Chapter 40 — PENSIONS

(40 ILCS 5/1A-101) Sec. 1A-101. Creation of Public Pension Division. There is created in the Department of Insurance a Public Pension Division which, under the supervision and direction of the Director of Insurance, shall exercise the powers and perform the duties and functions p…

(40 ILCS 5/1A-102) Sec. 1A-102. Definitions. As used in this Article, the following terms have the meanings ascribed to them in this Section, unless the context otherwise requires: "Accrued liability" means the actuarial present value of future benefit payments and appropriate ad…

(40 ILCS 5/1A-103) Sec. 1A-103. Rules. The Department is authorized to promulgate rules necessary for the administration and enforcement of this Code. Except as otherwise provided under this Code, these rules shall apply only to pension funds established under Article 3 or Articl…

(40 ILCS 5/1A-104) Sec. 1A-104. Examinations and investigations. (a) Except as described in the following paragraph with respect to pension funds established under Article 3 or 4 of this Code, the Division shall make periodic examinations and investigations of all pension funds e…

(40 ILCS 5/1A-105) Sec. 1A-105. Examination and subpoena of records and witnesses. The Director may administer oaths and affirmations and summon and compel the attendance before him or her and examine under oath any officer, trustee, agent, actuary, attorney, or employee connecte…

(40 ILCS 5/1A-106) Sec. 1A-106. Advisory services. The Division shall render advisory services to the pension funds on all matters pertaining to their operations and shall recommend any corrective or clarifying legislation that it may deem necessary. These recommendations shall b…

(40 ILCS 5/1A-107) Sec. 1A-107. Automation of services. The Division shall automate its operations, services, and communications to the fullest practical extent. This automation shall include, but need not be limited to, the acquisition, use, and maintenance of electronic data pr…

(40 ILCS 5/1A-108) Sec. 1A-108. Report to the Governor and General Assembly. On or before October 1 following the convening of a regular session of the General Assembly, the Division shall submit a report to the Governor and General Assembly setting forth the latest financial sta…

(40 ILCS 5/1A-108.5) Sec. 1A-108.5. Economic opportunity investments. (a) For the purposes of this Section: "Economic opportunity investment" means a qualified investment, managed passively or actively by the pension fund, that promotes economic development within the State of Il…

(40 ILCS 5/1A-109) Sec. 1A-109. Annual statements by pension funds. Each pension fund shall furnish to the Division an annual statement in a format prepared by the Division. The Division shall design the form and prescribe the content of the annual statement and, at least 60 days…

(40 ILCS 5/1A-110) Sec. 1A-110. Actuarial statements by pension funds established under Articles other than 3 or 4. (a) Each pension fund established under an Article of this Code other than Article 3 or 4 shall include as part of its annual statement a complete actuarial stateme…

(40 ILCS 5/1A-111) Sec. 1A-111. Actuarial statements by pension funds established under Article 3 or 4. (a) For each pension fund established under Article 3 or 4 of this Code, a complete actuarial statement applicable to its plan year shall be included as part of its annual stat…

(40 ILCS 5/1A-112) Sec. 1A-112. Fees. (a) Every pension fund that is required to file an annual statement under Section 1A-109 shall pay to the Department an annual compliance fee. In the case of a pension fund under Article 3 or 4 of this Code, (i) prior to the conclusion of the…

(40 ILCS 5/1A-113) Sec. 1A-113. Penalties. (a) A pension fund that fails, without just cause, to file its annual statement within the time prescribed under Section 1A-109 shall pay to the Department a penalty to be determined by the Department, which shall not exceed $100 for eac…

(40 ILCS 5/1A-201) Sec. 1A-201. Advisory Commission on Pension Benefits. (a) There is created an Advisory Commission on Pension Benefits. The Commission shall consist of 15 persons, of whom 8 shall be appointed by the Governor and one each shall be appointed by the President and …

(40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101) Sec. 2-101. Creation of system. A retirement system is created to provide retirement annuities, survivor's annuities and other benefits for members of the General Assembly, certain elected state officials and their beneficiaries. T…

(40 ILCS 5/2-102) (from Ch. 108 1/2, par. 2-102) Sec. 2-102. Terms defined. The terms used in this Article shall have the meanings ascribed to them in Sections 2-103 through 2-116, except when the context otherwise requires. (Source: P.A. 83-1440.)

(40 ILCS 5/2-103) (from Ch. 108 1/2, par. 2-103) Sec. 2-103. System. "System": The General Assembly Retirement System. (Source: Laws 1963, p. 161.)

(40 ILCS 5/2-104) (from Ch. 108 1/2, par. 2-104) Sec. 2-104. Board. "Board": The board of trustees of the system. (Source: Laws 1963, p. 161.)

(40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105) Sec. 2-105. Member. "Member": Members of the General Assembly of this State including persons who enter military service while a member of the General Assembly and any person serving as Governor, Lieutenant Governor, Secretary of S…

(40 ILCS 5/2-105.1) Sec. 2-105.1. (Repealed). (Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 103-8, eff. 6-7-23.)

(40 ILCS 5/2-105.2) Sec. 2-105.2. (Repealed). (Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 103-8, eff. 6-7-23.)

(40 ILCS 5/2-105.3) Sec. 2-105.3. Tier 1 participant; Tier 2 participant. "Tier 1 participant": A participant who first became a participant before January 1, 2011. "Tier 2 participant": A participant who first became a participant on or after January 1, 2011. (Source: P.A. 103-8…

(40 ILCS 5/2-105.4) Sec. 2-105.4. Tier 1 retiree. "Tier 1 retiree" means a former Tier 1 participant who has made the election to retire and has terminated service. (Source: P.A. 103-8, eff. 6-7-23.)

(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…