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92nd General Assembly

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Public Act 92-0014

HB0250 Enrolled                                LRB9203828EGfg

    AN ACT in relation to public employee benefits.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  Illinois  Pension  Code  is amended by
changing  Sections  14-103.05,  14-104.6,   14-106,   14-108,
14-110,  14-114,  14-133,  16-106,  and  16-131.6  and adding
Section 14-108.2c as follows:

    (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
    Sec. 14-103.05.  Employee.
    (a)  Any person employed by  a  Department  who  receives
salary  for personal services rendered to the Department on a
warrant issued pursuant to a payroll voucher certified  by  a
Department  and drawn by the State Comptroller upon the State
Treasurer,  including  an  elected  official   described   in
subparagraph  (d) of Section 14-104, shall become an employee
for purpose of membership in the  Retirement  System  on  the
first day of such employment.
    A person entering service on or after January 1, 1972 and
prior to January 1, 1984 shall become a member as a condition
of  employment and shall begin making contributions as of the
first day of employment.
    A person entering service on or  after  January  1,  1984
shall,  upon  completion  of  6  months of continuous service
which is not interrupted by a break of more  than  2  months,
become  a member as a condition of employment.  Contributions
shall begin the first of the month after  completion  of  the
qualifying period.
    The  qualifying  period  of  6  months  of service is not
applicable to:  (1) a person who has been granted credit  for
service  in  a  position  covered  by  the State Universities
Retirement System, the Teachers'  Retirement  System  of  the
State of Illinois, the General Assembly Retirement System, or
the  Judges Retirement System of Illinois unless that service
has been forfeited under the laws of  those  systems;  (2)  a
person  entering  service  on  or  after  July  1,  1991 in a
noncovered  position;  or  (3)  a  person  to  whom   Section
14-108.2a or 14-108.2b applies.
    (b)  The term "employee" does not include the following:
         (1)  members  of  the State Legislature, and persons
    electing  to  become  members  of  the  General  Assembly
    Retirement System pursuant to Section 2-105;
         (2)  incumbents of offices normally filled  by  vote
    of the people;
         (3)  except  as  otherwise provided in this Section,
    any person appointed by the Governor with the advice  and
    consent  of  the  Senate  unless  that  person  elects to
    participate in this system;
         (4)  except  as  provided  in  Section  14-108.2  or
    14-108.2c, any person who is covered or  eligible  to  be
    covered  by  the Teachers' Retirement System of the State
    of Illinois, the State Universities Retirement System, or
    the Judges Retirement System of Illinois;
         (5)  an employee of  a  municipality  or  any  other
    political subdivision of the State;
         (6)  any  person  who becomes an employee after June
    30,  1979  as  a  public   service   employment   program
    participant  under  the  Federal Comprehensive Employment
    and Training Act and whose wages or fringe  benefits  are
    paid  in  whole  or  in part by funds provided under such
    Act;
         (7)  enrollees   of   the   Illinois   Young   Adult
    Conservation   Corps   program,   administered   by   the
    Department  of  Natural  Resources,  authorized   grantee
    pursuant  to  Title VIII of the "Comprehensive Employment
    and Training  Act  of  1973",  29  USC  993,  as  now  or
    hereafter amended;
         (8)  enrollees   and  temporary  staff  of  programs
    administered by the Department of Natural Resources under
    the Youth Conservation Corps Act of 1970;
         (9)  any person who is a member of any  professional
    licensing  or  disciplinary  board  created  under an Act
    administered by the Department of Professional Regulation
    or a successor agency or created or re-created after  the
    effective  date  of  this amendatory Act of 1997, and who
    receives per diem  compensation  rather  than  a  salary,
    notwithstanding  that  such per diem compensation is paid
    by warrant issued pursuant to  a  payroll  voucher;  such
    persons  have  never  been  included in the membership of
    this System,  and  this  amendatory  Act  of  1987  (P.A.
    84-1472)  is  not  intended  to  effect any change in the
    status of such persons;
         (10)  any person who is a  member  of  the  Illinois
    Health  Care  Cost  Containment Council, and receives per
    diem compensation rather than a  salary,  notwithstanding
    that such per diem compensation is paid by warrant issued
    pursuant  to  a  payroll voucher; such persons have never
    been included in the membership of this System, and  this
    amendatory  Act  of  1987  is  not intended to effect any
    change in the status of such persons; or
         (11)  any person who is a member of the Oil and  Gas
    Board  created by Section 1.2 of the Illinois Oil and Gas
    Act, and receives per diem  compensation  rather  than  a
    salary,  notwithstanding  that such per diem compensation
    is paid by warrant issued pursuant to a payroll voucher.
(Source: P.A.  89-246;  eff.  8-4-95;  89-445,  eff.  2-7-96;
90-448, eff. 8-16-97.)

    (40 ILCS 5/14-104.6) (from Ch. 108 1/2, par. 14-104.6)
    Sec.  14-104.6.  Service  transferred  from  Article  16.
Service also includes the following:
    (a)  Any  period  as a teacher employed by the Department
of Corrections for which credit was established under Article
16 of this Code, subject to the following conditions: (1) the
credits accrued for such employment  under  Article  16  have
been  transferred to this System; and (2) the participant has
contributed to this System an amount equal  to  (A)  employee
contributions  at  the  rate  in  effect  for  noncoordinated
eligible creditable service at the date of membership in this
System, based upon the salary in effect during such period of
service,  plus  (B)  the  employer's share of the normal cost
under  this  System  for  each  year  that  credit  is  being
established, based on the salary in effect during such period
of service, plus (C) regular interest,  compounded  annually,
from July 1, 1987 to the date of payment, less (D) the amount
transferred  on  behalf  of  the  participant  under  Section
16-131.6.
    (b)  Any  period as a security employee of the Department
of Human Services, as defined in Section  14-110,  for  which
credit was established under Article 16 of this Code, subject
to the following conditions: (1) the credits accrued for that
employment  under  Article  16  have been transferred to this
System; and (2)  the  participant  has  contributed  to  this
System  an  amount equal to (A) employee contributions at the
rate in effect for noncoordinated eligible creditable service
at the date of membership in  this  System,  based  upon  the
salary  in  effect during the period of service, plus (B) the
employer's share of the normal cost  under  this  System  for
each  year  that  credit  is  being established, based on the
salary in effect during  the  period  of  service,  plus  (C)
regular  interest,  compounded annually, from July 1, 2001 to
the date of payment,  less  (D)  the  amount  transferred  on
behalf of the participant under Section 16-131.6.
    (c)  Credit  established  under  this  Section  shall  be
deemed  noncoordinated eligible creditable service as defined
in Section 14-110.
(Source: P.A. 86-1488; 87-794.)

    (40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
    Sec. 14-106.  Membership service credit.
    (a)  After January 1, 1944, all service of a member since
he last became a member with respect to  which  contributions
are  made  shall  count as membership service; provided, that
for service on and after July 1, 1950, 12 months  of  service
shall constitute a year of membership service, the completion
of  15  days  or  more  of  service  during  any  month shall
constitute 1 month of membership service, 8 to 15 days  shall
constitute  1/2  month  of membership service and less than 8
days shall constitute 1/4 month of membership service.    The
payroll record of each department shall constitute conclusive
evidence of the record of service rendered by a member.
    (b)  For  a  member  who  is  employed  and  paid  on  an
academic-year  basis  rather than on a 12-month annual basis,
employment for a full academic year shall constitute  a  full
year  of membership service, except that the member shall not
receive more than one year of membership service credit (plus
any additional service credit granted for unused sick  leave)
for  service during any 12-month period.  This subsection (b)
applies to all such service for  which  the  member  has  not
begun to receive a retirement annuity before January 1, 2001.
    (c)  A  member  shall  be  entitled to additional service
credit, under rules prescribed by the Board, for  accumulated
unused  sick  leave  credited  to  his  account  in  the last
Department on the date of withdrawal from service or for  any
period  for  which  he  would  have  been eligible to receive
benefits under a sick pay plan authorized by law, if  he  had
suffered  a  sickness  or  accident on the date of withdrawal
from service.  It shall be the  responsibility  of  the  last
Department  to certify to the Board the length of time salary
or benefits would have been paid to the member based upon the
accumulated unused sick leave or the applicable sick pay plan
if he had become entitled thereto because of sickness on  the
date  that his status as an employee terminated.  This period
of service credit granted under this paragraph shall  not  be
considered  in determining the date the retirement annuity is
to begin, or final average compensation.
(Source: P.A. 87-1265.)

    (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
    Sec. 14-108.  Amount of retirement annuity.  A member who
has contributed to the System for at least 12 months shall be
entitled  to  a  prior  service  annuity  for  each  year  of
certified prior service credited to him, except that a member
shall receive 1/3 of the prior service annuity for each  year
of  service for which contributions have been made and all of
such annuity shall be  payable  after  the  member  has  made
contributions for a period of 3 years.  Proportionate amounts
shall  be  payable for service of less than a full year after
completion of at least 12 months.
    The  total  period  of  service  to  be   considered   in
establishing  the  measure  of  prior  service  annuity shall
include service credited in the Teachers'  Retirement  System
of   the   State  of  Illinois  and  the  State  Universities
Retirement System for which contributions have been  made  by
the  member to such systems; provided that at least 1 year of
the total period of 3 years prescribed for the allowance of a
full measure  of  prior  service  annuity  shall  consist  of
membership  service  in this system for which credit has been
granted.
    (a)  In the case of a member  who  retires  on  or  after
January  1, 1998 and is a noncovered employee, the retirement
annuity for membership service and  prior  service  shall  be
2.2%  of final average compensation for each year of service.
Any service credit established as a covered employee shall be
computed as stated in paragraph (b).
    (b)  In the case of a member  who  retires  on  or  after
January  1,  1998  and  is a covered employee, the retirement
annuity for membership service and  prior  service  shall  be
computed  as  stated  in paragraph (a) for all service credit
established as a  noncovered  employee;  for  service  credit
established  as a covered employee it shall be 1.67% of final
average compensation for each year of service.
    (c)  For a member retiring after  attaining  age  55  but
before  age  60  with  at  least 30 but less than 35 years of
creditable service if retirement is before January  1,  2001,
or  with  at  least  25  but less than 30 years of creditable
service if retirement is on or after  January  1,  2001,  the
retirement  annuity  shall  be  reduced by 1/2 of 1% for each
month that the member's age is under age 60 at  the  time  of
retirement.
    (d)  A  retirement  annuity shall not exceed 75% of final
average compensation, subject to such extension as may result
from the application of Section 14-114 or Section 14-115.
    (e)  The  retirement  annuity  payable  to  any   covered
employee  who  is  a  member  of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of legislation  enacted  by  the  Illinois  General  Assembly
transferring  the  member  to  State  employment  from county
employment in a county Department of Public Aid  in  counties
of 3,000,000 or more population, under a plan of coordination
with   the  Old  Age,  Survivors  and  Disability  provisions
thereof, if not fully insured for Old Age Insurance  payments
under the Federal Old Age, Survivors and Disability Insurance
provisions at the date of acceptance of a retirement annuity,
shall  not be less than the amount for which the member would
have been eligible if coordination were not applicable.
    (f)  The  retirement  annuity  payable  to  any   covered
employee  who  is  a  member  of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of the legislation designated in  the  immediately  preceding
paragraph,  if  fully  insured for Old Age Insurance payments
under  the  Federal  Social  Security  Act  at  the  date  of
acceptance of a retirement annuity, shall not be less than an
amount which when added  to  the  Primary  Insurance  Benefit
payable  to  the  member upon attainment of age 65 under such
Federal Act, will equal the annuity which would otherwise  be
payable   if  the  coordinated  plan  of  coverage  were  not
applicable.
    (g)  In  the  case  of  a  member  who  is  a  noncovered
employee, the retirement annuity for membership service as  a
security   employee  of  the  Department  of  Corrections  or
security employee of the Department of Human  Services  shall
be:   if retirement occurs on or after January 1, 2001, 3% of
final  average  compensation  for  each  year  of  creditable
service; or if retirement occurs before January 1, 2001, 1.9%
of final average compensation for each of the first 10  years
of  service,  2.1%  for each of the next 10 years of service,
2.25% for each year of  service  in  excess  of  20  but  not
exceeding  30, and 2.5% for each year in excess of 30; except
that the annuity  may  be  calculated  under  subsection  (a)
rather  than  this subsection (g) if the resulting annuity is
greater.
    (h)  In the case of a member who is a  covered  employee,
the  retirement  annuity for membership service as a security
employee  of  the  Department  of  Corrections  or   security
employee  of  the  Department of Human Services shall be:  if
retirement occurs on or after January 1, 2001, 2.5% of  final
average  compensation for each year of creditable service; if
retirement occurs before January  1,  2001,  1.67%  of  final
average  compensation  for  each  of  the  first  10 years of
service, 1.90% for each of the  next  10  years  of  service,
2.10%  for  each  year  of  service  in  excess of 20 but not
exceeding 30, and 2.30% for each year in excess of 30.
    (i)  For the purposes of this Section and Section  14-133
of this Act, the term "security employee of the Department of
Corrections"   and   the   term  "security  employee  of  the
Department  of  Human  Services"  shall  have  the   meanings
ascribed to them in subsection (c) of Section 14-110.
    (j)  The   retirement   annuity   computed   pursuant  to
paragraphs (g) or (h)  shall  be  applicable  only  to  those
security  employees  of  the  Department  of  Corrections and
security employees of the Department of  Human  Services  who
have  at least 20 years of membership service and who are not
eligible for  the  alternative  retirement  annuity  provided
under  Section 14-110.  However, persons transferring to this
System under Section 14-108.2 or 14-108.2c who  have  service
credit  under  Article 16 of this Code may count such service
toward  establishing  their  eligibility  under  the  20-year
service requirement of this subsection; but such service  may
be  used  only for establishing such eligibility, and not for
the purpose of increasing or calculating any benefit.
    (k)  (Blank).
    (l)  The changes to this Section made by this  amendatory
Act  of  1997  (changing  certain retirement annuity formulas
from a stepped rate to a flat  rate)  apply  to  members  who
retire on or after January 1, 1998, without regard to whether
employment  terminated  before  the  effective  date  of this
amendatory Act of 1997.  An annuity shall not  be  calculated
in  steps  by  using the new flat rate for some steps and the
superseded stepped rate for other steps of the same  type  of
service.
(Source:  P.A.  90-65,  eff.  7-7-97;  90-448,  eff. 8-16-97;
90-655, eff. 7-30-98; 91-927, eff. 12-14-00.)
    (40 ILCS 5/14-108.2c new)
    Sec. 14-108.2c.  Transfer  of  membership  from  TRS.   A
security  employee  of  the  Department of Human Services, as
defined in Section 14-110, who is a member of  the  Teachers'
Retirement  System  established under Article 16 of this Code
may elect to become a member of this System on either June 1,
2001 or July 1, 2001 by notifying the Board of  the  election
in writing on or before May 31, 2001.
    For   persons   electing  to  become  covered  employees,
participation in the Article 16  system  shall  terminate  on
June  1,  2001,  and membership in this System shall begin on
that date.
    For persons  electing  to  become  noncovered  employees,
participation  in  the  Article  16 system shall terminate on
July 1, 2001, and membership in this System  shall  begin  on
that date.

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

    (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
    Sec. 14-114.  Automatic increase in retirement annuity.
    (a)  Any person receiving a retirement annuity under this
Article  who  retires  having attained age 60, or who retires
before age 60 having at least 35 years of creditable service,
or who retires on or after January 1, 2001 at an  age  which,
when  added  to  the number of years of his or her creditable
service, equals  at  least  85,  shall,  on  January  1  next
following  the first full year of retirement, have the amount
of the then fixed  and  payable  monthly  retirement  annuity
increased  3%.   Any  person  receiving  a retirement annuity
under this Article who retires before attainment  of  age  60
and  with  less  than  (i)  35 years of creditable service if
retirement is before January 1, 2001, or (ii) the  number  of
years of creditable service which, when added to the member's
age,  would equal 85, if retirement is on or after January 1,
2001,  shall  have  the  amount  of  the  fixed  and  payable
retirement annuity increased by 3% on the January 1 occurring
on or next following (1) attainment of age  60,  or  (2)  the
first  anniversary  of  retirement,  whichever  occurs later.
However, for persons who receive the  alternative  retirement
annuity  under  Section 14-110, references in this subsection
(a) to attainment of age 60  shall  be  deemed  to  refer  to
attainment   of   age  55.   For  a  person  receiving  early
retirement incentives under Section 14-108.3 whose retirement
annuity began after January 1, 1992 pursuant to an  extension
granted  under  subsection  (e)  of  that  Section, the first
anniversary of retirement shall be deemed to  be  January  1,
1993.    For  a  person who retires on or after the effective
date of this amendatory Act of the 92nd General Assembly  and
on  or  before  the  first  day  of the fourth calendar month
following the  month  in  which  this  amendatory  Act  takes
effect,  and whose retirement annuity is calculated, in whole
or in part, under Section 14-110 or subsection (g) or (h)  of
Section  14-108, the first anniversary of retirement shall be
deemed to be January 1, 2002.
    On each January 1  following  the  date  of  the  initial
increase   under  this  subsection,  the  employee's  monthly
retirement annuity shall be increased by an additional 3%.
    Beginning January 1, 1990, all automatic annual increases
payable  under  this  Section  shall  be  calculated   as   a
percentage  of  the  total annuity payable at the time of the
increase, including previous  increases  granted  under  this
Article.
    (b)  The  provisions  of  subsection  (a) of this Section
shall be applicable to an employee only if the employee makes
the additional contributions required after December 31, 1969
for the purpose of the automatic increases for not less  than
the  equivalent  of  one full year. If an employee becomes an
annuitant before his additional contributions equal one  full
year's  contributions  based  on  his  salary  at the date of
retirement, the employee may pay the necessary balance of the
contributions  to  the  system,  without  interest,  and   be
eligible  for  the  increasing  annuity  authorized  by  this
Section.
    (c)  The  provisions  of  subsection  (a) of this Section
shall not be applicable to any annuitant who is on retirement
on  December  31,  1969,  and  thereafter  returns  to  State
service, unless the member has established at least one  year
of  additional  creditable  service  following  reentry  into
service.
    (d)  In addition to other increases which may be provided
by  this  Section,  on  January 1, 1981 any annuitant who was
receiving a retirement annuity on or before January  1,  1971
shall  have  his retirement annuity then being paid increased
$1 per month for each year of creditable service.  On January
1, 1982, any  annuitant  who  began  receiving  a  retirement
annuity  on  or  before  January  1,  1977,  shall  have  his
retirement annuity then being paid increased $1 per month for
each year of creditable service.
    On  January  1, 1987, any annuitant who began receiving a
retirement annuity on or before January 1, 1977,  shall  have
the  monthly  retirement annuity increased by an amount equal
to 8¢ per year of creditable  service  times  the  number  of
years that have elapsed since the annuity began.
    (e)  Every person who receives the alternative retirement
annuity  under  Section 14-110 and who is eligible to receive
the 3% increase under subsection  (a)  on  January  1,  1986,
shall  also  receive  on  that  date  a  one-time increase in
retirement annuity equal to the difference  between  (1)  his
actual   retirement  annuity  on  that  date,  including  any
increases received under subsection (a), and (2)  the  amount
of  retirement annuity he would have received on that date if
the amendments to subsection (a) made by  Public  Act  84-162
had been in effect since the date of his retirement.
(Source: P.A. 91-927, eff. 12-14-00.)

    (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
    Sec. 14-133. Contributions on behalf of members.
    (a)  Each participating employee shall make contributions
to  the  System,  based  on  the  employee's compensation, as
follows:
         (1)  Covered employees, except as  indicated  below,
    3.5%  for  retirement  annuity,  and  0.5% for a widow or
    survivors annuity;
         (2)  Noncovered  employees,  except   as   indicated
    below,  7%  for  retirement annuity and 1% for a widow or
    survivors annuity;
         (3)  Noncovered employees serving in a  position  in
    which "eligible creditable service" as defined in Section
    14-110  may be earned, 8.5% for retirement annuity and 1%
    for a widow  or  survivors  annuity  plus  the  following
    amount  for retirement annuity: 8.5% through December 31,
    2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004  and
    thereafter;
         (4)  Covered  employees  serving  in  a  position in
    which "eligible creditable service" as defined in Section
    14-110 may be earned, 5% for retirement annuity and  0.5%
    for  a  widow  or  survivors  annuity  plus the following
    amount for retirement annuity: 5%  through  December  31,
    2001;  6%  in  2002;  7%  in  2003;  and  8%  in 2004 and
    thereafter;
         (5)  Each security employee  of  the  Department  of
    Corrections or of the Department of Human Services who is
    a  covered  employee,  5% for retirement annuity and 0.5%
    for a widow  or  survivors  annuity  plus  the  following
    amount  for  retirement  annuity: 5% through December 31,
    2001; 6% in  2002;  7%  in  2003;  and  8%  in  2004  and
    thereafter;
         (6)  Each  security  employee  of  the Department of
    Corrections or of the Department of Human Services who is
    not a covered employee, 8.5% for retirement  annuity  and
    1%  for  a  widow or survivors annuity plus the following
    amount for retirement annuity: 8.5% through December  31,
    2001;  9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and
    thereafter.
    (b)  Contributions shall be in the form  of  a  deduction
from  compensation and shall be made notwithstanding that the
compensation paid in cash to the employee  shall  be  reduced
thereby  below  the  minimum prescribed by law or regulation.
Each member is deemed to consent and agree to the  deductions
from  compensation  provided  for  in this Article, and shall
receipt in full for salary or compensation.
(Source: P.A. 89-507, eff. 7-1-97; 90-448, eff. 8-16-97.)

    (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
    Sec.   16-106.  Teacher.    "Teacher":   The    following
individuals,  provided  that, for employment prior to July 1,
1990, they are employed on  a  full-time  basis,  or  if  not
full-time,  on a permanent and continuous basis in a position
in which services are expected to be rendered  for  at  least
one school term:
         (1)  Any  educational,  administrative, professional
    or other staff employed  in  the  public  common  schools
    included  within  this  system  in  a  position requiring
    certification under the law governing  the  certification
    of teachers;
         (2)  Any  educational,  administrative, professional
    or other staff employed in any facility of the Department
    of Children and Family  Services  or  the  Department  of
    Human  Services,  in  a  position requiring certification
    under the law governing the  certification  of  teachers,
    and  any  person who (i) works in such a position for the
    Department of Corrections, (ii)  was  a  member  of  this
    System on May 31, 1987, and (iii) did not elect to become
    a  member  of  the  State  Employees'  Retirement  System
    pursuant  to  Section  14-108.2 of this Code; except that
    "teacher" does not include any person who (A)  becomes  a
    security employee of the Department of Human Services, as
    defined  in  Section  14-110, after the effective date of
    this amendatory Act of the 92nd General Assembly, or  (B)
    becomes  a  member  of  the  State  Employees' Retirement
    System pursuant to Section 14-108.2c of this Code;
         (3)  Any   regional   superintendent   of   schools,
    assistant  regional  superintendent  of  schools,   State
    Superintendent  of  Education; any person employed by the
    State Board of Education as an executive;  any  executive
    of  the  boards  engaged  in the service of public common
    school education in school districts covered  under  this
    system  of which the State Superintendent of Education is
    an ex-officio member;
         (4)  Any employee  of  a  school  board  association
    operating  in  compliance  with  Article 23 of the School
    Code who is certificated  under  the  law  governing  the
    certification of teachers;
         (5)  Any person employed by the retirement system as
    an  executive,  and any person employed by the retirement
    system who is certificated under the  law  governing  the
    certification of teachers;
         (6)  Any  educational,  administrative, professional
    or other staff employed by and under the supervision  and
    control of a regional superintendent of schools, provided
    such  employment  position  requires  the  person  to  be
    certificated under the law governing the certification of
    teachers  and  is  in an educational program serving 2 or
    more districts  in  accordance  with  a  joint  agreement
    authorized by the School Code or by federal legislation;
         (7)  Any  educational,  administrative, professional
    or  other  staff  employed  in   an  educational  program
    serving 2 or more school districts in accordance  with  a
    joint  agreement  authorized  by  the  School  Code or by
    federal  legislation  and   in   a   position   requiring
    certification  under the laws governing the certification
    of teachers;
         (8)  Any officer or employee of a statewide  teacher
    organization   or   officer   of   a   national   teacher
    organization  who  is  certified  under the law governing
    certification of teachers, provided: (i)  the  individual
    had  previously established creditable service under this
    Article, (ii) the individual files  with  the  system  an
    irrevocable  election  to  become a member, and (iii) the
    individual does not receive credit for such service under
    any other Article of this Code;
         (9)  Any educational, administrative,  professional,
    or  other staff employed in a charter school operating in
    compliance  with  the  Charter   Schools   Law   who   is
    certificated under the law governing the certification of
    teachers.
    An  annuitant  receiving  a retirement annuity under this
Article or under Article 17 of this Code who  is  temporarily
employed  by  a  board  of  education  or  other employer not
exceeding that  permitted  under  Section  16-118  is  not  a
"teacher"  for  purposes  of  this Article.  A person who has
received  a  single-sum  retirement  benefit  under   Section
16-136.4  of  this Article is not a "teacher" for purposes of
this Article.
(Source: P.A. 89-450,  eff.  4-10-96;  89-507,  eff.  7-1-97;
90-14, eff. 7-1-97; 90-448, eff. 8-16-97.)

    (40 ILCS 5/16-131.6) (from Ch. 108 1/2, par. 16-131.6)
    Sec. 16-131.6.  Transfer to Article 14.
    (a)  Any active member of the State Employees' Retirement
System  of  Illinois may apply for transfer to that System of
credits and creditable service accumulated under this  System
for  service  as  a  teacher  employed  by  the Department of
Corrections.  Such creditable service  shall  be  transferred
forthwith.   Payment  by  this System to the State Employees'
Retirement System shall be made at the same  time  and  shall
consist of:
         (1)  the  amounts  accumulated  to the credit of the
    applicant for such service, including  interest,  on  the
    books of this System on the date of transfer; and
         (2)  employer  contributions  in  an amount equal to
    the amount of member contributions  as  determined  under
    item (1).
Participation  in  this  System as to any credits transferred
under this subsection Section shall terminate on the date  of
transfer.
    (b)  Any active member of the State Employees' Retirement
System  of  Illinois may apply for transfer to that System of
credits and creditable service accumulated under this  System
for service as a security employee of the Department of Human
Services  as  defined (at the time of application) in Section
14-110.   That  creditable  service  shall   be   transferred
forthwith.    Payment  by this System to the State Employees'
Retirement System shall be made at the same  time  and  shall
consist of:
         (1)  the  amounts  accumulated  to the credit of the
    applicant for that service, including  interest,  on  the
    books  of  this  System  on  the  date  of  transfer, but
    excluding any  contribution  paid  by  the  member  under
    Section  16-129.1 to upgrade that credit to the augmented
    rate, which shall be refunded to the member; and
         (2)  employer contributions in an  amount  equal  to
    the  amount  of  member contributions as determined under
    item (1).
Participation in this System as to  any  credits  transferred
under   this  subsection  shall  terminate  on  the  date  of
transfer.
(Source: P.A. 86-1488.)

    Section 99. Effective date.  This Act takes  effect  upon
becoming law.
    Passed in the General Assembly May 17, 2001.
    Approved June 28, 2001.

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