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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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