093_HB1554 LRB093 03760 EFG 03795 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 Alternative retirement annuity. 8 (a) Any member who has withdrawn from service with not 9 less than 20 years of eligible creditable service and has 10 attained age 55, and any member who has withdrawn from 11 service with not less than 25 years of eligible creditable 12 service and has attained age 50, regardless of whether the 13 attainment of either of the specified ages occurs while the 14 member is still in service, and any member who has withdrawn 15 from service having established service sufficient to provide 16 an annuity under this Section equal to at least 80% of final 17 average compensation, regardless of age, shall be entitled to 18 receive at the option of the member, in lieu of the regular 19 or minimum retirement annuity, a retirement annuity computed 20 as follows: 21 (i) for periods of service as a noncovered 22 employee: if retirement occurs on or after January 1, 23 2001, 3% of final average compensation for each year of 24 creditable service; if retirement occurs before January 25 1, 2001, 2 1/4% of final average compensation for each of 26 the first 10 years of creditable service, 2 1/2% for each 27 year above 10 years to and including 20 years of 28 creditable service, and 2 3/4% for each year of 29 creditable service above 20 years; and 30 (ii) for periods of eligible creditable service as 31 a covered employee: if retirement occurs on or after -2- LRB093 03760 EFG 03795 b 1 January 1, 2001, 2.5% of final average compensation for 2 each year of creditable service; if retirement occurs 3 before January 1, 2001, 1.67% of final average 4 compensation for each of the first 10 years of such 5 service, 1.90% for each of the next 10 years of such 6 service, 2.10% for each year of such service in excess of 7 20 but not exceeding 30, and 2.30% for each year in 8 excess of 30. 9 Such annuity shall be subject to a maximum of 75% of 10 final average compensation if retirement occurs before 11 January 1, 2001 or to a maximum of 80% of final average 12 compensation if retirement occurs on or after January 1, 13 2001. 14 These rates shall not be applicable to any service 15 performed by a member as a covered employee which is not 16 eligible creditable service. Service as a covered employee 17 which is not eligible creditable service shall be subject to 18 the rates and provisions of Section 14-108. 19 (b) For the purpose of this Section, "eligible 20 creditable service" means creditable service resulting from 21 service in one or more of the following positions: 22 (1) State policeman; 23 (2) fire fighter in the fire protection service of 24 a department; 25 (3) air pilot; 26 (4) special agent; 27 (5) investigator for the Secretary of State; 28 (6) conservation police officer; 29 (7) investigator for the Department of Revenue; 30 (8) security employee of the Department of Human 31 Services; 32 (9) Central Management Services security police 33 officer; 34 (10) security employee of the Department of -3- LRB093 03760 EFG 03795 b 1 Corrections; 2 (11) dangerous drugs investigator; 3 (12) investigator for the Department of State 4 Police; 5 (13) investigator for the Office of the Attorney 6 General; 7 (14) controlled substance inspector; 8 (15) investigator for the Office of the State's 9 Attorneys Appellate Prosecutor; 10 (16) Commerce Commission police officer; 11 (17) arson investigator; 12 (18) State highway maintenance worker. 13 A person employed in one of the positions specified in 14 this subsection is entitled to eligible creditable service 15 for service credit earned under this Article while undergoing 16 the basic police training course approved by the Illinois Law 17 Enforcement Training Standards Board, if completion of that 18 training is required of persons serving in that position. For 19 the purposes of this Code, service during the required basic 20 police training course shall be deemed performance of the 21 duties of the specified position, even though the person is 22 not a sworn peace officer at the time of the training. 23 (c) For the purposes of this Section: 24 (1) The term "state policeman" includes any title 25 or position in the Department of State Police that is 26 held by an individual employed under the State Police 27 Act. 28 (2) The term "fire fighter in the fire protection 29 service of a department" includes all officers in such 30 fire protection service including fire chiefs and 31 assistant fire chiefs. 32 (3) The term "air pilot" includes any employee 33 whose official job description on file in the Department 34 of Central Management Services, or in the department by -4- LRB093 03760 EFG 03795 b 1 which he is employed if that department is not covered by 2 the Personnel Code, states that his principal duty is the 3 operation of aircraft, and who possesses a pilot's 4 license; however, the change in this definition made by 5 this amendatory Act of 1983 shall not operate to exclude 6 any noncovered employee who was an "air pilot" for the 7 purposes of this Section on January 1, 1984. 8 (4) The term "special agent" means any person who 9 by reason of employment by the Division of Narcotic 10 Control, the Bureau of Investigation or, after July 1, 11 1977, the Division of Criminal Investigation, the 12 Division of Internal Investigation, the Division of 13 Operations, or any other Division or organizational 14 entity in the Department of State Police is vested by law 15 with duties to maintain public order, investigate 16 violations of the criminal law of this State, enforce the 17 laws of this State, make arrests and recover property. 18 The term "special agent" includes any title or position 19 in the Department of State Police that is held by an 20 individual employed under the State Police Act. 21 (5) The term "investigator for the Secretary of 22 State" means any person employed by the Office of the 23 Secretary of State and vested with such investigative 24 duties as render him ineligible for coverage under the 25 Social Security Act by reason of Sections 218(d)(5)(A), 26 218(d)(8)(D) and 218(l)(1) of that Act. 27 A person who became employed as an investigator for 28 the Secretary of State between January 1, 1967 and 29 December 31, 1975, and who has served as such until 30 attainment of age 60, either continuously or with a 31 single break in service of not more than 3 years 32 duration, which break terminated before January 1, 1976, 33 shall be entitled to have his retirement annuity 34 calculated in accordance with subsection (a), -5- LRB093 03760 EFG 03795 b 1 notwithstanding that he has less than 20 years of credit 2 for such service. 3 (6) The term "Conservation Police Officer" means 4 any person employed by the Division of Law Enforcement of 5 the Department of Natural Resources and vested with such 6 law enforcement 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 9 that Act. The term "Conservation Police Officer" 10 includes the positions of Chief Conservation Police 11 Administrator and Assistant Conservation Police 12 Administrator. 13 (7) The term "investigator for the Department of 14 Revenue" means any person employed by the Department of 15 Revenue and vested with such investigative duties as 16 render him ineligible for coverage under the Social 17 Security Act by reason of Sections 218(d)(5)(A), 18 218(d)(8)(D) and 218(l)(1) of that Act. 19 (8) The term "security employee of the Department 20 of Human Services" means any person employed by the 21 Department of Human Services who (i) is employed at the 22 Chester Mental Health Center and has daily contact with 23 the residents thereof, (ii) is employed within a security 24 unit at a facility operated by the Department and has 25 daily contact with the residents of the security unit, 26 (iii) is employed at a facility operated by the 27 Department that includes a security unit and is regularly 28 scheduled to work at least 50% of his or her working 29 hours within that security unit, or (iv) is a mental 30 health police officer. "Mental health police officer" 31 means any person employed by the Department of Human 32 Services in a position pertaining to the Department's 33 mental health and developmental disabilities functions 34 who is vested with such law enforcement duties as render -6- LRB093 03760 EFG 03795 b 1 the person ineligible for coverage under the Social 2 Security Act by reason of Sections 218(d)(5)(A), 3 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" 4 means that portion of a facility that is devoted to the 5 care, containment, and treatment of persons committed to 6 the Department of Human Services as sexually violent 7 persons, persons unfit to stand trial, or persons not 8 guilty by reason of insanity. With respect to past 9 employment, references to the Department of Human 10 Services include its predecessor, the Department of 11 Mental Health and Developmental Disabilities. 12 The changes made to this subdivision (c)(8) by 13 Public Act 92-14 apply to persons who retire on or after 14 January 1, 2001, notwithstanding Section 1-103.1. 15 (9) "Central Management Services security police 16 officer" means any person employed by the Department of 17 Central Management Services who is vested with such law 18 enforcement duties as render him ineligible for coverage 19 under the Social Security Act by reason of Sections 20 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 21 (10) The term "security employee of the Department 22 of Corrections" means any employee of the Department of 23 Corrections or the former Department of Personnel, and 24 any member or employee of the Prisoner Review Board, who 25 has daily contact with inmates by working within a 26 correctional facility or who is a parole officer or an 27 employee who has direct contact with committed persons in 28 the performance of his or her job duties. 29 (11) The term "dangerous drugs investigator" means 30 any person who is employed as such by the Department of 31 Human Services. 32 (12) The term "investigator for the Department of 33 State Police" means a person employed by the Department 34 of State Police who is vested under Section 4 of the -7- LRB093 03760 EFG 03795 b 1 Narcotic Control Division Abolition Act with such law 2 enforcement powers as render him ineligible for coverage 3 under the Social Security Act by reason of Sections 4 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 5 (13) "Investigator for the Office of the Attorney 6 General" means any person who is employed as such by the 7 Office of the Attorney General and is vested with such 8 investigative duties as render him ineligible for 9 coverage under the Social Security Act by reason of 10 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 11 Act. For the period before January 1, 1989, the term 12 includes all persons who were employed as investigators 13 by the Office of the Attorney General, without regard to 14 social security status. 15 (14) "Controlled substance inspector" means any 16 person who is employed as such by the Department of 17 Professional Regulation and is vested with such law 18 enforcement duties as render him ineligible for coverage 19 under the Social Security Act by reason of Sections 20 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 21 The term "controlled substance inspector" includes the 22 Program Executive of Enforcement and the Assistant 23 Program Executive of Enforcement. 24 (15) The term "investigator for the Office of the 25 State's Attorneys Appellate Prosecutor" means a person 26 employed in that capacity on a full time basis under the 27 authority of Section 7.06 of the State's Attorneys 28 Appellate Prosecutor's Act. 29 (16) "Commerce Commission police officer" means any 30 person employed by the Illinois Commerce Commission who 31 is vested with such law enforcement duties as render him 32 ineligible for coverage under the Social Security Act by 33 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 34 218(l)(1) of that Act. -8- LRB093 03760 EFG 03795 b 1 (17) "Arson investigator" means any person who is 2 employed as such by the Office of the State Fire Marshal 3 and is vested with such law enforcement duties as render 4 the person ineligible for coverage under the Social 5 Security Act by reason of Sections 218(d)(5)(A), 6 218(d)(8)(D), and 218(l)(1) of that Act. A person who 7 was employed as an arson investigator on January 1, 1995 8 and is no longer in service but not yet receiving a 9 retirement annuity may convert his or her creditable 10 service for employment as an arson investigator into 11 eligible creditable service by paying to the System the 12 difference between the employee contributions actually 13 paid for that service and the amounts that would have 14 been contributed if the applicant were contributing at 15 the rate applicable to persons with the same social 16 security status earning eligible creditable service on 17 the date of application. 18 (18) The term "State highway maintenance worker" 19 means a person who is either of the following: 20 (i) A person employed on a full-time basis by 21 the Illinois Department of Transportation in the 22 position of highway maintainer, highway maintenance 23 lead worker, highway maintenance lead/lead worker, 24 heavy construction equipment operator, power shovel 25 operator, or bridge mechanic; and whose principal 26 responsibility is to perform, on the roadway, the 27 actual maintenance necessary to keep the highways 28 that form a part of the State highway system in 29 serviceable condition for vehicular traffic. 30 (ii) A person employed on a full-time basis by 31 the Illinois State Toll Highway Authority in the 32 position of equipment operator/laborer H-4, 33 equipment operator/laborer H-6, welder H-4, 34 welder H-6, mechanical/electrical H-4, -9- LRB093 03760 EFG 03795 b 1 mechanical/electrical H-6, water/sewer H-4, 2 water/sewer H-6, sign maker/hanger H-4, sign 3 maker/hanger H-6, roadway lighting H-4, roadway 4 lighting H-6, structural H-4, structural H-6, 5 painter H-4, or painter H-6; and whose principal 6 responsibility is to perform, on the roadway, the 7 actual maintenance necessary to keep the Authority's 8 tollways in serviceable condition for vehicular 9 traffic. 10 (d) A security employee of the Department of 11 Corrections, and a security employee of the Department of 12 Human Services who is not a mental health police officer, 13 shall not be eligible for the alternative retirement annuity 14 provided by this Section unless he or she meets the following 15 minimum age and service requirements at the time of 16 retirement: 17 (i) 25 years of eligible creditable service and age 18 55; or 19 (ii) beginning January 1, 1987, 25 years of 20 eligible creditable service and age 54, or 24 years of 21 eligible creditable service and age 55; or 22 (iii) beginning January 1, 1988, 25 years of 23 eligible creditable service and age 53, or 23 years of 24 eligible creditable service and age 55; or 25 (iv) beginning January 1, 1989, 25 years of 26 eligible creditable service and age 52, or 22 years of 27 eligible creditable service and age 55; or 28 (v) beginning January 1, 1990, 25 years of eligible 29 creditable service and age 51, or 21 years of eligible 30 creditable service and age 55; or 31 (vi) beginning January 1, 1991, 25 years of 32 eligible creditable service and age 50, or 20 years of 33 eligible creditable service and age 55; or 34 (vii) beginning on the effective date of this -10- LRB093 03760 EFG 03795 b 1 amendatory Act of the 93rd General Assembly, (A) 25 years 2 of eligible creditable service and age 50, (B) 20 years 3 of eligible creditable service and age 55, or (C) service 4 sufficient to provide an annuity under this Section equal 5 to at least 80% of final average compensation, regardless 6 of age. 7 Persons who have service credit under Article 16 of this 8 Code for service as a security employee of the Department of 9 Corrections or the Department of Human Services in a position 10 requiring certification as a teacher may count such service 11 toward establishing their eligibility under the service 12 requirements of this Section; but such service may be used 13 only for establishing such eligibility, and not for the 14 purpose of increasing or calculating any benefit. 15 (e) If a member enters military service while working in 16 a position in which eligible creditable service may be 17 earned, and returns to State service in the same or another 18 such position, and fulfills in all other respects the 19 conditions prescribed in this Article for credit for military 20 service, such military service shall be credited as eligible 21 creditable service for the purposes of the retirement annuity 22 prescribed in this Section. 23 (f) For purposes of calculating retirement annuities 24 under this Section, periods of service rendered after 25 December 31, 1968 and before October 1, 1975 as a covered 26 employee in the position of special agent, conservation 27 police officer, mental health police officer, or investigator 28 for the Secretary of State, shall be deemed to have been 29 service as a noncovered employee, provided that the employee 30 pays to the System prior to retirement an amount equal to (1) 31 the difference between the employee contributions that would 32 have been required for such service as a noncovered employee, 33 and the amount of employee contributions actually paid, plus 34 (2) if payment is made after July 31, 1987, regular interest -11- LRB093 03760 EFG 03795 b 1 on the amount specified in item (1) from the date of service 2 to the date of payment. 3 For purposes of calculating retirement annuities under 4 this Section, periods of service rendered after December 31, 5 1968 and before January 1, 1982 as a covered employee in the 6 position of investigator for the Department of Revenue shall 7 be deemed to have been service as a noncovered employee, 8 provided that the employee pays to the System prior to 9 retirement an amount equal to (1) the difference between the 10 employee contributions that would have been required for such 11 service as a noncovered employee, and the amount of employee 12 contributions actually paid, plus (2) if payment is made 13 after January 1, 1990, regular interest on the amount 14 specified in item (1) from the date of service to the date of 15 payment. 16 (g) A State policeman may elect, not later than January 17 1, 1990, to establish eligible creditable service for up to 18 10 years of his service as a policeman under Article 3, by 19 filing a written election with the Board, accompanied by 20 payment of an amount to be determined by the Board, equal to 21 (i) the difference between the amount of employee and 22 employer contributions transferred to the System under 23 Section 3-110.5, and the amounts that would have been 24 contributed had such contributions been made at the rates 25 applicable to State policemen, plus (ii) interest thereon at 26 the effective rate for each year, compounded annually, from 27 the date of service to the date of payment. 28 Subject to the limitation in subsection (i), a State 29 policeman may elect, not later than July 1, 1993, to 30 establish eligible creditable service for up to 10 years of 31 his service as a member of the County Police Department under 32 Article 9, by filing a written election with the Board, 33 accompanied by payment of an amount to be determined by the 34 Board, equal to (i) the difference between the amount of -12- LRB093 03760 EFG 03795 b 1 employee and employer contributions transferred to the System 2 under Section 9-121.10 and the amounts that would have been 3 contributed had those contributions been made at the rates 4 applicable to State policemen, plus (ii) interest thereon at 5 the effective rate for each year, compounded annually, from 6 the date of service to the date of payment. 7 (h) Subject to the limitation in subsection (i), a State 8 policeman or investigator for the Secretary of State may 9 elect to establish eligible creditable service for up to 12 10 years of his service as a policeman under Article 5, by 11 filing a written election with the Board on or before January 12 31, 1992, and paying to the System by January 31, 1994 an 13 amount to be determined by the Board, equal to (i) the 14 difference between the amount of employee and employer 15 contributions transferred to the System under Section 5-236, 16 and the amounts that would have been contributed had such 17 contributions been made at the rates applicable to State 18 policemen, plus (ii) interest thereon at the effective rate 19 for each year, compounded annually, from the date of service 20 to the date of payment. 21 Subject to the limitation in subsection (i), a State 22 policeman, conservation police officer, or investigator for 23 the Secretary of State may elect to establish eligible 24 creditable service for up to 10 years of service as a 25 sheriff's law enforcement employee under Article 7, by filing 26 a written election with the Board on or before January 31, 27 1993, and paying to the System by January 31, 1994 an amount 28 to be determined by the Board, equal to (i) the difference 29 between the amount of employee and employer contributions 30 transferred to the System under Section 7-139.7, and the 31 amounts that would have been contributed had such 32 contributions been made at the rates applicable to State 33 policemen, plus (ii) interest thereon at the effective rate 34 for each year, compounded annually, from the date of service -13- LRB093 03760 EFG 03795 b 1 to the date of payment. 2 (i) The total amount of eligible creditable service 3 established by any person under subsections (g), (h), (j), 4 (k), and (l) of this Section shall not exceed 12 years. 5 (j) Subject to the limitation in subsection (i), an 6 investigator for the Office of the State's Attorneys 7 Appellate Prosecutor or a controlled substance inspector may 8 elect to establish eligible creditable service for up to 10 9 years of his service as a policeman under Article 3 or a 10 sheriff's law enforcement employee under Article 7, by filing 11 a written election with the Board, accompanied by payment of 12 an amount to be determined by the Board, equal to (1) the 13 difference between the amount of employee and employer 14 contributions transferred to the System under Section 3-110.6 15 or 7-139.8, and the amounts that would have been contributed 16 had such contributions been made at the rates applicable to 17 State policemen, plus (2) interest thereon at the effective 18 rate for each year, compounded annually, from the date of 19 service to the date of payment. 20 (k) Subject to the limitation in subsection (i) of this 21 Section, an alternative formula employee may elect to 22 establish eligible creditable service for periods spent as a 23 full-time law enforcement officer or full-time corrections 24 officer employed by the federal government or by a state or 25 local government located outside of Illinois, for which 26 credit is not held in any other public employee pension fund 27 or retirement system. To obtain this credit, the applicant 28 must file a written application with the Board by March 31, 29 1998, accompanied by evidence of eligibility acceptable to 30 the Board and payment of an amount to be determined by the 31 Board, equal to (1) employee contributions for the credit 32 being established, based upon the applicant's salary on the 33 first day as an alternative formula employee after the 34 employment for which credit is being established and the -14- LRB093 03760 EFG 03795 b 1 rates then applicable to alternative formula employees, plus 2 (2) an amount determined by the Board to be the employer's 3 normal cost of the benefits accrued for the credit being 4 established, plus (3) regular interest on the amounts in 5 items (1) and (2) from the first day as an alternative 6 formula employee after the employment for which credit is 7 being established to the date of payment. 8 (l) Subject to the limitation in subsection (i), a 9 security employee of the Department of Corrections may elect, 10 not later than July 1, 1998, to establish eligible creditable 11 service for up to 10 years of his or her service as a 12 policeman under Article 3, by filing a written election with 13 the Board, accompanied by payment of an amount to be 14 determined by the Board, equal to (i) the difference between 15 the amount of employee and employer contributions transferred 16 to the System under Section 3-110.5, and the amounts that 17 would have been contributed had such contributions been made 18 at the rates applicable to security employees of the 19 Department of Corrections, plus (ii) interest thereon at the 20 effective rate for each year, compounded annually, from the 21 date of service to the date of payment. 22 (Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 23 92-14, eff. 6-28-01; 92-257, eff. 8-6-01; 92-651, eff. 24 7-11-02.) 25 Section 99. Effective date. This Act takes effect upon 26 becoming law.