093_HB1627 LRB093 06807 LRD 06949 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 Sections 3-110.6 and 14-110 as follows: 6 (40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6) 7 Sec. 3-110.6. Transfer to Article 14 System. 8 (a) Any active member of the State Employees' Retirement 9 System who is an investigator for the Office of the State's 10 Attorneys Appellate Prosecutor,ora controlled substance 11 inspector, or a current or former investigator for the 12 Department of Revenue may apply for transfer of his or her 13 creditable service accumulated in any police pension fund 14 under this Article to the State Employees' Retirement System 15 in accordance with Section 14-110. The creditable service 16 shall be transferred only upon payment by the police pension 17 fund to the State Employees' Retirement System of an amount 18 equal to: 19 (1) the amounts accumulated to the credit of the 20 applicant on the books of the fund on the date of 21 transfer; and 22 (2) employer contributions in an amount equal to 23 the amount determined under subparagraph (1); and 24 (3) any interest paid by the applicant in order to 25 reinstate service. 26 Participation in the police pension fund shall terminate on 27 the date of transfer. 28 (b) Any such investigator or inspector may reinstate 29 service which was terminated by receipt of a refund, by 30 paying to the police pension fund the amount of the refund 31 with interest thereon at the rate of 6% per year, compounded -2- LRB093 06807 LRD 06949 b 1 annually, from the date of refund to the date of payment. 2 (Source: P.A. 90-32, eff. 6-27-97.) 3 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) 4 Sec. 14-110. Alternative retirement annuity. 5 (a) Any member who has withdrawn from service with not 6 less than 20 years of eligible creditable service and has 7 attained age 55, and any member who has withdrawn from 8 service with not less than 25 years of eligible creditable 9 service and has attained age 50, regardless of whether the 10 attainment of either of the specified ages occurs while the 11 member is still in service, shall be entitled to receive at 12 the option of the member, in lieu of the regular or minimum 13 retirement annuity, a retirement annuity computed as 14 follows: 15 (i) for periods of service as a noncovered 16 employee: if retirement occurs on or after January 1, 17 2001, 3% of final average compensation for each year of 18 creditable service; if retirement occurs before January 19 1, 2001, 2 1/4% of final average compensation for each of 20 the first 10 years of creditable service, 2 1/2% for each 21 year above 10 years to and including 20 years of 22 creditable service, and 2 3/4% for each year of 23 creditable service above 20 years; and 24 (ii) for periods of eligible creditable service as 25 a covered employee: if retirement occurs on or after 26 January 1, 2001, 2.5% of final average compensation for 27 each year of creditable service; if retirement occurs 28 before January 1, 2001, 1.67% of final average 29 compensation for each of the first 10 years of such 30 service, 1.90% for each of the next 10 years of such 31 service, 2.10% for each year of such service in excess of 32 20 but not exceeding 30, and 2.30% for each year in 33 excess of 30. -3- LRB093 06807 LRD 06949 b 1 Such annuity shall be subject to a maximum of 75% of 2 final average compensation if retirement occurs before 3 January 1, 2001 or to a maximum of 80% of final average 4 compensation if retirement occurs on or after January 1, 5 2001. 6 These rates shall not be applicable to any service 7 performed by a member as a covered employee which is not 8 eligible creditable service. Service as a covered employee 9 which is not eligible creditable service shall be subject to 10 the rates and provisions of Section 14-108. 11 (b) For the purpose of this Section, "eligible 12 creditable service" means creditable service resulting from 13 service in one or more of the following positions: 14 (1) State policeman; 15 (2) fire fighter in the fire protection service of 16 a department; 17 (3) air pilot; 18 (4) special agent; 19 (5) investigator for the Secretary of State; 20 (6) conservation police officer; 21 (7) investigator for the Department of Revenue; 22 (8) security employee of the Department of Human 23 Services; 24 (9) Central Management Services security police 25 officer; 26 (10) security employee of the Department of 27 Corrections; 28 (11) dangerous drugs investigator; 29 (12) investigator for the Department of State 30 Police; 31 (13) investigator for the Office of the Attorney 32 General; 33 (14) controlled substance inspector; 34 (15) investigator for the Office of the State's -4- LRB093 06807 LRD 06949 b 1 Attorneys Appellate Prosecutor; 2 (16) Commerce Commission police officer; 3 (17) arson investigator; 4 (18) State highway maintenance worker. 5 A person employed in one of the positions specified in 6 this subsection is entitled to eligible creditable service 7 for service credit earned under this Article while undergoing 8 the basic police training course approved by the Illinois Law 9 Enforcement Training Standards Board, if completion of that 10 training is required of persons serving in that position. For 11 the purposes of this Code, service during the required basic 12 police training course shall be deemed performance of the 13 duties of the specified position, even though the person is 14 not a sworn peace officer at the time of the training. 15 (c) For the purposes of this Section: 16 (1) The term "state policeman" includes any title 17 or position in the Department of State Police that is 18 held by an individual employed under the State Police 19 Act. 20 (2) The term "fire fighter in the fire protection 21 service of a department" includes all officers in such 22 fire protection service including fire chiefs and 23 assistant fire chiefs. 24 (3) The term "air pilot" includes any employee 25 whose official job description on file in the Department 26 of Central Management Services, or in the department by 27 which he is employed if that department is not covered by 28 the Personnel Code, states that his principal duty is the 29 operation of aircraft, and who possesses a pilot's 30 license; however, the change in this definition made by 31 this amendatory Act of 1983 shall not operate to exclude 32 any noncovered employee who was an "air pilot" for the 33 purposes of this Section on January 1, 1984. 34 (4) The term "special agent" means any person who -5- LRB093 06807 LRD 06949 b 1 by reason of employment by the Division of Narcotic 2 Control, the Bureau of Investigation or, after July 1, 3 1977, the Division of Criminal Investigation, the 4 Division of Internal Investigation, the Division of 5 Operations, or any other Division or organizational 6 entity in the Department of State Police is vested by law 7 with duties to maintain public order, investigate 8 violations of the criminal law of this State, enforce the 9 laws of this State, make arrests and recover property. 10 The term "special agent" includes any title or position 11 in the Department of State Police that is held by an 12 individual employed under the State Police Act. 13 (5) The term "investigator for the Secretary of 14 State" means any person employed by the Office of the 15 Secretary of State and vested with such investigative 16 duties as render him ineligible for coverage under the 17 Social Security Act by reason of Sections 218(d)(5)(A), 18 218(d)(8)(D) and 218(l)(1) of that Act. 19 A person who became employed as an investigator for 20 the Secretary of State between January 1, 1967 and 21 December 31, 1975, and who has served as such until 22 attainment of age 60, either continuously or with a 23 single break in service of not more than 3 years 24 duration, which break terminated before January 1, 1976, 25 shall be entitled to have his retirement annuity 26 calculated in accordance with subsection (a), 27 notwithstanding that he has less than 20 years of credit 28 for such service. 29 (6) The term "Conservation Police Officer" means 30 any person employed by the Division of Law Enforcement of 31 the Department of Natural Resources and vested with such 32 law enforcement duties as render him ineligible for 33 coverage under the Social Security Act by reason of 34 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of -6- LRB093 06807 LRD 06949 b 1 that Act. The term "Conservation Police Officer" 2 includes the positions of Chief Conservation Police 3 Administrator and Assistant Conservation Police 4 Administrator. 5 (7) The term "investigator for the Department of 6 Revenue" means any person employed by the Department of 7 Revenue and vested with such investigative duties as 8 render him ineligible for coverage under the Social 9 Security Act by reason of Sections 218(d)(5)(A), 10 218(d)(8)(D) and 218(l)(1) of that Act. 11 (8) The term "security employee of the Department 12 of Human Services" means any person employed by the 13 Department of Human Services who (i) is employed at the 14 Chester Mental Health Center and has daily contact with 15 the residents thereof, (ii) is employed within a security 16 unit at a facility operated by the Department and has 17 daily contact with the residents of the security unit, 18 (iii) is employed at a facility operated by the 19 Department that includes a security unit and is regularly 20 scheduled to work at least 50% of his or her working 21 hours within that security unit, or (iv) is a mental 22 health police officer. "Mental health police officer" 23 means any person employed by the Department of Human 24 Services in a position pertaining to the Department's 25 mental health and developmental disabilities functions 26 who is vested with such law enforcement duties as render 27 the person ineligible for coverage under the Social 28 Security Act by reason of Sections 218(d)(5)(A), 29 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" 30 means that portion of a facility that is devoted to the 31 care, containment, and treatment of persons committed to 32 the Department of Human Services as sexually violent 33 persons, persons unfit to stand trial, or persons not 34 guilty by reason of insanity. With respect to past -7- LRB093 06807 LRD 06949 b 1 employment, references to the Department of Human 2 Services include its predecessor, the Department of 3 Mental Health and Developmental Disabilities. 4 The changes made to this subdivision (c)(8) by 5 Public Act 92-14 apply to persons who retire on or after 6 January 1, 2001, notwithstanding Section 1-103.1. 7 (9) "Central Management Services security police 8 officer" means any person employed by the Department of 9 Central Management Services who is vested with such law 10 enforcement duties as render him ineligible for coverage 11 under the Social Security Act by reason of Sections 12 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 13 (10) The term "security employee of the Department 14 of Corrections" means any employee of the Department of 15 Corrections or the former Department of Personnel, and 16 any member or employee of the Prisoner Review Board, who 17 has daily contact with inmates by working within a 18 correctional facility or who is a parole officer or an 19 employee who has direct contact with committed persons in 20 the performance of his or her job duties. 21 (11) The term "dangerous drugs investigator" means 22 any person who is employed as such by the Department of 23 Human Services. 24 (12) The term "investigator for the Department of 25 State Police" means a person employed by the Department 26 of State Police who is vested under Section 4 of the 27 Narcotic Control Division Abolition Act with such law 28 enforcement powers as render him ineligible for coverage 29 under the Social Security Act by reason of Sections 30 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 31 (13) "Investigator for the Office of the Attorney 32 General" means any person who is employed as such by the 33 Office of the Attorney General and is vested with such 34 investigative duties as render him ineligible for -8- LRB093 06807 LRD 06949 b 1 coverage under the Social Security Act by reason of 2 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 3 Act. For the period before January 1, 1989, the term 4 includes all persons who were employed as investigators 5 by the Office of the Attorney General, without regard to 6 social security status. 7 (14) "Controlled substance inspector" means any 8 person who is employed as such by the Department of 9 Professional Regulation and is vested with such law 10 enforcement duties as render him ineligible for coverage 11 under the Social Security Act by reason of Sections 12 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 13 The term "controlled substance inspector" includes the 14 Program Executive of Enforcement and the Assistant 15 Program Executive of Enforcement. 16 (15) The term "investigator for the Office of the 17 State's Attorneys Appellate Prosecutor" means a person 18 employed in that capacity on a full time basis under the 19 authority of Section 7.06 of the State's Attorneys 20 Appellate Prosecutor's Act. 21 (16) "Commerce Commission police officer" means any 22 person employed by the Illinois Commerce Commission who 23 is vested with such law enforcement duties as render him 24 ineligible for coverage under the Social Security Act by 25 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 26 218(l)(1) of that Act. 27 (17) "Arson investigator" means any person who is 28 employed as such by the Office of the State Fire Marshal 29 and is vested with such law enforcement duties as render 30 the person ineligible for coverage under the Social 31 Security Act by reason of Sections 218(d)(5)(A), 32 218(d)(8)(D), and 218(l)(1) of that Act. A person who 33 was employed as an arson investigator on January 1, 1995 34 and is no longer in service but not yet receiving a -9- LRB093 06807 LRD 06949 b 1 retirement annuity may convert his or her creditable 2 service for employment as an arson investigator into 3 eligible creditable service by paying to the System the 4 difference between the employee contributions actually 5 paid for that service and the amounts that would have 6 been contributed if the applicant were contributing at 7 the rate applicable to persons with the same social 8 security status earning eligible creditable service on 9 the date of application. 10 (18) The term "State highway maintenance worker" 11 means a person who is either of the following: 12 (i) A person employed on a full-time basis by 13 the Illinois Department of Transportation in the 14 position of highway maintainer, highway maintenance 15 lead worker, highway maintenance lead/lead worker, 16 heavy construction equipment operator, power shovel 17 operator, or bridge mechanic; and whose principal 18 responsibility is to perform, on the roadway, the 19 actual maintenance necessary to keep the highways 20 that form a part of the State highway system in 21 serviceable condition for vehicular traffic. 22 (ii) A person employed on a full-time basis by 23 the Illinois State Toll Highway Authority in the 24 position of equipment operator/laborer H-4, 25 equipment operator/laborer H-6, welder H-4, 26 welder H-6, mechanical/electrical H-4, 27 mechanical/electrical H-6, water/sewer H-4, 28 water/sewer H-6, sign maker/hanger H-4, sign 29 maker/hanger H-6, roadway lighting H-4, roadway 30 lighting H-6, structural H-4, structural H-6, 31 painter H-4, or painter H-6; and whose principal 32 responsibility is to perform, on the roadway, the 33 actual maintenance necessary to keep the Authority's 34 tollways in serviceable condition for vehicular -10- LRB093 06807 LRD 06949 b 1 traffic. 2 (d) A security employee of the Department of 3 Corrections, and a security employee of the Department of 4 Human Services who is not a mental health police officer, 5 shall not be eligible for the alternative retirement annuity 6 provided by this Section unless he or she meets the following 7 minimum age and service requirements at the time of 8 retirement: 9 (i) 25 years of eligible creditable service and age 10 55; or 11 (ii) beginning January 1, 1987, 25 years of 12 eligible creditable service and age 54, or 24 years of 13 eligible creditable service and age 55; or 14 (iii) beginning January 1, 1988, 25 years of 15 eligible creditable service and age 53, or 23 years of 16 eligible creditable service and age 55; or 17 (iv) beginning January 1, 1989, 25 years of 18 eligible creditable service and age 52, or 22 years of 19 eligible creditable service and age 55; or 20 (v) beginning January 1, 1990, 25 years of eligible 21 creditable service and age 51, or 21 years of eligible 22 creditable service and age 55; or 23 (vi) beginning January 1, 1991, 25 years of 24 eligible creditable service and age 50, or 20 years of 25 eligible creditable service and age 55. 26 Persons who have service credit under Article 16 of this 27 Code for service as a security employee of the Department of 28 Corrections or the Department of Human Services in a position 29 requiring certification as a teacher may count such service 30 toward establishing their eligibility under the service 31 requirements of this Section; but such service may be used 32 only for establishing such eligibility, and not for the 33 purpose of increasing or calculating any benefit. 34 (e) If a member enters military service while working in -11- LRB093 06807 LRD 06949 b 1 a position in which eligible creditable service may be 2 earned, and returns to State service in the same or another 3 such position, and fulfills in all other respects the 4 conditions prescribed in this Article for credit for military 5 service, such military service shall be credited as eligible 6 creditable service for the purposes of the retirement annuity 7 prescribed in this Section. 8 (f) For purposes of calculating retirement annuities 9 under this Section, periods of service rendered after 10 December 31, 1968 and before October 1, 1975 as a covered 11 employee in the position of special agent, conservation 12 police officer, mental health police officer, or investigator 13 for the Secretary of State, shall be deemed to have been 14 service as a noncovered employee, provided that the employee 15 pays to the System prior to retirement an amount equal to (1) 16 the difference between the employee contributions that would 17 have been required for such service as a noncovered employee, 18 and the amount of employee contributions actually paid, plus 19 (2) if payment is made after July 31, 1987, regular interest 20 on the amount specified in item (1) from the date of service 21 to the date of payment. 22 For purposes of calculating retirement annuities under 23 this Section, periods of service rendered after December 31, 24 1968 and before January 1, 1982 as a covered employee in the 25 position of investigator for the Department of Revenue shall 26 be deemed to have been service as a noncovered employee, 27 provided that the employee pays to the System prior to 28 retirement an amount equal to (1) the difference between the 29 employee contributions that would have been required for such 30 service as a noncovered employee, and the amount of employee 31 contributions actually paid, plus (2) if payment is made 32 after January 1, 1990, regular interest on the amount 33 specified in item (1) from the date of service to the date of 34 payment. -12- LRB093 06807 LRD 06949 b 1 (g) A State policeman may elect, not later than January 2 1, 1990, to establish eligible creditable service for up to 3 10 years of his service as a policeman under Article 3, by 4 filing a written election with the Board, accompanied by 5 payment of an amount to be determined by the Board, equal to 6 (i) the difference between the amount of employee and 7 employer contributions transferred to the System under 8 Section 3-110.5, and the amounts that would have been 9 contributed had such contributions been made at the rates 10 applicable to State policemen, plus (ii) interest thereon at 11 the effective rate for each year, compounded annually, from 12 the date of service to the date of payment. 13 Subject to the limitation in subsection (i), a State 14 policeman may elect, not later than July 1, 1993, to 15 establish eligible creditable service for up to 10 years of 16 his service as a member of the County Police Department under 17 Article 9, by filing a written election with the Board, 18 accompanied by payment of an amount to be determined by the 19 Board, equal to (i) the difference between the amount of 20 employee and employer contributions transferred to the System 21 under Section 9-121.10 and the amounts that would have been 22 contributed had those contributions been made at the rates 23 applicable to State policemen, plus (ii) interest thereon at 24 the effective rate for each year, compounded annually, from 25 the date of service to the date of payment. 26 (h) Subject to the limitation in subsection (i), a State 27 policeman or investigator for the Secretary of State may 28 elect to establish eligible creditable service for up to 12 29 years of his service as a policeman under Article 5, by 30 filing a written election with the Board on or before January 31 31, 1992, and paying to the System by January 31, 1994 an 32 amount to be determined by the Board, equal to (i) the 33 difference between the amount of employee and employer 34 contributions transferred to the System under Section 5-236, -13- LRB093 06807 LRD 06949 b 1 and the amounts that would have been contributed had such 2 contributions been made at the rates applicable to State 3 policemen, plus (ii) interest thereon at the effective rate 4 for each year, compounded annually, from the date of service 5 to the date of payment. 6 Subject to the limitation in subsection (i), a State 7 policeman, conservation police officer, or investigator for 8 the Secretary of State may elect to establish eligible 9 creditable service for up to 10 years of service as a 10 sheriff's law enforcement employee under Article 7, by filing 11 a written election with the Board on or before January 31, 12 1993, and paying to the System by January 31, 1994 an amount 13 to be determined by the Board, equal to (i) the difference 14 between the amount of employee and employer contributions 15 transferred to the System under Section 7-139.7, and the 16 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 (i) The total amount of eligible creditable service 22 established by any person under subsections (g), (h), (j), 23 (k),and(l), and (m) of this Section shall not exceed 12 24 years. 25 (j) Subject to the limitation in subsection (i), an 26 investigator for the Office of the State's Attorneys 27 Appellate Prosecutor or a controlled substance inspector may 28 elect to establish eligible creditable service for up to 10 29 years of his service as a policeman under Article 3 or a 30 sheriff's law enforcement employee under Article 7, by filing 31 a written election with the Board, accompanied by payment of 32 an amount to be determined by the Board, equal to (1) the 33 difference between the amount of employee and employer 34 contributions transferred to the System under Section 3-110.6 -14- LRB093 06807 LRD 06949 b 1 or 7-139.8, and the amounts that would have been contributed 2 had such contributions been made at the rates applicable to 3 State policemen, plus (2) interest thereon at the effective 4 rate for each year, compounded annually, from the date of 5 service to the date of payment. 6 (k) Subject to the limitation in subsection (i) of this 7 Section, an alternative formula employee may elect to 8 establish eligible creditable service for periods spent as a 9 full-time law enforcement officer or full-time corrections 10 officer employed by the federal government or by a state or 11 local government located outside of Illinois, for which 12 credit is not held in any other public employee pension fund 13 or retirement system. To obtain this credit, the applicant 14 must file a written application with the Board by March 31, 15 1998, accompanied by evidence of eligibility acceptable to 16 the Board and payment of an amount to be determined by the 17 Board, equal to (1) employee contributions for the credit 18 being established, based upon the applicant's salary on the 19 first day as an alternative formula employee after the 20 employment for which credit is being established and the 21 rates then applicable to alternative formula employees, plus 22 (2) an amount determined by the Board to be the employer's 23 normal cost of the benefits accrued for the credit being 24 established, plus (3) regular interest on the amounts in 25 items (1) and (2) from the first day as an alternative 26 formula employee after the employment for which credit is 27 being established to the date of payment. 28 (l) Subject to the limitation in subsection (i), a 29 security employee of the Department of Corrections may elect, 30 not later than July 1, 1998, to establish eligible creditable 31 service for up to 10 years of his or her service as a 32 policeman under Article 3, by filing a written election with 33 the Board, accompanied by payment of an amount to be 34 determined by the Board, equal to (i) the difference between -15- LRB093 06807 LRD 06949 b 1 the amount of employee and employer contributions transferred 2 to the System under Section 3-110.5, and the amounts that 3 would have been contributed had such contributions been made 4 at the rates applicable to security employees of the 5 Department of Corrections, plus (ii) interest thereon at the 6 effective rate for each year, compounded annually, from the 7 date of service to the date of payment. 8 (m) Subject to the limitation in subsection (i), an 9 active contributor to the System who is a current or former 10 investigator for the Department of Revenue may elect to 11 establish eligible creditable service for up to 12 years of 12 service as a police officer under Article 3 by filing a 13 written election with the Board before January 1, 2004, 14 accompanied by payment of an amount to be determined by the 15 Board, equal to (1) the difference between the amount of 16 employee and employer contributions transferred to the System 17 under Section 3-110.6 and the amounts that would have been 18 contributed for that service had those contributions been 19 made at the rates then applicable to Department of Revenue 20 investigators, plus (2) interest thereon at the effective 21 rate for each year, compounded annually, from the date of 22 service to the date of payment. 23 (Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 24 92-14, eff. 6-28-01; 92-257, eff. 8-6-01; 92-651, eff. 25 7-11-02.) 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.