093_HB1345 LRB093 07255 EFG 07413 b 1 AN ACT in relation to public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 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 Alternative retirement annuity. 8 (a) Any member who has withdrawn from service with not 9 less than 20 years of eligible creditable service and has 10 attained age 55, and any member who has withdrawn from 11 service with not less than 25 years of eligible creditable 12 service and has attained age 50, regardless of whether the 13 attainment of either of the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: if retirement occurs on or after January 1, 20 2001, 3% of final average compensation for each year of 21 creditable service; if retirement occurs before January 22 1, 2001, 2 1/4% of final average compensation for each of 23 the first 10 years of creditable service, 2 1/2% for each 24 year above 10 years to and including 20 years of 25 creditable service, and 2 3/4% for each year of 26 creditable service above 20 years; and 27 (ii) for periods of eligible creditable service as 28 a covered employee: if retirement occurs on or after 29 January 1, 2001, 2.5% of final average compensation for 30 each year of creditable service; if retirement occurs 31 before January 1, 2001, 1.67% of final average -2- LRB093 07255 EFG 07413 b 1 compensation for each of the first 10 years of such 2 service, 1.90% for each of the next 10 years of such 3 service, 2.10% for each year of such service in excess of 4 20 but not exceeding 30, and 2.30% for each year in 5 excess of 30. 6 Such annuity shall be subject to a maximum of 75% of 7 final average compensation if retirement occurs before 8 January 1, 2001 or to a maximum of 80% of final average 9 compensation if retirement occurs on or after January 1, 10 2001. 11 These rates shall not be applicable to any service 12 performed by a member as a covered employee which is not 13 eligible creditable service. Service as a covered employee 14 which is not eligible creditable service shall be subject to 15 the rates and provisions of Section 14-108. 16 (b) For the purpose of this Section, "eligible 17 creditable service" means creditable service resulting from 18 service in one or more of the following positions: 19 (1) State policeman; 20 (2) fire fighter in the fire protection service of 21 a department; 22 (3) air pilot; 23 (4) special agent; 24 (5) investigator for the Secretary of State; 25 (6) conservation police officer; 26 (7) investigator for the Department of Revenue; 27 (8) security employee of the Department of Human 28 Services; 29 (9) Central Management Services security police 30 officer; 31 (10) security employee of the Department of 32 Corrections; 33 (11) dangerous drugs investigator; 34 (12) investigator for the Department of State -3- LRB093 07255 EFG 07413 b 1 Police; 2 (13) investigator for the Office of the Attorney 3 General; 4 (14) controlled substance inspector; 5 (15) investigator for the Office of the State's 6 Attorneys Appellate Prosecutor; 7 (16) Commerce Commission police officer; 8 (17) arson investigator; 9 (18) State highway maintenance worker. 10 A person employed in one of the positions specified in 11 this subsection is entitled to eligible creditable service 12 for service credit earned under this Article while undergoing 13 the basic police training course approved by the Illinois Law 14 Enforcement Training Standards Board, if completion of that 15 training is required of persons serving in that position. For 16 the purposes of this Code, service during the required basic 17 police training course shall be deemed performance of the 18 duties of the specified position, even though the person is 19 not a sworn peace officer at the time of the training. 20 (c) For the purposes of this Section: 21 (1) The term "state policeman" includes any title 22 or position in the Department of State Police that is 23 held by an individual employed under the State Police 24 Act. 25 (2) The term "fire fighter in the fire protection 26 service of a department" includes all officers in such 27 fire protection service including fire chiefs and 28 assistant fire chiefs. 29 (3) The term "air pilot" includes any employee 30 whose official job description on file in the Department 31 of Central Management Services, or in the department by 32 which he is employed if that department is not covered by 33 the Personnel Code, states that his principal duty is the 34 operation of aircraft, and who possesses a pilot's -4- LRB093 07255 EFG 07413 b 1 license; however, the change in this definition made by 2 this amendatory Act of 1983 shall not operate to exclude 3 any noncovered employee who was an "air pilot" for the 4 purposes of this Section on January 1, 1984. 5 (4) The term "special agent" means any person who 6 by reason of employment by the Division of Narcotic 7 Control, the Bureau of Investigation or, after July 1, 8 1977, the Division of Criminal Investigation, the 9 Division of Internal Investigation, the Division of 10 Operations, or any other Division or organizational 11 entity in the Department of State Police is vested by law 12 with duties to maintain public order, investigate 13 violations of the criminal law of this State, enforce the 14 laws of this State, make arrests and recover property. 15 The term "special agent" includes any title or position 16 in the Department of State Police that is held by an 17 individual employed under the State Police Act. 18 (5) The term "investigator for the Secretary of 19 State" means any person employed by the Office of the 20 Secretary of State and vested with such investigative 21 duties as render him ineligible for coverage under the 22 Social Security Act by reason of Sections 218(d)(5)(A), 23 218(d)(8)(D) and 218(l)(1) of that Act. 24 A person who became employed as an investigator for 25 the Secretary of State between January 1, 1967 and 26 December 31, 1975, and who has served as such until 27 attainment of age 60, either continuously or with a 28 single break in service of not more than 3 years 29 duration, which break terminated before January 1, 1976, 30 shall be entitled to have his retirement annuity 31 calculated in accordance with subsection (a), 32 notwithstanding that he has less than 20 years of credit 33 for such service. 34 (6) The term "Conservation Police Officer" means -5- LRB093 07255 EFG 07413 b 1 any person employed by the Division of Law Enforcement of 2 the Department of Natural Resources and vested with such 3 law enforcement duties as render him ineligible for 4 coverage under the Social Security Act by reason of 5 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of 6 that Act. The term "Conservation Police Officer" 7 includes the positions of Chief Conservation Police 8 Administrator and Assistant Conservation Police 9 Administrator. 10 (7) The term "investigator for the Department of 11 Revenue" means any person employed by the Department of 12 Revenue and vested with such investigative duties as 13 render him ineligible for coverage under the Social 14 Security Act by reason of Sections 218(d)(5)(A), 15 218(d)(8)(D) and 218(l)(1) of that Act. 16 (8) The term "security employee of the Department 17 of Human Services" means any person employed by the 18 Department of Human Services who (i) is employed at the 19 Chester Mental Health Center and has daily contact with 20 the residents thereof, (ii) is employed within a security 21 unit at a facility operated by the Department and has 22 daily contact with the residents of the security unit, 23 (iii) is employed at a facility operated by the 24 Department that includes a security unit and is regularly 25 scheduled to work at least 50% of his or her working 26 hours within that security unit, or (iv) is a mental 27 health police officer. "Mental health police officer" 28 means any person employed by the Department of Human 29 Services in a position pertaining to the Department's 30 mental health and developmental disabilities functions 31 who is vested with such law enforcement duties as render 32 the person ineligible for coverage under the Social 33 Security Act by reason of Sections 218(d)(5)(A), 34 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" -6- LRB093 07255 EFG 07413 b 1 means that portion of a facility that is devoted to the 2 care, containment, and treatment of persons committed to 3 the Department of Human Services as sexually violent 4 persons, persons unfit to stand trial, or persons not 5 guilty by reason of insanity. With respect to past 6 employment, references to the Department of Human 7 Services include its predecessor, the Department of 8 Mental Health and Developmental Disabilities. 9 The changes made to this subdivision (c)(8) by 10 Public Act 92-14 apply to persons who retire on or after 11 January 1, 2001, notwithstanding Section 1-103.1. 12 (9) "Central Management Services security police 13 officer" means any person employed by the Department of 14 Central Management Services who is vested with such law 15 enforcement duties as render him ineligible for coverage 16 under the Social Security Act by reason of Sections 17 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 18 (10) The term "security employee of the Department 19 of Corrections" means any employee of the Department of 20 Corrections, the Department of State Police, or the 21 former Department of Personnel, and any member or 22 employee of the Prisoner Review Board, who has daily 23 contact with inmates by working within a correctional 24 facility or who is a parole officer or an employee who 25 has direct contact with committed persons in the 26 performance of his or her job duties. 27 (11) The term "dangerous drugs investigator" means 28 any person who is employed as such by the Department of 29 Human Services. 30 (12) The term "investigator for the Department of 31 State Police" means a person employed by the Department 32 of State Police who is vested under Section 4 of the 33 Narcotic Control Division Abolition Act with such law 34 enforcement powers as render him ineligible for coverage -7- LRB093 07255 EFG 07413 b 1 under the Social Security Act by reason of Sections 2 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 3 (13) "Investigator for the Office of the Attorney 4 General" means any person who is employed as such by the 5 Office of the Attorney General and is vested with such 6 investigative duties as render him ineligible for 7 coverage under the Social Security Act by reason of 8 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 9 Act. For the period before January 1, 1989, the term 10 includes all persons who were employed as investigators 11 by the Office of the Attorney General, without regard to 12 social security status. 13 (14) "Controlled substance inspector" means any 14 person who is employed as such by the Department of 15 Professional Regulation and is vested with such law 16 enforcement duties as render him ineligible for coverage 17 under the Social Security Act by reason of Sections 18 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. 19 The term "controlled substance inspector" includes the 20 Program Executive of Enforcement and the Assistant 21 Program Executive of Enforcement. 22 (15) The term "investigator for the Office of the 23 State's Attorneys Appellate Prosecutor" means a person 24 employed in that capacity on a full time basis under the 25 authority of Section 7.06 of the State's Attorneys 26 Appellate Prosecutor's Act. 27 (16) "Commerce Commission police officer" means any 28 person employed by the Illinois Commerce Commission who 29 is vested with such law enforcement duties as render him 30 ineligible for coverage under the Social Security Act by 31 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 32 218(l)(1) of that Act. 33 (17) "Arson investigator" means any person who is 34 employed as such by the Office of the State Fire Marshal -8- LRB093 07255 EFG 07413 b 1 and is vested with such law enforcement duties as render 2 the person ineligible for coverage under the Social 3 Security Act by reason of Sections 218(d)(5)(A), 4 218(d)(8)(D), and 218(l)(1) of that Act. A person who 5 was employed as an arson investigator on January 1, 1995 6 and is no longer in service but not yet receiving a 7 retirement annuity may convert his or her creditable 8 service for employment as an arson investigator into 9 eligible creditable service by paying to the System the 10 difference between the employee contributions actually 11 paid for that service and the amounts that would have 12 been contributed if the applicant were contributing at 13 the rate applicable to persons with the same social 14 security status earning eligible creditable service on 15 the date of application. 16 (18) The term "State highway maintenance worker" 17 means a person who is either of the following: 18 (i) A person employed on a full-time basis by 19 the Illinois Department of Transportation in the 20 position of highway maintainer, highway maintenance 21 lead worker, highway maintenance lead/lead worker, 22 heavy construction equipment operator, power shovel 23 operator, or bridge mechanic; and whose principal 24 responsibility is to perform, on the roadway, the 25 actual maintenance necessary to keep the highways 26 that form a part of the State highway system in 27 serviceable condition for vehicular traffic. 28 (ii) A person employed on a full-time basis by 29 the Illinois State Toll Highway Authority in the 30 position of equipment operator/laborer H-4, 31 equipment operator/laborer H-6, welder H-4, 32 welder H-6, mechanical/electrical H-4, 33 mechanical/electrical H-6, water/sewer H-4, 34 water/sewer H-6, sign maker/hanger H-4, sign -9- LRB093 07255 EFG 07413 b 1 maker/hanger H-6, roadway lighting H-4, roadway 2 lighting H-6, structural H-4, structural H-6, 3 painter H-4, or painter H-6; and whose principal 4 responsibility is to perform, on the roadway, the 5 actual maintenance necessary to keep the Authority's 6 tollways in serviceable condition for vehicular 7 traffic. 8 (d) A security employee of the Department of 9 Corrections, and a security employee of the Department of 10 Human Services who is not a mental health police officer, 11 shall not be eligible for the alternative retirement annuity 12 provided by this Section unless he or she meets the following 13 minimum age and service requirements at the time of 14 retirement: 15 (i) 25 years of eligible creditable service and age 16 55; or 17 (ii) beginning January 1, 1987, 25 years of 18 eligible creditable service and age 54, or 24 years of 19 eligible creditable service and age 55; or 20 (iii) beginning January 1, 1988, 25 years of 21 eligible creditable service and age 53, or 23 years of 22 eligible creditable service and age 55; or 23 (iv) beginning January 1, 1989, 25 years of 24 eligible creditable service and age 52, or 22 years of 25 eligible creditable service and age 55; or 26 (v) beginning January 1, 1990, 25 years of eligible 27 creditable service and age 51, or 21 years of eligible 28 creditable service and age 55; or 29 (vi) beginning January 1, 1991, 25 years of 30 eligible creditable service and age 50, or 20 years of 31 eligible creditable service and age 55. 32 Persons who have service credit under Article 16 of this 33 Code for service as a security employee of the Department of 34 Corrections or the Department of Human Services in a position -10- LRB093 07255 EFG 07413 b 1 requiring certification as a teacher may count such service 2 toward establishing their eligibility under the service 3 requirements of this Section; but such service may be used 4 only for establishing such eligibility, and not for the 5 purpose of increasing or calculating any benefit. 6 (e) If a member enters military service while working in 7 a position in which eligible creditable service may be 8 earned, and returns to State service in the same or another 9 such position, and fulfills in all other respects the 10 conditions prescribed in this Article for credit for military 11 service, such military service shall be credited as eligible 12 creditable service for the purposes of the retirement annuity 13 prescribed in this Section. 14 (f) For purposes of calculating retirement annuities 15 under this Section, periods of service rendered after 16 December 31, 1968 and before October 1, 1975 as a covered 17 employee in the position of special agent, conservation 18 police officer, mental health police officer, or investigator 19 for the Secretary of State, shall be deemed to have been 20 service as a noncovered employee, provided that the employee 21 pays to the System prior to retirement an amount equal to (1) 22 the difference between the employee contributions that would 23 have been required for such service as a noncovered employee, 24 and the amount of employee contributions actually paid, plus 25 (2) if payment is made after July 31, 1987, regular interest 26 on the amount specified in item (1) from the date of service 27 to the date of payment. 28 For purposes of calculating retirement annuities under 29 this Section, periods of service rendered after December 31, 30 1968 and before January 1, 1982 as a covered employee in the 31 position of investigator for the Department of Revenue shall 32 be deemed to have been service as a noncovered employee, 33 provided that the employee pays to the System prior to 34 retirement an amount equal to (1) the difference between the -11- LRB093 07255 EFG 07413 b 1 employee contributions that would have been required for such 2 service as a noncovered employee, and the amount of employee 3 contributions actually paid, plus (2) if payment is made 4 after January 1, 1990, regular interest on the amount 5 specified in item (1) from the date of service to the date of 6 payment. 7 (g) A State policeman may elect, not later than January 8 1, 1990, to establish eligible creditable service for up to 9 10 years of his service as a policeman under Article 3, by 10 filing a written election with the Board, accompanied by 11 payment of an amount to be determined by the Board, equal to 12 (i) the difference between the amount of employee and 13 employer contributions transferred to the System under 14 Section 3-110.5, and the amounts that would have been 15 contributed had such contributions been made at the rates 16 applicable to State policemen, plus (ii) interest thereon at 17 the effective rate for each year, compounded annually, from 18 the date of service to the date of payment. 19 Subject to the limitation in subsection (i), a State 20 policeman may elect, not later than July 1, 1993, to 21 establish eligible creditable service for up to 10 years of 22 his service as a member of the County Police Department under 23 Article 9, by filing a written election with the Board, 24 accompanied by payment of an amount to be determined by the 25 Board, equal to (i) the difference between the amount of 26 employee and employer contributions transferred to the System 27 under Section 9-121.10 and the amounts that would have been 28 contributed had those contributions been made at the rates 29 applicable to State policemen, plus (ii) interest thereon at 30 the effective rate for each year, compounded annually, from 31 the date of service to the date of payment. 32 (h) Subject to the limitation in subsection (i), a State 33 policeman or investigator for the Secretary of State may 34 elect to establish eligible creditable service for up to 12 -12- LRB093 07255 EFG 07413 b 1 years of his service as a policeman under Article 5, by 2 filing a written election with the Board on or before January 3 31, 1992, and paying to the System by January 31, 1994 an 4 amount to be determined by the Board, equal to (i) the 5 difference between the amount of employee and employer 6 contributions transferred to the System under Section 5-236, 7 and the amounts that would have been contributed had such 8 contributions been made at the rates applicable to State 9 policemen, plus (ii) interest thereon at the effective rate 10 for each year, compounded annually, from the date of service 11 to the date of payment. 12 Subject to the limitation in subsection (i), a State 13 policeman, conservation police officer, or investigator for 14 the Secretary of State may elect to establish eligible 15 creditable service for up to 10 years of service as a 16 sheriff's law enforcement employee under Article 7, by filing 17 a written election with the Board on or before January 31, 18 1993, and paying to the System by January 31, 1994 an amount 19 to be determined by the Board, equal to (i) the difference 20 between the amount of employee and employer contributions 21 transferred to the System under Section 7-139.7, and the 22 amounts that would have been contributed had such 23 contributions been made at the rates applicable to State 24 policemen, plus (ii) interest thereon at the effective rate 25 for each year, compounded annually, from the date of service 26 to the date of payment. 27 (i) The total amount of eligible creditable service 28 established by any person under subsections (g), (h), (j), 29 (k), and (l) of this Section shall not exceed 12 years. 30 (j) Subject to the limitation in subsection (i), an 31 investigator for the Office of the State's Attorneys 32 Appellate Prosecutor or a controlled substance inspector may 33 elect to establish eligible creditable service for up to 10 34 years of his service as a policeman under Article 3 or a -13- LRB093 07255 EFG 07413 b 1 sheriff's law enforcement employee under Article 7, by filing 2 a written election with the Board, accompanied by payment of 3 an amount to be determined by the Board, equal to (1) the 4 difference between the amount of employee and employer 5 contributions transferred to the System under Section 3-110.6 6 or 7-139.8, and the amounts that would have been contributed 7 had such contributions been made at the rates applicable to 8 State policemen, plus (2) interest thereon at the effective 9 rate for each year, compounded annually, from the date of 10 service to the date of payment. 11 (k) Subject to the limitation in subsection (i) of this 12 Section, an alternative formula employee may elect to 13 establish eligible creditable service for periods spent as a 14 full-time law enforcement officer or full-time corrections 15 officer employed by the federal government or by a state or 16 local government located outside of Illinois, for which 17 credit is not held in any other public employee pension fund 18 or retirement system. To obtain this credit, the applicant 19 must file a written application with the Board by March 31, 20 1998, accompanied by evidence of eligibility acceptable to 21 the Board and payment of an amount to be determined by the 22 Board, equal to (1) employee contributions for the credit 23 being established, based upon the applicant's salary on the 24 first day as an alternative formula employee after the 25 employment for which credit is being established and the 26 rates then applicable to alternative formula employees, plus 27 (2) an amount determined by the Board to be the employer's 28 normal cost of the benefits accrued for the credit being 29 established, plus (3) regular interest on the amounts in 30 items (1) and (2) from the first day as an alternative 31 formula employee after the employment for which credit is 32 being established to the date of payment. 33 (l) Subject to the limitation in subsection (i), a 34 security employee of the Department of Corrections may elect, -14- LRB093 07255 EFG 07413 b 1 not later than July 1, 1998, to establish eligible creditable 2 service for up to 10 years of his or her service as a 3 policeman under Article 3, by filing a written election with 4 the Board, accompanied by payment of an amount to be 5 determined by the Board, equal to (i) the difference between 6 the amount of employee and employer contributions transferred 7 to the System under Section 3-110.5, and the amounts that 8 would have been contributed had such contributions been made 9 at the rates applicable to security employees of the 10 Department of Corrections, plus (ii) interest thereon at the 11 effective rate for each year, compounded annually, from the 12 date of service to the date of payment. 13 (Source: P.A. 91-357, eff. 7-29-99; 91-760, eff. 1-1-01; 14 92-14, eff. 6-28-01; 92-257, eff. 8-6-01; 92-651, eff. 15 7-11-02.) 16 Section 99. Effective date. This Act takes effect upon 17 becoming law.