94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0946

 

Introduced 2/2/2005, 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 persons under the alternative (State police) retirement formula may retire at any age after having established service sufficient to provide an alternative formula annuity equal to at least 80% of final average compensation. 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 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 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8     (a) Any member who has withdrawn from service with not less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10 age 55, and any member who has withdrawn from service with not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14 service, and any member who has withdrawn from service having
15 established service sufficient to provide an annuity under this
16 Section equal to at least 80% of final average compensation,
17 regardless of age, shall be entitled to receive at the option
18 of the member, in lieu of the regular or minimum retirement
19 annuity, a retirement annuity computed as follows:
20         (i) for periods of service as a noncovered employee: if
21     retirement occurs on or after January 1, 2001, 3% of final
22     average compensation for each year of creditable service;
23     if retirement occurs before January 1, 2001, 2 1/4% of
24     final average compensation for each of the first 10 years
25     of creditable service, 2 1/2% for each year above 10 years
26     to and including 20 years of creditable service, and 2 3/4%
27     for each year of creditable service above 20 years; and
28         (ii) for periods of eligible creditable service as a
29     covered employee: if retirement occurs on or after January
30     1, 2001, 2.5% of final average compensation for each year
31     of creditable service; if retirement occurs before January
32     1, 2001, 1.67% of final average compensation for each of

 

 

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1     the first 10 years of such service, 1.90% for each of the
2     next 10 years of such service, 2.10% for each year of such
3     service in excess of 20 but not exceeding 30, and 2.30% for
4     each year in excess of 30.
5     Such annuity shall be subject to a maximum of 75% of final
6 average compensation if retirement occurs before January 1,
7 2001 or to a maximum of 80% of final average compensation if
8 retirement occurs on or after January 1, 2001.
9     These rates shall not be applicable to any service
10 performed by a member as a covered employee which is not
11 eligible creditable service. Service as a covered employee
12 which is not eligible creditable service shall be subject to
13 the rates and provisions of Section 14-108.
14     (b) For the purpose of this Section, "eligible creditable
15 service" means creditable service resulting from service in one
16 or more of the following positions:
17         (1) State policeman;
18         (2) fire fighter in the fire protection service of a
19     department;
20         (3) air pilot;
21         (4) special agent;
22         (5) investigator for the Secretary of State;
23         (6) conservation police officer;
24         (7) investigator for the Department of Revenue;
25         (8) security employee of the Department of Human
26     Services;
27         (9) Central Management Services security police
28     officer;
29         (10) security employee of the Department of
30     Corrections;
31         (11) dangerous drugs investigator;
32         (12) investigator for the Department of State Police;
33         (13) investigator for the Office of the Attorney
34     General;
35         (14) controlled substance inspector;
36         (15) investigator for the Office of the State's

 

 

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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 this
6 subsection is entitled to eligible creditable service for
7 service credit earned under this Article while undergoing the
8 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 not
14 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 or
17     position in the Department of State Police that is held by
18     an individual employed under the State Police Act.
19         (2) The term "fire fighter in the fire protection
20     service of a department" includes all officers in such fire
21     protection service including fire chiefs and assistant
22     fire chiefs.
23         (3) The term "air pilot" includes any employee whose
24     official job description on file in the Department of
25     Central Management Services, or in the department by which
26     he is employed if that department is not covered by the
27     Personnel Code, states that his principal duty is the
28     operation of aircraft, and who possesses a pilot's license;
29     however, the change in this definition made by this
30     amendatory Act of 1983 shall not operate to exclude any
31     noncovered employee who was an "air pilot" for the purposes
32     of this Section on January 1, 1984.
33         (4) The term "special agent" means any person who by
34     reason of employment by the Division of Narcotic Control,
35     the Bureau of Investigation or, after July 1, 1977, the
36     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
27     enforcement duties as render him ineligible for coverage
28     under the Social Security Act by reason of Sections
29     218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
30     term "Conservation Police Officer" includes the positions
31     of Chief Conservation Police Administrator and Assistant
32     Conservation Police Administrator.
33         (7) The term "investigator for the Department of
34     Revenue" means any person employed by the Department of
35     Revenue and vested with such investigative duties as render
36     him ineligible for coverage under the Social Security Act

 

 

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

 

 

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

 

 

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

 

 

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1         operator, or bridge mechanic; and whose principal
2         responsibility is to perform, on the roadway, the
3         actual maintenance necessary to keep the highways that
4         form a part of the State highway system in serviceable
5         condition for vehicular traffic.
6             (ii) A person employed on a full-time basis by the
7         Illinois State Toll Highway Authority in the position
8         of equipment operator/laborer H-4, equipment
9         operator/laborer H-6, welder H-4, welder H-6,
10         mechanical/electrical H-4, mechanical/electrical H-6,
11         water/sewer H-4, water/sewer H-6, sign maker/hanger
12         H-4, sign maker/hanger H-6, roadway lighting H-4,
13         roadway lighting H-6, structural H-4, structural H-6,
14         painter H-4, or painter H-6; and whose principal
15         responsibility is to perform, on the roadway, the
16         actual maintenance necessary to keep the Authority's
17         tollways in serviceable condition for vehicular
18         traffic.
19     (d) A security employee of the Department of Corrections,
20 and a security employee of the Department of Human Services who
21 is not a mental health police officer, shall not be eligible
22 for the alternative retirement annuity provided by this Section
23 unless he or she meets the following minimum age and service
24 requirements at the time of retirement:
25         (i) 25 years of eligible creditable service and age 55;
26     or
27         (ii) beginning January 1, 1987, 25 years of eligible
28     creditable service and age 54, or 24 years of eligible
29     creditable service and age 55; or
30         (iii) beginning January 1, 1988, 25 years of eligible
31     creditable service and age 53, or 23 years of eligible
32     creditable service and age 55; or
33         (iv) beginning January 1, 1989, 25 years of eligible
34     creditable service and age 52, or 22 years of eligible
35     creditable service and age 55; or
36         (v) beginning January 1, 1990, 25 years of eligible

 

 

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1     creditable service and age 51, or 21 years of eligible
2     creditable service and age 55; or
3         (vi) beginning January 1, 1991, 25 years of eligible
4     creditable service and age 50, or 20 years of eligible
5     creditable service and age 55; or
6         (vii) beginning on the effective date of this
7     amendatory Act of the 94th General Assembly, (A) 25 years
8     of eligible creditable service and age 50, (B) 20 years of
9     eligible creditable service and age 55, or (C) service
10     sufficient to provide an annuity under this Section equal
11     to at least 80% of final average compensation, regardless
12     of age.
13     Persons who have service credit under Article 16 of this
14 Code for service as a security employee of the Department of
15 Corrections or the Department of Human Services in a position
16 requiring certification as a teacher may count such service
17 toward establishing their eligibility under the service
18 requirements of this Section; but such service may be used only
19 for establishing such eligibility, and not for the purpose of
20 increasing or calculating any benefit.
21     (e) If a member enters military service while working in a
22 position in which eligible creditable service may be earned,
23 and returns to State service in the same or another such
24 position, and fulfills in all other respects the conditions
25 prescribed in this Article for credit for military service,
26 such military service shall be credited as eligible creditable
27 service for the purposes of the retirement annuity prescribed
28 in this Section.
29     (f) For purposes of calculating retirement annuities under
30 this Section, periods of service rendered after December 31,
31 1968 and before October 1, 1975 as a covered employee in the
32 position of special agent, conservation police officer, mental
33 health police officer, or investigator for the Secretary of
34 State, shall be deemed to have been service as a noncovered
35 employee, provided that the employee pays to the System prior
36 to retirement an amount equal to (1) the difference between the

 

 

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1 employee contributions that would have been required for such
2 service as a noncovered employee, and the amount of employee
3 contributions actually paid, plus (2) if payment is made after
4 July 31, 1987, regular interest on the amount specified in item
5 (1) from the date of service to the date of payment.
6     For purposes of calculating retirement annuities under
7 this Section, periods of service rendered after December 31,
8 1968 and before January 1, 1982 as a covered employee in the
9 position of investigator for the Department of Revenue shall be
10 deemed to have been service as a noncovered employee, provided
11 that the employee pays to the System prior to retirement an
12 amount equal to (1) the difference between the employee
13 contributions that would have been required for such service as
14 a noncovered employee, and the amount of employee contributions
15 actually paid, plus (2) if payment is made after January 1,
16 1990, regular interest on the amount specified in item (1) from
17 the date of service to the date of payment.
18     (g) A State policeman may elect, not later than January 1,
19 1990, to establish eligible creditable service for up to 10
20 years of his service as a policeman under Article 3, by filing
21 a written election with the Board, accompanied by payment of an
22 amount to be determined by the Board, equal to (i) the
23 difference between the amount of employee and employer
24 contributions transferred to the System under Section 3-110.5,
25 and the amounts that would have been contributed had such
26 contributions been made at the rates applicable to State
27 policemen, plus (ii) interest thereon at the effective rate for
28 each year, compounded annually, from the date of service to the
29 date of payment.
30     Subject to the limitation in subsection (i), a State
31 policeman may elect, not later than July 1, 1993, to establish
32 eligible creditable service for up to 10 years of his service
33 as a member of the County Police Department under Article 9, by
34 filing a written election with the Board, accompanied by
35 payment of an amount to be determined by the Board, equal to
36 (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
27 determined by the Board, equal to (i) the difference between
28 the amount of employee and employer contributions transferred
29 to the System under Section 7-139.7, and the amounts that would
30 have been contributed had such contributions been made at the
31 rates applicable to State policemen, plus (ii) interest thereon
32 at the effective rate for each year, compounded annually, from
33 the date of service to the date of payment.
34     (i) The total amount of eligible creditable service
35 established by any person under subsections (g), (h), (j), (k),
36 and (l) of this Section shall not exceed 12 years.

 

 

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

 

 

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1     (l) Subject to the limitation in subsection (i), a security
2 employee of the Department of Corrections may elect, not later
3 than July 1, 1998, to establish eligible creditable service for
4 up to 10 years of his or her service as a policeman under
5 Article 3, by filing a written election with the Board,
6 accompanied by payment of an amount to be determined by the
7 Board, equal to (i) the difference between the amount of
8 employee and employer contributions transferred to the System
9 under Section 3-110.5, and the amounts that would have been
10 contributed had such contributions been made at the rates
11 applicable to security employees of the Department of
12 Corrections, plus (ii) interest thereon at the effective rate
13 for each year, compounded annually, from the date of service to
14 the date of payment.
15 (Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 92-14,
16 eff. 6-28-01; 92-257, eff. 8-6-01; 92-651, eff. 7-11-02.)
 
17     Section 99. Effective date. This Act takes effect upon
18 becoming law.