093_HB1346 LRB093 07253 EFG 07411 b 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Section 14-110 as follows: 6 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) 7 Sec. 14-110. Alternative retirement annuity. 8 (a) Any member who has withdrawn from service with not 9 less than 20 years of eligible creditable service and has 10 attained age 55, and any member who has withdrawn from 11 service with not less than 25 years of eligible creditable 12 service and has attained age 50, regardless of whether the 13 attainment of either of the specified ages occurs while the 14 member is still in service, shall be entitled to receive at 15 the option of the member, in lieu of the regular or minimum 16 retirement annuity, a retirement annuity computed as 17 follows: 18 (i) for periods of service as a noncovered 19 employee: if retirement occurs on or after January 1, 20 2001, 3% of final average compensation for each year of 21 creditable service; if retirement occurs before January 22 1, 2001, 2 1/4% of final average compensation for each of 23 the first 10 years of creditable service, 2 1/2% for each 24 year above 10 years to and including 20 years of 25 creditable service, and 2 3/4% for each year of 26 creditable service above 20 years; and 27 (ii) for periods of eligible creditable service as 28 a covered employee: if retirement occurs on or after 29 January 1, 2001, 2.5% of final average compensation for 30 each year of creditable service; if retirement occurs 31 before January 1, 2001, 1.67% of final average -2- LRB093 07253 EFG 07411 b 1 compensation for each of the first 10 years of such 2 service, 1.90% for each of the next 10 years of such 3 service, 2.10% for each year of such service in excess of 4 20 but not exceeding 30, and 2.30% for each year in 5 excess of 30. 6 Such annuity shall be subject to a maximum of 75% of 7 final average compensation if retirement occurs before 8 January 1, 2001 or to a maximum of 80% of final average 9 compensation if retirement occurs on or after January 1, 10 2001. 11 These rates shall not be applicable to any service 12 performed by a member as a covered employee which is not 13 eligible creditable service. Service as a covered employee 14 which is not eligible creditable service shall be subject to 15 the rates and provisions of Section 14-108. 16 (b) For the purpose of this Section, "eligible 17 creditable service" means creditable service resulting from 18 service in one or more of the following positions: 19 (1) State policeman; 20 (2) fire fighter in the fire protection service of 21 a department; 22 (3) air pilot; 23 (4) special agent; 24 (5) investigator for the Secretary of State; 25 (6) conservation police officer; 26 (7) investigator for the Department of Revenue; 27 (8) security employee of the Department of Human 28 Services; 29 (9) Central Management Services security police 30 officer; 31 (10) security employee of the Department of 32 Corrections; 33 (11) dangerous drugs investigator; 34 (12) investigator for the Department of State -3- LRB093 07253 EFG 07411 b 1 Police; 2 (13) investigator for the Office of the Attorney 3 General; 4 (14) controlled substance inspector; 5 (15) investigator for the Office of the State's 6 Attorneys Appellate Prosecutor; 7 (16) Commerce Commission police officer; 8 (17) arson investigator; 9 (18) State highway maintenance worker; 10 (19) automotive mechanic. 11 A person employed in one of the positions specified in 12 this subsection is entitled to eligible creditable service 13 for service credit earned under this Article while undergoing 14 the basic police training course approved by the Illinois Law 15 Enforcement Training Standards Board, if completion of that 16 training is required of persons serving in that position. For 17 the purposes of this Code, service during the required basic 18 police training course shall be deemed performance of the 19 duties of the specified position, even though the person is 20 not a sworn peace officer at the time of the training. 21 (c) For the purposes of this Section: 22 (1) The term "state policeman" includes any title 23 or position in the Department of State Police that is 24 held by an individual employed under the State Police 25 Act. 26 (2) The term "fire fighter in the fire protection 27 service of a department" includes all officers in such 28 fire protection service including fire chiefs and 29 assistant fire chiefs. 30 (3) The term "air pilot" includes any employee 31 whose official job description on file in the Department 32 of Central Management Services, or in the department by 33 which he is employed if that department is not covered by 34 the Personnel Code, states that his principal duty is the -4- LRB093 07253 EFG 07411 b 1 operation of aircraft, and who possesses a pilot's 2 license; however, the change in this definition made by 3 this amendatory Act of 1983 shall not operate to exclude 4 any noncovered employee who was an "air pilot" for the 5 purposes of this Section on January 1, 1984. 6 (4) The term "special agent" means any person who 7 by reason of employment by the Division of Narcotic 8 Control, the Bureau of Investigation or, after July 1, 9 1977, the Division of Criminal Investigation, the 10 Division of Internal Investigation, the Division of 11 Operations, or any other Division or organizational 12 entity in the Department of State Police is vested by law 13 with duties to maintain public order, investigate 14 violations of the criminal law of this State, enforce the 15 laws of this State, make arrests and recover property. 16 The term "special agent" includes any title or position 17 in the Department of State Police that is held by an 18 individual employed under the State Police Act. 19 (5) The term "investigator for the Secretary of 20 State" means any person employed by the Office of the 21 Secretary of State and vested with such investigative 22 duties as render him ineligible for coverage under the 23 Social Security Act by reason of Sections 218(d)(5)(A), 24 218(d)(8)(D) and 218(l)(1) of that Act. 25 A person who became employed as an investigator for 26 the Secretary of State between January 1, 1967 and 27 December 31, 1975, and who has served as such until 28 attainment of age 60, either continuously or with a 29 single break in service of not more than 3 years 30 duration, which break terminated before January 1, 1976, 31 shall be entitled to have his retirement annuity 32 calculated in accordance with subsection (a), 33 notwithstanding that he has less than 20 years of credit 34 for such service. -5- LRB093 07253 EFG 07411 b 1 (6) The term "Conservation Police Officer" means 2 any person employed by the Division of Law Enforcement of 3 the Department of Natural Resources and vested with such 4 law enforcement duties as render him ineligible for 5 coverage under the Social Security Act by reason of 6 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of 7 that Act. The term "Conservation Police Officer" 8 includes the positions of Chief Conservation Police 9 Administrator and Assistant Conservation Police 10 Administrator. 11 (7) The term "investigator for the Department of 12 Revenue" means any person employed by the Department of 13 Revenue and vested with such investigative duties as 14 render him ineligible for coverage under the Social 15 Security Act by reason of Sections 218(d)(5)(A), 16 218(d)(8)(D) and 218(l)(1) of that Act. 17 (8) The term "security employee of the Department 18 of Human Services" means any person employed by the 19 Department of Human Services who (i) is employed at the 20 Chester Mental Health Center and has daily contact with 21 the residents thereof, (ii) is employed within a security 22 unit at a facility operated by the Department and has 23 daily contact with the residents of the security unit, 24 (iii) is employed at a facility operated by the 25 Department that includes a security unit and is regularly 26 scheduled to work at least 50% of his or her working 27 hours within that security unit, or (iv) is a mental 28 health police officer. "Mental health police officer" 29 means any person employed by the Department of Human 30 Services in a position pertaining to the Department's 31 mental health and developmental disabilities functions 32 who is vested with such law enforcement duties as render 33 the person ineligible for coverage under the Social 34 Security Act by reason of Sections 218(d)(5)(A), -6- LRB093 07253 EFG 07411 b 1 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" 2 means that portion of a facility that is devoted to the 3 care, containment, and treatment of persons committed to 4 the Department of Human Services as sexually violent 5 persons, persons unfit to stand trial, or persons not 6 guilty by reason of insanity. With respect to past 7 employment, references to the Department of Human 8 Services include its predecessor, the Department of 9 Mental Health and Developmental Disabilities. 10 The changes made to this subdivision (c)(8) by 11 Public Act 92-14 apply to persons who retire on or after 12 January 1, 2001, notwithstanding Section 1-103.1. 13 (9) "Central Management Services security police 14 officer" means any person employed by the Department of 15 Central Management Services who is vested with such law 16 enforcement duties as render him ineligible for coverage 17 under the Social Security Act by reason of Sections 18 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 19 (10) The term "security employee of the Department 20 of Corrections" means any employee of the Department of 21 Corrections or the former Department of Personnel, and 22 any member or employee of the Prisoner Review Board, who 23 has daily contact with inmates by working within a 24 correctional facility or who is a parole officer or an 25 employee who has direct contact with committed persons in 26 the performance of his or her job duties. 27 (11) The term "dangerous drugs investigator" means 28 any person who is employed as such by the Department of 29 Human Services. 30 (12) The term "investigator for the Department of 31 State Police" means a person employed by the Department 32 of State Police who is vested under Section 4 of the 33 Narcotic Control Division Abolition Act with such law 34 enforcement powers as render him ineligible for coverage -7- LRB093 07253 EFG 07411 b 1 under the Social Security Act by reason of Sections 2 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 3 (13) "Investigator for the Office of the Attorney 4 General" means any person who is employed as such by the 5 Office of the Attorney General and is vested with such 6 investigative duties as render him ineligible for 7 coverage under the Social Security Act by reason of 8 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 9 Act. For the period before January 1, 1989, the term 10 includes all persons who were employed as investigators 11 by the Office of the Attorney General, without regard to 12 social security status. 13 (14) "Controlled substance inspector" means any 14 person who is employed as such by the Department of 15 Professional Regulation and is vested with such law 16 enforcement duties as render him ineligible for coverage 17 under the Social Security Act by reason of Sections 18 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 19 The term "controlled substance inspector" includes the 20 Program Executive of Enforcement and the Assistant 21 Program Executive of Enforcement. 22 (15) The term "investigator for the Office of the 23 State's Attorneys Appellate Prosecutor" means a person 24 employed in that capacity on a full time basis under the 25 authority of Section 7.06 of the State's Attorneys 26 Appellate Prosecutor's Act. 27 (16) "Commerce Commission police officer" means any 28 person employed by the Illinois Commerce Commission who 29 is vested with such law enforcement duties as render him 30 ineligible for coverage under the Social Security Act by 31 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 32 218(l)(1) of that Act. 33 (17) "Arson investigator" means any person who is 34 employed as such by the Office of the State Fire Marshal -8- LRB093 07253 EFG 07411 b 1 and is vested with such law enforcement duties as render 2 the person ineligible for coverage under the Social 3 Security Act by reason of Sections 218(d)(5)(A), 4 218(d)(8)(D), and 218(l)(1) of that Act. A person who 5 was employed as an arson investigator on January 1, 1995 6 and is no longer in service but not yet receiving a 7 retirement annuity may convert his or her creditable 8 service for employment as an arson investigator into 9 eligible creditable service by paying to the System the 10 difference between the employee contributions actually 11 paid for that service and the amounts that would have 12 been contributed if the applicant were contributing at 13 the rate applicable to persons with the same social 14 security status earning eligible creditable service on 15 the date of application. 16 (18) The term "State highway maintenance worker" 17 means a person who is either of the following: 18 (i) A person employed on a full-time basis by 19 the Illinois Department of Transportation in the 20 position of highway maintainer, highway maintenance 21 lead worker, highway maintenance lead/lead worker, 22 heavy construction equipment operator, power shovel 23 operator, or bridge mechanic; and whose principal 24 responsibility is to perform, on the roadway, the 25 actual maintenance necessary to keep the highways 26 that form a part of the State highway system in 27 serviceable condition for vehicular traffic. 28 (ii) A person employed on a full-time basis by 29 the Illinois State Toll Highway Authority in the 30 position of equipment operator/laborer H-4, 31 equipment operator/laborer H-6, welder H-4, 32 welder H-6, mechanical/electrical H-4, 33 mechanical/electrical H-6, water/sewer H-4, 34 water/sewer H-6, sign maker/hanger H-4, sign -9- LRB093 07253 EFG 07411 b 1 maker/hanger H-6, roadway lighting H-4, roadway 2 lighting H-6, structural H-4, structural H-6, 3 painter H-4, or painter H-6; and whose principal 4 responsibility is to perform, on the roadway, the 5 actual maintenance necessary to keep the Authority's 6 tollways in serviceable condition for vehicular 7 traffic. 8 (19) The term "automotive mechanic" means a person 9 who is employed as such on a full-time basis by the 10 Department of Central Management Services or the 11 Department of Transportation and who is assigned to 12 retrieve or repair State vehicles on State highways or 13 tollways. 14 (d) A security employee of the Department of 15 Corrections, and a security employee of the Department of 16 Human Services who is not a mental health police officer, 17 shall not be eligible for the alternative retirement annuity 18 provided by this Section unless he or she meets the following 19 minimum age and service requirements at the time of 20 retirement: 21 (i) 25 years of eligible creditable service and age 22 55; or 23 (ii) beginning January 1, 1987, 25 years of 24 eligible creditable service and age 54, or 24 years of 25 eligible creditable service and age 55; or 26 (iii) beginning January 1, 1988, 25 years of 27 eligible creditable service and age 53, or 23 years of 28 eligible creditable service and age 55; or 29 (iv) beginning January 1, 1989, 25 years of 30 eligible creditable service and age 52, or 22 years of 31 eligible creditable service and age 55; or 32 (v) beginning January 1, 1990, 25 years of eligible 33 creditable service and age 51, or 21 years of eligible 34 creditable service and age 55; or -10- LRB093 07253 EFG 07411 b 1 (vi) beginning January 1, 1991, 25 years of 2 eligible creditable service and age 50, or 20 years of 3 eligible creditable service and age 55. 4 Persons who have service credit under Article 16 of this 5 Code for service as a security employee of the Department of 6 Corrections or the Department of Human Services in a position 7 requiring certification as a teacher may count such service 8 toward establishing their eligibility under the service 9 requirements of this Section; but such service may be used 10 only for establishing such eligibility, and not for the 11 purpose of increasing or calculating any benefit. 12 (e) If a member enters military service while working in 13 a position in which eligible creditable service may be 14 earned, and returns to State service in the same or another 15 such position, and fulfills in all other respects the 16 conditions prescribed in this Article for credit for military 17 service, such military service shall be credited as eligible 18 creditable service for the purposes of the retirement annuity 19 prescribed in this Section. 20 (f) For purposes of calculating retirement annuities 21 under this Section, periods of service rendered after 22 December 31, 1968 and before October 1, 1975 as a covered 23 employee in the position of special agent, conservation 24 police officer, mental health police officer, or investigator 25 for the Secretary of State, shall be deemed to have been 26 service as a noncovered employee, provided that the employee 27 pays to the System prior to retirement an amount equal to (1) 28 the difference between the employee contributions that would 29 have been required for such service as a noncovered employee, 30 and the amount of employee contributions actually paid, plus 31 (2) if payment is made after July 31, 1987, regular interest 32 on the amount specified in item (1) from the date of service 33 to the date of payment. 34 For purposes of calculating retirement annuities under -11- LRB093 07253 EFG 07411 b 1 this Section, periods of service rendered after December 31, 2 1968 and before January 1, 1982 as a covered employee in the 3 position of investigator for the Department of Revenue shall 4 be deemed to have been service as a noncovered employee, 5 provided that the employee pays to the System prior to 6 retirement an amount equal to (1) the difference between the 7 employee contributions that would have been required for such 8 service as a noncovered employee, and the amount of employee 9 contributions actually paid, plus (2) if payment is made 10 after January 1, 1990, regular interest on the amount 11 specified in item (1) from the date of service to the date of 12 payment. 13 (g) A State policeman may elect, not later than January 14 1, 1990, to establish eligible creditable service for up to 15 10 years of his service as a policeman under Article 3, by 16 filing a written election with the Board, accompanied by 17 payment of an amount to be determined by the Board, equal to 18 (i) the difference between the amount of employee and 19 employer contributions transferred to the System under 20 Section 3-110.5, and the amounts that would have been 21 contributed had such contributions been made at the rates 22 applicable to State policemen, plus (ii) interest thereon at 23 the effective rate for each year, compounded annually, from 24 the date of service to the date of payment. 25 Subject to the limitation in subsection (i), a State 26 policeman may elect, not later than July 1, 1993, to 27 establish eligible creditable service for up to 10 years of 28 his service as a member of the County Police Department under 29 Article 9, by filing a written election with the Board, 30 accompanied by payment of an amount to be determined by the 31 Board, equal to (i) the difference between the amount of 32 employee and employer contributions transferred to the System 33 under Section 9-121.10 and the amounts that would have been 34 contributed had those contributions been made at the rates -12- LRB093 07253 EFG 07411 b 1 applicable to State policemen, plus (ii) interest thereon at 2 the effective rate for each year, compounded annually, from 3 the date of service to the date of payment. 4 (h) Subject to the limitation in subsection (i), a State 5 policeman or investigator for the Secretary of State may 6 elect to establish eligible creditable service for up to 12 7 years of his service as a policeman under Article 5, by 8 filing a written election with the Board on or before January 9 31, 1992, and paying to the System by January 31, 1994 an 10 amount to be determined by the Board, equal to (i) the 11 difference between the amount of employee and employer 12 contributions transferred to the System under Section 5-236, 13 and the amounts that would have been contributed had such 14 contributions been made at the rates applicable to State 15 policemen, plus (ii) interest thereon at the effective rate 16 for each year, compounded annually, from the date of service 17 to the date of payment. 18 Subject to the limitation in subsection (i), a State 19 policeman, conservation police officer, or investigator for 20 the Secretary of State may elect to establish eligible 21 creditable service for up to 10 years of service as a 22 sheriff's law enforcement employee under Article 7, by filing 23 a written election with the Board on or before January 31, 24 1993, and paying to the System by January 31, 1994 an amount 25 to be determined by the Board, equal to (i) the difference 26 between the amount of employee and employer contributions 27 transferred to the System under Section 7-139.7, and the 28 amounts that would have been contributed had such 29 contributions been made at the rates applicable to State 30 policemen, plus (ii) interest thereon at the effective rate 31 for each year, compounded annually, from the date of service 32 to the date of payment. 33 (i) The total amount of eligible creditable service 34 established by any person under subsections (g), (h), (j), -13- LRB093 07253 EFG 07411 b 1 (k), and (l) of this Section shall not exceed 12 years. 2 (j) Subject to the limitation in subsection (i), an 3 investigator for the Office of the State's Attorneys 4 Appellate Prosecutor or a controlled substance inspector may 5 elect to establish eligible creditable service for up to 10 6 years of his service as a policeman under Article 3 or a 7 sheriff's law enforcement employee under Article 7, by filing 8 a written election with the Board, accompanied by payment of 9 an amount to be determined by the Board, equal to (1) the 10 difference between the amount of employee and employer 11 contributions transferred to the System under Section 3-110.6 12 or 7-139.8, and the amounts that would have been contributed 13 had such contributions been made at the rates applicable to 14 State policemen, plus (2) interest thereon at the effective 15 rate for each year, compounded annually, from the date of 16 service to the date of payment. 17 (k) Subject to the limitation in subsection (i) of this 18 Section, an alternative formula employee may elect to 19 establish eligible creditable service for periods spent as a 20 full-time law enforcement officer or full-time corrections 21 officer employed by the federal government or by a state or 22 local government located outside of Illinois, for which 23 credit is not held in any other public employee pension fund 24 or retirement system. To obtain this credit, the applicant 25 must file a written application with the Board by March 31, 26 1998, accompanied by evidence of eligibility acceptable to 27 the Board and payment of an amount to be determined by the 28 Board, equal to (1) employee contributions for the credit 29 being established, based upon the applicant's salary on the 30 first day as an alternative formula employee after the 31 employment for which credit is being established and the 32 rates then applicable to alternative formula employees, plus 33 (2) an amount determined by the Board to be the employer's 34 normal cost of the benefits accrued for the credit being -14- LRB093 07253 EFG 07411 b 1 established, plus (3) regular interest on the amounts in 2 items (1) and (2) from the first day as an alternative 3 formula employee after the employment for which credit is 4 being established to the date of payment. 5 (l) Subject to the limitation in subsection (i), a 6 security employee of the Department of Corrections may elect, 7 not later than July 1, 1998, to establish eligible creditable 8 service for up to 10 years of his or her service as a 9 policeman under Article 3, by filing a written election with 10 the Board, accompanied by payment of an amount to be 11 determined by the Board, equal to (i) the difference between 12 the amount of employee and employer contributions transferred 13 to the System under Section 3-110.5, and the amounts that 14 would have been contributed had such contributions been made 15 at the rates applicable to security employees of the 16 Department of Corrections, plus (ii) interest thereon at the 17 effective rate for each year, compounded annually, from the 18 date of service to the date of payment. 19 (Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 20 92-14, eff. 6-28-01; 92-257, eff. 8-6-01; 92-651, eff. 21 7-11-02.) 22 Section 99. Effective date. This Act takes effect upon 23 becoming law.