Chapter 40, PENSIONS

(40 ILCS 5/2-106) (from Ch. 108 1/2, par. 2-106) Sec. 2-106. Eligible member. "Eligible member": Any member other than one who has elected not to participate. (Source: Laws 1963, p. 161.)

(40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107) Sec. 2-107. Participant. "Participant": Any member who elects to participate; and any former member who elects to continue participation under Section 2-117.1, for the duration of such continued participation. (Source: P.A. 86-1488…

(40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 2-108. Salary. "Salary": (1) For members of the General Assembly, the total compensation paid to the member by the State for one year…

(40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 2-108.1. Highest salary for annuity purposes. (a) "Highest salary for annuity purposes" means whichever of the following is appli…

(40 ILCS 5/2-109) (from Ch. 108 1/2, par. 2-109) Sec. 2-109. Military service. "Military service": Service in the United States Army, Navy, Air Force, Space Force, Marines or Coast Guard or any women's auxiliary thereof. (Source: P.A. 103-746, eff. 1-1-25.)

(40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110) Sec. 2-110. Service. (A) "Service" means the period beginning on the day when a person first became a member, and ending on the date under consideration, excluding all intervening periods of nonmembership following resignation or e…

(40 ILCS 5/2-110.1) (from Ch. 108 1/2, par. 2-110.1) Sec. 2-110.1. Service credit for elected county, township or municipal official. An active participant having no creditable service as a participating employee under Article 7 of this Code may establish service credit in this s…

(40 ILCS 5/2-110.2) (from Ch. 108 1/2, par. 2-110.2) Sec. 2-110.2. Age enhancement. Any member or former member who receives any age enhancement under Section 14-108.3 of this Code shall be entitled to use such age enhancement under the Retirement Systems Reciprocal Act for the p…

(40 ILCS 5/2-111) (from Ch. 108 1/2, par. 2-111) Sec. 2-111. Annuity. "Annuity": A series of monthly payments payable at the end of each calendar month during the life of an annuitant. The first payment shall be prorated for a fraction of a month to the end of the first month. Th…

(40 ILCS 5/2-112) (from Ch. 108 1/2, par. 2-112) Sec. 2-112. Annuitant. "Annuitant": A person receiving a retirement annuity or survivor's annuity. (Source: P.A. 83-1440.)

(40 ILCS 5/2-113) (from Ch. 108 1/2, par. 2-113) Sec. 2-113. Refund beneficiary. "Refund beneficiary": The person entitled to receive refunds of a deceased participant's contributions. (Source: Laws 1963, p. 161.)

(40 ILCS 5/2-114) (from Ch. 108 1/2, par. 2-114) Sec. 2-114. Actuarial tables. "Actuarial tables": Tabular listings of assumed rates of death, disability, retirement and withdrawal from service and mathematical functions derived from such rates combined with an assumed rate of in…

(40 ILCS 5/2-115) (from Ch. 108 1/2, par. 2-115) Sec. 2-115. Prescribed rate of interest. "Prescribed rate of interest": 3% per annum compounded annually, or such other rate determined from the actual experience of the system as may be prescribed by the board. (Source: Laws 1963,…

(40 ILCS 5/2-116) (from Ch. 108 1/2, par. 2-116) Sec. 2-116. Fiscal year. "Fiscal year": The period beginning on July 1 in any year and ending on June 30 of the next succeeding year. (Source: Laws 1963, p. 161.)

(40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117) Sec. 2-117. Participants - Election not to participate. (a) Every person who was a member on November 1, 1947, or in military service on such date, is subject to the provisions of this system beginning upon such date, unless prior …

(40 ILCS 5/2-117.1) (from Ch. 108 1/2, par. 2-117.1) Sec. 2-117.1. Participants - Election to continue participation. (a) Any person who has served as a member for 4 or more years or who has elected to become a member pursuant to Section 2-105, and who is employed in such a posit…

(40 ILCS 5/2-117.2) (from Ch. 108 1/2, par. 2-117.2) Sec. 2-117.2. 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 a pension fund e…

(40 ILCS 5/2-117.3) (from Ch. 108 1/2, par. 2-117.3) Sec. 2-117.3. Payments and Rollovers. (a) The Board may adopt rules prescribing the manner of repaying refunds and purchasing any optional credits permitted under this Article. The rules may prescribe the manner of calculating …

(40 ILCS 5/2-118) (from Ch. 108 1/2, par. 2-118) Sec. 2-118. Participants subject to survivor's annuity. Every male participant in service after August 2, 1949 and each female participant in service after July 1, 1971 shall be subject to the provisions relating to a survivor's an…

(40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 2-119. Retirement annuity - conditions for eligibility. (a) A participant whose service as a member is terminated, regardless of age …

(40 ILCS 5/2-119.01) (from Ch. 108 1/2, par. 2-119.01) Sec. 2-119.01. Retirement annuities - Amount. (a) For a participant in service after June 30, 1977 who has not made contributions to this System after January 1, 1982, the annual retirement annuity is 3% for each of the first…

(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 2-119.1. Automatic increase in retirement annuity. (a) Except as otherwise provided in this Section, a participant who retires af…

(40 ILCS 5/2-120) (from Ch. 108 1/2, par. 2-120) Sec. 2-120. Reversionary annuity. (a) Prior to retirement, a participant may elect to take a reduced retirement annuity and provide, with the actuarial value of the amount of the reduction in annuity, a reversionary annuity for a s…

(40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121) Sec. 2-121. Survivor's annuity - conditions for payment. (a) A survivor's annuity shall be payable to a surviving spouse or eligible child (1) upon the death in service of a participant with at least 2 years of service credit, or (…

(40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1) Sec. 2-121.1. Survivor's annuity; amount. (a) A surviving spouse shall be entitled to 66 2/3% of the amount of retirement annuity to which the participant or annuitant was entitled on the date of death, without regard to whethe…

(40 ILCS 5/2-121.2) (from Ch. 108 1/2, par. 2-121.2) Sec. 2-121.2. Reduction of disability and survivor's benefits for corresponding benefits payable under Workers' Compensation and Workers' Occupational Diseases Acts. Whenever a person is entitled to a disability or survivor's b…

(40 ILCS 5/2-121.3) (from Ch. 108 1/2, par. 2-121.3) Sec. 2-121.3. Required distributions. (a) A person who would be eligible to receive a survivor's annuity under this Article but for the fact that the person has not yet attained age 50, shall be eligible for a monthly distribut…

(40 ILCS 5/2-122) (from Ch. 108 1/2, par. 2-122) Sec. 2-122. Re-entry after retirement. An annuitant who re-enters service as a member shall become a participant on the date of re-entry and retirement annuity payments shall cease at that time. The participant shall resume contrib…

(40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123) Sec. 2-123. Refunds. (a) A participant who ceases to be a member, other than an annuitant, shall, upon written request, receive a refund of his or her total contributions, without interest. The refund shall include the additional c…

(40 ILCS 5/2-124) (from Ch. 108 1/2, par. 2-124) Sec. 2-124. Contributions by State. (a) The State shall make contributions to the System by appropriations of amounts which, together with the contributions of participants, interest earned on investments, and other income will mee…

(40 ILCS 5/2-125) (from Ch. 108 1/2, par. 2-125) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 2-125. Obligations of State; funding guarantee. (a) The payment of (1) the required State contributions, (2) all benefits granted und…

(40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 2-126. Contributions by participants. (a) Each participant shall contribute toward the cost of his or her retirement annuity a percen…

(40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1) Sec. 2-126.1. Pickup of contributions. (a) The State shall pick up the participant contributions required under Section 2-126 for all salary earned after December 31, 1981. The contributions so picked up shall be treated as emp…

(40 ILCS 5/2-126.5) (This Section was added by P.A. 98-599, which has been held unconstitutional) Sec. 2-126.5. 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…

(40 ILCS 5/2-127) (from Ch. 108 1/2, par. 2-127) Sec. 2-127. Board created. The system shall be administered by a board of trustees of 7 members as follows: 3 members of the Senate appointed by the President; 3 members of the House of Representatives appointed by the Speaker; and…

(40 ILCS 5/2-128) (from Ch. 108 1/2, par. 2-128) Sec. 2-128. Board vacancy. A vacancy in the office of an appointed or ex-officio member occurring during the session of the General Assembly shall be filled by appointment for the unexpired term in the manner provided in Section 2-…

(40 ILCS 5/2-129) (from Ch. 108 1/2, par. 2-129) Sec. 2-129. Board voting. Each trustee is entitled to one vote on any action of the board. Not less than 4 concurring votes shall be necessary for action by the board at any meeting. No decision or action shall be effective unless …

(40 ILCS 5/2-130) (from Ch. 108 1/2, par. 2-130) Sec. 2-130. Board powers and duties. The board shall have the powers and duties stated in Sections 2-131 through 2-143, in addition to the other powers and duties provided in this Article. (Source: P.A. 83-1440.)

(40 ILCS 5/2-131) (from Ch. 108 1/2, par. 2-131) Sec. 2-131. To hold meetings. To hold regular meetings at least twice in each year, and special meetings at such times as are deemed necessary by the board. At least 10 days' notice of each meeting shall be given to each trustee. A…

(40 ILCS 5/2-132) (from Ch. 108 1/2, par. 2-132) Sec. 2-132. To authorize payments. To consider and pass on all applications for annuities and refunds; to authorize the granting of all annuities and refunds; to suspend any payment or payments, all in accordance with this Article.…

(40 ILCS 5/2-133) (from Ch. 108 1/2, par. 2-133) Sec. 2-133. To certify interest rate and adopt actuarial tables. To certify in the records of the board the prescribed interest rate, and to adopt all necessary actuarial tables in accordance with recommendations of the actuary. (S…

(40 ILCS 5/2-134) (from Ch. 108 1/2, par. 2-134) Sec. 2-134. To certify required State contributions and submit vouchers. (a) The Board shall certify to the Governor on or before December 15 of each year until December 15, 2011 the amount of the required State contribution to the…

(40 ILCS 5/2-136) (from Ch. 108 1/2, par. 2-136) Sec. 2-136. To provide for examination of disability annuitants. To provide for the examination of disability annuitants at least once each year during the continuance of disability prior to age 60. The examination shall be by one …

(40 ILCS 5/2-137) (from Ch. 108 1/2, par. 2-137) Sec. 2-137. To establish an office. To establish an office or offices with suitable space for the meetings of the board and for the necessary administrative personnel. All books and records shall be kept in such offices. (Source: L…

(40 ILCS 5/2-138) (from Ch. 108 1/2, par. 2-138) Sec. 2-138. To hire employees. To appoint a secretary and employ such other actuarial, medical, clerical or other help as shall be required for the efficient administration of the system and to determine and fix their rate of pay. …

(40 ILCS 5/2-139) (from Ch. 108 1/2, par. 2-139) Sec. 2-139. To keep records and accounts. To keep a permanent record of all proceedings of the board, a separate account for each individual member and such additional data as are specified by the actuary as necessary for required …

(40 ILCS 5/2-139.1) Sec. 2-139.1. To request information. To request from any member, annuitant, beneficiary, or employer such information as is necessary for the proper administration of the System. (Source: P.A. 99-450, eff. 8-24-15.)

(40 ILCS 5/2-140) (from Ch. 108 1/2, par. 2-140) Sec. 2-140. To have an audit and submit statements. To have the accounts of the system audited at least biennially by a certified public accountant designated by the Auditor General and to submit an annual statement to the Governor…

(40 ILCS 5/2-141) (from Ch. 108 1/2, par. 2-141) Sec. 2-141. To accept gifts. To accept any gift, grant or bequest of any money or securities. If the grantor specifies the purpose of providing cash benefits for some or all of the participants or annuitants of the system, the gift…

(40 ILCS 5/2-142) (from Ch. 108 1/2, par. 2-142) Sec. 2-142. To submit individual statement. To submit an individual statement to any participating member upon the member's request. The statement shall show the amount of accumulations to the member's credit as of the latest date …