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91_HB4526 LRB9110444EGfg 1 AN ACT to amend the Illinois Pension Code. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Section 14-110 as follows: 6 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) 7 Sec. 14-110. Alternative retirement annuity. 8 (a) Any member who has withdrawn from service with not 9 less than 20 years of eligible creditable service and has 10 attained age 55, and any member who has withdrawn from 11 service with not less than 25 years of eligible creditable 12 service and has attained age 50, regardless of whether the 13 attainment of either of the specified ages occurs while the 14 member is still in service, shall be entitled to receive at 15 the option of the member, in lieu of the regular or minimum 16 retirement annuity, a retirement annuity computed as 17 follows: 18 (i) for periods of service as a noncovered 19 employee, 2 1/4% of final average compensation for each 20 of the first 10 years of creditable service, 2 1/2% for 21 each year above 10 years to and including 20 years of 22 creditable service, and 2 3/4% for each year of 23 creditable service above 20 years; and 24 (ii) for periods of eligible creditable service as 25 a covered employee, 1.67% of final average compensation 26 for each of the first 10 years of such service, 1.90% for 27 each of the next 10 years of such service, 2.10% for each 28 year of such service in excess of 20 but not exceeding 29 30, and 2.30% for each year in excess of 30. 30 Such annuity shall be subject to a maximum of 75% of 31 final average compensation. These rates shall not be -2- LRB9110444EGfg 1 applicable to any service performed by a member as a covered 2 employee which is not eligible creditable service. Service 3 as a covered employee which is not eligible creditable 4 service shall be subject to the rates and provisions of 5 Section 14-108. 6 (b) For the purpose of this Section, "eligible 7 creditable service" means creditable service resulting from 8 service in one or more of the following positions: 9 (1) State policeman; 10 (2) fire fighter in the fire protection service of 11 a department; 12 (3) air pilot; 13 (4) special agent; 14 (5) investigator for the Secretary of State; 15 (6) conservation police officer; 16 (7) investigator for the Department of Revenue; 17 (8) security employee of the Department of Human 18 Services; 19 (9) Central Management Services security police 20 officer; 21 (10) security employee of the Department of 22 Corrections; 23 (11) dangerous drugs investigator; 24 (12) investigator for the Department of State 25 Police; 26 (13) investigator for the Office of the Attorney 27 General; 28 (14) controlled substance inspector; 29 (15) investigator for the Office of the State's 30 Attorneys Appellate Prosecutor; 31 (16) Commerce Commission police officer; 32 (17) arson investigator. 33 A person employed in one of the positions specified in 34 this subsection is entitled to eligible creditable service -3- LRB9110444EGfg 1 for service credit earned under this Article while undergoing 2 the basic police training course approved by the Illinois Law 3 Enforcement Training Standards Board, if completion of that 4 training is required of persons serving in that position. 5 For the purposes of this Code, service during the required 6 basic police training course shall be deemed performance of 7 the duties of the specified position, even though the person 8 is not a sworn peace officer at the time of the training. 9 (c) For the purposes of this Section: 10 (1) The term "State policeman" includes any title 11 or position in the Department of State Police that is 12 held by an individual employed under the State Police 13 Act. The term also includes the executive director and 14 any member of the Department of State Police Merit Board 15 who has elected to receive eligible creditable service 16 and has paid to the System, for his or her previous 17 service in that capacity, the difference between the 18 employee contributions that would have been required if 19 that executive director or member had contributed at the 20 rate then applicable to persons receiving creditable 21 service and the employee contributions actually paid for 22 that service, plus regular interest. 23 (2) The term "fire fighter in the fire protection 24 service of a department" includes all officers in such 25 fire protection service including fire chiefs and 26 assistant fire chiefs. 27 (3) The term "air pilot" includes any employee 28 whose official job description on file in the Department 29 of Central Management Services, or in the department by 30 which he is employed if that department is not covered by 31 the Personnel Code, states that his principal duty is the 32 operation of aircraft, and who possesses a pilot's 33 license; however, the change in this definition made by 34 this amendatory Act of 1983 shall not operate to exclude -4- LRB9110444EGfg 1 any noncovered employee who was an "air pilot" for the 2 purposes of this Section on January 1, 1984. 3 (4) The term "special agent" means any person who 4 by reason of employment by the Division of Narcotic 5 Control, the Bureau of Investigation or, after July 1, 6 1977, the Division of Criminal Investigation, the 7 Division of Internal Investigation or any other Division 8 or organizational entity in the Department of State 9 Police is vested by law with duties to maintain public 10 order, investigate violations of the criminal law of this 11 State, enforce the laws of this State, make arrests and 12 recover property. The term "special agent" includes any 13 title or position in the Department of State Police that 14 is held by an individual employed under the State Police 15 Act. 16 (5) The term "investigator for the Secretary of 17 State" means any person employed by the Office of the 18 Secretary of State and vested with such investigative 19 duties as render him ineligible for coverage under the 20 Social Security Act by reason of Sections 218(d)(5)(A), 21 218(d)(8)(D) and 218(l)(1) of that Act. 22 A person who became employed as an investigator for 23 the Secretary of State between January 1, 1967 and 24 December 31, 1975, and who has served as such until 25 attainment of age 60, either continuously or with a 26 single break in service of not more than 3 years 27 duration, which break terminated before January 1, 1976, 28 shall be entitled to have his retirement annuity 29 calculated in accordance with subsection (a), 30 notwithstanding that he has less than 20 years of credit 31 for such service. 32 (6) The term "Conservation Police Officer" means 33 any person employed by the Division of Law Enforcement of 34 the Department of Natural Resources and vested with such -5- LRB9110444EGfg 1 law enforcement duties as render him ineligible for 2 coverage under the Social Security Act by reason of 3 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of 4 that Act. The term "Conservation Police Officer" 5 includes the positions of Chief Conservation Police 6 Administrator and Assistant Conservation Police 7 Administrator. 8 (7) The term "investigator for the Department of 9 Revenue" means any person employed by the Department of 10 Revenue and vested with such investigative duties as 11 render him ineligible for coverage under the Social 12 Security Act by reason of Sections 218(d)(5)(A), 13 218(d)(8)(D) and 218(l)(1) of that Act. 14 (8) The term "security employee of the Department 15 of Human Services" means any person employed by the 16 Department of Human Services who is employed at the 17 Chester Mental Health Center and has daily contact with 18 the residents thereof, or who is a mental health police 19 officer. "Mental health police officer" means any person 20 employed by the Department of Human Services in a 21 position pertaining to the Department's mental health and 22 developmental disabilities functions who is vested with 23 such law enforcement duties as render the person 24 ineligible for coverage under the Social Security Act by 25 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 26 218(l)(1) of that Act. 27 (9) "Central Management Services security police 28 officer" means any person employed by the Department of 29 Central Management Services who is vested with such law 30 enforcement duties as render him ineligible for coverage 31 under the Social Security Act by reason of Sections 32 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 33 (10) The term "security employee of the Department 34 of Corrections" means any employee of the Department of -6- LRB9110444EGfg 1 Corrections or the former Department of Personnel, and 2 any member or employee of the Prisoner Review Board, who 3 has daily contact with inmates by working within a 4 correctional facility or who is a parole officer or an 5 employee who has direct contact with committed persons in 6 the performance of his or her job duties. 7 (11) The term "dangerous drugs investigator" means 8 any person who is employed as such by the Department of 9 Human Services. 10 (12) The term "investigator for the Department of 11 State Police" means a person employed by the Department 12 of State Police who is vested under Section 4 of the 13 Narcotic Control Division Abolition Act with such law 14 enforcement powers as render him ineligible for coverage 15 under the Social Security Act by reason of Sections 16 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 17 (13) "Investigator for the Office of the Attorney 18 General" means any person who is employed as such by the 19 Office of the Attorney General and is vested with such 20 investigative duties as render him ineligible for 21 coverage under the Social Security Act by reason of 22 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 23 Act. For the period before January 1, 1989, the term 24 includes all persons who were employed as investigators 25 by the Office of the Attorney General, without regard to 26 social security status. 27 (14) "Controlled substance inspector" means any 28 person who is employed as such by the Department of 29 Professional Regulation and is vested with such law 30 enforcement duties as render him ineligible for coverage 31 under the Social Security Act by reason of Sections 32 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 33 The term "controlled substance inspector" includes the 34 Program Executive of Enforcement and the Assistant -7- LRB9110444EGfg 1 Program Executive of Enforcement. 2 (15) The term "investigator for the Office of the 3 State's Attorneys Appellate Prosecutor" means a person 4 employed in that capacity on a full time basis under the 5 authority of Section 7.06 of the State's Attorneys 6 Appellate Prosecutor's Act. 7 (16) "Commerce Commission police officer" means any 8 person employed by the Illinois Commerce Commission who 9 is vested with such law enforcement duties as render him 10 ineligible for coverage under the Social Security Act by 11 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 12 218(l)(1) of that Act. 13 (17) "Arson investigator" means any person who is 14 employed as such by the Office of the State Fire Marshal 15 and is vested with such law enforcement duties as render 16 the person ineligible for coverage under the Social 17 Security Act by reason of Sections 218(d)(5)(A), 18 218(d)(8)(D), and 218(l)(1) of that Act. A person who 19 was employed as an arson investigator on January 1, 1995 20 and is no longer in service but not yet receiving a 21 retirement annuity may convert his or her creditable 22 service for employment as an arson investigator into 23 eligible creditable service by paying to the System the 24 difference between the employee contributions actually 25 paid for that service and the amounts that would have 26 been contributed if the applicant were contributing at 27 the rate applicable to persons with the same social 28 security status earning eligible creditable service on 29 the date of application. 30 (d) A security employee of the Department of 31 Corrections, and a security employee of the Department of 32 Human Services who is not a mental health police officer, 33 shall not be eligible for the alternative retirement annuity 34 provided by this Section unless he or she meets the following -8- LRB9110444EGfg 1 minimum age and service requirements at the time of 2 retirement: 3 (i) 25 years of eligible creditable service and age 4 55; or 5 (ii) beginning January 1, 1987, 25 years of 6 eligible creditable service and age 54, or 24 years of 7 eligible creditable service and age 55; or 8 (iii) beginning January 1, 1988, 25 years of 9 eligible creditable service and age 53, or 23 years of 10 eligible creditable service and age 55; or 11 (iv) beginning January 1, 1989, 25 years of 12 eligible creditable service and age 52, or 22 years of 13 eligible creditable service and age 55; or 14 (v) beginning January 1, 1990, 25 years of eligible 15 creditable service and age 51, or 21 years of eligible 16 creditable service and age 55; or 17 (vi) beginning January 1, 1991, 25 years of 18 eligible creditable service and age 50, or 20 years of 19 eligible creditable service and age 55. 20 Persons who have service credit under Article 16 of this 21 Code for service as a security employee of the Department of 22 Corrections in a position requiring certification as a 23 teacher may count such service toward establishing their 24 eligibility under the service requirements of this Section; 25 but such service may be used only for establishing such 26 eligibility, and not for the purpose of increasing or 27 calculating any benefit. 28 (e) If a member enters military service while working in 29 a position in which eligible creditable service may be 30 earned, and returns to State service in the same or another 31 such position, and fulfills in all other respects the 32 conditions prescribed in this Article for credit for military 33 service, such military service shall be credited as eligible 34 creditable service for the purposes of the retirement annuity -9- LRB9110444EGfg 1 prescribed in this Section. 2 (f) For purposes of calculating retirement annuities 3 under this Section, periods of service rendered after 4 December 31, 1968 and before October 1, 1975 as a covered 5 employee in the position of special agent, conservation 6 police officer, mental health police officer, or investigator 7 for the Secretary of State, shall be deemed to have been 8 service as a noncovered employee, provided that the employee 9 pays to the System prior to retirement an amount equal to (1) 10 the difference between the employee contributions that would 11 have been required for such service as a noncovered employee, 12 and the amount of employee contributions actually paid, plus 13 (2) if payment is made after July 31, 1987, regular interest 14 on the amount specified in item (1) from the date of service 15 to the date of payment. 16 For purposes of calculating retirement annuities under 17 this Section, periods of service rendered after December 31, 18 1968 and before January 1, 1982 as a covered employee in the 19 position of investigator for the Department of Revenue shall 20 be deemed to have been service as a noncovered employee, 21 provided that the employee pays to the System prior to 22 retirement an amount equal to (1) the difference between the 23 employee contributions that would have been required for such 24 service as a noncovered employee, and the amount of employee 25 contributions actually paid, plus (2) if payment is made 26 after January 1, 1990, regular interest on the amount 27 specified in item (1) from the date of service to the date of 28 payment. 29 (g) A State policeman may elect, not later than January 30 1, 1990, to establish eligible creditable service for up to 31 10 years of his service as a policeman under Article 3, by 32 filing a written election with the Board, accompanied by 33 payment of an amount to be determined by the Board, equal to 34 (i) the difference between the amount of employee and -10- LRB9110444EGfg 1 employer contributions transferred to the System under 2 Section 3-110.5, and the amounts that would have been 3 contributed had such contributions been made at the rates 4 applicable to State policemen, plus (ii) interest thereon at 5 the effective rate for each year, compounded annually, from 6 the date of service to the date of payment. 7 Subject to the limitation in subsection (i), a State 8 policeman may elect, not later than July 1, 1993, to 9 establish eligible creditable service for up to 10 years of 10 his service as a member of the County Police Department under 11 Article 9, by filing a written election with the Board, 12 accompanied by payment of an amount to be determined by the 13 Board, equal to (i) the difference between the amount of 14 employee and employer contributions transferred to the System 15 under Section 9-121.10 and the amounts that would have been 16 contributed had those contributions been made at the rates 17 applicable to State policemen, plus (ii) interest thereon at 18 the effective rate for each year, compounded annually, from 19 the date of service to the date of payment. 20 (h) Subject to the limitation in subsection (i), a State 21 policeman or investigator for the Secretary of State may 22 elect to establish eligible creditable service for up to 12 23 years of his service as a policeman under Article 5, by 24 filing a written election with the Board on or before January 25 31, 1992, and paying to the System by January 31, 1994 an 26 amount to be determined by the Board, equal to (i) the 27 difference between the amount of employee and employer 28 contributions transferred to the System under Section 5-236, 29 and the amounts that would have been contributed had such 30 contributions been made at the rates applicable to State 31 policemen, plus (ii) interest thereon at the effective rate 32 for each year, compounded annually, from the date of service 33 to the date of payment. 34 Subject to the limitation in subsection (i), a State -11- LRB9110444EGfg 1 policeman, conservation police officer, or investigator for 2 the Secretary of State may elect to establish eligible 3 creditable service for up to 10 years of service as a 4 sheriff's law enforcement employee under Article 7, by filing 5 a written election with the Board on or before January 31, 6 1993, and paying to the System by January 31, 1994 an amount 7 to be determined by the Board, equal to (i) the difference 8 between the amount of employee and employer contributions 9 transferred to the System under Section 7-139.7, and the 10 amounts that would have been contributed had such 11 contributions been made at the rates applicable to State 12 policemen, plus (ii) interest thereon at the effective rate 13 for each year, compounded annually, from the date of service 14 to the date of payment. 15 (i) The total amount of eligible creditable service 16 established by any person under subsections (g), (h), (j), 17 (k), and (l) of this Section shall not exceed 12 years. 18 (j) Subject to the limitation in subsection (i), an 19 investigator for the Office of the State's Attorneys 20 Appellate Prosecutor or a controlled substance inspector may 21 elect to establish eligible creditable service for up to 10 22 years of his service as a policeman under Article 3 or a 23 sheriff's law enforcement employee under Article 7, by filing 24 a written election with the Board, accompanied by payment of 25 an amount to be determined by the Board, equal to (1) the 26 difference between the amount of employee and employer 27 contributions transferred to the System under Section 3-110.6 28 or 7-139.8, and the amounts that would have been contributed 29 had such contributions been made at the rates applicable to 30 State policemen, plus (2) interest thereon at the effective 31 rate for each year, compounded annually, from the date of 32 service to the date of payment. 33 (k) Subject to the limitation in subsection (i) of this 34 Section, an alternative formula employee may elect to -12- LRB9110444EGfg 1 establish eligible creditable service for periods spent as a 2 full-time law enforcement officer or full-time corrections 3 officer employed by the federal government or by a state or 4 local government located outside of Illinois, for which 5 credit is not held in any other public employee pension fund 6 or retirement system. To obtain this credit, the applicant 7 must file a written application with the Board by March 31, 8 1998, accompanied by evidence of eligibility acceptable to 9 the Board and payment of an amount to be determined by the 10 Board, equal to (1) employee contributions for the credit 11 being established, based upon the applicant's salary on the 12 first day as an alternative formula employee after the 13 employment for which credit is being established and the 14 rates then applicable to alternative formula employees, plus 15 (2) an amount determined by the Board to be the employer's 16 normal cost of the benefits accrued for the credit being 17 established, plus (3) regular interest on the amounts in 18 items (1) and (2) from the first day as an alternative 19 formula employee after the employment for which credit is 20 being established to the date of payment. 21 (l) Subject to the limitation in subsection (i), a 22 security employee of the Department of Corrections may elect, 23 not later than July 1, 1998, to establish eligible creditable 24 service for up to 10 years of his or her service as a 25 policeman under Article 3, by filing a written election with 26 the Board, accompanied by payment of an amount to be 27 determined by the Board, equal to (i) the difference between 28 the amount of employee and employer contributions transferred 29 to the System under Section 3-110.5, and the amounts that 30 would have been contributed had such contributions been made 31 at the rates applicable to security employees of the 32 Department of Corrections, plus (ii) interest thereon at the 33 effective rate for each year, compounded annually, from the 34 date of service to the date of payment. -13- LRB9110444EGfg 1 (Source: P.A. 90-32, eff. 6-27-97; 91-357, eff. 7-29-99.) 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.