96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0274

 

Introduced 2/6/2009, by Sen. Deanna Demuzio

 

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 the alternative formula for ferry boat operators and deck hands. 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8     (a) Any member who has withdrawn from service with not less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10 age 55, and any member who has withdrawn from service with not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         (19) ferry boat operator or deck hand.
22     A person employed in one of the positions specified in this
23 subsection is entitled to eligible creditable service for
24 service credit earned under this Article while undergoing the
25 basic police training course approved by the Illinois Law
26 Enforcement Training Standards Board, if completion of that

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1     of Corrections or the Department of Juvenile Justice or the
2     former Department of Personnel, and any member or employee
3     of the Prisoner Review Board, who has daily contact with
4     inmates or youth by working within a correctional facility
5     or Juvenile facility operated by the Department of Juvenile
6     Justice or who is a parole officer or an employee who has
7     direct contact with committed persons in the performance of
8     his or her job duties. For a member who first becomes an
9     employee under this Article on or after July 1, 2005, the
10     term means an employee of the Department of Corrections or
11     the Department of Juvenile Justice who is any of the
12     following: (i) officially headquartered at a correctional
13     facility or Juvenile facility operated by the Department of
14     Juvenile Justice, (ii) a parole officer, (iii) a member of
15     the apprehension unit, (iv) a member of the intelligence
16     unit, (v) a member of the sort team, or (vi) an
17     investigator.
18         (11) The term "dangerous drugs investigator" means any
19     person who is employed as such by the Department of Human
20     Services.
21         (12) The term "investigator for the Department of State
22     Police" means a person employed by the Department of State
23     Police who is vested under Section 4 of the Narcotic
24     Control Division Abolition Act with such law enforcement
25     powers as render him ineligible for coverage under the
26     Social Security Act by reason of Sections 218(d)(5)(A),

 

 

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

 

 

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

 

 

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1         worker, highway maintenance lead/lead worker, heavy
2         construction equipment operator, power shovel
3         operator, or bridge mechanic; and whose principal
4         responsibility is to perform, on the roadway, the
5         actual maintenance necessary to keep the highways that
6         form a part of the State highway system in serviceable
7         condition for vehicular traffic.
8             (ii) A person employed on a full-time basis by the
9         Illinois State Toll Highway Authority in the position
10         of equipment operator/laborer H-4, equipment
11         operator/laborer H-6, welder H-4, welder H-6,
12         mechanical/electrical H-4, mechanical/electrical H-6,
13         water/sewer H-4, water/sewer H-6, sign maker/hanger
14         H-4, sign maker/hanger H-6, roadway lighting H-4,
15         roadway lighting H-6, structural H-4, structural H-6,
16         painter H-4, or painter H-6; and whose principal
17         responsibility is to perform, on the roadway, the
18         actual maintenance necessary to keep the Authority's
19         tollways in serviceable condition for vehicular
20         traffic.
21         (19) "Ferry boat operator" or "deck hand" means a
22     person employed on a full-time basis by the Illinois
23     Department of Transportation in the position of Ferry Boat
24     Operator I or Ferry Boat Operator II or in the position of
25     deck hand.
26     (d) A security employee of the Department of Corrections or

 

 

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1 the Department of Juvenile Justice, and a security employee of
2 the Department of Human Services who is not a mental health
3 police officer, shall not be eligible for the alternative
4 retirement annuity provided by this Section unless he or she
5 meets the following minimum age and service requirements at the
6 time of retirement:
7         (i) 25 years of eligible creditable service and age 55;
8     or
9         (ii) beginning January 1, 1987, 25 years of eligible
10     creditable service and age 54, or 24 years of eligible
11     creditable service and age 55; or
12         (iii) beginning January 1, 1988, 25 years of eligible
13     creditable service and age 53, or 23 years of eligible
14     creditable service and age 55; or
15         (iv) beginning January 1, 1989, 25 years of eligible
16     creditable service and age 52, or 22 years of eligible
17     creditable service and age 55; or
18         (v) beginning January 1, 1990, 25 years of eligible
19     creditable service and age 51, or 21 years of eligible
20     creditable service and age 55; or
21         (vi) beginning January 1, 1991, 25 years of eligible
22     creditable service and age 50, or 20 years of eligible
23     creditable service and age 55.
24     Persons who have service credit under Article 16 of this
25 Code for service as a security employee of the Department of
26 Corrections or the Department of Juvenile Justice, or the

 

 

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

 

 

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1 policeman may elect, not later than July 1, 1993, to establish
2 eligible creditable service for up to 10 years of his service
3 as a member of the County Police Department under Article 9, 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 employer
7 contributions transferred to the System under Section 9-121.10
8 and the amounts that would have been contributed had those
9 contributions been made at the rates applicable to State
10 policemen, plus (ii) interest thereon at the effective rate for
11 each year, compounded annually, from the date of service to the
12 date of payment.
13     (h) Subject to the limitation in subsection (i), a State
14 policeman or investigator for the Secretary of State may elect
15 to establish eligible creditable service for up to 12 years of
16 his service as a policeman under Article 5, by filing a written
17 election with the Board on or before January 31, 1992, and
18 paying to the System by January 31, 1994 an amount to be
19 determined by the Board, equal to (i) the difference between
20 the amount of employee and employer contributions transferred
21 to the System under Section 5-236, and the amounts that would
22 have been contributed had such contributions been made at the
23 rates applicable to State policemen, plus (ii) interest thereon
24 at the effective rate for each year, compounded annually, from
25 the date of service to the date of payment.
26     Subject to the limitation in subsection (i), a State

 

 

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1 policeman, conservation police officer, or investigator for
2 the Secretary of State may elect to establish eligible
3 creditable service for up to 10 years of service as a sheriff's
4 law enforcement employee under Article 7, by filing a written
5 election with the Board on or before January 31, 1993, and
6 paying to the System by January 31, 1994 an amount to be
7 determined by the Board, equal to (i) the difference between
8 the amount of employee and employer contributions transferred
9 to the System under Section 7-139.7, and the amounts that would
10 have been contributed had such contributions been made at the
11 rates applicable to State policemen, plus (ii) interest thereon
12 at the effective rate for each year, compounded annually, from
13 the date of service to the date of payment.
14     Subject to the limitation in subsection (i), a State
15 policeman, conservation police officer, or investigator for
16 the Secretary of State may elect to establish eligible
17 creditable service for up to 5 years of service as a police
18 officer under Article 3, a policeman under Article 5, a
19 sheriff's law enforcement employee under Article 7, a member of
20 the county police department under Article 9, or a police
21 officer under Article 15 by filing a written election with the
22 Board and paying to the System an amount to be determined by
23 the Board, equal to (i) the difference between the amount of
24 employee and employer contributions transferred to the System
25 under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
26 and the amounts that would have been contributed had such

 

 

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1 contributions been made at the rates applicable to State
2 policemen, plus (ii) interest thereon at the effective rate for
3 each year, compounded annually, from the date of service to the
4 date of payment.
5     (i) The total amount of eligible creditable service
6 established by any person under subsections (g), (h), (j), (k),
7 and (l) of this Section shall not exceed 12 years.
8     (j) Subject to the limitation in subsection (i), an
9 investigator for the Office of the State's Attorneys Appellate
10 Prosecutor or a controlled substance inspector may elect to
11 establish eligible creditable service for up to 10 years of his
12 service as a policeman under Article 3 or a sheriff's law
13 enforcement employee under Article 7, by filing a written
14 election with the Board, accompanied by payment of an amount to
15 be determined by the Board, equal to (1) the difference between
16 the amount of employee and employer contributions transferred
17 to the System under Section 3-110.6 or 7-139.8, and the amounts
18 that would have been contributed had such contributions been
19 made at the rates applicable to State policemen, plus (2)
20 interest thereon at the effective rate for each year,
21 compounded annually, from the date of service to the date of
22 payment.
23     (k) Subject to the limitation in subsection (i) of this
24 Section, an alternative formula employee may elect to establish
25 eligible creditable service for periods spent as a full-time
26 law enforcement officer or full-time corrections officer

 

 

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1 employed by the federal government or by a state or local
2 government located outside of Illinois, for which credit is not
3 held in any other public employee pension fund or retirement
4 system. To obtain this credit, the applicant must file a
5 written application with the Board by March 31, 1998,
6 accompanied by evidence of eligibility acceptable to the Board
7 and payment of an amount to be determined by the Board, equal
8 to (1) employee contributions for the credit being established,
9 based upon the applicant's salary on the first day as an
10 alternative formula employee after the employment for which
11 credit is being established and the rates then applicable to
12 alternative formula employees, plus (2) an amount determined by
13 the Board to be the employer's normal cost of the benefits
14 accrued for the credit being established, plus (3) regular
15 interest on the amounts in items (1) and (2) from the first day
16 as an alternative formula employee after the employment for
17 which credit is being established to the date of payment.
18     (l) Subject to the limitation in subsection (i), a security
19 employee of the Department of Corrections may elect, not later
20 than July 1, 1998, to establish eligible creditable service for
21 up to 10 years of his or her service as a policeman under
22 Article 3, by filing a written election with the Board,
23 accompanied by payment of an amount to be determined by the
24 Board, equal to (i) the difference between the amount of
25 employee and employer contributions transferred to the System
26 under Section 3-110.5, and the amounts that would have been

 

 

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1 contributed had such contributions been made at the rates
2 applicable to security employees of the Department of
3 Corrections, plus (ii) interest thereon at the effective rate
4 for each year, compounded annually, from the date of service to
5 the date of payment.
6     (m) The amendatory changes to this Section made by this
7 amendatory Act of the 94th General Assembly apply only to: (1)
8 security employees of the Department of Juvenile Justice
9 employed by the Department of Corrections before the effective
10 date of this amendatory Act of the 94th General Assembly and
11 transferred to the Department of Juvenile Justice by this
12 amendatory Act of the 94th General Assembly; and (2) persons
13 employed by the Department of Juvenile Justice on or after the
14 effective date of this amendatory Act of the 94th General
15 Assembly who are required by subsection (b) of Section 3-2.5-15
16 of the Unified Code of Corrections to have a bachelor's or
17 advanced degree from an accredited college or university with a
18 specialization in criminal justice, education, psychology,
19 social work, or a closely related social science or, in the
20 case of persons who provide vocational training, who are
21 required to have adequate knowledge in the skill for which they
22 are providing the vocational training.
23 (Source: P.A. 94-4, eff. 6-1-05; 94-696, eff. 6-1-06; 95-530,
24 eff. 8-28-07.)
 
25     Section 99. Effective date. This Act takes effect upon
26 becoming law.