion that the Illinois Community College Board has recommended in accordance with subsection (k) of this Section. These earnings increases shall be excluded only if the promotion is to a position that has existed and been filled by a member for no less than one complete academic year and the earnings increase as a result of the promotion is an increase that results in an amount no greater than the average salary paid for other similar positions.
(h-5) When assessing payment for any amount due under subsection (g), the System shall exclude any earnings increase paid in an academic year beginning on or after July 1, 2020 resulting from overload work performed in an academic year subsequent to an academic year in which the employer was unable to offer or allow to be conducted overload work due to an emergency declaration limiting such activities.
(i) When assessing payment for any amount due under subsection (g), the System shall exclude any salary increase  described in subsection (h) of this Section given on or after  July 1, 2011 but before July 1, 2014 under a contract or collective bargaining agreement entered into, amended, or renewed on or after June 1, 2005 but before July 1, 2011. Except as provided in subsection (h-5), any payments made or salary increases given after June 30, 2014 shall be used in assessing payment for any amount due under subsection (g) of this Section.
(j) The System shall prepare a report and file copies of the report with the Governor and the General Assembly by January 1, 2007 that contains all of the following information:
(1) The number of recalculations required by the     changes made to this Section by Public Act 94-1057 for each employer.
(2) The dollar amount by which each employer's     contribution to the System was changed due to recalculations required by Public Act 94-1057.
(3) The total amount the System received from each     employer as a result of the changes made to this Section by Public Act 94-4.
(4) The increase in the required State contribution     resulting from the changes made to this Section by Public Act 94-1057.
(j-5) For State fiscal years beginning on or after July 1, 2017, if the amount of a participant's earnings for any State fiscal year exceeds the amount of the salary set by law for the Governor that is in effect on July 1 of that fiscal year, the participant's employer shall pay to the System, in addition to all other payments required under this Section and in accordance with guidelines established by the System, an amount determined by the System to be equal to the employer normal cost, as established by the System and expressed as a total percentage of payroll, multiplied by the amount of earnings in excess of the amount of the salary set by law for the Governor. This amount shall be computed by the System on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the System that is available at the time of the computation. The System may require the employer to provide any pertinent information or documentation.
Whenever it determines that a payment is or may be required under this subsection, the System shall calculate the amount of the payment and bill the employer for that amount. The bill shall specify the calculation used to determine the amount due. If the employer disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the System in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the System shall review the application and, if appropriate, recalculate the amount due.
The employer contributions required under this subsection may be paid in the form of a lump sum within 90 days after issuance of the bill. If the employer contributions are not paid within 90 days after issuance of the bill, then interest will be charged at a rate equal to the System's annual actuarially assumed rate of return on investment compounded annually from the 91st day after issuance of the bill. All payments must be received within 3 years after issuance of the bill. If the employer fails to make complete payment, including applicable interest, within 3 years, then the System may, after giving notice to the employer, certify the delinquent amount to the State Comptroller, and the Comptroller shall thereupon deduct the certified delinquent amount from State funds payable to the employer and pay them instead to the System.
This subsection (j-5) does not apply to a participant's earnings to the extent an employer pays the employer normal cost of such earnings.
The changes made to this subsection (j-5) by Public Act 100-624 are intended to apply retroactively to July 6, 2017 (the effective date of Public Act 100-23).
(k) The Illinois Community College Board shall adopt rules for recommending lists of promotional positions submitted to the Board by community colleges and for reviewing the promotional lists on an annual basis. When recommending promotional lists, the Board shall consider the similarity of the positions submitted to those positions recognized for State universities by the State Universities Civil Service System. The Illinois Community College Board shall file a copy of its findings with the System. The System shall consider the findings of the Illinois Community College Board when making determinations under this Section. The System shall not exclude any earnings increases resulting from a promotion when the promotion was not submitted by a community college. Nothing in this subsection (k) shall require any community college to submit any information to the Community College Board.
(l) For purposes of determining the required State contribution to the System, the value of the System's assets 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.
(m) 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. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-764, eff. 5-13-22.)
(40 ILCS 5/15-155.1)
Sec. 15-155.1. Actions to enforce payments by employers.
(a) Except as otherwise specified, if any employer fails to transmit to the System contributions required of it under this Article or contributions collected by it from its participating employees for the purposes of this Article for more than 120 days after the payment of those contributions is due, the Board, after giving notice to that employer, may certify to the State Comptroller the amounts of such delinquent payments in accordance with any applicable rules of the Comptroller, and the Comptroller shall deduct the amounts so certified or any part thereof from any payments of State funds to the employer involved and shall remit the amount so deducted to the System. If State funds from which such deductions may be made are not available or if deductions are delayed for longer than 120 days after the date of the certification to the Comptroller, the Board may proceed against the employer to recover the amounts of such delinquent payments in the appropriate circuit court.
(b) Except as otherwise specified, if any employer that is a community college district fails to transmit to the System contributions required of it under this Article or contributions collected by it from its participating employees for the purposes of this Article for more than 120 days after the payment of those contributions is due, the Board, after giving notice to that employer, may certify the fact of such delinquent payment to the county treasurer of the county in which that employer is located, who shall thereafter remit the amounts collected from any taxes levied by the employer directly to the System.  If the funds from which such remittances may be made are not available or if the remittances are delayed for longer than 120 days after the date of the certification to the county treasurer, the Board may proceed against the employer to recover the amounts of such delinquent payments in the appropriate circuit court.
(c)  Nothing in this Section prohibits the Board from proceeding against an employer to recover the amounts of any delinquent payments in the appropriate circuit court.
(Source: P.A. 100-988, eff. 8-20-18.)
(40 ILCS 5/15-155.2)
Sec. 15-155.2. Individual employer accounts.
(a) The System shall create and maintain an individual account for each employer for the purposes of determining employer contributions under subsection (a-2) of Section 15-155.  Each employer's account shall be notionally charged  with the liabilities attributable to that employer and credited with the assets attributable to that employer.
(b) Beginning with fiscal year 2018, the System shall assign  notional liabilities to each employer's account, equal to the amount of employer contributions required to be made by the employer pursuant to items (i) and (ii) of subsection (a-2) of Section 15-155, plus any unfunded actuarial accrued liability associated with the defined benefits attributable to the employer's employees who first became participants on or after the implementation date and the employer's employees who made the election under subsection (c-5) of Section 1-161.
(c) Beginning with fiscal year 2018, the System shall assign notional assets to each employer's account equal to the amounts of employer contributions made pursuant to items (i) and (ii) of subsection (a-2) of Section 15-155.
(Source: P.A. 100-23, eff. 7-6-17.)
(40 ILCS 5/15-156) (from Ch. 108 1/2, par. 15-156)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-156. Obligations of State; funding guarantees.
(a) The payment of (1) the
required State contributions, (2) all benefits
granted under this system and (3) all expenses in connection with the
administration and operation thereof are obligations of the State of
Illinois to the extent specified in this Article. The accumulated
employee normal, additional and survivors insurance contributions
credited to the accounts of active and inactive participants
shall not be used to pay the State's share of the obligations.
(b) Beginning July 1, 2014, the State shall be obligated to contribute to the System in each State fiscal year an amount not less than the sum of (i) the State's normal cost for the year and (ii) the portion of the unfunded accrued liability assigned to that year by law. Notwithstanding any other provision of  law, if the State fails to pay an amount required under this subsection, it shall be the obligation of the Board to seek payment of the required amount in compliance with the provisions of this Section and, if the amount remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required payment.
If the System submits a voucher for contributions  required under Section 15-155 and the State fails to pay that voucher within 90 days of its receipt, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the amount remains unpaid the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to satisfy the voucher.
This subsection (b) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to pay a voucher for the contributions required under Section 15-155.
(c) Beginning in State fiscal year 2016, the State shall be obligated to make the transfers set forth in subsections  (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amounts in accordance with Section 25 of the Budget Stabilization Act.  Notwithstanding any other provision of  law, if the State fails to transfer an amount required under this subsection or to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act, it shall be the obligation of the Board to seek transfer or payment of the required amount in compliance with the provisions of this Section and,  if the required amount remains untransferred or the required payment remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required transfer or payment or both, as the case may be.
If the State fails to make a transfer  required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act or a payment to the System required under Section 25 of that Act, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State,  if the required amount remains untransferred or the required payment remains unpaid, the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make the required transfer or payment or both, as the case may be.
This subsection (c) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act.
The obligations created by this subsection (c) expire when all of the requirements of subsections  (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and Section 25 of the Budget Stabilization Act have been met.
(d) Any payments and transfers required to be made by the State pursuant to subsection (b) or (c) are expressly subordinate to the payment of the principal, interest, and premium, if any, on any bonded debt obligation of the State or any other State-created entity, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from tax revenues collected by the State or any other State-created entity. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law or bond indentures, into debt service funds or accounts of the State related to such bond obligations, consistent with the payment schedules associated with such obligations.
(Source: P.A. 98-599, eff. 6-1-14.)
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-156. 
		Obligations of State. 
		The payment of (1) the
required State contributions, (2) all benefits
granted under this system and (3) all expenses in connection with the
administration and operation thereof are obligations of the State of
Illinois to the extent specified in this Article. The accumulated
employee normal, additional and survivors insurance contributions
credited to the accounts of active and inactive participants
shall not be used to pay the State's share of the obligations.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
Sec. 15-157. Employee Contributions.
(a) Each participating employee
shall make contributions towards the retirement
benefits payable under the retirement program applicable to the
employee from each payment
of earnings applicable to employment under this system on and after the
date of becoming a participant as follows:  Prior to September 1, 1949,
3 1/2% of earnings; from September 1, 1949 to August 31, 1955, 5%; from
September 1, 1955 to August 31, 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions are to be considered as normal contributions for purposes
of this Article.
Each participant who is a police officer or firefighter shall make normal
contributions of 8% of each payment of earnings applicable to employment as a
police officer or firefighter under this system on or after September 1, 1981,
unless he or she files with the board within 60 days after the effective date
of this amendatory Act of 1991 or 60 days after the board receives notice that
he or she is employed as a police officer or firefighter, whichever is later,
a written notice waiving the retirement formula provided by Rule 4 of Section
15-136.  This waiver shall be irrevocable.  If a participant had met the
conditions set forth in Section 15-132.1 prior to the effective date of this
amendatory Act of 1991 but failed to make the additional normal contributions
required by this paragraph, he or she may elect to pay the additional
contributions plus compound interest at the effective rate.  If such payment
is received by the board, the service shall be considered as police officer
service in calculating the retirement annuity under Rule 4 of Section 15-136.
While performing service described in clause (i) or (ii) of Rule 4 of Section
15-136, a participating employee shall be deemed to be employed as a
firefighter for the purpose of determining the rate of employee contributions
under this Section.
(b) Starting September 1, 1969, each participating employee shall make
additional contributions of 1/2 of 1% of earnings to finance a portion
of the cost of the annual increases in retirement annuity provided under
Section 15-136, except that with respect to participants in the
self-managed plan this additional contribution shall be used to finance the
benefits obtained under that retirement program.
(c) In addition to the amounts described in subsections (a) and (b) of this
Section, each participating employee shall make contributions of 1% of earnings
applicable under this system on and after August 1, 1959.  The contributions
made under this subsection (c) shall be considered as survivor's insurance
contributions for purposes of this Article if the employee is covered under
the traditional benefit package, and such contributions shall be considered
as additional contributions for purposes of this Article if the employee is
participating in the self-managed plan or has elected to participate in the
portable benefit package and has completed the applicable one-year waiting
period.  Contributions in excess of $80 during any fiscal year beginning before
August 31, 1969 and in excess of $120 during any fiscal year thereafter until
September 1, 1971 shall be considered as additional contributions for purposes
of this Article.
(d) If the board by board rule so permits and subject to such conditions
and limitations as may be specified in its rules, a participant may make
other additional contributions of such percentage of earnings or amounts as
the participant shall elect in a written notice thereof received by the board.
(e) That fraction of a participant's total accumulated normal
contributions, the numerator of which is equal to the number of years of
service in excess of that which is required to qualify for the maximum
retirement annuity, and the denominator of which is equal to the total
service of the participant, shall be considered as accumulated additional
contributions.  The determination of the applicable maximum annuity and
the adjustment in contributions required by this provision shall be made
as of the date of the participant's retirement.
(f) Notwithstanding the foregoing, a participating employee shall not
be required to make contributions under this Section after the date upon
which continuance of such contributions would otherwise cause his or her
retirement annuity to exceed the maximum retirement annuity as specified in
clause (1) of subsection (c) of Section 15-136.
(g) A participant may make contributions for the purchase of
service credit under this Article; however, only a participating employee may make optional contributions under subsection (b) of Section 15-157.1 of this Article.
(h) A Tier 2 member shall not make contributions on earnings that exceed the limitation as prescribed under subsection (b) of Section 15-111 of this Article.
(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15.)
(40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
Sec. 15-157.1. 
		Pickup of employee contributions.
(a) Each employer shall pick up the employee contributions required
under subsections (a), (b), and (c) of Section 15-157 for all earnings payments
made on and after January 1, 1981, and the contributions so picked up
shall be treated as employer contributions in determining tax treatment
under the United States Internal Revenue Code. These contributions shall
not be included as gross income of the participant until such time as they
are distributed or made available.  The employer shall pay these employee
contributions from the same source of funds which is used in paying earnings
to the employee.  The employer may pick up these contributions by a reduction
in the cash salary of the participants, or by an offset against a future
salary increase, or by a combination of a reduction in salary and offset
against a future salary increase.
(b) Subject to the requirements of federal law, a participating employee
may elect to have the employer pick up optional contributions that the
participant has elected to pay to the System under Section 15-157(g), and the
contributions so picked up shall be treated as employer contributions for the
purposes of determining federal tax treatment under the federal Internal
Revenue Code of 1986.  These contributions shall not be included as gross
income of the participant until such time as they are distributed or made
available.  The employer shall pick up the contributions by a reduction in the
cash salary of the participant and shall pay the contributions from the same
source of funds that is used to pay earnings to the participant.  The election
to have optional contributions picked up is irrevocable.
(Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97.)
(40 ILCS 5/15-157.5)
(This Section was added by P.A. 98-599, which has been held unconstitutional)
Sec. 15-157.5. Use of contributions for health care subsidies. The System shall not use any contribution received by the System under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(Source: P.A. 98-599, eff. 6-1-14.)
(40 ILCS 5/15-158.1) (from Ch. 108 1/2, par. 15-158.1)
Sec. 15-158.1. 
		(Repealed).
(Source: P.A. 87-1265.  Repealed by P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/15-158.2)
Sec. 15-158.2. Self-managed plan.
(a) Purpose.  The General Assembly finds that it is important for colleges
and universities to be able to attract and retain the most qualified employees
and that in order to attract and retain these employees, colleges and
universities should have the flexibility to provide a defined contribution
plan as an alternative for eligible employees who elect not to participate
in a defined benefit retirement program provided under this Article.
Accordingly, the State Universities Retirement System is hereby authorized to
establish and administer a self-managed plan, which shall offer participating
employees the opportunity to accumulate assets for retirement through a
combination of employee and employer contributions that may be invested in
mutual funds, collective investment funds, or other investment products and
used to purchase annuity contracts, either fixed or variable or a combination
thereof.  The plan must be qualified under the Internal Revenue Code of 1986.
(b) Adoption by employers.  Each employer subject to this Article may
elect to adopt the self-managed plan established under this Section; this
election is irrevocable.  An employer's election to adopt the self-managed
plan makes available to the eligible employees of that employer the elections
described in Section 15-134.5.
The State Universities Retirement System shall be the plan sponsor for the
self-managed plan and shall prepare a plan document and prescribe such rules
and procedures as are considered necessary or desirable for the administration
of the self-managed plan.  Consistent with its fiduciary duty to the
participants and beneficiaries of the self-managed plan, the Board of Trustees
of the System may delegate aspects of plan administration as it sees fit to
companies authorized to do business in this State, to the employers, or to a
combination of both.
(c) Selection of service providers and funding vehicles.  The System, in
consultation with the employers, shall solicit proposals to provide
administrative services and funding vehicles for the self-managed plan from
insurance and annuity companies and mutual fund companies, banks, trust
companies, or other financial institutions authorized to do business in this
State.  In reviewing the proposals received and approving and contracting with
no fewer than 2 and no more than 7 companies, the Board of Trustees of the System shall
consider, among other things, the following criteria:
(1) the nature and extent of the benefits that would     be provided to the participants;
(2) the reasonableness of the benefits in relation to     the premium charged;
(3) the suitability of the benefits to the needs and     interests of the participating employees and the employer;
(4) the ability of the company to provide benefits     under the contract and the financial stability of the company; and
(5) the efficacy of the contract in the recruitment     and retention of employees.
The System, in consultation with the employers, shall periodically review
each approved company.  A company may continue to provide administrative
services and funding vehicles for the self-managed plan only so long as
it continues to be an approved company under contract with the Board.
(d) Employee Direction.  Employees who are participating in the program
must be allowed to direct the transfer of their account balances among the
various investment options offered, subject to applicable contractual
provisions.
The participant shall not be deemed a fiduciary by reason of providing such
investment direction.  A person who is a fiduciary shall not be liable for any
loss resulting from such investment direction and shall not be deemed to have
breached any fiduciary duty by acting in accordance with that direction. The System shall provide advance notice to the participant of the participant's obligation to direct the investment of employee and employer contributions into one or more investment funds selected by the System at the time he or she makes his or her initial retirement plan selection. If a participant fails to direct the investment of employee and employer contributions into the various investment options offered to the participant when making his or her initial retirement election choice, that failure shall require the System to invest the employee and employer contributions in a default investment fund on behalf of the participant, and the investment shall be deemed to have been made at the participant's investment direction.  The participant has the right to transfer account balances out of the default investment fund during time periods designated by the System.
Neither the System nor the employer guarantees any of the investments in the
employee's account balances.
(e) Participation.  An employee eligible to participate in the
self-managed plan must make a written election in accordance with the
provisions of Section 15-134.5 and the procedures established by the System.
Participation in the self-managed plan by an electing employee shall begin
on the first day of the first pay period following the later of the date the
employee's election is filed with the System or the effective date as of
which the employee's employer begins to offer participation in the self-managed
plan.  Employers may not make the self-managed plan available earlier than
January 1, 1998.  An employee's participation in any other retirement program
administered by the System under this Article shall terminate on the date that
participation in the self-managed plan begins.
An employee who has elected to participate in the self-managed plan under
this Section must continue participation while employed in an eligible
position, and may not participate in any other retirement program administered
by the System under this Article while employed by that employer or any other
employer that has adopted the self-managed plan, unless the self-managed plan
is terminated in accordance with subsection (i).
Notwithstanding any other provision of this Article, a Tier 2 member shall have the option to enroll in the self-managed plan.
Participation in the self-managed plan under this Section shall constitute
membership in the State Universities Retirement System.
A participant under this Section shall be entitled to the benefits of
Article 20 of this Code.
(f) Establishment of Initial Account Balance.  If at the time an employee
elects to participate in the self-managed plan he or she has rights and credits
in the System due to previous participation in the traditional benefit package,
the System shall establish for the employee an opening account balance in the
self-managed plan, equal to the amount of contribution refund that the employee
would be eligible to receive under Section 15-154 if the employee terminated
employment on that date and elected a refund of contributions, except that this
hypothetical refund shall include interest at the effective rate for the
respective years.  The System shall transfer assets from the defined benefit
retirement program to the self-managed plan, as a tax free transfer in
accordance with Internal Revenue Service guidelines, for purposes of funding
the employee's opening account balance.
(g) No Duplication of Service Credit.  Notwithstanding any other provision
of this Article, an employee may not purchase or receive service or service
credit applicable to any other retirement program administered by the System
under this Article for any period during which the employee was a participant
in the self-managed plan established under this Section.
(h) Contributions.  The self-managed plan shall be funded by contributions
from employees participating in the self-managed plan and employer
contributions as provided in this Section.
The contribution rate for employees participating in the self-managed plan
under this Section shall be equal to the employee contribution rate for other
participants in the System, as provided in Section 15-157.  This required
contribution shall be made as an "employer pick-up" under Section 414(h) of the
Internal Revenue Code of 1986 or any successor Section thereof.  Any employee
participating in the System's traditional benefit package prior to his or her
election to participate in the self-managed plan shall continue to have the
employer pick up the contributions required under Section 15-157.  However, the
amounts picked up after the election of the self-managed plan shall be remitted
to and treated as assets of the self-managed plan.  In no event shall an
employee have an option of receiving these amounts in cash.  Employees may make
additional contributions to the
self-managed plan in accordance with procedures prescribed by the System, to
the extent permitted under rules prescribed by the System.
The program shall provide for employer contributions to be credited to each
self-managed plan participant at a rate of 7.6%
of the participating employee's salary, less the amount used by
the System to provide disability benefits for the employee.
The amounts so credited
shall be paid into the participant's self-managed plan accounts in a manner
to be prescribed by the System.
An amount of employer contribution, not exceeding 1% of the participating
employee's salary, shall be used for the purpose of providing the disability
benefits of the System to the employee.  Prior to the beginning of each plan
year under the self-managed plan, the Board of Trustees shall determine, as a
percentage of salary, the amount of employer contributions to be allocated
during that plan year for providing disability benefits for employees in the
self-managed plan.
The State of Illinois shall make contributions by appropriations to the
System of the employer contributions required for employees who participate in
the self-managed plan under this Section.
The amount required shall
be certified by the Board of Trustees of the System and paid by the State in
accordance with Section 15-165.  The System shall not be obligated to remit the
required employer contributions to any of the insurance and annuity
companies, mutual fund
companies, banks, trust companies, financial institutions, or other sponsors
of any of the funding vehicles offered under the self-managed plan
until it has received the required employer contributions from the State.  In
the event of a deficiency in the amount of State contributions, the System
shall implement those procedures described in subsection (c) of Section 15-165
to obtain the required funding from the General Revenue
Fund.
(i) Termination.  The self-managed plan authorized under this
Section may be terminated by the System, subject to the terms
of any relevant
contracts, and the System shall have no obligation to
reestablish the self-managed plan under this Section.  This Section does not
create a right
to continued participation in any self-managed plan set up by the System under
this Section.  If the self-managed plan is terminated,
the participants shall have the right to participate in one of the other
retirement programs offered by the System and receive service credit in such
other retirement program for any years of employment following the termination.
(j) Vesting; Withdrawal; Return to Service.  A participant in the
self-managed plan becomes vested in the employer contributions credited to his
or her accounts in the self-managed plan on the earliest to occur of the
following: (1) completion of 5 years of service with an employer described in
Section 15-106; (2) the death of the participating employee while employed by
an employer described in Section 15-106, if the participant has completed at
least 1 1/2 years of service; or (3) the participant's election to retire and
apply the reciprocal provisions of Article 20 of this Code.
A participant in the self-managed plan who receives a distribution of his or
her vested amounts from the self-managed plan
while not yet eligible for retirement under this Article
(and Article 20, if applicable) shall forfeit all service credit
and accrued rights in the System; if subsequently re-employed, the participant
shall be considered a new
employee.  If a former participant again becomes a participating employee (or
becomes employed by a participating system under Article 20 of this Code) and
continues as such for at least 2 years, all such rights, service credits, and
previous status as a participant shall be restored upon repayment of the amount
of the distribution, without interest.
(k) Benefit amounts.  If an employee who is vested in employer
contributions terminates employment, the employee shall be entitled to a
benefit which is based on the
account values attributable to both employer and
employee contributions and any
investment return thereon.
If an employee who is not vested in employer contributions terminates
employment, the employee shall be entitled to a benefit based solely on the
account values attributable to the employee's contributions and any investment
return thereon, and the employer contributions and any investment return
thereon shall be forfeited.  Any employer contributions which are forfeited
shall be held in escrow by the
company investing those contributions and shall be used as directed by the
System for future allocations of employer contributions or for the restoration
of amounts previously forfeited by former participants who again become
participating employees.
(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17.)
(40 ILCS 5/15-158.3)
Sec. 15-158.3. Reports on cost reduction; effect on retirement at any age
with 30 years of service.
(a)
On or before November 15, 2001 and on or before November 15th of each
year thereafter, the Board shall have the System's actuary prepare a report
showing, on a fiscal year by fiscal year basis, the actual rate of
participation in the self-managed plan
authorized by Section
15-158.2, (i) by employees of the System's covered higher educational
institutions who were hired on or after the implementation date of the
self-managed plan and (ii) by other System
participants.
(b) On or before November 15th of 2001 and on or before November 15th of
each year thereafter, the Illinois Board of Higher Education, in conjunction
with the
                     Bureau of the
Budget (now Governor's Office of Management and Budget) shall prepare a
report showing, on a
fiscal year by fiscal year basis, the amount by which the costs associated with
compensable sick leave have been reduced as a result of the termination of
compensable sick leave accrual on and after January 1, 1998 by employees of
higher education institutions who are participants in the System.
(c) (Blank).
(d) The report required under subsection (b) shall be
disseminated to the Board, the Pension Laws
Commission (until it ceases to exist), the Commission on Government Forecasting and Accountability, the Illinois Board of Higher Education, and the
Governor.
(e) The report required under subsection (b) shall be
taken into account by the Pension
Laws Commission (or its successor, the Commission on Government Forecasting and Accountability) in
making any recommendation to extend by legislation beyond
December 31, 2002 the provision that allows a System participant to retire at
any age with 30 or more years of service as authorized in Section 15-135.
(Source: P.A. 102-19, eff. 7-1-21.)
(40 ILCS 5/15-158.4)
Sec. 15-158.4. Election of medicare coverage.
(a) The System shall conduct a divided medicare coverage referendum, open
to employees continuously employed by the same employer since March 31, 1986.
The referendum shall be conducted in accordance with the applicable provisions
of federal law and Article 21 of this Code.
(b) As used in this Section and in compliance with federal law, "referendum"
means the process whereby employees are granted the opportunity to make an
irrevocable individual election to participate in the medicare program on a
prospective basis.
(c) Employers shall pay the necessary employer contributions and make the
necessary deductions from salary for employees who elect to participate in the
federal medicare program under this Section, as required by the System, Article
21 of this Code, and federal law.
(Source: P.A. 94-415, eff. 8-2-05.)
(40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)
Sec. 15-159. Board created.
(a) A board of trustees constituted as provided in
this Section shall administer this System.  The board shall be known as the
Board of Trustees of the State Universities Retirement System.
(b) (Blank).
(c) (Blank).
(d) Beginning on the 90th day after April 3, 2009 (the effective date of Public Act 96-6), the Board of Trustees shall be constituted as follows:
(1) The Chairperson of the Board of Higher Education.
(2) Four trustees appointed by the Governor with the     advice and consent of the Senate who may not be members of the system or hold an elective State office and who shall serve for a term of 6 years, except that the terms of the initial appointees under this subsection (d) shall be as follows: 2 for a term of 3 years and 2 for a term of 6 years. The term of an appointed trustee shall terminate immediately upon becoming a member of the system or being sworn into an elective State office, and the position shall be considered to be vacant and shall be filled pursuant to subsection (f) of this Section.
(3) Four participating employees of the system to be     elected from the contributing membership of the system by the contributing members, no more than 2 of which may be from any of the University of Illinois campuses, who shall serve for a term of 6 years, except that the terms of the initial electees shall be as follows: 2 for a term of 3 years and 2 for a term of 6 years.
(4) Two annuitants of the system who have been     annuitants for at least one full year, to be elected from and by the annuitants of the system, no more than one of which may be from any of the University of Illinois campuses, who shall serve for a term of 6 years, except that the terms of the initial electees shall be as follows: one for a term of 3 years and one for a term of 6 years.
The chairperson of the Board shall be appointed by the Governor from among the trustees.
For the purposes of this Section, the Governor may make a nomination and the Senate may confirm the nominee in advance of the commencement of the nominee's term of office.
(e) The 6 elected trustees shall be elected within 90 days after April 3, 2009 (the effective date of Public Act 96-6) for a term beginning on the 90th day after that effective date. Trustees shall be elected thereafter as terms expire for a 6-year term beginning July 15 next following their election, and such election shall be held on May 1, or on May 2 when May 1 falls on a Sunday. The board may establish rules for the election of trustees to implement the provisions of Public Act 96-6 and for future elections. Candidates for the participating trustee shall be nominated by petitions in writing, signed by not less than 400 participants with their addresses shown opposite their names. Candidates for the annuitant trustee shall be nominated by petitions in writing, signed by not less than 100 annuitants with their addresses shown opposite their names.  If there is more than one qualified nominee for each elected trustee, then the board shall conduct a secret ballot election by mail for that trustee, in accordance with rules as established by the board.  If there is only one qualified person nominated by petition for each elected trustee, then the election as required by this Section shall not be conducted for that trustee and the board shall declare such nominee duly elected.  A vacancy occurring in the elective membership of the board shall be filled for the unexpired term by the elected trustees serving on the board for the remainder of the term. Nothing in this subsection shall preclude the adoption of rules providing for internet or phone balloting in addition, or as an alternative, to election by mail.
(f) A vacancy in the appointed membership on the board of trustees caused by resignation,
death, expiration of term of office, or other reason shall be filled by a
qualified person appointed by the Governor for the remainder of the unexpired
term.
(g) Trustees 
shall continue in office until their respective successors are appointed
and have qualified, except that a trustee elected to one of the participating employee
 positions after the effective date of this amendatory Act of the 102nd General Assembly shall be disqualified immediately upon the termination of
his or her status as a participating employee and a trustee elected to one of the
annuitant positions after the effective date of this amendatory Act of the 102nd General Assembly  shall be disqualified immediately upon the termination of
his or her status as an annuitant receiving a retirement annuity.
An elected trustee who is incumbent on the effective date of this amendatory Act of the 102nd General Assembly whose status as a participating employee or annuitant has terminated after having been elected shall continue to serve in the participating employee or annuitant position to which he or she was elected for the remainder of the term.
(h) Each trustee must take an oath of office
before a notary public of this State and shall qualify as a trustee upon the
presentation to the board of a certified copy of the oath.  The oath must state
that the person will diligently and honestly administer the affairs of the
retirement system, and will not knowingly violate or willfully permit to be
violated any provisions of this Article.
Each trustee shall serve without compensation but shall be reimbursed for
expenses necessarily incurred in attending board meetings and carrying out his
or her duties as a trustee or officer of the system.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
(40 ILCS 5/15-160) (from Ch. 108 1/2, par. 15-160)
Sec. 15-160. 
		Board's powers and duties. 
		The board shall have the powers and duties stated in Sections 15-161 through
15-177 in addition to the other powers and duties provided under this Article.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-161) (from Ch. 108 1/2, par. 15-161)
Sec. 15-161. 
		To contract and act in its corporate name.
To be a public corporation of this State with power to enter into
contracts, accept and make transfers of property, real and personal; to
conduct in its corporate name all court proceedings which the board deems
necessary to protect the interests of the State and of the intended
beneficiaries under this Article; and generally to accomplish the objects
and purposes thereof.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-162) (from Ch. 108 1/2, par. 15-162)
Sec. 15-162. To hold meetings. 
To hold regular meetings at least quarterly in each year and special
meetings at such times as the chairperson or a majority of the board deem
necessary.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-163) (from Ch. 108 1/2, par. 15-163)
Sec. 15-163. 
		To consider applications and authorize payments.
To consider and pass on all applications for annuities and benefits; to
authorize the granting of annuities and benefits; and to limit or suspend
any payment or payments, all in accordance with this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-164) (from Ch. 108 1/2, par. 15-164)
Sec. 15-164. 
		
		To certify interest rate, to set value of allowances and
to adopt actuarial tables.
To certify the prescribed and effective rates of interest;
to prescribe rules for the
determination of the value of maintenance, board, living quarters and
personal laundry, and other allowances to employees in lieu of money; and
to adopt all necessary actuarial tables.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-165)
 (from Ch. 108 1/2, par. 15-165)
Sec. 15-165. To certify amounts and submit vouchers.
(a) The Board shall certify to the Governor on or before November 15 of each
year until November 15, 2011 the appropriation required from State funds for the purposes of this
System for the following fiscal year.  The certification under this subsection (a) shall include a copy
of the actuarial recommendations upon which it is based and shall specifically identify the System's projected State normal cost for that fiscal year and the projected State cost for the self-managed plan for that fiscal year.
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 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.
(a-5) 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 each 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, in a written response to the State Actuary, 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.
(a-10) By November 1, 2017, 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 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.
(a-15)    On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly.  The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification.  The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this subsection is submitted to the Governor, Comptroller, and General Assembly.  The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct.
(b) The Board shall certify to the State Comptroller or employer, as the
case may be, from time to time, by its chairperson and secretary, with its seal
attached, the amounts payable to the System from the various funds.
(c) 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 the transfer to the
System under subsection (b) 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.
(d) So long as the payments received are the full amount lawfully
vouchered under this Section, payments received by the System under this
Section shall be applied first toward the employer contribution to the
self-managed plan established under Section 15-158.2.  Payments shall be
applied second toward the employer's portion of the normal costs of the System,
as defined in subsection (f) of Section 15-155.  The balance shall be applied
toward the unfunded actuarial liabilities of the System.
(e) In the event that the System does not receive, as a result of
legislative enactment or otherwise, payments sufficient to
fully fund the employer contribution to the self-managed plan
established under Section 15-158.2 and to fully fund that portion of the
employer's portion of the normal costs of the System, as calculated in
accordance with Section 15-155(a-1), then any payments received shall be
applied proportionately to the optional retirement program established under
Section 15-158.2 and to the employer's portion of the normal costs of the
System, as calculated in accordance with Section 15-155(a-1).
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
(40 ILCS 5/15-166) (from Ch. 108 1/2, par. 15-166)
Sec. 15-166. 
		To be custodian.
To be custodian of all cash and securities belonging to the system.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
Sec. 15-167. To invest money. To invest the funds of the system, subject
to the requirements and restrictions set forth in Sections 1A-108.5, 1-109, 1-109.1,
1-109.2, 1-110, 1-111, 1-114, 1-115, and 15-158.2(d) of this
Code and to invest in real estate acquired by
purchase, gift, condemnation or otherwise, and any office building or buildings
existing or to be constructed thereon, including any additions thereto or
expansions thereof, for the use of the system.  The board may lease surplus
space in any of the buildings and use rental proceeds for operation,
maintenance, improving, expanding and furnishing of the buildings or for any
other lawful system purpose.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended.  The limitations set forth in such Section 6 shall be
applicable only at the time of investment and shall not require the liquidation
of any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities in its
own name or in the name of a nominee created for the express purpose of
registration of securities by a national or state bank or trust company
authorized to conduct a trust business in the State of Illinois.
Investments shall be carried at cost or at a value determined in
accordance with generally accepted accounting principles and accounting
procedures approved by the Board.
All additions to assets from income, interest, and dividends
from investments shall be used to pay benefits,
operating and administrative expenses of the system, debt service,
including any redemption premium, on any bonds issued by the board,
expenses incurred or deposits required in connection with such bonds, and
such other costs as may be provided in accordance with this
Article.
(Source: P.A. 96-753, eff. 8-25-09.)
(40 ILCS 5/15-167.1) (from Ch. 108 1/2, par. 15-167.1)
Sec. 15-167.1. 
		
		Participation in commingled investment funds-Transfer of
investment functions and securities. (a) The retirement board may invest
in any commingled investment fund or
funds established and maintained by the Illinois State Board of Investment
under Article 22A of this Code. All
commingled fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies and directives
of that Board.
(b) The retirement board may, by resolution duly adopted by a majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A of this Code, for management and administration, all
investments owned by the system of every kind and character.
Upon completion
of such transfer, the authority of the retirement board to make investments
shall terminate. Thereafter, all investments of the reserves of the system
shall be made by the Illinois State Board of Investment in accordance
with Article 22A of this Code.
The transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer, an
audit of the investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of the audit
shall be assumed by the retirement board.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
Sec. 15-167.2. 
		To issue bonds. 
		To borrow money and, in evidence of
its obligation to repay the borrowing, to issue bonds for the purpose of
financing the cost of any project.  The bonds shall be authorized pursuant
to a resolution to be adopted by the board setting forth all details in
connection with the bonds.
The principal amount of the outstanding bonds of the board shall not at
any time exceed $20,000,000.
The bonds may be issued in one or more series, bear such date or dates,
become due at such time or times within 40 years, bear interest payable at
such intervals and at such rate or rates, which rates may be fixed or
variable, be in such denominations, be in such form, either coupon,
registered or book-entry, carry such conversion, registration and exchange
privileges, be subject to defeasance upon such terms, have such rank or
priority, be executed in such manner, be payable in such medium of payment
at such place or places within or without the State of Illinois, make
provision for a corporate trustee within or without the State of
Illinois with respect to such bonds, prescribe the rights, powers and
duties thereof to be exercised for the benefit of the board, the system and
the protection of the bondholders, provide for the holding in trust,
investment and use of moneys, funds and accounts held in connection
therewith, be subject to such terms of redemption with or without premium,
and be sold in such manner at private or public sale and at such price, all
as the board shall determine.  Whenever bonds are sold at a price less than
par, they shall be sold at such price and bear interest at such rate or
rates that either the true interest cost (yield) or the net interest rate,
as may be selected by the board, received upon the sale of such bonds does
not exceed the maximum interest rate permitted by the Bond Authorization Act,
as amended at the time of the making of the contract.
Any bonds may be refunded or advance refunded upon such terms as the
board may determine for such term of years, not exceeding 40 years, and in
such principal amount, as may be deemed necessary by the board.  Any
redemption premium payable upon the redemption of bonds may be payable from
the proceeds of refunding bonds issued for the purpose of refunding such
bonds, from any lawfully available source or from both refunding bond
proceeds and such other sources.
The bonds or refunding bonds shall be obligations of the board payable
from the income, interest and dividends derived from investments of
the board, all as may be designated in the resolution of the board
authorizing the issuance of the bonds. The bonds shall be secured as
provided in the authorizing resolution, which may, notwithstanding any
other provision of this Code, include a specific pledge or assignment of
and lien on or security interest in the income, interest and dividends
derived from investments of the board and a specific pledge or assignment
of and lien on or security interest in any funds, reserves or accounts
established or provided for by the resolution of the board authorizing the
issuance of the bonds.
The bonds or refunding bonds shall not be payable from any
employer or employee contributions derived from State appropriations nor
constitute obligations or indebtedness of the State of Illinois or of any
municipal corporation or other body politic and corporate in the State.
The holder or holders of any bonds issued by the board may bring suits at
law or proceedings in equity to compel the performance and observance by
the board or any of its agents or employees of any contract or covenant
made with the holders of the bonds, to compel the board or any of its
agents or employees to perform any duties required to be performed for the
benefit of the holders of the bonds by the provisions of the resolution
authorizing their issuance, and to enjoin the board or any of its agents or
employees from taking any action in conflict with any such contract or covenant.
Notwithstanding the provisions of Section 15-188 of this Code, if the
board fails to pay the principal of, premium, if any, or interest on any of
the bonds as they become due, a civil action to compel payment may be
instituted in the appropriate circuit court by the holder or holders of the
bonds upon which such default exists or by a trustee acting on behalf of the holders.
No bonds may be issued under this Section until a copy of the resolution
of the board authorizing such bonds, certified by the secretary of the
board, has been filed with the Governor of the State of Illinois.
"Bonds" means any instrument evidencing the obligation to pay money,
including without limitation bonds, notes, installment or financing
contracts, leases, certificates, warrants, and any other evidences of indebtedness.
"Project" means the acquisition, construction, equipping, improving,
expanding and furnishing of any office building for the use of the system,
including any real estate or interest in real estate necessary or useful in
connection therewith.
"Cost of any project" includes all capital costs of the project, an
amount for expenses of issuing any bonds to finance such project, including
underwriter's discount and costs of bond insurance or other credit
enhancement, an amount necessary to provide for a reserve fund for the
payment of the principal of and interest on such bonds and an amount to pay
interest on such bonds for a period not to exceed the greater of 2 years or
a period ending 6 months after the estimated date of completion of the project.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-167.3)
Sec. 15-167.3. (Repealed).
(Source: P.A. 92-749, eff. 8-2-02. Repealed by P.A. 95-83, eff. 8-13-07.)
(40 ILCS 5/15-167.4)
Sec. 15-167.4. Eminent domain. Notwithstanding any other provision of this Code, any power granted under this Code to acquire property by condemnation or eminent domain is subject to, and shall be exercised in accordance with, the Eminent Domain Act.
(Source: P.A. 94-1055, eff. 1-1-07.)
(40 ILCS 5/15-168) (from Ch. 108 1/2, par. 15-168)
Sec. 15-168. To require information.
(a) To require such information as shall be necessary for the proper
operation of the system from any participant or beneficiary or annuitant or from any current or former
employer of a participant or annuitant. Such information may include, but is not limited to, employment
contracts.
(b) When the System submits a request for information under subsection (a) of this Section, the
employer shall respond within 90 calendar days of the System's request. Beginning on the 91st
calendar day after the System's request, the System may assess a penalty of $250 per calendar
day until receipt of the information by the System, with a maximum penalty of $25,000. All
payments must be received within one calendar year after receipt of the information by the System or one
calendar year of reaching the maximum penalty of $25,000, whichever occurs earlier. If the
employer fails to make complete payment within the applicable timeframe, then the System may,
after giving notice to the employer, certify the delinquent amount to the State Comptroller, and
the Comptroller shall thereupon deduct the certified delinquent amount from State funds payable
to the employer and pay them instead to the System.
(c) If a participant, beneficiary, or annuitant fails to provide any information that is necessary for
the calculation, payment, or finalization of any benefit under this Article within 90 calendar days
of the date of the System's request under subsection (a) of this Section, then the System may
immediately cease processing the benefit and may not pay any additional benefit payment  to the participant, beneficiary, or annuitant until
the requested information is provided.
(Source: P.A. 98-92, eff. 7-16-13; 99-450, eff. 8-24-15; 99-897, eff. 1-1-17.)
(40 ILCS 5/15-168.1)
Sec. 15-168.1. Testimony and the production of records. The secretary of
the Board shall have
the power to issue subpoenas to compel the attendance of witnesses and the
production of documents and records, including law enforcement records
maintained by law enforcement agencies, in conjunction with:
(1) the determination of employer payments required     under subsection (g) of Section 15-155;
(2) a disability
claim;
(3) an administrative review proceeding;
(4) an attempt to obtain information to assist in the     collection of sums due to the System;
(5) obtaining any and all personal identifying     information necessary for the administration of benefits;
(6) the determination of the death of a benefit     recipient or a potential benefit recipient; or
(7) 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 applicable
provisions of the Code of Civil Procedure.
(Source: P.A. 100-556, eff. 12-8-17.)
(40 ILCS 5/15-168.2)
Sec. 15-168.2. Audit of employers.
(a) Beginning August 1, 2013, the System may audit the employment records and payroll records of all employers.  When the System audits an employer, it shall specify the exact information it requires, which may include but need  not be limited to the names, titles, and earnings history of every individual receiving compensation from the employer.  If an employer is audited by the System, then the employer must provide to the System all necessary documents and records within 60 calendar days after receiving notification from the System.  When the System audits an employer, it shall send related correspondence by certified mail.
(b) When the System submits a request for information under subsection (a) of this Section, the
employer shall respond within 60 calendar days of the System's request. Beginning on the 61st
calendar day after the System's request, the System may assess a penalty of $250 per calendar
day until receipt of the information by the System, with a maximum penalty of $25,000. All
payments must be received by the System within one calendar year after receipt of the
information by the System or one calendar year after reaching the maximum penalty of $25,000, whichever
occurs earlier. If the employer fails to make complete payment within the applicable timeframe,
then the System may, after giving notice to the employer, certify the delinquent amount to the
State Comptroller, and the Comptroller shall thereupon deduct the certified delinquent amount
from State funds payable to the employer and pay them instead to the System.
(Source: P.A. 99-897, eff. 1-1-17.)
(40 ILCS 5/15-169) (from Ch. 108 1/2, par. 15-169)
Sec. 15-169. To elect officers and appoint employees. To elect officers; to appoint a secretary and treasurer; to have a seal;
to employ and fix the rate of pay of such actuarial, legal, clerical, audit, medical, or other services, or corporate trustee
organized under the laws of this State with a capital of not less than
$1,000,000, or investment counsel and other persons as shall be required
for the efficient administration of the system.
All actions brought by or against the board shall be prosecuted or
defended by the Attorney General. If the board pursues a mandamus action under Section 15-156 of this Code as amended by Senate Bill No. 1 of the 98th General Assembly in the form passed by the General Assembly, then the board may select the counsel of their choice.
(Source: P.A. 98-92, eff. 7-16-13; 98-598, eff. 12-5-13.)
(40 ILCS 5/15-170) (from Ch. 108 1/2, par. 15-170)
Sec. 15-170. 
		To maintain records and accounts.
To maintain a permanent record of all board proceedings which record
shall be available for examination by any participant, annuitant or officer
of the State of Illinois; to maintain a separate record for each individual
participant and annuitant; to maintain adequate accounting records which
shall at all times reflect the financial condition of the system, and such
additional data as shall be necessary for required calculations, valuations
and operation of the system; to have any of the foregoing records
photographed, microfilmed or otherwise reproduced, which photographs,
microfilms or reproductions shall be deemed original records for all
purposes, including introduction in evidence before all courts and
administrative agencies.
(Source: P.A. 77-616.)
(40 ILCS 5/15-171) (from Ch. 108 1/2, par. 15-171)
Sec. 15-171. To receive, record and deposit payments. 
To receive all payments made to the system; to make a record thereof;
and to cause all payments to be deposited immediately with the treasurer of
the system. The Board may delegate the actions prescribed under this Section to persons employed by  the System.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-172) (from Ch. 108 1/2, par. 15-172)
Sec. 15-172. To certify warrants, checks, or drafts. To provide for certification on its behalf by its 
secretary of all warrants, checks, or drafts upon its depository bank or corporate trustee in accordance with the by-laws and actions of
the board authorizing payments for benefits, expenses,
investments and debt service, including any redemption premium and
required deposits for any bonds of the board, out
of funds belonging to this system.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-173) (from Ch. 108 1/2, par. 15-173)
Sec. 15-173. To cause actuarial analyses. 
To cause a general investigation to be made by a competent actuary, at
least once every 3 years, of the retirement, disability, separation,
mortality, interest, and employee earnings rates; to recommend, as a result
of each such investigation, the tables to be adopted for all required
actuarial calculations; and to cause an annual determination to be made by
a competent actuary of the liabilities and reserves of the system and an
annual determination of the amount and distribution of the required
employer contributions.
(Source: P.A. 99-232, eff. 8-3-15.)
(40 ILCS 5/15-174) (from Ch. 108 1/2, par. 15-174)
Sec. 15-174. 
		To have an audit.
To cause an audit of the affairs of the system to be made annually by an
independent certified public accountant; and to submit a copy thereof to
the Governor of the State as soon as possible after the end of each fiscal
year.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-175) (from Ch. 108 1/2, par. 15-175)
Sec. 15-175. 
		To provide statements.
To make available to the participants and annuitants a financial
statement including a summary of the report of the certified public
accountant; and to submit an individual statement specifying the
accumulations to the credit, as of the latest date practicable, of any
participant so requesting.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-176) (from Ch. 108 1/2, par. 15-176)
Sec. 15-176. 
		To accept gifts. 
		To accept any gift, grant or bequest of any money or securities; if the
grantor designates cash benefits for some or all of
the system's participants or annuitants, to carry
out such intent; if no such intent is designated,
to reduce the costs of the State.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-177) (from Ch. 108 1/2, par. 15-177)
Sec. 15-177. To make rules. 
To establish by-laws; to fix the number necessary for a quorum; to set
up an executive committee of its members to exercise all powers of the
board except as limited by the board; to establish rules and regulations,
not inconsistent with the provisions of this Article, as are necessary for
the administration of the system; and generally to carry on any other
reasonable activities which are deemed necessary to accomplish the purposes
of this system, including without limitation the time and manner of reporting contributions by participants and, if applicable, contributions by employers.
(Source: P.A. 98-92, eff. 7-16-13.)
(40 ILCS 5/15-177.5)
(Section scheduled to be repealed on January 1, 2027)
Sec. 15-177.5. Proxy voting.
(a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2.
(b) Notwithstanding the Board's investment authority, and upon the affirmative vote of at least three-fifths of the members of the Board, the State Treasurer shall be authorized to manage the domestic and international proxy voting activity for shares held directly by the System and execute required ballots on behalf of the System. The Board's consent granted under this Section may be revoked at any time upon the affirmative vote of a majority of the members of the Board.
(c) When the State Treasurer is managing any proxy voting activity in accordance with subsection (b), the following shall apply: (1) the State Treasurer shall provide the Board with (i) comprehensive proxy voting reports on a quarterly basis and as requested by the Board and (ii) access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board; and (2) the Board may provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting.
(d) The State Treasurer shall act as a fiduciary to the System with regard to all aspects of the State Treasurer's management of the proxy voting activity as provided under subsection (b).
(e) With respect to this Section, and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board is exempt from any conflicting statutory or common law obligations, including any fiduciary or co-fiduciary duties under this Article and Article 1.
(f) With respect to this Section and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b),  the Board, its staff, and the trustees of the Board shall not be liable for any damage or suits where damages are sought for negligent or wrongful acts alleged to have been committed in connection with the management of proxy voting activity as provided for under this Section.
(g) In order to facilitate the State Treasurer's proxy voting activities under this Section and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues.
(h) This Section is repealed on January 1, 2027.
(Source: P.A. 103-468, eff. 8-4-23.)
(40 ILCS 5/15-177.6)
Sec. 15-177.6. Fiduciary report.  On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act. The report shall:
(1) describe the Board's strategy as it relates to     the consideration of sustainable investment factors;
(2) outline the process for regular assessment across     the total portfolio of potential effects from systemic and regulatory risks and opportunities, including, but not limited to, sustainability factors on the assets of the plan;
(3) disclose how each investment manager serving as a     fiduciary to the Board integrates sustainability factors into the investment manager's investment decision-making process;
(4) provide a comprehensive proxy voting report;
(5) provide an overview of all corporate engagement     and stewardship activities; and
(6) include any other information the Board deems     necessary.
(Source: P.A. 103-468, eff. 8-4-23.)
(40 ILCS 5/15-178) (from Ch. 108 1/2, par. 15-178)
Sec. 15-178. Duties of the State Comptroller and payroll officers. The State Comptroller and employer payroll officers, in drawing warrants
and checks for items of salary on payroll vouchers certified by
employers, shall draw such warrants and checks
to participating employees for the amount of salary or wages specified
for the period, and shall draw a warrant,
						
						check, or electronic funds transfer to this system for the
total of the contributions required under Section 15-157. All
warrants and electronic funds transfers covering such contributions, and
						
a deduction register pertaining to the
payroll supplied by the employer, shall be
transmitted immediately to the board.
The Comptroller shall draw warrants or prepare direct deposit transmittals
upon the State Treasurer payable
from funds appropriated for the purposes specified in this Article upon
the presentation of vouchers approved by the board.
(Source: P.A. 95-83, eff. 8-13-07.)
(40 ILCS 5/15-179) (from Ch. 108 1/2, par. 15-179)
Sec. 15-179. 
		
		Duties of Director of Central Management
Services. The Director of Central Management Services in considering payroll
vouchers required by
"An Act in relation to State Finance", approved June 10, 1919, as
amended, to be approved by the Department of Central Management
Services before warrants are
drawn by the State Comptroller shall approve such payroll vouchers
only if they are prepared in accordance with Section 15-181 and shall not
withhold approval of any payroll because it is prepared in accordance
with Section 15-181.  The Director of Central Management Services, in
passing on payroll vouchers required by the "Personnel Code", approved July
18, 1955, as amended, shall approve the vouchers if they are prepared in
accordance with Section 15-181.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
Sec. 15-181. 
		Duties of employers.
(a) Each employer, in preparing payroll vouchers for participating
employees, shall indicate, in addition to other information: (1) the amount of
employee contributions and survivors insurance contributions required under
Section 15-157, (2) the gross earnings payable to each employee, and (3) the
total of all contributions required under Section 15-157.
(b) Each employer, in drawing warrants or checks against trust or
federal funds for items of salary on payroll vouchers certified by employers,
shall draw such warrants or checks to participating employees for the amount
of cash salary or wages specified for the period, and shall draw a warrant or
check to this system for the total of the contributions required under Section
15-157.  The warrant or check drawn to this system, together with the
additional copy of the payroll supplied by the employer, shall be transmitted
immediately to the board.
(c) The City of Champaign and the City of Urbana, as employers of persons
who participate in this System pursuant to subsection (h) of Section 15-107,
shall each collect and transmit to the System from each payroll the employee
contributions required under Section 15-157, together with such payroll
documentation as the Board may require, at the time that the payroll is paid.
(Source: P.A. 90-576, eff. 3-31-98; 91-887, eff. 7-6-00.)
(40 ILCS 5/15-183) (from Ch. 108 1/2, par. 15-183)
Sec. 15-183. 
		Authorizations. 
		Payment of salary as prescribed by law
or as contracted by an employer shall together with the rights in the
benefits provided by this system, be a full and complete discharge of
all claims of payments for service rendered by an employee during the
period covered by the payment.
(Source: P.A. 81-1165.)
(40 ILCS 5/15-184) (from Ch. 108 1/2, par. 15-184)
Sec. 15-184. 
		Undivided interest. 
		The assets of the system shall be invested as one fund, and no
particular person, group of persons or entity shall have any right in any
specific security or property or in any item of cash, other than an
undivided interest in the whole except as otherwise provided in this Article.
The changes to this Section and Sections 15-155, 15-167 and 15-172 made
by this amendatory Act of 1989, and Section 15-167.2, shall be applicable
to all participants, annuitants and beneficiaries now or hereafter covered
by this Article.
(Source: P.A. 86-1034.)
(40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
Sec. 15-185. 
		Annuities, etc., exempt. 
		The accumulated employee and
employer contributions shall be held in trust for each participant and
annuitant, and this trust shall be treated as a spendthrift trust.  Except
as provided in this Article, all cash, securities and other property of
this system, all annuities and other benefits payable under this Article
and all accumulated credits of participants and annuitants in
this system and the right of any person to receive an annuity or other
benefit under this Article, or a refund of contributions, shall not be
subject to judgment, execution, garnishment,
attachment, or other seizure by process, in bankruptcy or otherwise, nor
to sale, pledge, mortgage or other alienation, and shall not be assignable.
The board, however, may deduct from the benefits, refunds and credits
payable to the participant, annuitant or beneficiary, amounts owed  by the
participant or annuitant to the system.  No attempted sale, transfer or
assignment of any benefit, refund or credit shall prevent the right of the
board to make the deduction and offset authorized in this Section.  Any
participant or annuitant may authorize the board to deduct from disability
benefits or annuities, premiums due under any group hospital-surgical insurance
program which is sponsored or approved by any employer; however, the deductions
from disability benefits may not begin prior to 6 months after the disability
occurs.
A person receiving an annuity or benefit under this Article  may also
authorize withholding from that annuity or benefit for the purposes
enumerated in and in accordance with the provisions of the State Salary and
Annuity Withholding Act.
This Section is not intended to, and does not, affect the calculation of
any benefit under this Article or dictate how or to what extent employee or
employer contributions are to be taken into account in calculating benefits.
This amendatory Act of the 91st General Assembly is a clarification of
existing law and applies to every participant and annuitant without regard to
whether status as an employee terminates before the effective date of this
amendatory Act.
Public Act 86-273 is a clarification of
existing law and shall be applicable to every participant and annuitant without
regard to whether status as an employee terminates before the effective date of
that Act.
(Source: P.A. 90-65, eff. 7-7-97; 90-448, eff. 8-16-97; 90-511, eff.
8-22-97; 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)
(40 ILCS 5/15-185.5)
Sec. 15-185.5. Accelerated pension benefit payment in lieu of any pension benefit.
(a) As used in this Section:
"Eligible person" means a person who:
(1) has terminated service;
(2) has accrued sufficient service credit to be      eligible to receive a retirement annuity under this Article;
(3) has not received any retirement annuity under     this Article;
(4) has not made the election under Section 15-185.6;     and
(5) is not  a participant in the self-managed plan     under Section 15-158.2.
"Implementation date" means the earliest date upon which the Board authorizes eligible persons to begin irrevocably electing the accelerated pension benefit payment option under this Section. The Board shall endeavor to make such participation available as soon as possible after June 4, 2018 (the effective date of Public Act 100-587) and shall establish an implementation date by Board resolution.
"Pension benefit" means the benefits under this Article, or Article 1 as it relates to those benefits, including any anticipated annual increases, that an eligible person is entitled to upon attainment of the applicable retirement age. "Pension benefit" also includes applicable survivors benefits, disability benefits, or disability retirement annuity benefits.
(b) Beginning on the implementation date, the System shall offer each eligible person the opportunity to irrevocably  elect to receive an amount determined by the System to be equal to 60% of the present value of his or her pension benefits in lieu of receiving any pension benefit. The System shall calculate, using actuarial tables and other assumptions adopted by the Board, the present value of pension benefits for each eligible person upon his or her request in writing to the System. The System shall not perform more than one calculation per eligible member in a State fiscal year. The offer shall specify the dollar amount that the eligible person will receive if he or she so elects and shall expire when a subsequent offer is made to an eligible person. The System shall make a good faith effort to contact every eligible person to notify him or her of the election.
Beginning on the implementation date and until June 30, 2026, an eligible person may irrevocably elect to receive an accelerated pension benefit payment in the amount that the System offers under this subsection in lieu of receiving any pension benefit. A person who elects to receive an accelerated pension benefit payment under this Section may not elect to proceed under the Retirement Systems Reciprocal Act with respect to service under this Article.
(c) Upon payment of an accelerated pension benefit payment under this Section, the person forfeits all accrued rights and credits in the System and no other benefit shall be paid under this Article based on those forfeited rights and credits, including any  retirement, survivor, or other benefit; except that  to the extent that participation, benefits, or premiums under the State Employees Group Insurance Act of 1971 are based on the amount of service credit, the terminated service credit shall be used for  that purpose.
(d) If a person who has received an accelerated pension benefit payment under this Section returns to participation under this Article, any benefits under the System earned as a result of that return to participation shall be based solely on the person's credits and creditable service arising from the return to participation. Upon return to participation, the person shall be considered a new employee subject to all the qualifying conditions for participation and eligibility for benefits applicable to new employees.
(d-5) The accelerated pension benefit payment may not be repaid to the System, and the forfeited rights and credits may not under any circumstances be reinstated.
(e) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be deposited into a tax qualified retirement plan or account identified by the eligible person at the time of the election. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended.
(f) The System shall submit vouchers to the State Comptroller for the payment of accelerated pension benefit payments under this Section. The State Comptroller shall pay the amounts of the vouchers from the State Pension Obligation Acceleration Bond Fund to the System, and the System shall deposit the amounts into the applicable tax qualified plans or accounts.
(g) The Board shall adopt any rules, including emergency rules, necessary to implement this Section.
(h) No provision of this Section shall be interpreted in a way that would cause the System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.)
(40 ILCS 5/15-185.6)
Sec. 15-185.6. Accelerated pension benefit payment for a reduction in an annual increase to a retirement annuity and an annuity benefit payable as a result of death.
(a) As used in this Section:
"Accelerated pension benefit payment" means a lump sum payment equal to 70% of the difference of: (i) the present value of the automatic annual increases to a Tier 1 member's retirement annuity, including any increases to any annuity benefit payable as a result of his or her death, using the formula applicable to the Tier 1 member; and (ii) the present value of the automatic annual increases to the Tier 1 member's retirement annuity, including any increases to any annuity benefit payable as a result of his or her death, using the formula provided under subsection (b-5).
"Eligible person" means a person who:
(1) is a Tier 1 member;
(2) has submitted an application for a retirement     annuity under this Article;
(3) meets the age and service requirements for     receiving a retirement annuity under this Article;
(4) has not received any retirement annuity under     this Article;
(5) has not made the election under Section 15-185.5;     and
(6) is not  a participant in the self-managed plan     under Section 15-158.2.
"Implementation date" means the earliest date upon which the Board authorizes eligible persons to begin irrevocably electing the accelerated pension benefit payment option under this Section. The Board shall endeavor to make such participation available as soon as possible after June 4, 2018 (the effective date of Public Act 100-587) and shall establish an implementation date by Board resolution.
(b) Beginning on the implementation date and until June 30, 2026, the System shall implement an accelerated pension benefit payment option for eligible persons. The System shall calculate, using actuarial tables and other assumptions adopted by the Board, an accelerated pension benefit payment amount for an eligible person upon his or her request in writing to the System and shall offer that eligible person the opportunity to irrevocably elect to have his or her automatic annual increases in retirement annuity and any annuity benefit payable as a result of his or her death  calculated in accordance with the formula provided in subsection (b-5) in exchange for the accelerated pension benefit payment. The System shall not perform more than one calculation under this Section per eligible person in a State fiscal year. The election under this subsection must be made before any retirement annuity is paid to the eligible person, and the eligible survivor, spouse, or contingent annuitant, as applicable, must consent to the election under this subsection.
(b-5) Notwithstanding any other provision of law, the retirement annuity of a person who made the election under subsection (b) shall be increased annually beginning on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later, and any annuity benefit payable as a result of his or her death shall be increased annually beginning on: (1) the January 1 occurring on or after the commencement of the annuity if the deceased Tier 1 member died while receiving a retirement annuity; or (2) the January 1 occurring after the first anniversary of the commencement of the benefit.  Each annual increase shall be calculated at 1.5% of the originally granted retirement annuity or annuity benefit payable as a result of the Tier 1 member's death.
(c) If an annuitant who has received an accelerated pension benefit payment returns to participation under this Article, the calculation of any future automatic annual increase in retirement annuity under subsection (c) of Section 15-139 shall be calculated in accordance with the formula provided in subsection (b-5).
(c-5) The accelerated pension benefit payment may not be repaid to the System.
(d) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be deposited into a tax qualified retirement plan or account identified by the eligible person at the time of election. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended.
(d-5) The System shall submit vouchers to the State Comptroller for the payment of accelerated pension benefit payments under this Section. The State Comptroller shall pay the amounts of the vouchers from the State Pension Obligation Acceleration Bond Fund to the System, and the System shall deposit the amounts into the applicable tax qualified plans or accounts.
(e) The Board shall adopt any rules, including emergency rules, necessary to implement this Section.
(f) No provision of this Section shall be interpreted in a way that would cause the System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.)
(40 ILCS 5/15-186) (from Ch. 108 1/2, par. 15-186)
Sec. 15-186. Fraud. 
Any person who knowingly makes any false statement, or falsifies or
permits to be falsified any record or records of this system, in any
attempt to defraud the system or to mislead or defraud an employer with respect to employment of an annuitant under Section 15-139.5, is guilty of a Class A misdemeanor.
(Source: P.A. 97-968, eff. 8-16-12.)
(40 ILCS 5/15-186.1) (from Ch. 108 1/2, par. 15-186.1)
Sec. 15-186.1. Mistake in benefit calculation and overpayment recovery.
(a) Mistake in benefit calculation. If the System mistakenly sets any
benefit at an incorrect amount, it shall recalculate the benefit as soon as
may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the System shall make a lump
sum payment to the recipient of an amount equal to the difference between
the benefits that should have been paid and those actually paid, plus
interest at the effective rate from the date the unpaid amounts accrued to
the date of payment.
If the benefit was mistakenly set too high, the System may recover the
amount overpaid from the recipient thereof, plus interest at the effective
rate from the date of overpayment to the date of recovery, either directly
or by deducting
such amount from the remaining benefits payable to the recipient.  However,
if (1) the amount of the benefit was mistakenly set too high, and (2) the
error was undiscovered for 3 years or longer, and (3) the error was not the
result of incorrect information supplied or information omitted by the affected member or
beneficiary, then upon discovery of the mistake the benefit shall be
adjusted to the correct level, but the recipient of the benefit need not
repay to the System the excess amounts received in error.
(b) Overpayment recovery. Regardless of the date an overpayment is discovered, if the System determines that the overpayment has occurred for any reason other than those specified in subsection (a) of this Section, the System may recover the overpayment from the recipient thereof or the recipient's estate, plus interest at the effective rate from the date of the overpayment to the date of recovery, either directly or by deducting such amount from the remaining benefits payable to the recipient or the recipient's estate, or by any other means available to the System.  This subsection (b) applies to overpayments occurring before, on, or after the effective date of this amendatory Act of the 102nd General Assembly.
(Source: P.A. 102-746, eff. 5-6-22.)
(40 ILCS 5/15-187) (from Ch. 108 1/2, par. 15-187)
Sec. 15-187. Felony conviction. None of the benefits provided under this
Article shall be paid to any person who is convicted of any felony relating to
or arising out of or in connection with a person's service as an employee from which the benefit derives.
This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor
to preclude the right to a refund. The changes made to this Section by this amendatory Act of the 100th General Assembly shall not impair any contract or vested right acquired prior to the effective date of this amendatory Act of the 100th General Assembly.  No refund paid to any person who is
convicted of a felony relating to or arising out of or in connection with the person's service as an employee shall include employer contributions or
interest or, in the case of the self-managed plan authorized under Section
15-158.2, any employer contributions or investment return on such employer
contributions.
All persons entering service subsequent to July 9, 1955 shall be deemed to
have consented to the provisions of this Section as a condition of coverage, and all participants entering service on or subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
(40 ILCS 5/15-188) (from Ch. 108 1/2, par. 15-188)
Sec. 15-188. 
		Administrative review. 
		The Administrative Review Law, and all
amendments and modifications thereof, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the judicial review
of final administrative decisions of the board of trustees hereunder. The
term "administrative decision" is defined as in Section 3-101 of the Code
of Civil Procedure.  The venue for actions brought under the
Administrative Review Law shall be Champaign County.
(Source: P.A. 87-1265.)
(40 ILCS 5/15-189) (from Ch. 108 1/2, par. 15-189)
Sec. 15-189. 
		No monetary gain on investments. 
		Except as otherwise herein provided, no member or employee of the board
shall have any direct interest in the income, gains or profits of any
investments made by the board, or receive any pay or emolument for services
in connection with any investment. No member or employee of the board shall
become an endorser or surety, or in any manner an obligor for money loaned
or borrowed from the system. A violation of any of these restrictions shall
constitute a Class 4 felony.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
Sec. 15-190. 
		Persons under legal disability. 
		If a person is under legal
disability when any right or privilege accrues to him or her under this
Article, a guardian may be appointed pursuant to law, and may, on behalf of
such person, claim and exercise any such right or privilege with the same
force and effect as if the person had not been under a legal disability and
had claimed or exercised such right or privilege.
If a person's application for benefits or a physician's certificate
on file with the board shows that the person is under a legal disability, the
benefits payable under this Article may be paid (1) directly to the person
under legal
disability, (2) to any person who has legally qualified and is acting as
guardian of the property of the person under legal disability, (3) to either
parent of the person under legal disability or any adult person with whom the
person under legal disability may at the time be living, provided only that
such parent or adult person to whom any amount is to be paid shall have advised
the board in writing that such amount will be held or used for the benefit of
the person under legal disability, or (4) to the trustee of any
trust created for the sole benefit of the person under legal disability while
that person is living, provided only that
the trustee of such trust to whom any amount is to be paid shall have advised
the board in writing that such amount will be held or used for the benefit of
the person under legal disability.  The system shall not be required to
determine the validity of the trust or any of the terms thereof.  The
representation of the trustee that the trust meets the requirements of this
Section shall be conclusive as to the system.  The written receipt of the
person under legal disability or the other person who receives such payment
shall be an absolute discharge of the system's liability in
respect of the amount so paid.
(Source: P.A. 93-347, eff. 7-24-03.)
(40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
Sec. 15-191. 
		Payment of benefits to minors. 
		If any benefits under this Article become payable to a minor, the board
may make payment (1) directly to the minor, (2) to any person who has
legally qualified and is acting as guardian of the minor's person or
property in any jurisdiction, (3) to either parent of the minor or to
any adult person with whom the minor may at the time be living, provided
only that the parent or other person to whom any amount is to be paid shall
have advised the board in writing that such amount
will be held or used for the benefit of the minor, or (4) to the trustee of
any trust created for the sole benefit of the
minor while that minor is living, provided only that the trustee of such trust
to whom any amount is to be paid shall have advised the board in writing that
such amount will be held or used for the benefit of the minor.  The system
shall not be required to determine the validity of the trust or any of the
terms thereof.  The representation of the trustee that the trust meets the
requirements of this Section shall be conclusive as to the system. The
written receipt of the minor, parent, trustee, or other person who receives
such payment shall be an absolute discharge of the system's liability in
respect of the amount so paid.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-192) (from Ch. 108 1/2, par. 15-192)
Sec. 15-192. 
		Retirement Systems Reciprocal Act. 
		The "Retirement Systems Reciprocal Act", being Article 20 of this Code
as now enacted and hereafter amended, is hereby adopted and shall apply to
and govern the operations of this system. "An Act to provide for reciprocal
allowance of credits for retirement, death and disability benefits between
the State Employees' Retirement System of Illinois, the University
Retirement System of Illinois and the Teachers' Retirement System of the
State of Illinois, and for the transfer of certain funds between said
systems", approved August 8, 1947, and repealed in 1963, is superseded
by the provisions of the
"Retirement Systems Reciprocal Act", except insofar as said Act of August
8, 1947, may govern rights of persons receiving benefits or who may
hereafter receive benefits by virtue of said Act.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-193) (from Ch. 108 1/2, par. 15-193)
Sec. 15-193. 
		Reinsurance.
The board may at any time that it appears desirable and advantageous,
contract with any recognized and solvent legal reserve life insurance
company for the payment of any benefits specified in this Article, provided
such contract applies alike to all persons of the same class and does not
cause any discrimination or create conditions which will substantially
limit or reduce the equity or security of any other participant or
annuitant in the system at the time. If any such contract is entered into,
the board may certify vouchers for the payment to any such contractor out
of funds belonging to this system of the amounts payable under such
contracts.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-196) (from Ch. 108 1/2, par. 15-196)
Sec. 15-196. 
		General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/15-197) (from Ch. 108 1/2, par. 15-197)
Sec. 15-197. 
		Savings Clause. 
		The repeal or amendment of any Section
or provision of this Article by this amendatory Act of 1984 shall not affect
or impair any pension, benefits, rights or credits accrued or in effect prior thereto.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-198)
Sec. 15-198. Application and expiration of new benefit increases.
(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 June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 100-23, Public Act 100-587, Public Act 100-769, Public Act 101-10, Public Act 101-610, Public Act 102-16, or this amendatory Act of the 103rd General Assembly.
(b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. 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 Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. 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 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.
(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law.
(e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 103-80, eff. 6-9-23; 103-548, eff. 8-11-23.)
(40 ILCS 5/15-200)
Sec. 15-200. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
(40 ILCS 5/15-201)
Sec. 15-201. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
(40 ILCS 5/15-202)
Sec. 15-202. Optional deferred compensation plan.
(a) As soon as practicable after August 10, 2018 (the effective date of Public Act 100-769), the System shall offer a deferred compensation plan that is eligible under Section 457(b) of the Internal Revenue Code of 1986, as amended, to participating employees of the System employed by employers described in Section 15-106 of this Code that qualify as eligible employers under Section 457(e)(1)(A) of the Internal Revenue Code of 1986, as amended. Such eligible employers shall adopt the plan with an effective date no later than September 1, 2021.  Participating employees may voluntarily elect to make elective deferrals to the eligible deferred compensation plan. Eligible employers may make optional employer contributions to the plan on behalf of participating employees, which contributions may be maintained, increased, reduced, or eliminated at the discretion of the employer from plan year to plan year. The plan shall collect voluntary employee and optional employer contributions into an account for each participant and shall offer investment options to the participant. The plan under this Section shall be operated in full compliance with any applicable State and federal laws, and the System shall utilize generally accepted practices in creating and maintaining the plan for the best interest of the participants. In administering the deferred compensation plan, the System shall require that the deferred compensation plan recordkeeper agree that, in performing services with respect to the deferred compensation plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the deferred compensation plan or the participants in the deferred compensation plan to solicit the  participants in the deferred compensation plan for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the deferred compensation plan; and (ii) will not promote, recommend, endorse, or solicit participants in the deferred compensation plan to purchase any financial products or services outside of the deferred compensation plan, 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 plan. The System shall produce an annual report on the participation in the plan and shall make the report public.
(b) The System shall automatically enroll in the eligible deferred compensation plan any employee of an eligible employer who first becomes a participating employee of the System on or after July 1, 2023 under an eligible automatic contribution arrangement that is subject to Section 414(w) of the Internal Revenue Code of 1986, as amended, and the United States Department of Treasury regulations promulgated thereunder. An employee who is automatically enrolled under this subsection (b) shall have 3% of his or her compensation, as defined by the plan, for each pay period deferred on a pre-tax basis into his or her account, subject to any contribution limits applicable to the plan. The Board may increase the default percentage of compensation deferred under this subsection (b).
An employee shall have 30 days from the date on which the System provides the notice required under Section 414(w) of the Internal Revenue Code of 1986, as amended, to elect to not participate in the eligible deferred compensation plan or to elect to increase or reduce the initial amount of elective deferrals made to the plan. In the absence of such affirmative election, the employee shall be automatically enrolled in the plan on the first day of the calendar month, or as soon as administratively practicable thereafter, following the 30th day from the date on which the System provides the required notice. An employee who has been automatically enrolled in the plan under this subsection (b) may elect, within 90 days of enrollment, to withdraw from the plan and receive a refund of amounts deferred, adjusted by applicable earnings and fees.  An employee making such an election shall forfeit all employer matching contributions, if any, made with respect to such refunded elective deferrals and such forfeited amounts shall be used to defray plan expenses.  Any refunded elective deferrals shall be included in the employee's gross income for the taxable year in which the refund is issued.
(c) The System may provide for one or more automatic contribution arrangements, which shall comply with all applicable Internal Revenue Service rules and regulations, in conjunction with or in lieu of the eligible automatic contribution arrangement under subsection (b), for participating employees of eligible employers whose annual earnings are limited by application of subsection (b) of Section 15-111 of this Code.  The amount of elective deferrals made for the employee each pay period under an automatic contribution arrangement shall equal the default percentage specified by resolution of the Board multiplied by the employee's compensation as defined by the plan, subject to any contribution limits applicable to the plan, and shall be made on a pre-tax basis. An employee subject to this subsection (c) shall have 30 days from the date on which the System provides written notice to the employee to elect to not participate in the eligible deferred compensation plan or to elect to increase or reduce the amount of initial elective deferrals made to the plan. In the absence of such affirmative election, the employee shall be automatically enrolled in the plan beginning the first day of the calendar month, or as soon as administratively practicable thereafter, following the 30th day from the date on which the System provides the required notice.
(d) The System may provide that the default percentage for any employee automatically enrolled in the eligible deferred compensation plan under subsection (b) or (c) be increased by a specified percentage each plan year after the plan year in which the employee is automatically enrolled in the plan.  The amount of automatic annual increases in any plan year shall not exceed 1% of compensation as defined by the plan.
(e) The changes made to this Section by this amendatory Act of the 102nd General Assembly are corrections of existing law and are intended to be retroactive to the effective date of Public Act 100-769, notwithstanding Section 1-103.1 of this Code.
(Source: P.A. 102-540, eff. 8-20-21; 103-552, eff. 8-11-23.)