HB1568eng 102ND GENERAL ASSEMBLY

HB1568 Engrossed LRB102 03599 RJF 13612 b

AN ACT concerning State government.

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

Section 5. The Illinois Administrative Procedure Act is amended by adding Section 5-45.21 as follows:

(5 ILCS 100/5-45.21 new)

Sec. 5-45.21. Emergency rulemaking; deferred retirement option plan. To provide for the expeditious and timely implementation of Section 14-147.7 of the Illinois Pension Code, emergency rules implementing the deferred retirement option plan under Section 14-147.7 of the Illinois Pension Code and maintaining the deferred retirement option plan's compliance with applicable federal laws and regulations may be adopted in accordance with Section 5-45 by the Board of Trustees of the State Employees' Retirement System of Illinois. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed one year after the effective date of this amendatory Act of the 102nd General Assembly.

Section 10. The Department of Revenue Law of the Civil Administrative Code of Illinois is amended by adding Section 2505-306 as follows:

(20 ILCS 2505/2505-306 new)

Sec. 2505-306. Retiring investigators; purchase of service firearm and badge. The Director shall establish a program to allow a Department investigator who is honorably retiring in good standing to purchase either one or both of the following: (1) any badge previously issued to the investigator by the Department; or (2) if the investigator has a currently valid Firearm Owner's Identification Card, the service firearm issued or previously issued to the investigator by the Department. The cost of the firearm shall be the replacement value of the firearm and not the firearm's fair market value.

Section 15. The State Finance Act is amended by adding Sections 5.970 and 6z-130 as follows:

(30 ILCS 105/5.970 new)

Sec. 5.970. The Law Enforcement Recruitment and Retention Fund.

(30 ILCS 105/6z-130 new)

Sec. 6z-130. The Law Enforcement Recruitment and Retention Fund. The Law Enforcement Recruitment and Retention Fund is hereby created as a special fund in the State treasury. Moneys in the fund shall consist of moneys transferred from the General Revenue Fund to the Law Enforcement Recruitment and Retention Fund. This fund shall be used by the Illinois Law Enforcement Recruitment and Retention Board to provide grants pursuant to Section 3.2 of the Illinois Police Training Act and may be used to reimburse the Illinois Law Enforcement Training Standards Board pursuant to subsection (c) of Section 3.2 of the Illinois Police Training Act.

Section 20. The Illinois Pension Code is amended by changing Sections 1-160 and 14-152.1 and by adding Sections 7-142.2, 14-147.7, and 24-105.3 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, 7, 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 or to any participant of the retirement plan established under Section 22-101; except that this Section applies to a person who elected to establish alternative credits by electing in writing after January 1, 2011, but before August 8, 2011, under Section 7-145.1 of this Code. Notwithstanding anything to the contrary in this Section, for purposes of this Section, a person who is a Tier 1 regular employee as defined in Section 7-109.4 of this Code or 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, except as otherwise provided in this subsection, 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) (Blank).

(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".

A member of the Teachers' Retirement System of the State of Illinois who retires on or after June 1, 2021 and for whom the 2020-2021 school year is used in the calculation of the member's final average salary shall use the higher of the following for the purpose of determining the member's final average salary:

(A) the amount otherwise calculated under the first paragraph of this subsection; or

(B) an amount calculated by the Teachers' Retirement System of the State of Illinois using the average of the monthly (or annual) salary obtained by dividing the total salary or earnings calculated under Article 16 applicable to the member or participant during the 96 months (or 8 years) of service within the last 120 months (or 10 years) of service in which the total salary or earnings calculated under the Article was the highest by the number of months (or years) of service in that period.

(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 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of 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 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of 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 on or after July 6, 2017 (the effective date of Public Act 100-23), 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 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 (age 60, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of 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 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15) of this Section).

(d-5) The retirement annuity payable under Article 8 or Article 11 to an eligible person subject to subsection (c-5) of this Section who is retiring at age 60 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 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 July 6, 2017 (the effective date of Public Act 100-23) 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).

(d-15) Each person who first becomes a member or participant under Article 12 on or after January 1, 2011 and prior to January 1, 2022 shall make an irrevocable election either:

(i) to be eligible for the reduced retirement age specified in subsections (c) and (d) of this Section, the eligibility for which is conditioned upon the member or participant agreeing to the increase in employee contributions for service annuities specified in subsection (b) of Section 12-150; or

(ii) to not agree to item (i) of this subsection (d-15), in which case the member or participant shall not be eligible for the reduced retirement age specified in subsections (c) and (d) of this Section and shall not be subject to the increase in employee contributions for service annuities specified in subsection (b) of Section 12-150.

The election provided for in this subsection shall be made between January 1, 2022 and April 1, 2022. 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 (age 65, with respect to service under Article 12 that is subject to this Section, for a member or participant under Article 12 who first becomes a member or participant under Article 12 on or after January 1, 2022 or who makes the election under item (i) of subsection (d-15); and beginning on July 6, 2017 (the effective date of Public Act 100-23) 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; or (ii) 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 Public Act 102-263 this amendatory Act of the 102nd General Assembly are applicable without regard to whether the employee was in active service on or after August 6, 2021 (the effective date of Public Act 102-263) this amendatory Act of the 102nd General Assembly.

For the purposes of Section 1-103.1 of this Code, the changes made to this Section by Public Act 100-23 this amendatory Act of the 100th General Assembly are applicable without regard to whether the employee was in active service on or after July 6, 2017 (the effective date of Public Act 100-23) 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 conservation police officer, an investigator for the Secretary of State, an arson investigator, a Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, 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.

(g-5) The benefits in Section 14-110 apply if the person is a State policeman, investigator for the Secretary of State, conservation police officer, investigator for the Department of Revenue or the Illinois Gaming Board, investigator for the Office of the Attorney General, Commerce Commission police officer, or arson investigator, 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 55, regardless of whether the attainment of age 55 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. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; revised 9-28-21.)

(40 ILCS 5/7-142.2 new)

Sec. 7-142.2. Deferred retirement option plan.

(a) As used in this Section:

"Deferred retirement option plan" or "DROP" means the plan created under this Section that provides an alternative method of benefit accrual in the Fund.

"DROP member" means an eligible member who makes an election to participate in the DROP no later than January 1, 2027.

"DROP period" means the period during which a DROP member participates in the DROP.

"Eligible member" means a participating employee of the Fund who, at the time of electing to participate in the DROP:

(1) is otherwise eligible to retire under this Article with a benefit under Section 7-142.1;

(2) has never received a retirement annuity from the Fund;

(3) is in active service as a sheriff's law enforcement employee; and

(4) has terminated participation with respect to any employer other than the employer for which the member is a sheriff's law enforcement employee.

(b) The DROP shall be made available to eligible members no later than January 1, 2024.

(c) Eligible members must make their election to participate in the DROP in writing with the Fund in a form acceptable to the Fund. The Fund must process the election and begin crediting an account on behalf of the member as soon as is practicable after the election has been received by the Fund.

(d) An eligible member may elect to participate in the DROP for a period not to exceed 5 years from the date of election.

(e) During the DROP period, the Fund shall credit a notional account on behalf of the DROP member an amount equal to the monthly amount of retirement annuity the DROP member would otherwise be eligible to receive had the DROP member retired on the date of the election under this Section, minus any amounts required to be deducted under State or federal law, including, but not limited to, payments required under a Qualified Illinois Domestic Relations Order under Section 1-119. Any automatic annual increases that would have otherwise been applied to the DROP member's retirement annuity had the DROP member elected to retire instead of participate in the DROP shall accrue to the DROP member's monthly payment credited to the account prior to the expiration of the DROP and shall otherwise apply to the DROP member's annuity upon expiration of the DROP. The account shall be held on behalf of the DROP member.

(f) DROP members shall make contributions to the Fund during their participation in the DROP in an amount equal to the employee contributions under paragraph (1) of subsection (a) of Section 7-173 and subsection (a) of Section 7-173.1 that would otherwise be required if the DROP member were an active participant of the Fund. Those amounts shall be credited to the general account of the Fund. Earnings paid to DROP members during their participation in the DROP shall be included in the calculation of employer contributions as required in Section 7-172.

(g) The amounts credited to the DROP account shall be held in notional accounts by the Fund and shall be credited interest annually on each January 1 during the DROP period. Interest shall be calculated during the DROP period at a rate equal to the Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity in effect at that time and shall be based on the amount in the DROP member's notional account on December 31 of the preceding year.

(h) Upon the later of the expiration or termination of the DROP member's participation in the DROP or the termination of disability benefits being paid to the DROP member, the account balance shall be paid to the DROP member as a lump sum. The Fund shall provide options for the transfer of the account consistent with its fiduciary duty and any applicable State or federal law. An expiration or termination of a DROP member's participation in the DROP may not occur after January 1, 2032.

(i) The DROP election is irrevocable, and the DROP member may not access the account prior to termination or expiration of the DROP member's participation in the DROP. The DROP member must terminate employment with the employer upon expiration of his or her participation in the DROP. The DROP member's participation in the DROP shall terminate prior to the expiration date:

(1) if the DROP member terminates employment with the employer prior to the expiration of the designated DROP period;

(2) if the DROP member becomes eligible for and begins collecting a disability benefit from the Fund; or

(3) upon the death of the DROP member.

Upon termination or expiration of the DROP period, the DROP member must separate from the service of all employers under this Article for a period of not less than 60 days. Upon the later of the termination of the DROP or the termination of disability benefits being paid to the DROP member, the DROP member's retirement annuity from the Fund shall commence.

(j) The DROP member shall be considered in active service for purposes of eligibility for death and disability benefits.

While participating in the DROP, the DROP member shall not accrue additional service credit, including any service accruals, in the Fund and earnings paid to the DROP member while participating in the DROP shall not be included in the calculation of final rate of earnings, regardless of future pay increases, active cost of living adjustments, or promotions. Additionally, the DROP member shall not be eligible to make additional contributions under paragraph (2) of subsection (a) of Section 7-173. During the DROP period, the DROP member shall not be eligible for a distribution of any amounts accrued from previous contributions made under paragraph (2) of subsection (a) of Section 7-173.

Eligibility for a surviving spouse benefit under Section 7-154 shall be determined at the time of the DROP election.

The pickup of employee contribution requirements in Section 7-173.2 shall be applicable to amounts paid by the DROP member under subsection (f).

Any amounts due to an alternate payee under a Qualified Illinois Domestic Relations Order under Section 1-119 shall be calculated at the time of the DROP election, and such amounts shall be payable at the time of election.

If the DROP member's designated beneficiary predeceases the DROP member and the DROP member dies before designating a new beneficiary, the DROP member's DROP account shall be paid to the DROP member's estate.

(k) It is intended that the DROP shall not jeopardize the tax-qualified status of the Fund. The Board shall have the authority to adopt rules necessary or appropriate for the DROP to maintain compliance with applicable federal laws and regulations. Notwithstanding any other provision of this Article, all benefits provided under the DROP shall be subject to the requirements and limitations of the Internal Revenue Code of 1986.

(40 ILCS 5/14-147.7 new)

Sec. 14-147.7. Deferred retirement option plan.

(a) As used in this Section:

"Deferred retirement option plan" or "DROP" means the plan created under this Section that provides an alternative method of benefit accrual in the System.

"Eligible member" means an employee who at the time of election in the DROP, which must occur no later than January 1, 2027:

(1) is employed as a State policeman and has qualified to begin receiving retirement benefits as determined under Section 14-110;

(2) has never received a retirement annuity from this System;

(3) declines both accelerated pension benefit payment options under Sections 14-147.5 and 14-147.6;

(4) provides documentation that he or she will be employed as a State policeman after his or her election to participate in the DROP; and

(5) provides proof that he or she is enrolled in an eligible account under Section 457(d) of the Internal Revenue Code of 1986.

(b) After the System accepts a determination that the DROP conforms with the federal regulations of qualified plans provided by a firm familiar with such regulations, the DROP shall be made available to eligible members as soon as administratively practicable as determined by the Board.

(c) Eligible members must make their election to participate in the DROP in writing with the System in a form acceptable to the System. The System must process the election and begin crediting an account on behalf of the member as soon as is practicable after the election has been received by the System.

(d) An eligible member may elect to participate in the DROP for a period not to exceed 5 years from the date of election, and the duration of that period shall be certified by the Illinois State Police and provided to the System.

(e) During the period of the DROP, the System shall credit into a notional account on behalf of the member an amount equal to the monthly amount of retirement annuity the member would otherwise be eligible to receive had the member retired on the date of the election under this Section, minus any amounts required to be deducted under State or federal law, including, but not limited to, payments required under a Qualified Illinois Domestic Relations Order under Section 1-119. Any automatic annual increases that would have otherwise been applied to the member's retirement annuity had the member elected to retire instead of participate in the DROP shall accrue to the member's monthly payment credited to the account prior to the expiration of the DROP and shall otherwise apply to the member's annuity upon expiration of the DROP. The account shall be held on behalf of the member.

(f) During the period a member participates in the DROP, the member shall cease all contributions to the System, but shall make the contributions required under Section 24-105.3.

(g) The amounts credited to the DROP account shall be held in notional accounts by the System and shall be credited interest annually on January 1. Interest shall be calculated at a rate equal to the Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity in effect at that time and shall be based on the amount in the notional account on December 31 of the preceding year.

(h) Upon expiration or termination of the member's participation in the DROP, the account balance shall be paid to the member as a lump sum. The System shall provide options for the transfer of the account consistent with its fiduciary duties and any applicable State or federal law. An expiration or termination of a member's participation in DROP may not occur after January 1, 2032.

(i) The DROP election is irrevocable, and the member may not access the account prior to termination or expiration of the member's participation in DROP. The member must terminate employment with the Illinois State Police upon expiration of the member's participation in DROP. The member's participation in the DROP shall terminate prior to the expiration date:

(1) if the member terminates employment with the Illinois State Police prior to the expiration of the designated DROP period;

(2) if the member receives income under the Public Employee Disability Act, the Workers' Compensation Act, or the Workers' Occupational Diseases Act; or

(3) upon the death of the member.

The monthly benefit payment accruals that are credited to the DROP member's notional account shall cease immediately upon the occurrence of any of the events as described in this subsection (i).

(j) A member in the DROP or his or her beneficiary is not eligible for the benefits provided in Section 14-116, 14-123, 14-123.1, 14-124, 14-128, 14-130, 14-147.5, or 14-147.6 while participating in the DROP.

The member shall not accrue or establish additional service or earnings credits in the System while participating in the DROP.

Any amounts due to an alternate payee under a Qualified Illinois Domestic Relations Order under Section 1-119 shall be calculated at the time of the DROP election and such amounts shall be payable at the time of election.

If the member's designated beneficiary predeceases the member and the member dies before designating a new beneficiary, the member's DROP account shall be paid to the member's estate.

(k) It is intended that the DROP shall not jeopardize the tax qualified status of the System. The Board shall have the authority to adopt rules and policies necessary or appropriate, including adopting emergency rules, for the DROP to maintain compliance with applicable federal laws and regulations. Notwithstanding any other provision of this Article, all benefits provided under the DROP shall be subject to the requirements and limitations of the Internal Revenue Code of 1986.

(40 ILCS 5/14-152.1)

Sec. 14-152.1. Application and expiration of new benefit increases.

(a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 96-37, Public Act 100-23, Public Act 100-587, Public Act 100-611, Public Act 101-10, Public Act 101-610, Public Act 102-210, or this amendatory Act of the 102nd General Assembly this amendatory Act of the 102nd General Assembly.

(b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.

(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues.

Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.

(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law.

(e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.

(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)

(40 ILCS 5/24-105.3 new)

Sec. 24-105.3. Automatic enrollment and required participation; deferred retirement option plan. An employee who participates in the deferred retirement option plan under Section 14-147.7 shall have at least 7.6% of his or her pretax gross compensation for each compensation period deferred into his or her deferred compensation account.

The Department of Central Management Services shall automatically enroll in the State Employees Deferred Compensation Plan any employee who elects to participate in the deferred retirement option plan under Section 14-147.7 and is not already enrolled in the State Employees Deferred Compensation Plan. The Illinois State Police shall provide the employee data necessary for enrollment to the Department of Central Management Services or its designee. An employee who participates in the deferred retirement option plan under Section 14-147.7 may increase the percentage of pretax gross compensation that is deferred into his or her account to the amount limited by the federal government.

Section 25. The Illinois Police Training Act is amended by adding Section 3.2 as follows:

(50 ILCS 705/3.2 new)

Sec. 3.2. Illinois Law Enforcement Recruitment and Retention Board.

(a) There is hereby created the Illinois Law Enforcement Recruitment and Retention Board. The Board shall be composed of:

(1) one individual who is employed as a municipal law enforcement officer in a municipality with less than 1,000,000 people, appointed by the Senate President;

(2) one individual who is employed as a deputy sheriff, appointed by the Senate Minority Leader of the Senate;

(3) one individual who is a chief of police in a municipality with less than 1,000,000 people, appointed by the Speaker of the House of Representatives;

(4) one individual who is a sheriff, appointed by the Minority Leader of the House of Representatives;

(5) the Executive Director of the Illinois Law Enforcement Training Standards Board, or the Executive Director's designee; and

(6) the Superintendent of the Chicago Police Department, or the Superintendent's designee.

The Executive Director of the Illinois Law Enforcement Training Standards Board shall be the chairperson of the Board until the Board elects officers.

Each appointed member shall serve for a term of 4 years. The Board shall meet at least quarterly and as often as is necessary to accomplish the Board's duties under this Section. Board members shall not be paid but may be reimbursed for the actual costs of travel to Board meetings.

(b) The Board shall review proposals and award grants for law enforcement personnel recruitment and retention efforts by employers of law enforcement personnel in Illinois or nonprofit entities that have established experience in recruitment and retention efforts in Illinois. The Board shall choose such employers or nonprofit entities to be awarded grant funds from the Law Enforcement Recruitment and Retention Fund. The Board shall establish forms and procedures for applying for grants. The Board shall establish procedures and processes for reviewing grants and making awards. In establishing these procedures and processes, the Board shall prioritize (1) serving underserved areas, (2) targeting grant requests that have a high likelihood of achieving the stated goals of the Board, (3) achieving geographic diversity among applicants that are awarded grants, (4) maximizing the effects of moneys spent on the actual recruitment and retention of law enforcement personnel, and (5) providing grants that can impact multiple employers either directly with the grant or by providing repeatable actions for other employers.

(c) The Illinois Law Enforcement Training Standards Board shall provide meeting space, either virtual or physical, as required. The Illinois Law Enforcement Training Standards Board shall provide staff and administrative support to the Illinois Law Enforcement Recruitment and Retention Board, and the Illinois Law Enforcement Recruitment and Retention Board may reimburse the Illinois Law Enforcement Training Standards Board from the Law Enforcement Recruitment and Retention Fund by mutual agreement.

(d) Any award or grant made under this Section is contingent on there being sufficient appropriations to and moneys available in the Law Enforcement Recruitment and Retention Fund.

Section 30. The Law Enforcement Intern Training Act is amended by adding Section 24 as follows:

(50 ILCS 708/24 new)

Sec. 24. Transfer credits from public institutions of higher education.

(a) As used in this Section, "public institutions of higher education" has the meaning ascribed to that term in the Board of Higher Education Act.

(b) The Board shall collaborate with the Illinois Community College Board and the Board of Higher Education to create a report with recommendations to the General Assembly for establishing minimum requirements for credits that may transfer from public institutions of higher education to satisfy the requirements of law enforcement and correctional intern courses under this Act.

(c) The report shall be submitted to the General Assembly no later than July 1, 2023.

Section 35. The Counties Code is amended by adding Section 3-6042 as follows:

(55 ILCS 5/3-6042 new)

Sec. 3-6042. Retiring employee; purchase of service firearm and badge. Each Sheriff shall establish a program to allow an employee of the Sheriff's Department who is honorably retiring in good standing to purchase either one or both of the following: (1) any badge previously issued to the employee by the Sheriff's Department; or (2) if the employee has a currently valid Firearm Owner's Identification Card, the service firearm issued or previously issued to the employee by the Sheriff's Department. The badge must be permanently and conspicuously marked in such a manner that the individual who possesses the badge is not mistaken for an actively serving law enforcement officer. The cost of the firearm shall be the replacement value of the firearm and not the firearm's fair market value.

Section 40. The Illinois Gambling Act is amended by adding Section 5.4 as follows:

(230 ILCS 10/5.4 new)

Sec. 5.4. Retiring investigators; purchase of service firearm and badge. The Board shall establish a program to allow an investigator appointed under paragraph (20.6) of subsection (c) of Section 4 who is honorably retiring in good standing to purchase either one or both of the following: (1) any badge previously issued to the investigator by the Board; or (2) if the investigator has a currently valid Firearm Owner's Identification Card, the service firearm issued or previously issued to the investigator by the Board. The badge must be permanently and conspicuously marked in such a manner that the individual who possesses the badge is not mistaken for an actively serving law enforcement officer. The cost of the firearm shall be the replacement value of the firearm and not the firearm's fair market value.

Section 45. The Unified Code of Corrections is amended by adding Section 3-2-10.5 as follows:

(730 ILCS 5/3-2-10.5 new)

Sec. 3-2-10.5. Retiring security employees and parole agents; purchase of service firearm and badge. The Director shall establish a program to allow a security employee or parole agent of the Department who is honorably retiring in good standing to purchase either one or both of the following: (1) any badge previously issued to the security employee or parole agent by the Department; or (2) if the security employee or parole agent has a currently valid Firearm Owner's Identification Card, the service firearm issued or previously issued to the security employee or parole agent by the Department. The badge must be permanently and conspicuously marked in such a manner that the individual who possesses the badge is not mistaken for an actively serving law enforcement officer. The cost of the firearm shall be the replacement value of the firearm and not the firearm's fair market value.

Section 50. The Probation and Probation Officers Act is amended by adding Section 15.2 as follows:

(730 ILCS 110/15.2 new)

Sec. 15.2. Retiring probation officer; purchase of service firearm and badge. Each department shall establish a program to allow a probation officer of the department who is honorably retiring in good standing to purchase either one or both of the following: (1) any badge previously issued to the probation officer by the department; or (2) if the probation officer has a currently valid Firearm Owner's Identification Card, the service firearm issued or previously issued to the probation officer by the department. The badge must be permanently and conspicuously marked in such a manner that the individual who possesses the badge is not mistaken for an actively serving law enforcement officer. The cost of the firearm shall be the replacement value of the firearm and not the firearm's fair market value.

Section 99. Effective date. This Act takes effect upon becoming law, except that Section 25 takes effect July 1, 2023 and Section 30 takes effect January 1, 2023.