Public Act 100-1166
 
HB0166 EnrolledLRB100 02316 RPS 12321 b



    AN ACT concerning public employee benefits.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:






 
    Section 5. The Illinois Pension Code is amended  by changing 
Sections 1-160, 8-174, 11-170, and 11-197.7 as follows:
 
 

    (40 ILCS 5/1-160)

 
    Sec. 1-160. Provisions applicable to new hires. 
    (a) The provisions of this Section apply to a person who, 
on or after January 1, 2011, first becomes a member or a 
participant under any reciprocal retirement system or pension 
fund established under this Code, other than a retirement 
system or pension fund established under Article 2, 3, 4, 5, 6, 
15 or 18 of this Code, notwithstanding any other provision of 
this Code to the contrary, but do not apply to any self-managed 
plan established under this Code,  to any person with respect to 
service as a sheriff's law enforcement employee under Article 
7, or to any participant of the retirement plan established 
under Section 22-101. Notwithstanding anything to the contrary  
in this Section, for purposes of this Section, a person who 
participated in a retirement system under Article 15 prior to 
January 1, 2011 shall be deemed  a person who first became a 
member or participant prior to January 1, 2011 under any 
retirement system or pension fund subject to this Section. The 
changes made to this Section by Public Act 98-596 are a 
clarification of existing law and are intended to be 
retroactive to January 1, 2011 (the effective date of Public 
Act 96-889), notwithstanding the provisions of Section 1-103.1 
of this Code.
    This Section does not apply to a person who first becomes a 
noncovered employee under Article 14 on or after the 
implementation date of the plan created under  Section 1-161 for 
that Article, unless that person elects under subsection (b) of 
Section 1-161 to instead receive the benefits provided under 
this Section and the applicable provisions of that Article.
    This Section does not apply to a person who first becomes a 
member or participant under Article 16 on or after the 
implementation date of the plan created under  Section 1-161 for 
that Article, unless that person elects under subsection (b) of 
Section 1-161 to instead receive the benefits provided under 
this Section and the applicable provisions of that Article.
    This Section does not apply to a person who elects under 
subsection (c-5) of Section 1-161  to receive the benefits under 
Section 1-161. 
    This Section does not apply to a person who first becomes a 
member or participant of an affected pension fund on or after 6 
months after the resolution or ordinance date, as defined in 
Section 1-162, unless that person elects under subsection (c) 
of Section 1-162 to receive the benefits provided under this 
Section and the applicable provisions of the Article under 
which he or she is a member or participant. 
    (b) "Final average salary" means the average monthly (or 
annual) salary obtained by dividing the total salary or 
earnings calculated under the Article applicable to the member 
or participant during the 96 consecutive months (or 8 
consecutive years) of service within the last 120 months (or 10 
years) of service in which the total salary or earnings 
calculated under the applicable Article was the highest by the 
number of months (or years) of service in that period. For the 
purposes of a person who first becomes a member or participant 
of any retirement system or pension fund to which this Section 
applies on or after January 1, 2011, in this Code, "final 
average salary" shall be substituted for  the following:
        (1) In Article 7 (except for service as sheriff's law 
    enforcement employees), "final rate of earnings".
        (2) In Articles 8, 9, 10, 11, and 12, "highest average 
    annual salary for any 4 consecutive years within the last 
    10 years of service immediately preceding the date of 
    withdrawal". 
        (3) In Article 13, "average final salary". 
        (4) In Article 14, "final average compensation". 
        (5) In Article 17, "average salary". 
        (6) In Section 22-207, "wages or salary received by him 
    at the date of retirement or discharge". 
    (b-5) Beginning on January 1, 2011, for all purposes under 
this Code (including without limitation the calculation of 
benefits and employee contributions), the annual earnings, 
salary, or wages (based on the plan year) of a member or 
participant to whom this Section applies 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) A member or participant is entitled to a retirement

annuity upon written application  if he or she has attained age 
67 (beginning January 1, 2015, age 65 with respect to service 
under Article 12 of this Code that is subject to this Section) 
and has at least 10 years of service credit and is otherwise 
eligible under the requirements of the applicable Article. 
    A member or participant who has attained age 62 (beginning 
January 1, 2015, age 60 with respect to service under Article 
12 of this Code that is subject to this Section) and has at 
least 10 years of service credit and is otherwise eligible 
under the requirements of the applicable Article may elect to 
receive the lower retirement annuity provided
in subsection (d) 
of this Section. 
    (c-5) A person who first becomes a member or a participant 
subject to this Section under Article 8 or Article 11 of this 
Code on or after July 6, 2017 (the effective date of Public Act 
100-23) this amendatory Act of the 100th General Assembly, 
notwithstanding any other provision of this Code to the 
contrary, is entitled to a retirement annuity under Article 8 
or Article 11 upon written application if he or she has 
attained age 65 and has at least 10 years of service credit 
under Article 8 or Article 11 of this Code and is otherwise 
eligible under the requirements of Article 8 or Article 11 of 
this Code, whichever is applicable. 
    (d) The retirement annuity of a member or participant who 
is retiring after attaining age 62 (beginning January 1, 2015, 
age 60 with respect to service under Article 12 of this Code 
that is subject to this Section) with at least 10 years of 
service credit shall be reduced by one-half
of 1% for each full 
month that the member's age is under age 67 (beginning January 
1, 2015, age 65 with respect to service under Article 12 of 
this Code that is subject to this Section).
    (d-5) The retirement annuity payable under Article 8 or 
Article 11 to an eligible of a person subject to subsection 
(c-5) of this Section who first becomes a member or a 
participant under Article 8 or Article 11 of this Code on or 
after the effective date of this amendatory Act of the 100th 
General Assembly who is retiring at age 60 with at least 10 
years of service credit under Article 8 or Article 11 shall be 
reduced by one-half of 1% for each full month that the member's 
age is under age 65. 
    (d-10) Each person who first became a member or participant 
under Article 8 or Article 11 of this Code on or after January 
1, 2011 and prior to the effective date of this amendatory Act 
of the 100th General Assembly shall make an irrevocable 
election either:
        (i) to  be eligible for the reduced retirement age 
    provided in subsections (c-5)
and (d-5) of this Section, 
    the eligibility for which is conditioned upon the member or 
    participant agreeing to the increases in employee 
    contributions for age and service annuities provided in 
    subsection (a-5) of Section 8-174 of this Code (for service 
    under Article 8) or subsection (a-5) of Section 11-170 of 
    this Code (for service under Article 11); or 
        (ii) to not agree to item (i) of this subsection 
    (d-10), in which case the member or participant shall 
    continue to be subject to the retirement age provisions in 
    subsections (c) and (d) of this Section and the employee 
    contributions for age and service annuity as provided in 
    subsection (a) of Section 8-174 of this Code (for service 
    under Article 8) or subsection (a) of Section 11-170 of 
    this Code (for service under Article 11). 
    The election provided for in this subsection shall be made 
between October 1, 2017 and November 15, 2017.  A person subject 
to this subsection who makes the required election shall remain 
bound by that election. A person subject to this subsection who 
fails for any reason to make the required election within the 
time specified in this subsection shall be deemed to have made 
the election under item (ii). 
    (e) Any retirement annuity or supplemental annuity shall be 
subject to annual increases on the January 1 occurring either 
on or after the attainment of age 67 (beginning January 1, 
2015, age 65 with respect to service under Article 12 of this 
Code that is subject to this Section and beginning on the 
effective date of this amendatory Act of the 100th General 
Assembly, age 65 with respect to service under Article 8 or 
Article 11 for eligible persons who: (i) are subject to 
subsection (c-5) of this Section first became members or 
participants  under Article 8 or Article 11 of this Code on or 
after the effective date of this amendatory Act of the 100th 
General Assembly; or (ii)  first became members or participants 
under Article 8 or Article 11 of this Code on or after January 
1, 2011 and before the effective date of this amendatory Act of 
the 100th General Assembly and made the election under item (i) 
of subsection (d-10) of this Section)  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. 
    For the purposes of Section 1-103.1 of this Code, the 
changes made to this Section by  this amendatory Act of the 
100th General Assembly are applicable without regard to whether 
the employee was in active service on or after the effective 
date of this amendatory Act of the 100th General Assembly. 
    (f) The initial survivor's or widow's annuity of an 
otherwise eligible  survivor or widow of a retired member or 
participant who first became a member or participant on or 
after January 1, 2011 shall be in the amount of 66 2/3% of the 
retired member's or participant's retirement annuity at the 
date of death. In the case of the death of a member or 
participant who has not retired and who first became a member 
or participant on or after January 1, 2011, eligibility for a 
survivor's or widow's annuity shall be determined by the 
applicable Article of this Code. The initial benefit shall be 
66 2/3% of the earned annuity without a reduction due to age. A 
child's annuity of an otherwise eligible child shall be in the 
amount prescribed under each Article if applicable.  Any 
survivor's or widow's annuity shall be increased (1) on each 
January 1 occurring on or after the commencement of the annuity 
if
the deceased 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 annuity. 
Each annual  increase shall be calculated at 3% or one-half the 
annual unadjusted percentage increase (but not less than zero) 
in the consumer price index-u for the 12 months ending with the 
September preceding each November 1, whichever is less,  of the 
originally granted survivor's annuity. 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. 
    (g) The benefits in Section 14-110 apply only if the person 
is a State policeman, a fire fighter in the fire protection 
service of a department, a security employee of the Department 
of Corrections or the Department of Juvenile Justice, or a 
security employee of the Department of Innovation and 
Technology, as those terms are defined in subsection (b) and 
subsection (c) of Section 14-110. A person who meets the 
requirements of this Section is entitled to an annuity 
calculated under the provisions of Section 14-110, in lieu of 
the regular or minimum retirement annuity, only if the person 
has withdrawn from service with not less than 20
years of 
eligible creditable service and has attained age 60, regardless 
of whether
the attainment of age 60 occurs while the person is

still in service. 
    (h) If a person who first becomes a member or a participant 
of a retirement system or pension fund subject to this Section 
on or after January 1, 2011 is receiving a retirement annuity 
or retirement pension under that system or fund and becomes a 
member or participant under any other system or fund created by 
this Code and is employed on a full-time basis, except for 
those members or participants exempted from the provisions of 
this Section under subsection (a) of this Section, then the 
person's retirement annuity or retirement pension under that 
system or fund shall be suspended during that employment. Upon 
termination of that employment, the person's retirement 
annuity or retirement pension payments shall resume and be 
recalculated if recalculation is provided for under the 
applicable Article of this Code.
    If a person who first becomes a member of a retirement 
system or pension fund subject to this Section on or after 
January 1, 2012 and is receiving a retirement annuity or 
retirement pension under that system or fund and accepts on a 
contractual basis a position to provide services to a 
governmental entity from which he or she has retired, then that 
person's annuity or retirement pension earned as an active 
employee of the employer shall be suspended during that 
contractual service.  A person receiving an annuity or 
retirement pension under this Code shall notify the pension 
fund or retirement system from which he or she is receiving an 
annuity or retirement pension, as well as  his or her 
contractual employer, of his or her retirement status before 
accepting contractual employment. A person who fails to submit 
such notification shall be guilty of a Class A misdemeanor and 
required to pay  a fine of $1,000. Upon termination of that 
contractual employment, the person's retirement annuity or 
retirement pension payments shall resume and, if appropriate, 
be recalculated under the applicable provisions of this Code. 
    (i) (Blank). 
    (j) In the case of a conflict between the provisions of 
this Section and any other provision of this Code, the 
provisions of this Section shall control.

(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17; 
100-563, eff. 12-8-17; 100-611, eff. 7-20-18.)
 



    (40 ILCS 5/8-174)
  (from Ch. 108 1/2, par. 8-174)



    Sec. 8-174. Contributions for age and service annuities for 
present
employees and future entrants.

    (a) Beginning on the effective date and prior to July 1, 
1947, 3
1/4%; and beginning on July 1, 1947 and prior to July 
1, 1953, 5%; and
beginning July 1, 1953, and prior to January 
1, 1972, 6%; and beginning
January 1, 1972, 6-1/2% of each 
payment of the salary of each present
employee and future 
entrant, except as provided in subsection (a-5) and (a-10), 
shall be contributed to the fund as a
deduction from salary for 
age and service annuity.

    (a-5) Except as provided in subsection (a-10), for an 
employee who on or after January 1, 2011 and prior to the 
effective date of this amendatory Act of the 100th General 
Assembly first became a member or participant under this 
Article and made the election under item (i) of subsection 
(d-10) of Section 1-160: prior to the effective date of this 
amendatory Act of the 100th General Assembly, 6.5%; and 
beginning on the effective date of this amendatory Act of the 
100th General Assembly and prior to January 1, 2018, 7.5%; and 
beginning January 1, 2018 and prior to January 1, 2019, 8.5%; 
and beginning January 1, 2019 and thereafter, employee 
contributions for those employees who made the election under 
item (i) of subsection (d-10) of Section 1-160 shall be the 
lesser of: (i) the total normal cost,  calculated using the 
entry age normal actuarial method, projected for the prior that 
fiscal year for the benefits and expenses of the plan of 
benefits applicable to those members and participants who first 
became members or participants on or after the effective date 
of this amendatory Act of the 100th General Assembly and to 
those employees who made the election under item (i) of 
subsection (d-10) of Section 1-160, but not less than 6.5% of 
each payment of salary combined with the employee contributions 
provided for in subsection (b) of Section 8-137 and Section 
8-182 of this Article; or (ii) the aggregate employee 
contribution consisting of 9.5% of each payment of salary 
combined with the employee contributions provided for in 
subsection (b) of Section 8-137 and 8-182 of this Article.
    For the one-year period beginning Beginning with the first 
pay period in January of each year on or after the date when 
the funded ratio of the fund as determined in the annual 
actuarial valuation is first determined to have reached the 90% 
funding goal, and each subsequent one-year pay period 
thereafter for as long as the fund maintains a funding ratio of 
75% or more, employee contributions for age and service annuity 
for those employees who made the election under item (i) of 
subsection (d-10) of Section 1-160 shall be 5.5% of each 
payment of salary. If the funding ratio falls below 75%, then 
employee contributions for age and service annuity for those 
employees who made the election under item (i) of subsection 
(d-10) shall revert to the lesser of: (A) the total normal 
cost,  calculated using the entry age normal actuarial method, 
projected for the prior that fiscal year for the benefits and 
expenses of the plan of benefits applicable to those members 
and participants who first became members or participants on or 
after the effective date of this amendatory Act of the 100th 
General Assembly and to those employees who made the election 
under item (i) of subsection (d-10) of Section 1-160, but not 
less than 6.5% of each payment of salary combined with the 
employee contributions provided for in subsection (b) of 
Section 8-137 and Section 8-182 of this Article; or (B) the 
aggregate employee contribution consisting of 9.5% of each 
payment of salary combined with the employee contributions 
provided for in subsection (b) of Section 8-137 and 8-182 of 
this Article. If the fund once again is determined to have 
reached a funding ratio of 75%, the 5.5% of salary contribution 
for age and service annuity shall resume. An employee who made 
the election under item (ii) of subsection (d-10) of Section 
1-160 shall continue to have the contributions for age and 
service annuity determined under subsection (a) of this 
Section.
    If contributions are reduced to less than the aggregate 
employee contribution described in item (ii) or item (B) of 
this subsection due to application of the normal cost 
criterion, the employee contribution amount shall be 
consistent for from July 1 of the fiscal year through June 30 
of that fiscal year.
    The normal cost, for the purposes of this subsection (a-5) 
and subsection (a-10), shall be calculated by an independent 
enrolled actuary mutually agreed upon by the fund and the City. 
The fees and expenses of the independent actuary shall be the 
responsibility of the City. For purposes of this subsection 
(a-5), the fund and the City shall both be considered to be the 
clients of the actuary, and the actuary shall utilize 
participant data and actuarial standards to calculate the 
normal cost.  The fund shall provide information that the 
actuary requests in order to calculate the applicable normal 
cost.
    (a-10) For each employee subject to subsection (c-5) of 
Section 1-160 who on or after the effective date of this 
amendatory Act of the 100th General Assembly first becomes a 
member or participant under this Article, 9.5% of each payment 
of salary shall be contributed to the fund as a deduction from 
salary for age and service annuity. Beginning January 1, 2018 
and each year thereafter, employee contributions for each 
employee subject to this subsection (a-10) shall be the lesser 
of: (i) the total normal cost, calculated using the entry age 
normal actuarial method, projected for the prior that fiscal 
year for the benefits and expenses of the plan of benefits 
applicable to those members and participants who first become 
members or participants on or after the effective date of this 
amendatory Act of the 100th General Assembly and to those 
employees who made the election under item (i) of subsection 
(d-10) of Section 1-160, but not less than 6.5% of each payment 
of salary combined with the employee contributions provided for 
in subsection (b) of Section 8-137 and Section 8-182 of this 
Article; or (ii) the aggregate employee contribution 
consisting of 9.5% of each payment of salary combined with the  
employee contributions provided for in subsection (b) of 
Section 8-137 and Section 8-182 of this Article.
    For the one-year period beginning Beginning with the first 
pay period in January of each year on or after the date when 
the funded ratio of the fund as determined in the annual 
actuarial valuation is first determined to have reached the 90% 
funding goal, and each subsequent one-year pay period 
thereafter for as long as the fund maintains a funding ratio of 
75% or more, employee contributions for age and service annuity 
for each employee subject to this subsection (a-10) shall be 
5.5% of each payment of salary. If the funding ratio falls 
below 75%, then employee contributions for age and service 
annuity for each employee subject to this subsection (a-10) 
shall revert to the lesser of: (A) the total normal cost, 
calculated using the entry age normal actuarial method, 
projected for the prior that fiscal year for the benefits and 
expenses of the plan of benefits applicable to those members 
and participants who first become members or participants on or 
after the effective date of this amendatory Act of the 100th 
General Assembly and to those employees who made the election 
under item (i) of subsection (d-10) of Section 1-160, but not 
less than 6.5% of each payment of salary combined with the 
employee contributions provided for in subsection (b) of 
Section 8-137 and Section 8-182 of this Article; or (B) the 
aggregate employee contribution consisting of 9.5% of each 
payment of salary combined with the  employee contributions 
provided for in subsection (b) of Section 8-137 and Section 
8-182 of this Article. If the fund once again is determined to 
have reached a funding ratio of 75%, the 5.5% of salary 
contribution for age and service annuity shall resume.
    If contributions are reduced to less than the aggregate 
employee contribution described in item (ii) or item (B) of 
this subsection (a-10) due to application of the normal cost 
criterion, the employee contribution amount  shall be 
consistent for from July 1 of the fiscal year through June 30 
of that fiscal year.
    Such deductions beginning on the effective date and prior 
to July 1,
1947 shall be made for a future entrant while he is 
in the service until
he attains age 65 and for a present 
employee while he is in the service
until the amount so 
deducted from his salary with the amount deducted
from his 
salary or paid by him according to law to any municipal pension

fund in force on the effective date with interest on both such 
amounts
at 4% per annum equals the sum that would have been to 
his credit from
sums deducted from his salary if deductions at 
the rate herein stated
had been made during his entire service 
until he attained age 65 with
interest at 4% per annum for the 
period subsequent to his attainment of
age 65. Such deductions 
beginning July 1, 1947 shall be made and
continued for 
employees while in the service.

    (b) Concurrently with each employee contribution, the city 
shall contribute beginning on the effective date and prior to 
July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to 
July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 
6, 2017, 6% of each payment of such salary until the employee 
attains age 65.  Beginning July 6, 2017, the Fund shall credit 
sums equal to 6% of each payment of such salary for annuity 
purposes. The amounts credited for annuity purposes shall not 
be credited for refund purposes (Blank).  

    (c) Each employee contribution made prior to the date the 
age and
service annuity for an employee is fixed and each 
corresponding city
contribution shall be credited to the 
employee and allocated to the
account of the employee for whose 
benefit it is made.

    (d) Notwithstanding Section 1-103.1, the changes to this 
Section made by this amendatory Act of the 100th General 
Assembly apply regardless of whether the employee was in active 
service on or after the effective date of this amendatory Act 
of the 100th General Assembly.
(Source: P.A. 100-23, eff. 7-6-17.)
 



    (40 ILCS 5/11-170)  (from Ch. 108 1/2, par. 11-170)



    Sec. 11-170. Contributions for age and service annuities 
for present
employees, future entrants and re-entrants.

    (a) Beginning on the effective date and prior to July 1, 
1947, 3
1/4%; and beginning on July 1, 1947 and prior to July 
1, 1953, 5%; and
beginning July 1, 1953 and prior to January 1, 
1972, 6%; and beginning
January 1, 1972, 6 1/2% of each payment 
of the salary of each present
employee, future entrant and 
re-entrant, except as provided in subsection (a-5) and (a-10), 
shall be contributed to the fund
as a deduction from salary for 
age and service annuity.
    (a-5) Except as provided in subsection (a-10), for an 
employee who on or after January 1, 2011 and prior to the 
effective date of this amendatory Act of the 100th General 
Assembly first became a member or participant under this 
Article and  made the election under item (i) of subsection 
(d-10) of Section 1-160:  prior to the effective date of this 
amendatory Act of the 100th General Assembly,  6.5%; and 
beginning on the effective date of this amendatory Act of the 
100th General Assembly and prior to January 1, 2018, 7.5%; and 
beginning January 1, 2018 and prior to January 1, 2019, 8.5%; 
and beginning January 1, 2019 and thereafter, employee

contributions for those employees who made the
election under 
item (i) of subsection (d-10) of Section 1-160
shall be the 
lesser of: (i) the total normal cost, calculated
using the 
entry age normal actuarial method, projected for the prior that

fiscal year for the benefits and expenses of the plan of

benefits applicable to those members and participants who first 
became members or participants on or after the effective date

of this amendatory Act of the 100th General Assembly and to

those employees who made the election under item (i) of

subsection (d-10) of Section 1-160, but not less than 6.5% of

each payment of salary combined with the employee contributions

provided for in subsection (b) of Section 11-134.1 and Section

11-174 of this Article; or
(ii) the aggregate employee 
contribution consisting of 9.5% of
each payment of salary 
combined with the employee contributions
provided for in 
subsection (b) of Section 11-134.1 and 11-174 of
this Article.
    For the one-year period beginning Beginning with
the first 
pay period in January of each year on or after the date when 
the funded ratio
of the fund as determined in the annual 
actuarial valuation is first determined to have reached the 90% 
funding
goal, and each subsequent one-year pay period 
thereafter for as long as the fund
maintains a funding ratio of 
75% or more, employee
contributions for age and service annuity 
for those employees
who made the election under item (i) of 
subsection (d-10) of
Section 1-160 shall be 5.5% of each 
payment of salary. If the
funding ratio falls below 75%, then 
employee contributions for age and service annuity for those 
employees who made the
election under item (i) of subsection 
(d-10) shall revert to the lesser of: (A) the total normal 
cost, calculated
using the entry age normal actuarial method, 
projected for the prior that
fiscal year for the benefits and 
expenses of the plan of
benefits applicable to those members 
and participants who first became members or participants on or 
after the effective date
of this amendatory Act of the 100th 
General Assembly and to
those employees who made the election 
under item (i) of
subsection (d-10) of Section 1-160, but not 
less than 6.5% of
each payment of salary combined with the 
employee contributions
provided for in subsection (b) of 
Section 11-134.1 and Section
11-174 of this Article; or
(B) the 
aggregate employee contribution consisting of 9.5% of
each 
payment of salary combined with the employee contributions

provided for in subsection (b) of Section 11-134.1 and 11-174 
of
this Article. If the fund once again is determined to
have 
reached a funding ratio of 75%, the 5.5% of
salary contribution 
for age and service annuity shall resume.
An employee who made 
the election under item (ii) of subsection
(d-10) of Section 
1-160 shall continue to have the
contributions for age and 
service annuity determined under
subsection (a) of this 
Section.
    If contributions are reduced to less than the
aggregate 
employee contribution described in item (ii) or item (B) of 
this
subsection due to application of the normal cost 
criterion,
the employee contribution amount shall be

consistent for from July 1 of the fiscal year
through June 30 
of that fiscal year. 
    The normal cost, for the purposes of this subsection (a-5) 
and subsection (a-10), shall be calculated by an independent 
enrolled actuary mutually agreed upon by the fund and the City. 
The fees and expenses of the independent actuary shall be the 
responsibility of the City. For purposes of this subsection 
(a-5), the fund and the City shall both be considered to be the 
clients of the actuary, and the actuary shall utilize 
participant data and actuarial standards to calculate the 
normal cost.  The fund shall provide information that the 
actuary requests in order to calculate the applicable normal 
cost.
    (a-10) For each employee subject to subsection (c-5) of 
Section 1-160 who on or after the effective date of this 
amendatory Act of the 100th General Assembly first becomes a 
member or participant under this Article, 9.5% of each payment 
of salary shall be contributed to the fund as a deduction from 
salary for age and service annuity. Beginning January 1, 2018

and each year thereafter, employee contributions
for each 
employee subject to this subsection (a-10) shall be
the lesser 
of: (i) the total normal cost, calculated using the entry age 
normal actuarial method, projected for the prior that
fiscal 
year for the benefits and expenses of the plan of
benefits 
applicable to those members and participants who first
become 
members or participants on or after the effective date of this 
amendatory Act of the 100th General Assembly and to
those 
employees who made the election under item (i) of
subsection 
(d-10) of Section 1-160, but not less than 6.5% of
each payment 
of salary combined with the employee contributions
provided for 
in subsection (b) of Section 11-134.1 and Section
11-174 of 
this Article; or (ii) the aggregate
employee contribution 
consisting of 9.5% of each payment of
salary combined with the 
employee contributions provided for in
subsection (b) of 
Section 11-134.1 and Section 11-174 of this
Article.
    For the one-year period beginning Beginning with the first 
pay period in January of each year on or after the date when 
the funded ratio of the fund as determined in the annual 
actuarial valuation is first determined to have reached the 90% 
funding goal, and each subsequent one-year pay period 
thereafter for as long as the fund maintains a funding ratio of 
75% or more, employee contributions for age and service annuity 
for each employee subject to this subsection (a-10) shall be 
5.5% of each payment of salary. If the funding ratio falls 
below 75%, then employee contributions for age and service 
annuity for each employee subject to this subsection (a-10) 
shall revert to the lesser of: (A) the total normal cost, 
calculated using the entry age normal actuarial method, 
projected for the prior that
fiscal year for the benefits and 
expenses of the plan of
benefits applicable to those members 
and participants who first
become members or participants on or 
after the effective date of this amendatory Act of the 100th 
General Assembly and to
those employees who made the election 
under item (i) of
subsection (d-10) of Section 1-160, but not 
less than 6.5% of
each payment of salary combined with the 
employee contributions
provided for in subsection (b) of 
Section 11-134.1 and Section
11-174 of this Article; or (B) the 
aggregate
employee contribution consisting of 9.5% of each 
payment of
salary combined with the employee contributions 
provided for in
subsection (b) of Section 11-134.1 and Section 
11-174 of this
Article. If the fund once again is determined to 
have reached a funding ratio of 75%, the 5.5% of salary 
contribution for age and service annuity shall resume.
    If contributions are reduced to less than the
aggregate 
employee contribution described in item (ii) or item (B) of 
this
subsection (a-10) due to application of the normal cost

criterion, the employee contribution amount shall be 
consistent for from July 1 of the fiscal year through June 30

of that fiscal year.
    Such deductions
beginning on the effective date and prior 
to June 30, 1947, inclusive
shall be made for a future entrant 
while he is in service until he
attains age 65, and for a 
present employee while he is in service until
the amount so 
deducted from his salary with interest at the rate of 4%
per 
annum shall be equal to the sum which would have accumulated to 
his
credit from sums deducted from his salary if deductions at 
the rate
herein stated had been made during his entire service 
until he attained
age 65 with interest at 4% per annum for the 
period subsequent to his
attainment of age 65. Such deductions 
beginning July 1, 1947 shall be
made and continued for 
employees while in the service.

    (b) Concurrently with each employee contribution, the city 
shall contribute beginning on the effective date and prior to 
July 1, 1947, 5 3/4%; and beginning July 1, 1947 and prior to 
July 1, 1953, 7%; and beginning July 1, 1953 and prior to July 
6, 2017, 6% of each payment of such salary until the employee 
attains age 65.  Beginning July 6, 2017, the Fund shall credit 
sums equal to 6% of each payment of such salary for annuity 
purposes. The amounts credited for annuity purposes shall not 
be credited for refund purposes (Blank).

    (c) Each employee contribution made prior to the date age 
and
service annuity for an employee is fixed and each 
corresponding city
contribution shall be allocated to the 
account of and credited to the
employee for whose benefit it is 
made.

    (d) Notwithstanding Section 1-103.1, the changes to this 
Section made by this amendatory Act of the 100th General 
Assembly apply regardless of whether the employee was in active 
service on or after the effective date of this amendatory Act.
(Source: P.A. 100-23, eff. 7-6-17.)
 
    (40 ILCS 5/11-197.7)
    Sec. 11-197.7. Payment of annuity other than direct. The 
board, at the written direction and request of any annuitant, 
may, solely as an accommodation to such annuitant, pay the 
annuity due him or her to a bank, savings and loan association, 
or any other financial institution insured by an agency of the 
federal government, for deposit to his or her account, or to a 
bank or trust company for deposit in a trust established by him 
or her for his benefit with such bank, savings and loan 
association, or trust company, and such annuitant may withdraw 
such direction at any time. An annuitant who directs the board 
to pay the annuity due him or her to a financial institution 
shall hold the board and the fund harmless from any claim or 
loss related to any error as to whether the financial 
institution is or continues to be federally insured. The board 
may also, in the case of any disability beneficiary or 
annuitant for whom no estate guardian has been appointed and 
who is confined in a publicly owned and operated mental 
institution, pay such disability benefit or annuity due such 
person to the superintendent or other head of such institution 
or hospital for deposit to such person's trust fund account 
maintained for him or her by such institution or hospital, if 
by law such trust fund accounts are authorized or recognized.

(Source: P.A. 100-23, eff. 7-6-17.)
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.