Illinois Compiled Statutes
40 ILCS 5/ - Illinois Pension Code.
Article 20 - Retirement Systems Reciprocal Act

(40 ILCS 5/Art. 20 heading)

(40 ILCS 5/20-101) (from Ch. 108 1/2, par. 20-101)
Sec. 20-101.
Continuity and preservation of pension credits.
There is established a plan for the continuity and preservation of
pension credit, in accordance with the provisions hereof, in the case of
employees transferring employment from one governmental unit to another.
The purpose of this plan is to assure full and continuous pension credit
for all service in public employment which is covered by a retirement
system.
The acceptance of the provisions of this Article, shall be optional with
the employee, or in the event of his death, with his survivor; however, the
provisions of Section 20-120 shall be applicable to every person who applies
for benefits from 2 or more retirement systems covered by this Article.

(Source: P.A. 77-531.)

(40 ILCS 5/20-102) (from Ch. 108 1/2, par. 20-102)
Sec. 20-102.
Terms defined.
The terms as used in this Article, shall have the meanings ascribed to
them in Sections 20-103 to 20-113, inclusive, except when the context
otherwise requires.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-103) (from Ch. 108 1/2, par. 20-103)
Sec. 20-103.
Effective date.
"Effective date": July 1, 1955, or in the case of any retirement system
becoming subject to the provisions of "The 1955 Act" or this Article
after such date, the date when such retirement system comes under the
provisions of "The 1955 Act" or this Article.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-104) (from Ch. 108 1/2, par. 20-104)
Sec. 20-104.
Employee.
"Employee": Any person in the service of an employer on or after the
effective date, who has pension credit because of service previous or
subsequent to the effective date, who is an active or inactive member or
participant of a retirement system.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-105) (from Ch. 108 1/2, par. 20-105)
Sec. 20-105.
Employer.
"Employer": The State of Illinois, any agency or instrumentality
thereof, or any governmental unit in the State.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-106) (from Ch. 108 1/2, par. 20-106)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-106. Final average salary.
(a) "Final average salary": The average (or other) salary which is
considered by a participating system in determining the amount of the
retirement annuity or survivor's annuity.
(b) Earnings credits under all participating systems shall be
considered by each system in determining final average salary, but subject to the limitations imposed by this amendatory Act of the 98th General Assembly for a participant in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code. In
calculating a proportional retirement or survivor's annuity based on these
earnings credits, the participating system shall apply any limitations on
earnings for annuity purposes that are imposed by the Article governing the
system.

(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. 20-106.
Final average salary.
(a) "Final average salary": The average (or other) salary which is
considered by a participating system in determining the amount of the
retirement annuity or survivor's annuity.
(b) Earnings credits under all participating systems shall be
considered by each system in determining final average salary. In
calculating a proportional retirement or survivor's annuity based on these
earnings credits, the participating system shall apply any limitations on
earnings for annuity purposes that are imposed by the Article governing the
system.

(Source: P.A. 88-593, eff. 8-22-94.)

(40 ILCS 5/20-107) (from Ch. 108 1/2, par. 20-107)
Sec. 20-107.
Governmental unit.
"Governmental unit": The State of Illinois or any agency or
instrumentality thereof, or any political subdivision or municipal
corporation in the State, which maintains a retirement system for the
benefit of its employees.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-108) (from Ch. 108 1/2, par. 20-108)
Sec. 20-108.
Participating system.
"Participating system": Any retirement system to which "The 1955 Act"
or this Article applies.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-109) (from Ch. 108 1/2, par. 20-109)
Sec. 20-109. "Pension credit": Credit or equities acquired by an
employee in the form of contributions, earnings or service as defined
under the law governing each of the systems in which he has credits or
equities, except credits and equities (1) of less than one year in any
one system, except that this one-year limitation shall not apply to
(A) employees who transfer or are transferred, as a class, from one
participating system to another or who are persons to whom Section
14-108.2a or 14-108.2b applies or (B) persons who move from participation with a school district as a teacher aide under Article 7 to participation under Article 16; or (2) which have previously been
forfeited by acceptance of a refund or which have been applied towards a
retirement annuity and have not been reestablished in accordance with the
law governing the system from which the refund or retirement annuity had
been received. If a retirement system provides no refund of contributions,
the pension credit in the case of any employee who has participated in that
system shall be considered effective for the purposes of this Article.

(Source: P.A. 94-834, eff. 6-6-06.)

(40 ILCS 5/20-110) (from Ch. 108 1/2, par. 20-110)
Sec. 20-110.
Retirement annuity.
"Retirement annuity": Any pension, retirement allowance, retirement
annuity, disability pension, disability retirement allowance or disability
retirement annuity, and an annuity payable on account of retirement for
age, years of service or total and permanent disability.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-111) (from Ch. 108 1/2, par. 20-111)
Sec. 20-111.
Retirement system.
"Retirement system": Any retirement system or pension fund which has
been created by statute and which is financed in whole or in part by
contributions by the State or by any governmental unit of the State or any
municipality of the State.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-112) (from Ch. 108 1/2, par. 20-112)
Sec. 20-112.
Survivor's annuity.
"Survivor's annuity": Payments by a system which are made to the widow
or survivors of an employee or participant in the form of a pension or
annuity or a lump sum which, under the provisions of the law governing such
system, is considered as a widow's or survivor's benefit, or a lump sum
which is made in lieu of a pension or annuity which would otherwise be
payable to the widow or survivor.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-113) (from Ch. 108 1/2, par. 20-113)
Sec. 20-113.
The 1955 Act.
"The 1955 Act": The "Retirement Systems Reciprocal Act" approved July
11, 1955, as amended.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-114) (from Ch. 108 1/2, par. 20-114)
Sec. 20-114.
Benefits covered by this article.
The provisions of this Article shall be applicable and limited only to a
retirement annuity and survivor's annuity, and to the pension credit
established for such purposes. Any death benefit, ordinary disability
benefit, duty disability benefit, accidental disability benefit,
supplemental annuity, or any other type of annuity or benefit provided by
any retirement system, not included in the definition of retirement annuity
and survivor's annuity shall not be affected by the provisions except as
provided in Section 20-124.

(Source: P.A. 76-744.)

(40 ILCS 5/20-115) (from Ch. 108 1/2, par. 20-115)
Sec. 20-115.
Eligibility for a proportional annuity.
Any person who has
pension credit in 2 or more participating systems shall be entitled to a
proportional retirement annuity, and his survivors shall be entitled to a
survivors annuity in accordance with the provisions of this Article, if his
combined pension credit is at least equal to the longest minimum qualifying
period prescribed by any of such systems. The qualifying period of each of
these systems shall be that which was in effect on the date of the employee's
latest withdrawal from service covered by any of these systems.
Each participating system shall, in determining eligibility for a
proportional retirement annuity or survivors annuity, consider the combined
service and contributions of the employee for which pension credit has been
granted under all participating systems. If the law
governing a participating system provides that a retirement or survivors
annuity shall be payable only if the annuity exceeds a certain dollar
minimum, the proportional annuity provided by pension credits under all
participating systems shall be considered in determining whether this
requirement has been met.

(Source: P.A. 85-1209.)

(40 ILCS 5/20-116) (from Ch. 108 1/2, par. 20-116)
Sec. 20-116.
Minimum qualifying age - Deferred payments.
If the minimum qualifying age in any of the participating systems is
lower than the minimum qualifying age in any other participating system
which is to provide a proportional retirement annuity, or proportional
survivor's annuity, payments by such other system shall be deferred until
the employee or survivor has attained the minimum qualifying age prescribed
for such system.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-117) (from Ch. 108 1/2, par. 20-117)
Sec. 20-117.

Vesting of pension credit - Combined pension credit under all
participating systems. If the vesting of pension credit in any
participating system for a retirement annuity or survivor's annuity is
based upon length of service, the combined service under all participating
systems shall be considered in establishing such vesting of pension credit.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-118) (from Ch. 108 1/2, par. 20-118)
Sec. 20-118.
Waiver of pension credits - Reinstatement.
Any employee who shall have waived, by the acceptance of a refund, his
pension credit in any participating system, may have his pension credit
reinstated by repayment of the refund, including interest from the date of
refund to the date of repayment, provided (1) the system is authorized by
law to receive the repayment, and (2) the employee has completed at least 2
years of service under a participating system subsequent to the date of the
last refund. Each system shall consider pension credits under all
participating systems in determining whether the employee meets the service
requirements under that system for repayment of a refund. The repayment of
a refund under this section shall not be considered as an election to
accept the provisions of the other sections of this Article.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-119) (from Ch. 108 1/2, par. 20-119)
Sec. 20-119.
Concurrent employment.
Any employee who is concurrently
employed by employers under 2 or more participating systems is entitled to
establish pension credit in accordance with the provisions of each system.
If the concurrent employment results in duplication of credits, each of
the systems shall reduce the service credit for the period of concurrent
employment to its full-time equivalent, using as a basis for this
adjustment, the earnings credited for each employment. However, no such
reduction in service credit shall be applied for the purpose of meeting
the one-year minimum service requirement in item (1) of Section 20-109,
except as provided in Section 20-120.
Combined earnings credits shall be limited to the earnings credits which
would have been established by full-time employment with the employer from
which the employee was receiving the highest salary.
Seasonal employment covered by a retirement system during a period for
which credit has been granted in another retirement system is concurrent
employment within the meaning of this Section and no adjustment of the
credits for seasonal employment is required, unless it results in a
duplication of pension credits. If seasonal employment results in a
duplication of credits, it shall be adjusted in accordance with Section
20-120.

(Source: P.A. 87-794.)

(40 ILCS 5/20-120) (from Ch. 108 1/2, par. 20-120)
Sec. 20-120.
Duplication of pension credits.
In no event shall pension credit for the same service rendered by an
employee be accredited in more than one participating system. If employment
is covered by more than one participating system, pension credit shall be
granted by that system which was first authorized to grant the credit, or
if more than one participating system was authorized to grant credit at the
same time, the employee shall elect, prior to retirement, the system under
which credit shall be granted. The participating system under which pension
credit is forfeited because of the application of this section, shall
refund to the employee, the contributions for the period of service
forfeited.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-121. Calculation of proportional retirement annuities.
(a) Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system. The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article. However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code or under the defined contribution plan established under Article 2, 14, 15, or 16 of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.
(a-5) For persons who participate in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply, the pension credits established under the defined contribution plan may be considered in
determining eligibility for or the amount of the defined benefit retirement annuity that is
payable by any other participating system.
(b) Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied, except as may be otherwise provided with respect to vesting in State or employer contributions in a defined contribution plan.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.
(c) Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.

(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. 20-121.
Calculation of proportional retirement annuities.
Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system. The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article. However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.
Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.
Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.

(Source: P.A. 91-887, eff. 7-6-00.)

(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-123. Survivor's annuity. The provisions governing a retirement
annuity shall be applicable to a survivor's annuity. Appropriate credits shall
be established for survivor's annuity purposes in those participating systems
which provide survivor's annuities, according to the same conditions and
subject to the same limitations and restrictions herein prescribed for a
retirement annuity. If a participating system has no survivor's annuity
benefit, or if the survivor's annuity benefit under that system is waived,
pension credit established in that system shall not be considered
in determining eligibility for or the amount of the survivor's annuity which
may be payable by any other participating system.
For persons who participate in the self-managed plan established under
Section 15-158.2 or the portable benefit package established under Section
15-136.4, pension credit established under Article 15 may be considered in
determining eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit established in
any other system shall not result in any right to a survivor's annuity under
the Article 15 system.
For persons who participate in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply, the pension credits established under the defined contribution plan may be considered in
determining eligibility for or the amount of the defined benefit survivor's annuity that is
payable by any other participating system, but pension credits established in
any other system shall not result in any right to or increase in the value of a survivor's annuity under
the defined contribution plan, which depends solely on the options chosen and the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.
(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. 20-123.
Survivor's annuity.
The provisions governing a retirement
annuity shall be applicable to a survivor's annuity. Appropriate credits shall
be established for survivor's annuity purposes in those participating systems
which provide survivor's annuities, according to the same conditions and
subject to the same limitations and restrictions herein prescribed for a
retirement annuity. If a participating system has no survivor's annuity
benefit, or if the survivor's annuity benefit under that system is waived,
pension credit established in that system shall not be considered
in determining eligibility for or the amount of the survivor's annuity which
may be payable by any other participating system.
For persons who participate in the self-managed plan established under
Section 15-158.2 or the portable benefit package established under Section
15-136.4, pension credit established under Article 15 may be considered in
determining eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit established in
any other system shall not result in any right to a survivor's annuity under
the Article 15 system.

(Source: P.A. 91-887, eff. 7-6-00.)

(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-124. Maximum benefits.
(a) In no event shall the combined retirement
or survivors annuities exceed the highest annuity which would have been payable
by any participating system in which the employee has pension credits, if all
of his pension credits had been validated in that system.
If the combined annuities should exceed the highest maximum as determined
in accordance with this Section, the respective annuities shall be reduced
proportionately according to the ratio which the amount of each proportional
annuity bears to the aggregate of all such annuities.
(b) In the case of a participant in the self-managed plan established under
Section 15-158.2 of this Code to whom the provisions of this Article apply:
(c) In the case of a participant in a defined contribution plan established under
Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply:
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-124.
Maximum benefits.
In no event shall the combined retirement
or survivors annuities exceed the highest annuity which would have been payable
by any participating system in which the employee has pension credits, if all
of his pension credits had been validated in that system.
If the combined annuities should exceed the highest maximum as determined
in accordance with this Section, the respective annuities shall be reduced
proportionately according to the ratio which the amount of each proportional
annuity bears to the aggregate of all such annuities.
In the case of a participant in the self-managed plan established under
Section 15-158.2 of this Code to whom the provisions of this Article apply:
(Source: P.A. 91-887, eff. 7-6-00.)

(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-125. Return to employment - suspension of benefits. If a retired
employee returns to employment which is covered by a system from which he is
receiving a proportional annuity under this Article, his proportional annuity
from all participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to any
distributions payable under the self-managed plan established under Section
15-158.2 or under a defined contribution plan established under Article 2, 14, 15, or 16 of this Code.
The provisions of the Article under which such employment would be
covered shall govern the determination of whether the employee has returned
to employment, and if applicable the exemption of temporary employment or
employment not exceeding a specified duration or frequency, for all
participating systems from which the retired employee is receiving a
proportional annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.

(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. 20-125.
Return to employment - suspension of benefits.
If a retired
employee returns to employment which is covered by a system from which he is
receiving a proportional annuity under this Article, his proportional annuity
from all participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to any
distributions payable under the self-managed plan established under Section
15-158.2 of this Code.
The provisions of the Article under which such employment would be
covered shall govern the determination of whether the employee has returned
to employment, and if applicable the exemption of temporary employment or
employment not exceeding a specified duration or frequency, for all
participating systems from which the retired employee is receiving a
proportional annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.

(Source: P.A. 91-887, eff. 7-6-00.)

(40 ILCS 5/20-126) (from Ch. 108 1/2, par. 20-126)
Sec. 20-126.
Responsibility of participating systems.
Each
participating system shall submit to the other participating systems,
upon request, a report, properly certified, regarding the
pension credits of each employee and any other pertinent information which may be
necessary for proper administration of this Article.

(Source: P.A. 79-782.)

(40 ILCS 5/20-127) (from Ch. 108 1/2, par. 20-127)
Sec. 20-127.
Responsibility of employee.
It shall be the duty and responsibility of an employee having pension
credit in any participating system to make available such information or
any other required data relating thereto, to the participating systems in
which he has pension credits, in order that the pension credit may be
applied in the manner herein provided. A participating system shall be
under no obligation or responsibility to initiate any inquiry or
investigation for the purpose of establishing pension credit in the case of
any employee, in the absence of a request from the employee, accompanied by
sufficient facts bearing upon the credit.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-128) (from Ch. 108 1/2, par. 20-128)
Sec. 20-128.
Payment of benefits.
Two or more participating systems may agree to have the combined
benefits paid by one of the systems, in which case, the system which pays
the combined benefit shall receive from the other system, a lump sum
payment equal to the actuarial equivalent of the proportional annuity
determined in accordance with annuity tables which are acceptable to both
systems.

(Source: P.A. 78-779.)

(40 ILCS 5/20-129) (from Ch. 108 1/2, par. 20-129)
Sec. 20-129.
Retirement systems covered by article.
This Article shall apply only to those retirement systems which have
accepted it, as specified in the respective divisions or Articles of this
Code governing such systems.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-130) (from Ch. 108 1/2, par. 20-130)
Sec. 20-130.

Conflict between this Article and the Articles governing
the participating systems. If any of the provisions of this Article are
inconsistent with the provisions of the Article governing any participating
system, the provisions shall, if possible, be interpreted so as to give effect
to the purpose of both Articles; however, if this is not possible, the
provisions of the Article governing the participating system, with the
exception of those covering suspension of benefits upon return to
employment, shall control.

(Source: P.A. 79-782.)

(40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
Sec. 20-131.
Retirement Annuities and Survivors Annuities - Guarantees.
(a) This amendatory Act of 1975 (P.A. 79-782) shall not be applied to
deprive any person or his survivor of eligibility for an annuity or to reduce
the annuity or to deprive such person of rights to which he or his survivor
would have been entitled under the provisions of Article 20 which were in
effect immediately prior to September 5, 1975, if he was an employee
immediately prior to that date.
(b) If the combined retirement annuity benefits provided under Public
Act 79-782 are less than the combined retirement annuity benefits that would
have been payable under the alternative formula of Section 20-122, the system
under which retirement would have occurred, as provided by Section 20-122,
shall increase the proportional retirement annuity by an amount equal to the
difference.
(c) Subsection (b) of this Section does not apply to the retirement
annuity benefits payable under the self-managed plan established under Section
15-158.2 of this Code.

(Source: P.A. 91-887, eff. 7-6-00.)

(40 ILCS 5/20-132) (from Ch. 108 1/2, par. 20-132)
Sec. 20-132.
Short title.
This Article shall be known as the "Retirement Systems Reciprocal Act"
and is a continuation of the "Retirement Systems Reciprocal Act", approved
July 11, 1955, as amended.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/20-133) (from Ch. 108 1/2, par. 20-133)
Sec. 20-133.
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.)