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90_SB1199 40 ILCS 5/3-110.6 from Ch. 108 1/2, par. 3-110.6 40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110 Amends the Illinois Pension Code to allow certain current and former Department of Revenue investigators to transfer service credits from downstate police pension funds to the State Employees' Retirement System. Effective immediately. LRB9007014EGfg LRB9007014EGfg 1 AN ACT to amend the Illinois Pension Code by changing 2 Sections 3-110.6 and 14-110. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Sections 3-110.6 and 14-110 as follows: 7 (40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6) 8 Sec. 3-110.6. Transfer to Article 14 System. 9 (a) Any active member of the State Employees' Retirement 10 System who is an investigator for the Office of the State's 11 Attorneys Appellate Prosecutor,ora controlled substance 12 inspector, or a current or former investigator for the 13 Department of Revenue may apply for transfer of his or her 14 creditable service accumulated in any police pension fund 15 under this Article to the State Employees' Retirement System 16 in accordance with Section 14-110. The creditable service 17 shall be transferred only upon payment by the police pension 18 fund to the State Employees' Retirement System of an amount 19 equal to: 20 (1) the amounts accumulated to the credit of the 21 applicant on the books of the fund on the date of 22 transfer; and 23 (2) employer contributions in an amount equal to 24 the amount determined under subparagraph (1); and 25 (3) any interest paid by the applicant in order to 26 reinstate service. 27 Participation in the police pension fund shall terminate on 28 the date of transfer. 29 (b) Any such investigator or inspector may reinstate 30 service which was terminated by receipt of a refund, by 31 paying to the police pension fund the amount of the refund -2- LRB9007014EGfg 1 with interest thereon at the rate of 6% per year, compounded 2 annually, from the date of refund to the date of payment. 3 (Source: P.A. 90-32, eff. 6-27-97.) 4 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) 5 Sec. 14-110. Alternative retirement annuity. 6 (a) Any member who has withdrawn from service with not 7 less than 20 years of eligible creditable service and has 8 attained age 55, and any member who has withdrawn from 9 service with not less than 25 years of eligible creditable 10 service and has attained age 50, regardless of whether the 11 attainment of either of the specified ages occurs while the 12 member is still in service, shall be entitled to receive at 13 the option of the member, in lieu of the regular or minimum 14 retirement annuity, a retirement annuity computed as 15 follows: 16 (i) for periods of service as a noncovered 17 employee, 2 1/4% of final average compensation for each 18 of the first 10 years of creditable service, 2 1/2% for 19 each year above 10 years to and including 20 years of 20 creditable service, and 2 3/4% for each year of 21 creditable service above 20 years; and 22 (ii) for periods of eligible creditable service as 23 a covered employee, 1.67% of final average compensation 24 for each of the first 10 years of such service, 1.90% for 25 each of the next 10 years of such service, 2.10% for each 26 year of such service in excess of 20 but not exceeding 27 30, and 2.30% for each year in excess of 30. 28 Such annuity shall be subject to a maximum of 75% of 29 final average compensation. These rates shall not be 30 applicable to any service performed by a member as a covered 31 employee which is not eligible creditable service. Service 32 as a covered employee which is not eligible creditable 33 service shall be subject to the rates and provisions of -3- LRB9007014EGfg 1 Section 14-108. 2 (b) For the purpose of this Section, "eligible 3 creditable service" means creditable service resulting from 4 service in one or more of the following positions: 5 (1) State policeman; 6 (2) fire fighter in the fire protection service of 7 a department; 8 (3) air pilot; 9 (4) special agent; 10 (5) investigator for the Secretary of State; 11 (6) conservation police officer; 12 (7) investigator for the Department of Revenue; 13 (8) security employee of the Department of Human 14 Services; 15 (9) Central Management Services security police 16 officer; 17 (10) security employee of the Department of 18 Corrections; 19 (11) dangerous drugs investigator; 20 (12) investigator for the Department of State 21 Police; 22 (13) investigator for the Office of the Attorney 23 General; 24 (14) controlled substance inspector; 25 (15) investigator for the Office of the State's 26 Attorneys Appellate Prosecutor; 27 (16) Commerce Commission police officer; 28 (17) arson investigator. 29 A person employed in one of the positions specified in 30 this subsection is entitled to eligible creditable service 31 for service credit earned under this Article while undergoing 32 the basic police training course approved by the Illinois 33 Local Governmental Law Enforcement Officers Training Board, 34 if completion of that training is required of persons serving -4- LRB9007014EGfg 1 in that position. For the purposes of this Code, service 2 during the required basic police training course shall be 3 deemed performance of the duties of the specified position, 4 even though the person is not a sworn peace officer at the 5 time of the training. 6 (c) For the purposes of this Section: 7 (1) The term "state policeman" includes any title 8 or position in the Department of State Police that is 9 held by an individual employed under the State Police 10 Act. 11 (2) The term "fire fighter in the fire protection 12 service of a department" includes all officers in such 13 fire protection service including fire chiefs and 14 assistant fire chiefs. 15 (3) The term "air pilot" includes any employee 16 whose official job description on file in the Department 17 of Central Management Services, or in the department by 18 which he is employed if that department is not covered by 19 the Personnel Code, states that his principal duty is the 20 operation of aircraft, and who possesses a pilot's 21 license; however, the change in this definition made by 22 this amendatory Act of 1983 shall not operate to exclude 23 any noncovered employee who was an "air pilot" for the 24 purposes of this Section on January 1, 1984. 25 (4) The term "special agent" means any person who 26 by reason of employment by the Division of Narcotic 27 Control, the Bureau of Investigation or, after July 1, 28 1977, the Division of Criminal Investigation, the 29 Division of Internal Investigation or any other Division 30 or organizational entity in the Department of State 31 Police is vested by law with duties to maintain public 32 order, investigate violations of the criminal law of this 33 State, enforce the laws of this State, make arrests and 34 recover property. The term "special agent" includes any -5- LRB9007014EGfg 1 title or position in the Department of State Police that 2 is held by an individual employed under the State Police 3 Act. 4 (5) The term "investigator for the Secretary of 5 State" means any person employed by the Office of the 6 Secretary of State and vested with such investigative 7 duties as render him ineligible for coverage under the 8 Social Security Act by reason of Sections 218(d)(5)(A), 9 218(d)(8)(D) and 218(l)(1) of that Act. 10 A person who became employed as an investigator for 11 the Secretary of State between January 1, 1967 and 12 December 31, 1975, and who has served as such until 13 attainment of age 60, either continuously or with a 14 single break in service of not more than 3 years 15 duration, which break terminated before January 1, 1976, 16 shall be entitled to have his retirement annuity 17 calculated in accordance with subsection (a), 18 notwithstanding that he has less than 20 years of credit 19 for such service. 20 (6) The term "Conservation Police Officer" means 21 any person employed by the Division of Law Enforcement of 22 the Department of Natural Resources and vested with such 23 law enforcement duties as render him ineligible for 24 coverage under the Social Security Act by reason of 25 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of 26 that Act. The term "Conservation Police Officer" 27 includes the positions of Chief Conservation Police 28 Administrator and Assistant Conservation Police 29 Administrator. 30 (7) The term "investigator for the Department of 31 Revenue" means any person employed by the Department of 32 Revenue and vested with such investigative duties as 33 render him ineligible for coverage under the Social 34 Security Act by reason of Sections 218(d)(5)(A), -6- LRB9007014EGfg 1 218(d)(8)(D) and 218(l)(1) of that Act. 2 (8) The term "security employee of the Department 3 of Human Services" means any person employed by the 4 Department of Human Services who is employed at the 5 Chester Mental Health Center and has daily contact with 6 the residents thereof, or who is a mental health police 7 officer. "Mental health police officer" means any person 8 employed by the Department of Human Services in a 9 position pertaining to the Department's mental health and 10 developmental disabilities functions who is vested with 11 such law enforcement duties as render the person 12 ineligible for coverage under the Social Security Act by 13 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 14 218(l)(1) of that Act. 15 (9) "Central Management Services security police 16 officer" means any person employed by the Department of 17 Central Management Services who is vested with such law 18 enforcement duties as render him ineligible for coverage 19 under the Social Security Act by reason of Sections 20 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 21 (10) The term "security employee of the Department 22 of Corrections" means any employee of the Department of 23 Corrections or the former Department of Personnel, and 24 any member or employee of the Prisoner Review Board, who 25 has daily contact with inmates by working within a 26 correctional facility or who is a parole officer or an 27 employee who has direct contact with committed persons in 28 the performance of his or her job duties. 29 (11) The term "dangerous drugs investigator" means 30 any person who is employed as such by the Department of 31 Human Services. 32 (12) The term "investigator for the Department of 33 State Police" means a person employed by the Department 34 of State Police who is vested under Section 4 of the -7- LRB9007014EGfg 1 Narcotic Control Division Abolition Act with such law 2 enforcement powers as render him ineligible for coverage 3 under the Social Security Act by reason of Sections 4 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 5 (13) "Investigator for the Office of the Attorney 6 General" means any person who is employed as such by the 7 Office of the Attorney General and is vested with such 8 investigative duties as render him ineligible for 9 coverage under the Social Security Act by reason of 10 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 11 Act. For the period before January 1, 1989, the term 12 includes all persons who were employed as investigators 13 by the Office of the Attorney General, without regard to 14 social security status. 15 (14) "Controlled substance inspector" means any 16 person who is employed as such by the Department of 17 Professional Regulation and is vested with such law 18 enforcement duties as render him ineligible for coverage 19 under the Social Security Act by reason of Sections 20 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 21 The term "controlled substance inspector" includes the 22 Program Executive of Enforcement and the Assistant 23 Program Executive of Enforcement. 24 (15) The term "investigator for the Office of the 25 State's Attorneys Appellate Prosecutor" means a person 26 employed in that capacity on a full time basis under the 27 authority of Section 7.06 of the State's Attorneys 28 Appellate Prosecutor's Act. 29 (16) "Commerce Commission police officer" means any 30 person employed by the Illinois Commerce Commission who 31 is vested with such law enforcement duties as render him 32 ineligible for coverage under the Social Security Act by 33 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 34 218(l)(1) of that Act. -8- LRB9007014EGfg 1 (17) "Arson investigator" means any person who is 2 employed as such by the Office of the State Fire Marshal 3 and is vested with such law enforcement duties as render 4 the person ineligible for coverage under the Social 5 Security Act by reason of Sections 218(d)(5)(A), 6 218(d)(8)(D), and 218(l)(1) of that Act. A person who 7 was employed as an arson investigator on January 1, 1995 8 and is no longer in service but not yet receiving a 9 retirement annuity may convert his or her creditable 10 service for employment as an arson investigator into 11 eligible creditable service by paying to the System the 12 difference between the employee contributions actually 13 paid for that service and the amounts that would have 14 been contributed if the applicant were contributing at 15 the rate applicable to persons with the same social 16 security status earning eligible creditable service on 17 the date of application. 18 (d) A security employee of the Department of 19 Corrections, and a security employee of the Department of 20 Human Services who is not a mental health police officer, 21 shall not be eligible for the alternative retirement annuity 22 provided by this Section unless he or she meets the following 23 minimum age and service requirements at the time of 24 retirement: 25 (i) 25 years of eligible creditable service and age 26 55; or 27 (ii) beginning January 1, 1987, 25 years of 28 eligible creditable service and age 54, or 24 years of 29 eligible creditable service and age 55; or 30 (iii) beginning January 1, 1988, 25 years of 31 eligible creditable service and age 53, or 23 years of 32 eligible creditable service and age 55; or 33 (iv) beginning January 1, 1989, 25 years of 34 eligible creditable service and age 52, or 22 years of -9- LRB9007014EGfg 1 eligible creditable service and age 55; or 2 (v) beginning January 1, 1990, 25 years of eligible 3 creditable service and age 51, or 21 years of eligible 4 creditable service and age 55; or 5 (vi) beginning January 1, 1991, 25 years of 6 eligible creditable service and age 50, or 20 years of 7 eligible creditable service and age 55. 8 Persons who have service credit under Article 16 of this 9 Code for service as a security employee of the Department of 10 Corrections in a position requiring certification as a 11 teacher may count such service toward establishing their 12 eligibility under the service requirements of this Section; 13 but such service may be used only for establishing such 14 eligibility, and not for the purpose of increasing or 15 calculating any benefit. 16 (e) If a member enters military service while working in 17 a position in which eligible creditable service may be 18 earned, and returns to State service in the same or another 19 such position, and fulfills in all other respects the 20 conditions prescribed in this Article for credit for military 21 service, such military service shall be credited as eligible 22 creditable service for the purposes of the retirement annuity 23 prescribed in this Section. 24 (f) For purposes of calculating retirement annuities 25 under this Section, periods of service rendered after 26 December 31, 1968 and before October 1, 1975 as a covered 27 employee in the position of special agent, conservation 28 police officer, mental health police officer, or investigator 29 for the Secretary of State, shall be deemed to have been 30 service as a noncovered employee, provided that the employee 31 pays to the System prior to retirement an amount equal to (1) 32 the difference between the employee contributions that would 33 have been required for such service as a noncovered employee, 34 and the amount of employee contributions actually paid, plus -10- LRB9007014EGfg 1 (2) if payment is made after July 31, 1987, regular interest 2 on the amount specified in item (1) from the date of service 3 to the date of payment. 4 For purposes of calculating retirement annuities under 5 this Section, periods of service rendered after December 31, 6 1968 and before January 1, 1982 as a covered employee in the 7 position of investigator for the Department of Revenue shall 8 be deemed to have been service as a noncovered employee, 9 provided that the employee pays to the System prior to 10 retirement an amount equal to (1) the difference between the 11 employee contributions that would have been required for such 12 service as a noncovered employee, and the amount of employee 13 contributions actually paid, plus (2) if payment is made 14 after January 1, 1990, regular interest on the amount 15 specified in item (1) from the date of service to the date of 16 payment. 17 (g) A State policeman may elect, not later than January 18 1, 1990, to establish eligible creditable service for up to 19 10 years of his service as a policeman under Article 3, by 20 filing a written election with the Board, accompanied by 21 payment of an amount to be determined by the Board, equal to 22 (i) the difference between the amount of employee and 23 employer contributions transferred to the System under 24 Section 3-110.5, and the amounts that would have been 25 contributed had such contributions been made at the rates 26 applicable to State policemen, plus (ii) interest thereon at 27 the effective rate for each year, compounded annually, from 28 the date of service to the date of payment. 29 Subject to the limitation in subsection (i), a State 30 policeman may elect, not later than July 1, 1993, to 31 establish eligible creditable service for up to 10 years of 32 his service as a member of the County Police Department under 33 Article 9, by filing a written election with the Board, 34 accompanied by payment of an amount to be determined by the -11- LRB9007014EGfg 1 Board, equal to (i) the difference between the amount of 2 employee and employer contributions transferred to the System 3 under Section 9-121.10 and the amounts that would have been 4 contributed had those contributions been made at the rates 5 applicable to State policemen, plus (ii) interest thereon at 6 the effective rate for each year, compounded annually, from 7 the date of service to the date of payment. 8 (h) Subject to the limitation in subsection (i), a State 9 policeman or investigator for the Secretary of State may 10 elect to establish eligible creditable service for up to 12 11 years of his service as a policeman under Article 5, by 12 filing a written election with the Board on or before January 13 31, 1992, and paying to the System by January 31, 1994 an 14 amount to be determined by the Board, equal to (i) the 15 difference between the amount of employee and employer 16 contributions transferred to the System under Section 5-236, 17 and the amounts that would have been contributed had such 18 contributions been made at the rates applicable to State 19 policemen, plus (ii) interest thereon at the effective rate 20 for each year, compounded annually, from the date of service 21 to the date of payment. 22 Subject to the limitation in subsection (i), a State 23 policeman, conservation police officer, or investigator for 24 the Secretary of State may elect to establish eligible 25 creditable service for up to 10 years of service as a 26 sheriff's law enforcement employee under Article 7, by filing 27 a written election with the Board on or before January 31, 28 1993, and paying to the System by January 31, 1994 an amount 29 to be determined by the Board, equal to (i) the difference 30 between the amount of employee and employer contributions 31 transferred to the System under Section 7-139.7, and the 32 amounts that would have been contributed had such 33 contributions been made at the rates applicable to State 34 policemen, plus (ii) interest thereon at the effective rate -12- LRB9007014EGfg 1 for each year, compounded annually, from the date of service 2 to the date of payment. 3 (i) The total amount of eligible creditable service 4 established by any person under subsections (g), (h), (j), 5 (k),and(l), and (m) of this Section shall not exceed 12 6 years. 7 (j) Subject to the limitation in subsection (i), an 8 investigator for the Office of the State's Attorneys 9 Appellate Prosecutor or a controlled substance inspector may 10 elect to establish eligible creditable service for up to 10 11 years of his service as a policeman under Article 3 or a 12 sheriff's law enforcement employee under Article 7, by filing 13 a written election with the Board, accompanied by payment of 14 an amount to be determined by the Board, equal to (1) the 15 difference between the amount of employee and employer 16 contributions transferred to the System under Section 3-110.6 17 or 7-139.8, and the amounts that would have been contributed 18 had such contributions been made at the rates applicable to 19 State policemen, plus (2) interest thereon at the effective 20 rate for each year, compounded annually, from the date of 21 service to the date of payment. 22 (k) Subject to the limitation in subsection (i) of this 23 Section, an alternative formula employee may elect to 24 establish eligible creditable service for periods spent as a 25 full-time law enforcement officer or full-time corrections 26 officer employed by the federal government or by a state or 27 local government located outside of Illinois, for which 28 credit is not held in any other public employee pension fund 29 or retirement system. To obtain this credit, the applicant 30 must file a written application with the Board by March 31, 31 1998, accompanied by evidence of eligibility acceptable to 32 the Board and payment of an amount to be determined by the 33 Board, equal to (1) employee contributions for the credit 34 being established, based upon the applicant's salary on the -13- LRB9007014EGfg 1 first day as an alternative formula employee after the 2 employment for which credit is being established and the 3 rates then applicable to alternative formula employees, plus 4 (2) an amount determined by the Board to be the employer's 5 normal cost of the benefits accrued for the credit being 6 established, plus (3) regular interest on the amounts in 7 items (1) and (2) from the first day as an alternative 8 formula employee after the employment for which credit is 9 being established to the date of payment. 10 (l) Subject to the limitation in subsection (i), a 11 security employee of the Department of Corrections may elect, 12 not later than July 1, 1998, to establish eligible creditable 13 service for up to 10 years of his or her service as a 14 policeman under Article 3, by filing a written election with 15 the Board, accompanied by payment of an amount to be 16 determined by the Board, equal to (i) the difference between 17 the amount of employee and employer contributions transferred 18 to the System under Section 3-110.5, and the amounts that 19 would have been contributed had such contributions been made 20 at the rates applicable to security employees of the 21 Department of Corrections, plus (ii) interest thereon at the 22 effective rate for each year, compounded annually, from the 23 date of service to the date of payment. 24 (m) Subject to the limitation in subsection (i), an 25 active contributor to the System who is a current or former 26 investigator for the Department of Revenue may elect to 27 establish eligible creditable service for up to 12 years of 28 service as a police officer under Article 3 by filing a 29 written election with the Board before January 1, 1999, 30 accompanied by payment of an amount to be determined by the 31 Board, equal to (1) the difference between the amount of 32 employee and employer contributions transferred to the System 33 under Section 3-110.6 and the amounts that would have been 34 contributed for that service had those contributions been -14- LRB9007014EGfg 1 made at the rates then applicable to Department of Revenue 2 investigators, plus (2) interest thereon at the effective 3 rate for each year, compounded annually, from the date of 4 service to the date of payment. 5 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96; 6 89-507, eff. 7-1-97; 90-32, eff. 6-27-97.) 7 Section 99. Effective date. This Act takes effect upon 8 becoming law.