94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0636

 

Introduced 1/28/2005, by Rep. Michael K. Smith

 

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. Provides that certain persons employed by the Illinois State Toll Highway Authority are eligible for the alternative (State Police) formula. 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 pensions.
 
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8     (a) Any member who has withdrawn from service with not less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10 age 55, and any member who has withdrawn from service with not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%
24     for each year of creditable service above 20 years; and
25         (ii) for periods of eligible creditable service as a
26     covered employee: if retirement occurs on or after January
27     1, 2001, 2.5% of final average compensation for each year
28     of creditable service; if retirement occurs before January
29     1, 2001, 1.67% of final average compensation for each of
30     the first 10 years of such service, 1.90% for each of the
31     next 10 years of such service, 2.10% for each year of such
32     service in excess of 20 but not exceeding 30, and 2.30% for

 

 

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1     each year in excess of 30.
2     Such annuity shall be subject to a maximum of 75% of final
3 average compensation if retirement occurs before January 1,
4 2001 or to a maximum of 80% of final average compensation if
5 retirement occurs on or after January 1, 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 creditable
12 service" means creditable service resulting from service in one
13 or more of the following positions:
14         (1) State policeman;
15         (2) fire fighter in the fire protection service of a
16     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 Police;
30         (13) investigator for the Office of the Attorney
31     General;
32         (14) controlled substance inspector;
33         (15) investigator for the Office of the State's
34     Attorneys Appellate Prosecutor;
35         (16) Commerce Commission police officer;
36         (17) arson investigator;

 

 

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1         (18) State highway maintenance worker; .
2         (19) tollway employee.
3     A person employed in one of the positions specified in this
4 subsection is entitled to eligible creditable service for
5 service credit earned under this Article while undergoing the
6 basic police training course approved by the Illinois Law
7 Enforcement Training Standards Board, if completion of that
8 training is required of persons serving in that position. For
9 the purposes of this Code, service during the required basic
10 police training course shall be deemed performance of the
11 duties of the specified position, even though the person is not
12 a sworn peace officer at the time of the training.
13     (c) For the purposes of this Section:
14         (1) The term "state policeman" includes any title or
15     position in the Department of State Police that is held by
16     an individual employed under the State Police Act.
17         (2) The term "fire fighter in the fire protection
18     service of a department" includes all officers in such fire
19     protection service including fire chiefs and assistant
20     fire chiefs.
21         (3) The term "air pilot" includes any employee whose
22     official job description on file in the Department of
23     Central Management Services, or in the department by which
24     he is employed if that department is not covered by the
25     Personnel Code, states that his principal duty is the
26     operation of aircraft, and who possesses a pilot's license;
27     however, the change in this definition made by this
28     amendatory Act of 1983 shall not operate to exclude any
29     noncovered employee who was an "air pilot" for the purposes
30     of this Section on January 1, 1984.
31         (4) The term "special agent" means any person who by
32     reason of employment by the Division of Narcotic Control,
33     the Bureau of Investigation or, after July 1, 1977, the
34     Division of Criminal Investigation, the Division of
35     Internal Investigation, the Division of Operations, or any
36     other Division or organizational entity in the Department

 

 

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1     of State Police is vested by law with duties to maintain
2     public order, investigate violations of the criminal law of
3     this State, enforce the laws of this State, make arrests
4     and recover property. The term "special agent" includes any
5     title or position in the Department of State Police that is
6     held by an individual employed under the State Police Act.
7         (5) The term "investigator for the Secretary of State"
8     means any person employed by the Office of the Secretary of
9     State 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         A person who became employed as an investigator for the
14     Secretary of State between January 1, 1967 and December 31,
15     1975, and who has served as such until attainment of age
16     60, either continuously or with a single break in service
17     of not more than 3 years duration, which break terminated
18     before January 1, 1976, shall be entitled to have his
19     retirement annuity calculated in accordance with
20     subsection (a), notwithstanding that he has less than 20
21     years of credit for such service.
22         (6) The term "Conservation Police Officer" means any
23     person employed by the Division of Law Enforcement of the
24     Department of Natural Resources and vested with such law
25     enforcement duties as render him ineligible for coverage
26     under the Social Security Act by reason of Sections
27     218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
28     term "Conservation Police Officer" includes the positions
29     of Chief Conservation Police Administrator and Assistant
30     Conservation Police Administrator.
31         (7) The term "investigator for the Department of
32     Revenue" means any person employed by the Department of
33     Revenue and vested with such investigative duties as render
34     him ineligible for coverage under the Social Security Act
35     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
36     218(l)(1) of that Act.

 

 

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1         (8) The term "security employee of the Department of
2     Human Services" means any person employed by the Department
3     of Human Services who (i) is employed at the Chester Mental
4     Health Center and has daily contact with the residents
5     thereof, (ii) is employed within a security unit at a
6     facility operated by the Department and has daily contact
7     with the residents of the security unit, (iii) is employed
8     at a facility operated by the Department that includes a
9     security unit and is regularly scheduled to work at least
10     50% of his or her working hours within that security unit,
11     or (iv) is a mental health police officer. "Mental health
12     police officer" means any person employed by the Department
13     of Human Services in a position pertaining to the
14     Department's mental health and developmental disabilities
15     functions who is vested with such law enforcement duties as
16     render the person 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. "Security unit"
19     means that portion of a facility that is devoted to the
20     care, containment, and treatment of persons committed to
21     the Department of Human Services as sexually violent
22     persons, persons unfit to stand trial, or persons not
23     guilty by reason of insanity. With respect to past
24     employment, references to the Department of Human Services
25     include its predecessor, the Department of Mental Health
26     and Developmental Disabilities.
27         The changes made to this subdivision (c)(8) by Public
28     Act 92-14 apply to persons who retire on or after January
29     1, 2001, notwithstanding Section 1-103.1.
30         (9) "Central Management Services security police
31     officer" means any person employed by the Department of
32     Central Management Services who is vested with such law
33     enforcement duties as render him ineligible for coverage
34     under the Social Security Act by reason of Sections
35     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
36         (10) The term "security employee of the Department of

 

 

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1     Corrections" means any employee of the Department of
2     Corrections or the former Department of Personnel, and any
3     member or employee of the Prisoner Review Board, who has
4     daily contact with inmates by working within a correctional
5     facility 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.
8         (11) The term "dangerous drugs investigator" means any
9     person who is employed as such by the Department of Human
10     Services.
11         (12) The term "investigator for the Department of State
12     Police" means a person employed by the Department of State
13     Police who is vested under Section 4 of the Narcotic
14     Control Division Abolition Act with such law enforcement
15     powers as render him ineligible for coverage under the
16     Social Security Act by reason of Sections 218(d)(5)(A),
17     218(d)(8)(D) and 218(l)(1) of that Act.
18         (13) "Investigator for the Office of the Attorney
19     General" means any person who is employed as such by the
20     Office of the Attorney General and is vested with such
21     investigative duties as render him ineligible for coverage
22     under the Social Security Act by reason of Sections
23     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
24     the period before January 1, 1989, the term includes all
25     persons who were employed as investigators by the Office of
26     the Attorney General, without regard to social security
27     status.
28         (14) "Controlled substance inspector" means any person
29     who is employed as such by the Department of Professional
30     Regulation and is vested with such law enforcement duties
31     as render him ineligible for coverage under the Social
32     Security Act by reason of Sections 218(d)(5)(A),
33     218(d)(8)(D) and 218(l)(1) of that Act. The term
34     "controlled substance inspector" includes the Program
35     Executive of Enforcement and the Assistant Program
36     Executive of Enforcement.

 

 

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1         (15) The term "investigator for the Office of the
2     State's Attorneys Appellate Prosecutor" means a person
3     employed in that capacity on a full time basis under the
4     authority of Section 7.06 of the State's Attorneys
5     Appellate Prosecutor's Act.
6         (16) "Commerce Commission police officer" means any
7     person employed by the Illinois Commerce Commission who is
8     vested with such law enforcement duties as render him
9     ineligible for coverage under the Social Security Act by
10     reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
11     218(l)(1) of that Act.
12         (17) "Arson investigator" means any person who is
13     employed as such by the Office of the State Fire Marshal
14     and is vested with such law enforcement duties as render
15     the person ineligible for coverage under the Social
16     Security Act by reason of Sections 218(d)(5)(A),
17     218(d)(8)(D), and 218(l)(1) of that Act. A person who was
18     employed as an arson investigator on January 1, 1995 and is
19     no longer in service but not yet receiving a retirement
20     annuity may convert his or her creditable service for
21     employment as an arson investigator into eligible
22     creditable service by paying to the System the difference
23     between the employee contributions actually paid for that
24     service and the amounts that would have been contributed if
25     the applicant were contributing at the rate applicable to
26     persons with the same social security status earning
27     eligible creditable service on the date of application.
28         (18) The term "State highway maintenance worker" means
29     a person who is either of the following:
30             (i) A person employed on a full-time basis by the
31         Illinois Department of Transportation in the position
32         of highway maintainer, highway maintenance lead
33         worker, highway maintenance lead/lead worker, heavy
34         construction equipment operator, power shovel
35         operator, or bridge mechanic; and whose principal
36         responsibility is to perform, on the roadway, the

 

 

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1         actual maintenance necessary to keep the highways that
2         form a part of the State highway system in serviceable
3         condition for vehicular traffic.
4             (ii) A person employed on a full-time basis by the
5         Illinois State Toll Highway Authority in the position
6         of equipment operator/laborer H-4, equipment
7         operator/laborer H-6, welder H-4, welder H-6,
8         mechanical/electrical H-4, mechanical/electrical H-6,
9         water/sewer H-4, water/sewer H-6, sign maker/hanger
10         H-4, sign maker/hanger H-6, roadway lighting H-4,
11         roadway lighting H-6, structural H-4, structural H-6,
12         painter H-4, or painter H-6; and whose principal
13         responsibility is to perform, on the roadway, the
14         actual maintenance necessary to keep the Authority's
15         tollways in serviceable condition for vehicular
16         traffic.
17         (19) The term "tollway employee" means a person
18     employed by the Illinois State Toll Highway Authority as a
19     lane walker, senior lane walker, toll collector, senior
20     toll collector, clerk, money room truck driver, money room
21     cash handler, custodian II, or custodian III.
22     (d) A security employee of the Department of Corrections,
23 and a security employee of the Department of Human Services who
24 is not a mental health police officer, shall not be eligible
25 for the alternative retirement annuity provided by this Section
26 unless he or she meets the following minimum age and service
27 requirements at the time of retirement:
28         (i) 25 years of eligible creditable service and age 55;
29     or
30         (ii) beginning January 1, 1987, 25 years of eligible
31     creditable service and age 54, or 24 years of eligible
32     creditable service and age 55; or
33         (iii) beginning January 1, 1988, 25 years of eligible
34     creditable service and age 53, or 23 years of eligible
35     creditable service and age 55; or
36         (iv) beginning January 1, 1989, 25 years of eligible

 

 

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1     creditable service and age 52, or 22 years of eligible
2     creditable service and age 55; or
3         (v) beginning January 1, 1990, 25 years of eligible
4     creditable service and age 51, or 21 years of eligible
5     creditable service and age 55; or
6         (vi) beginning January 1, 1991, 25 years of eligible
7     creditable service and age 50, or 20 years of eligible
8     creditable service and age 55.
9     Persons who have service credit under Article 16 of this
10 Code for service as a security employee of the Department of
11 Corrections or the Department of Human Services in a position
12 requiring certification as a teacher may count such service
13 toward establishing their eligibility under the service
14 requirements of this Section; but such service may be used only
15 for establishing such eligibility, and not for the purpose of
16 increasing or calculating any benefit.
17     (e) If a member enters military service while working in a
18 position in which eligible creditable service may be earned,
19 and returns to State service in the same or another such
20 position, and fulfills in all other respects the conditions
21 prescribed in this Article for credit for military service,
22 such military service shall be credited as eligible creditable
23 service for the purposes of the retirement annuity prescribed
24 in this Section.
25     (f) For purposes of calculating retirement annuities under
26 this Section, periods of service rendered after December 31,
27 1968 and before October 1, 1975 as a covered employee in the
28 position of special agent, conservation police officer, mental
29 health police officer, or investigator for the Secretary of
30 State, shall be deemed to have been service as a noncovered
31 employee, provided that the employee pays to the System prior
32 to retirement an amount equal to (1) the difference between the
33 employee contributions that would have been required for such
34 service as a noncovered employee, and the amount of employee
35 contributions actually paid, plus (2) if payment is made after
36 July 31, 1987, regular interest on the amount specified in item

 

 

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1 (1) from the date of service to the date of payment.
2     For purposes of calculating retirement annuities under
3 this Section, periods of service rendered after December 31,
4 1968 and before January 1, 1982 as a covered employee in the
5 position of investigator for the Department of Revenue shall be
6 deemed to have been service as a noncovered employee, provided
7 that the employee pays to the System prior to retirement an
8 amount equal to (1) the difference between the employee
9 contributions that would have been required for such service as
10 a noncovered employee, and the amount of employee contributions
11 actually paid, plus (2) if payment is made after January 1,
12 1990, regular interest on the amount specified in item (1) from
13 the date of service to the date of payment.
14     (g) A State policeman may elect, not later than January 1,
15 1990, to establish eligible creditable service for up to 10
16 years of his service as a policeman under Article 3, by filing
17 a written election with the Board, accompanied by payment of an
18 amount to be determined by the Board, equal to (i) the
19 difference between the amount of employee and employer
20 contributions transferred to the System under Section 3-110.5,
21 and the amounts that would have been contributed had such
22 contributions been made at the rates applicable to State
23 policemen, plus (ii) interest thereon at the effective rate for
24 each year, compounded annually, from the date of service to the
25 date of payment.
26     Subject to the limitation in subsection (i), a State
27 policeman may elect, not later than July 1, 1993, to establish
28 eligible creditable service for up to 10 years of his service
29 as a member of the County Police Department under Article 9, by
30 filing a written election with the Board, accompanied by
31 payment of an amount to be determined by the Board, equal to
32 (i) the difference between the amount of employee and employer
33 contributions transferred to the System under Section 9-121.10
34 and the amounts that would have been contributed had those
35 contributions been made at the rates applicable to State
36 policemen, plus (ii) interest thereon at the effective rate for

 

 

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1 each year, compounded annually, from the date of service to the
2 date of payment.
3     (h) Subject to the limitation in subsection (i), a State
4 policeman or investigator for the Secretary of State may elect
5 to establish eligible creditable service for up to 12 years of
6 his service as a policeman under Article 5, by filing a written
7 election with the Board on or before January 31, 1992, and
8 paying to the System by January 31, 1994 an amount to be
9 determined by the Board, equal to (i) the difference between
10 the amount of employee and employer contributions transferred
11 to the System under Section 5-236, and the amounts that would
12 have been contributed had such contributions been made at the
13 rates applicable to State policemen, plus (ii) interest thereon
14 at the effective rate for each year, compounded annually, from
15 the date of service to the date of payment.
16     Subject to the limitation in subsection (i), a State
17 policeman, conservation police officer, or investigator for
18 the Secretary of State may elect to establish eligible
19 creditable service for up to 10 years of service as a sheriff's
20 law enforcement employee under Article 7, by filing a written
21 election with the Board on or before January 31, 1993, and
22 paying to the System by January 31, 1994 an amount to be
23 determined by the Board, equal to (i) the difference between
24 the amount of employee and employer contributions transferred
25 to the System under Section 7-139.7, and the amounts that would
26 have been contributed had such contributions been made at the
27 rates applicable to State policemen, plus (ii) interest thereon
28 at the effective rate for each year, compounded annually, from
29 the date of service to the date of payment.
30     (i) The total amount of eligible creditable service
31 established by any person under subsections (g), (h), (j), (k),
32 and (l) of this Section shall not exceed 12 years.
33     (j) Subject to the limitation in subsection (i), an
34 investigator for the Office of the State's Attorneys Appellate
35 Prosecutor or a controlled substance inspector may elect to
36 establish eligible creditable service for up to 10 years of his

 

 

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1 service as a policeman under Article 3 or a sheriff's law
2 enforcement employee under Article 7, by filing a written
3 election with the Board, accompanied by payment of an amount to
4 be determined by the Board, equal to (1) the difference between
5 the amount of employee and employer contributions transferred
6 to the System under Section 3-110.6 or 7-139.8, and the amounts
7 that would have been contributed had such contributions been
8 made at the rates applicable to State policemen, plus (2)
9 interest thereon at the effective rate for each year,
10 compounded annually, from the date of service to the date of
11 payment.
12     (k) Subject to the limitation in subsection (i) of this
13 Section, an alternative formula employee may elect to establish
14 eligible creditable service for periods spent as a full-time
15 law enforcement officer or full-time corrections officer
16 employed by the federal government or by a state or local
17 government located outside of Illinois, for which credit is not
18 held in any other public employee pension fund or retirement
19 system. To obtain this credit, the applicant must file a
20 written application with the Board by March 31, 1998,
21 accompanied by evidence of eligibility acceptable to the Board
22 and payment of an amount to be determined by the Board, equal
23 to (1) employee contributions for the credit being established,
24 based upon the applicant's salary on the first day as an
25 alternative formula employee after the employment for which
26 credit is being established and the rates then applicable to
27 alternative formula employees, plus (2) an amount determined by
28 the Board to be the employer's normal cost of the benefits
29 accrued for the credit being established, plus (3) regular
30 interest on the amounts in items (1) and (2) from the first day
31 as an alternative formula employee after the employment for
32 which credit is being established to the date of payment.
33     (l) Subject to the limitation in subsection (i), a security
34 employee of the Department of Corrections may elect, not later
35 than July 1, 1998, to establish eligible creditable service for
36 up to 10 years of his or her service as a policeman under

 

 

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1 Article 3, by filing a written election with the Board,
2 accompanied by payment of an amount to be determined by the
3 Board, equal to (i) the difference between the amount of
4 employee and employer contributions transferred to the System
5 under Section 3-110.5, and the amounts that would have been
6 contributed had such contributions been made at the rates
7 applicable to security employees of the Department of
8 Corrections, plus (ii) interest thereon at the effective rate
9 for each year, compounded annually, from the date of service to
10 the date of payment.
11 (Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 92-14,
12 eff. 6-28-01; 92-257, eff. 8-6-01; 92-651, eff. 7-11-02.)
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.