96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4087

 

Introduced 2/27/2009, by Rep. Dan Brady

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-110   from Ch. 108 1/2, par. 14-110

    Amends the State Employee Article of the Illinois Pension Code. Allows a State policeman who applies for retirement within 3 months after the effective date of the amendatory Act in order to take a judicial position to elect to establish eligible creditable service for periods employed by the Federal Bureau of Investigations for which credit is not held in any other public employee pension fund or retirement system. Requires payment of employee contributions, the employer's normal cost of the benefits accrued, and regular interest. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning 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 changing
5 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8     (a) Any member who has withdrawn from service with not less
9 than 20 years of eligible creditable service and has attained
10 age 55, and any member who has withdrawn from service with not
11 less than 25 years of eligible creditable service and has
12 attained age 50, regardless of whether the attainment of either
13 of the specified ages occurs while the member is still in
14 service, shall be entitled to receive at the option of the
15 member, in lieu of the regular or minimum retirement annuity, a
16 retirement annuity computed as follows:
17         (i) for periods of service as a noncovered employee: if
18     retirement occurs on or after January 1, 2001, 3% of final
19     average compensation for each year of creditable service;
20     if retirement occurs before January 1, 2001, 2 1/4% of
21     final average compensation for each of the first 10 years
22     of creditable service, 2 1/2% for each year above 10 years
23     to and including 20 years of creditable service, and 2 3/4%

 

 

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1     for each year of creditable service above 20 years; and
2         (ii) for periods of eligible creditable service as a
3     covered employee: if retirement occurs on or after January
4     1, 2001, 2.5% of final average compensation for each year
5     of creditable service; if retirement occurs before January
6     1, 2001, 1.67% of final average compensation for each of
7     the first 10 years of such service, 1.90% for each of the
8     next 10 years of such service, 2.10% for each year of such
9     service in excess of 20 but not exceeding 30, and 2.30% for
10     each year in excess of 30.
11     Such annuity shall be subject to a maximum of 75% of final
12 average compensation if retirement occurs before January 1,
13 2001 or to a maximum of 80% of final average compensation if
14 retirement occurs on or after January 1, 2001.
15     These rates shall not be applicable to any service
16 performed by a member as a covered employee which is not
17 eligible creditable service. Service as a covered employee
18 which is not eligible creditable service shall be subject to
19 the rates and provisions of Section 14-108.
20     (b) For the purpose of this Section, "eligible creditable
21 service" means creditable service resulting from service in one
22 or more of the following positions:
23         (1) State policeman;
24         (2) fire fighter in the fire protection service of a
25     department;
26         (3) air pilot;

 

 

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1         (4) special agent;
2         (5) investigator for the Secretary of State;
3         (6) conservation police officer;
4         (7) investigator for the Department of Revenue;
5         (8) security employee of the Department of Human
6     Services;
7         (9) Central Management Services security police
8     officer;
9         (10) security employee of the Department of
10     Corrections or the Department of Juvenile Justice;
11         (11) dangerous drugs investigator;
12         (12) investigator for the Department of State Police;
13         (13) investigator for the Office of the Attorney
14     General;
15         (14) controlled substance inspector;
16         (15) investigator for the Office of the State's
17     Attorneys Appellate Prosecutor;
18         (16) Commerce Commission police officer;
19         (17) arson investigator;
20         (18) State highway maintenance worker.
21     A person employed in one of the positions specified in this
22 subsection is entitled to eligible creditable service for
23 service credit earned under this Article while undergoing the
24 basic police training course approved by the Illinois Law
25 Enforcement Training Standards Board, if completion of that
26 training is required of persons serving in that position. For

 

 

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1 the purposes of this Code, service during the required basic
2 police training course shall be deemed performance of the
3 duties of the specified position, even though the person is not
4 a sworn peace officer at the time of the training.
5     (c) For the purposes of this Section:
6         (1) The term "state policeman" includes any title or
7     position in the Department of State Police that is held by
8     an individual employed under the State Police Act.
9         (2) The term "fire fighter in the fire protection
10     service of a department" includes all officers in such fire
11     protection service including fire chiefs and assistant
12     fire chiefs.
13         (3) The term "air pilot" includes any employee whose
14     official job description on file in the Department of
15     Central Management Services, or in the department by which
16     he is employed if that department is not covered by the
17     Personnel Code, states that his principal duty is the
18     operation of aircraft, and who possesses a pilot's license;
19     however, the change in this definition made by this
20     amendatory Act of 1983 shall not operate to exclude any
21     noncovered employee who was an "air pilot" for the purposes
22     of this Section on January 1, 1984.
23         (4) The term "special agent" means any person who by
24     reason of employment by the Division of Narcotic Control,
25     the Bureau of Investigation or, after July 1, 1977, the
26     Division of Criminal Investigation, the Division of

 

 

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1     Internal Investigation, the Division of Operations, or any
2     other Division or organizational entity in the Department
3     of State Police is vested by law with duties to maintain
4     public order, investigate violations of the criminal law of
5     this State, enforce the laws of this State, make arrests
6     and recover property. The term "special agent" includes any
7     title or position in the Department of State Police that is
8     held by an individual employed under the State Police Act.
9         (5) The term "investigator for the Secretary of State"
10     means any person employed by the Office of the Secretary of
11     State and vested with such investigative duties as render
12     him ineligible for coverage under the Social Security Act
13     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
14     218(l)(1) of that Act.
15         A person who became employed as an investigator for the
16     Secretary of State between January 1, 1967 and December 31,
17     1975, and who has served as such until attainment of age
18     60, either continuously or with a single break in service
19     of not more than 3 years duration, which break terminated
20     before January 1, 1976, shall be entitled to have his
21     retirement annuity calculated in accordance with
22     subsection (a), notwithstanding that he has less than 20
23     years of credit for such service.
24         (6) The term "Conservation Police Officer" means any
25     person employed by the Division of Law Enforcement of the
26     Department of Natural Resources and vested with such law

 

 

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1     enforcement duties as render him ineligible for coverage
2     under the Social Security Act by reason of Sections
3     218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
4     term "Conservation Police Officer" includes the positions
5     of Chief Conservation Police Administrator and Assistant
6     Conservation Police Administrator.
7         (7) The term "investigator for the Department of
8     Revenue" means any person employed by the Department of
9     Revenue and vested with such investigative duties as render
10     him ineligible for coverage under the Social Security Act
11     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
12     218(l)(1) of that Act.
13         (8) The term "security employee of the Department of
14     Human Services" means any person employed by the Department
15     of Human Services who (i) is employed at the Chester Mental
16     Health Center and has daily contact with the residents
17     thereof, (ii) is employed within a security unit at a
18     facility operated by the Department and has daily contact
19     with the residents of the security unit, (iii) is employed
20     at a facility operated by the Department that includes a
21     security unit and is regularly scheduled to work at least
22     50% of his or her working hours within that security unit,
23     or (iv) is a mental health police officer. "Mental health
24     police officer" means any person employed by the Department
25     of Human Services in a position pertaining to the
26     Department's mental health and developmental disabilities

 

 

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1     functions who is vested with such law enforcement duties as
2     render 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. "Security unit"
5     means that portion of a facility that is devoted to the
6     care, containment, and treatment of persons committed to
7     the Department of Human Services as sexually violent
8     persons, persons unfit to stand trial, or persons not
9     guilty by reason of insanity. With respect to past
10     employment, references to the Department of Human Services
11     include its predecessor, the Department of Mental Health
12     and Developmental Disabilities.
13         The changes made to this subdivision (c)(8) by Public
14     Act 92-14 apply to persons who retire on or after January
15     1, 2001, notwithstanding Section 1-103.1.
16         (9) "Central Management Services security police
17     officer" means any person employed by the Department of
18     Central Management Services who is vested with such law
19     enforcement duties as render him ineligible for coverage
20     under the Social Security Act by reason of Sections
21     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
22         (10) For a member who first became an employee under
23     this Article before July 1, 2005, the term "security
24     employee of the Department of Corrections or the Department
25     of Juvenile Justice" means any employee of the Department
26     of Corrections or the Department of Juvenile Justice or the

 

 

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1     former Department of Personnel, and any member or employee
2     of the Prisoner Review Board, who has daily contact with
3     inmates or youth by working within a correctional facility
4     or Juvenile facility operated by the Department of Juvenile
5     Justice or who is a parole officer or an employee who has
6     direct contact with committed persons in the performance of
7     his or her job duties. For a member who first becomes an
8     employee under this Article on or after July 1, 2005, the
9     term means an employee of the Department of Corrections or
10     the Department of Juvenile Justice who is any of the
11     following: (i) officially headquartered at a correctional
12     facility or Juvenile facility operated by the Department of
13     Juvenile Justice, (ii) a parole officer, (iii) a member of
14     the apprehension unit, (iv) a member of the intelligence
15     unit, (v) a member of the sort team, or (vi) an
16     investigator.
17         (11) The term "dangerous drugs investigator" means any
18     person who is employed as such by the Department of Human
19     Services.
20         (12) The term "investigator for the Department of State
21     Police" means a person employed by the Department of State
22     Police who is vested under Section 4 of the Narcotic
23     Control Division Abolition Act with such law enforcement
24     powers 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.

 

 

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1         (13) "Investigator for the Office of the Attorney
2     General" means any person who is employed as such by the
3     Office of the Attorney General and is vested with such
4     investigative duties as render him ineligible for coverage
5     under the Social Security Act by reason of Sections
6     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
7     the period before January 1, 1989, the term includes all
8     persons who were employed as investigators by the Office of
9     the Attorney General, without regard to social security
10     status.
11         (14) "Controlled substance inspector" means any person
12     who is employed as such by the Department of Professional
13     Regulation and is vested with such law enforcement duties
14     as 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. The term
17     "controlled substance inspector" includes the Program
18     Executive of Enforcement and the Assistant Program
19     Executive of Enforcement.
20         (15) The term "investigator for the Office of the
21     State's Attorneys Appellate Prosecutor" means a person
22     employed in that capacity on a full time basis under the
23     authority of Section 7.06 of the State's Attorneys
24     Appellate Prosecutor's Act.
25         (16) "Commerce Commission police officer" means any
26     person employed by the Illinois Commerce Commission who is

 

 

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1     vested with such law enforcement duties as render him
2     ineligible for coverage under the Social Security Act by
3     reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
4     218(l)(1) of that Act.
5         (17) "Arson investigator" means any person who is
6     employed as such by the Office of the State Fire Marshal
7     and is vested with such law enforcement duties as render
8     the person 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. A person who was
11     employed as an arson investigator on January 1, 1995 and is
12     no longer in service but not yet receiving a retirement
13     annuity may convert his or her creditable service for
14     employment as an arson investigator into eligible
15     creditable service by paying to the System the difference
16     between the employee contributions actually paid for that
17     service and the amounts that would have been contributed if
18     the applicant were contributing at the rate applicable to
19     persons with the same social security status earning
20     eligible creditable service on the date of application.
21         (18) The term "State highway maintenance worker" means
22     a person who is either of the following:
23             (i) A person employed on a full-time basis by the
24         Illinois Department of Transportation in the position
25         of highway maintainer, highway maintenance lead
26         worker, highway maintenance lead/lead worker, heavy

 

 

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1         construction equipment operator, power shovel
2         operator, or bridge mechanic; and whose principal
3         responsibility is to perform, on the roadway, the
4         actual maintenance necessary to keep the highways that
5         form a part of the State highway system in serviceable
6         condition for vehicular traffic.
7             (ii) A person employed on a full-time basis by the
8         Illinois State Toll Highway Authority in the position
9         of equipment operator/laborer H-4, equipment
10         operator/laborer H-6, welder H-4, welder H-6,
11         mechanical/electrical H-4, mechanical/electrical H-6,
12         water/sewer H-4, water/sewer H-6, sign maker/hanger
13         H-4, sign maker/hanger H-6, roadway lighting H-4,
14         roadway lighting H-6, structural H-4, structural H-6,
15         painter H-4, or painter H-6; and whose principal
16         responsibility is to perform, on the roadway, the
17         actual maintenance necessary to keep the Authority's
18         tollways in serviceable condition for vehicular
19         traffic.
20     (d) A security employee of the Department of Corrections or
21 the Department of Juvenile Justice, and a security employee of
22 the Department of Human Services who is not a mental health
23 police officer, shall not be eligible for the alternative
24 retirement annuity provided by this Section unless he or she
25 meets the following minimum age and service requirements at the
26 time of retirement:

 

 

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1         (i) 25 years of eligible creditable service and age 55;
2     or
3         (ii) beginning January 1, 1987, 25 years of eligible
4     creditable service and age 54, or 24 years of eligible
5     creditable service and age 55; or
6         (iii) beginning January 1, 1988, 25 years of eligible
7     creditable service and age 53, or 23 years of eligible
8     creditable service and age 55; or
9         (iv) beginning January 1, 1989, 25 years of eligible
10     creditable service and age 52, or 22 years of eligible
11     creditable service and age 55; or
12         (v) beginning January 1, 1990, 25 years of eligible
13     creditable service and age 51, or 21 years of eligible
14     creditable service and age 55; or
15         (vi) beginning January 1, 1991, 25 years of eligible
16     creditable service and age 50, or 20 years of eligible
17     creditable service and age 55.
18     Persons who have service credit under Article 16 of this
19 Code for service as a security employee of the Department of
20 Corrections or the Department of Juvenile Justice, or the
21 Department of Human Services in a position requiring
22 certification as a teacher may count such service toward
23 establishing their eligibility under the service requirements
24 of this Section; but such service may be used only for
25 establishing such eligibility, and not for the purpose of
26 increasing or calculating any benefit.

 

 

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1     (e) If a member enters military service while working in a
2 position in which eligible creditable service may be earned,
3 and returns to State service in the same or another such
4 position, and fulfills in all other respects the conditions
5 prescribed in this Article for credit for military service,
6 such military service shall be credited as eligible creditable
7 service for the purposes of the retirement annuity prescribed
8 in this Section.
9     (f) For purposes of calculating retirement annuities under
10 this Section, periods of service rendered after December 31,
11 1968 and before October 1, 1975 as a covered employee in the
12 position of special agent, conservation police officer, mental
13 health police officer, or investigator for the Secretary of
14 State, shall be deemed to have been service as a noncovered
15 employee, provided that the employee pays to the System prior
16 to retirement an amount equal to (1) the difference between the
17 employee contributions that would have been required for such
18 service as a noncovered employee, and the amount of employee
19 contributions actually paid, plus (2) if payment is made after
20 July 31, 1987, regular interest on the amount specified in item
21 (1) from the date of service 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 be
26 deemed to have been service as a noncovered employee, provided

 

 

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1 that the employee pays to the System prior to retirement an
2 amount equal to (1) the difference between the employee
3 contributions that would have been required for such service as
4 a noncovered employee, and the amount of employee contributions
5 actually paid, plus (2) if payment is made after January 1,
6 1990, regular interest on the amount specified in item (1) from
7 the date of service to the date of payment.
8     (g) A State policeman may elect, not later than January 1,
9 1990, to establish eligible creditable service for up to 10
10 years of his service as a policeman under Article 3, by filing
11 a written election with the Board, accompanied by payment of an
12 amount to be determined by the Board, equal to (i) the
13 difference between the amount of employee and employer
14 contributions transferred to the System under Section 3-110.5,
15 and the amounts that would have been contributed had such
16 contributions been made at the rates applicable to State
17 policemen, plus (ii) interest thereon at the effective rate for
18 each year, compounded annually, from the date of service to the
19 date of payment.
20     Subject to the limitation in subsection (i), a State
21 policeman may elect, not later than July 1, 1993, to establish
22 eligible creditable service for up to 10 years of his service
23 as a member of the County Police Department under Article 9, by
24 filing a written election with the Board, accompanied by
25 payment of an amount to be determined by the Board, equal to
26 (i) the difference between the amount of employee and employer

 

 

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1 contributions transferred to the System under Section 9-121.10
2 and the amounts that would have been contributed had those
3 contributions been made at the rates applicable to State
4 policemen, plus (ii) interest thereon at the effective rate for
5 each year, compounded annually, from the date of service to the
6 date of payment.
7     (h) Subject to the limitation in subsection (i), a State
8 policeman or investigator for the Secretary of State may elect
9 to establish eligible creditable service for up to 12 years of
10 his service as a policeman under Article 5, by filing a written
11 election with the Board on or before January 31, 1992, and
12 paying to the System by January 31, 1994 an amount to be
13 determined by the Board, equal to (i) the difference between
14 the amount of employee and employer contributions transferred
15 to the System under Section 5-236, and the amounts that would
16 have been contributed had such contributions been made at the
17 rates applicable to State policemen, plus (ii) interest thereon
18 at the effective rate for each year, compounded annually, from
19 the date of service to the date of payment.
20     Subject to the limitation in subsection (i), a State
21 policeman, conservation police officer, or investigator for
22 the Secretary of State may elect to establish eligible
23 creditable service for up to 10 years of service as a sheriff's
24 law enforcement employee under Article 7, by filing a written
25 election with the Board on or before January 31, 1993, and
26 paying to the System by January 31, 1994 an amount to be

 

 

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1 determined by the Board, equal to (i) the difference between
2 the amount of employee and employer contributions transferred
3 to the System under Section 7-139.7, and the amounts that would
4 have been contributed had such contributions been made at the
5 rates applicable to State policemen, plus (ii) interest thereon
6 at the effective rate for each year, compounded annually, from
7 the date of service to the date of payment.
8     Subject to the limitation in subsection (i), a State
9 policeman, conservation police officer, or investigator for
10 the Secretary of State may elect to establish eligible
11 creditable service for up to 5 years of service as a police
12 officer under Article 3, a policeman under Article 5, a
13 sheriff's law enforcement employee under Article 7, a member of
14 the county police department under Article 9, or a police
15 officer under Article 15 by filing a written election with the
16 Board and paying to the System an amount to be determined by
17 the Board, equal to (i) the difference between the amount of
18 employee and employer contributions transferred to the System
19 under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
20 and the amounts that would have been contributed had such
21 contributions been made at the rates applicable to State
22 policemen, plus (ii) interest thereon at the effective rate for
23 each year, compounded annually, from the date of service to the
24 date of payment.
25     (i) The total amount of eligible creditable service
26 established by any person under subsections (g), (h), (j), (k),

 

 

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1 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 Appellate
4 Prosecutor or a controlled substance inspector may elect to
5 establish eligible creditable service for up to 10 years of his
6 service as a policeman under Article 3 or a sheriff's law
7 enforcement employee under Article 7, by filing a written
8 election with the Board, accompanied by payment of an amount to
9 be determined by the Board, equal to (1) the difference between
10 the amount of employee and employer contributions transferred
11 to the System under Section 3-110.6 or 7-139.8, and the amounts
12 that would have been contributed had such contributions been
13 made at the rates applicable to State policemen, plus (2)
14 interest thereon at the effective rate for each year,
15 compounded annually, from the date of service to the date of
16 payment.
17     (k) Subject to the limitation in subsection (i) of this
18 Section, an alternative formula employee may elect to establish
19 eligible creditable service for periods spent as a full-time
20 law enforcement officer or full-time corrections officer
21 employed by the federal government or by a state or local
22 government located outside of Illinois, for which credit is not
23 held in any other public employee pension fund or retirement
24 system. To obtain this credit, the applicant must file a
25 written application with the Board by March 31, 1998,
26 accompanied by evidence of eligibility acceptable to the Board

 

 

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1 and payment of an amount to be determined by the Board, equal
2 to (1) employee contributions for the credit being established,
3 based upon the applicant's salary on the first day as an
4 alternative formula employee after the employment for which
5 credit is being established and the rates then applicable to
6 alternative formula employees, plus (2) an amount determined by
7 the Board to be the employer's normal cost of the benefits
8 accrued for the credit being established, plus (3) regular
9 interest on the amounts in items (1) and (2) from the first day
10 as an alternative formula employee after the employment for
11 which credit is being established to the date of payment.
12     (k-5) Subject to the limitation in subsection (i) of this
13 Section, a State policeman who applies for retirement within 3
14 months after the effective date of this amendatory Act of the
15 96th General Assembly in order to take a judicial position may
16 elect to establish eligible creditable service for periods
17 employed by the Federal Bureau of Investigations for which
18 credit is not held in any other public employee pension fund or
19 retirement system. To obtain this credit, the applicant must
20 file a written application with the Board within 6 months after
21 the effective date of this amendatory Act of the 96th General
22 Assembly, accompanied by evidence of eligibility acceptable to
23 the Board and payment of an amount to be determined by the
24 Board, equal to (1) employee contributions for the credit being
25 established, based upon the applicant's salary on the first day
26 as a State policeman after the employment for which credit is

 

 

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1 being established and the rates then applicable to alternative
2 formula employees, plus (2) an amount determined by the Board
3 to be the employer's normal cost of the benefits accrued for
4 the credit being established, plus (3) regular interest on the
5 amounts in items (1) and (2) from the first day as a State
6 policeman after the employment for which credit is being
7 established to the date of payment.
8     (l) Subject to the limitation in subsection (i), a security
9 employee of the Department of Corrections may elect, not later
10 than July 1, 1998, to establish eligible creditable service for
11 up to 10 years of his or her service as a policeman under
12 Article 3, by filing a written election with the Board,
13 accompanied by payment of an amount to be determined by the
14 Board, equal to (i) the difference between the amount of
15 employee and employer contributions transferred to the System
16 under Section 3-110.5, and the amounts that would have been
17 contributed had such contributions been made at the rates
18 applicable to security employees of the Department of
19 Corrections, plus (ii) interest thereon at the effective rate
20 for each year, compounded annually, from the date of service to
21 the date of payment.
22     (m) The amendatory changes to this Section made by this
23 amendatory Act of the 94th General Assembly apply only to: (1)
24 security employees of the Department of Juvenile Justice
25 employed by the Department of Corrections before the effective
26 date of this amendatory Act of the 94th General Assembly and

 

 

HB4087 - 20 - LRB096 03729 AMC 13758 b

1 transferred to the Department of Juvenile Justice by this
2 amendatory Act of the 94th General Assembly; and (2) persons
3 employed by the Department of Juvenile Justice on or after the
4 effective date of this amendatory Act of the 94th General
5 Assembly who are required by subsection (b) of Section 3-2.5-15
6 of the Unified Code of Corrections to have a bachelor's or
7 advanced degree from an accredited college or university with a
8 specialization in criminal justice, education, psychology,
9 social work, or a closely related social science or, in the
10 case of persons who provide vocational training, who are
11 required to have adequate knowledge in the skill for which they
12 are providing the vocational training.
13 (Source: P.A. 94-4, eff. 6-1-05; 94-696, eff. 6-1-06; 95-530,
14 eff. 8-28-07.)
 
15     Section 99. Effective date. This Act takes effect upon
16 becoming law.