103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5449

 

Introduced 2/9/2024, by Rep. Stephanie A. Kifowit

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-160
40 ILCS 5/14-110  from Ch. 108 1/2, par. 14-110
40 ILCS 5/14-152.1

    Amends the General Provisions and State Employee Articles of the Illinois Pension Code. Provides that, with regard to persons subject to the Tier 2 provisions, a security employee of the Department of Human Services, a security employee of the Department of Corrections or the Department of Juvenile Justice, or an investigator for the Department of the Lottery is entitled to an annuity calculated under the alternative retirement annuity provisions, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, regardless of whether the attainment of age 55 occurs while the person is still in service. Authorizes an investigator for the Department of the Lottery to establish eligible creditable service under the alternative retirement annuity provisions. Provides that a security employee of the Department of Human Services subject to the Tier 2 provisions may convert up to 13 years of service credit established before the effective date of the amendatory Act as a security employee of the Department of Human Services into eligible creditable service by filing a written election with the Board, accompanied by a specified payment. Provides that a specified educational requirement for persons employed by the Department of Juvenile Justice shall no longer determine the eligibility to earn eligible creditable service under the alternative retirement annuity provisions, and authorizes the conversion of service credit to eligible creditable service. Excludes a benefit increase resulting from the amendatory Act from the definition of "new benefit increase". Effective January 1, 2025.


LRB103 38496 RPS 68632 b

 

 

A BILL FOR

 

HB5449LRB103 38496 RPS 68632 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Sections 1-160, 14-110, and 14-152.1 as follows:
 
6    (40 ILCS 5/1-160)
7    (Text of Section from P.A. 102-719)
8    Sec. 1-160. Provisions applicable to new hires.
9    (a) The provisions of this Section apply to a person who,
10on or after January 1, 2011, first becomes a member or a
11participant under any reciprocal retirement system or pension
12fund established under this Code, other than a retirement
13system or pension fund established under Article 2, 3, 4, 5, 6,
147, 15, or 18 of this Code, notwithstanding any other provision
15of this Code to the contrary, but do not apply to any
16self-managed plan established under this Code or to any
17participant of the retirement plan established under Section
1822-101; except that this Section applies to a person who
19elected to establish alternative credits by electing in
20writing after January 1, 2011, but before August 8, 2011,
21under Section 7-145.1 of this Code. Notwithstanding anything
22to the contrary in this Section, for purposes of this Section,
23a person who is a Tier 1 regular employee as defined in Section

 

 

HB5449- 2 -LRB103 38496 RPS 68632 b

17-109.4 of this Code or who participated in a retirement
2system under Article 15 prior to January 1, 2011 shall be
3deemed a person who first became a member or participant prior
4to January 1, 2011 under any retirement system or pension fund
5subject to this Section. The changes made to this Section by
6Public Act 98-596 are a clarification of existing law and are
7intended to be retroactive to January 1, 2011 (the effective
8date of Public Act 96-889), notwithstanding the provisions of
9Section 1-103.1 of this Code.
10    This Section does not apply to a person who first becomes a
11noncovered employee under Article 14 on or after the
12implementation date of the plan created under Section 1-161
13for that Article, unless that person elects under subsection
14(b) of Section 1-161 to instead receive the benefits provided
15under this Section and the applicable provisions of that
16Article.
17    This Section does not apply to a person who first becomes a
18member or participant under Article 16 on or after the
19implementation date of the plan created under Section 1-161
20for that Article, unless that person elects under subsection
21(b) of Section 1-161 to instead receive the benefits provided
22under this Section and the applicable provisions of that
23Article.
24    This Section does not apply to a person who elects under
25subsection (c-5) of Section 1-161 to receive the benefits
26under Section 1-161.

 

 

HB5449- 3 -LRB103 38496 RPS 68632 b

1    This Section does not apply to a person who first becomes a
2member or participant of an affected pension fund on or after 6
3months after the resolution or ordinance date, as defined in
4Section 1-162, unless that person elects under subsection (c)
5of Section 1-162 to receive the benefits provided under this
6Section and the applicable provisions of the Article under
7which he or she is a member or participant.
8    (b) "Final average salary" means, except as otherwise
9provided in this subsection, the average monthly (or annual)
10salary obtained by dividing the total salary or earnings
11calculated under the Article applicable to the member or
12participant during the 96 consecutive months (or 8 consecutive
13years) of service within the last 120 months (or 10 years) of
14service in which the total salary or earnings calculated under
15the applicable Article was the highest by the number of months
16(or years) of service in that period. For the purposes of a
17person who first becomes a member or participant of any
18retirement system or pension fund to which this Section
19applies on or after January 1, 2011, in this Code, "final
20average salary" shall be substituted for the following:
21        (1) (Blank).
22        (2) In Articles 8, 9, 10, 11, and 12, "highest average
23    annual salary for any 4 consecutive years within the last
24    10 years of service immediately preceding the date of
25    withdrawal".
26        (3) In Article 13, "average final salary".

 

 

HB5449- 4 -LRB103 38496 RPS 68632 b

1        (4) In Article 14, "final average compensation".
2        (5) In Article 17, "average salary".
3        (6) In Section 22-207, "wages or salary received by
4    him at the date of retirement or discharge".
5    A member of the Teachers' Retirement System of the State
6of Illinois who retires on or after June 1, 2021 and for whom
7the 2020-2021 school year is used in the calculation of the
8member's final average salary shall use the higher of the
9following for the purpose of determining the member's final
10average salary:
11        (A) the amount otherwise calculated under the first
12    paragraph of this subsection; or
13        (B) an amount calculated by the Teachers' Retirement
14    System of the State of Illinois using the average of the
15    monthly (or annual) salary obtained by dividing the total
16    salary or earnings calculated under Article 16 applicable
17    to the member or participant during the 96 months (or 8
18    years) of service within the last 120 months (or 10 years)
19    of service in which the total salary or earnings
20    calculated under the Article was the highest by the number
21    of months (or years) of service in that period.
22    (b-5) Beginning on January 1, 2011, for all purposes under
23this Code (including without limitation the calculation of
24benefits and employee contributions), the annual earnings,
25salary, or wages (based on the plan year) of a member or
26participant to whom this Section applies shall not exceed

 

 

HB5449- 5 -LRB103 38496 RPS 68632 b

1$106,800; however, that amount shall annually thereafter be
2increased by the lesser of (i) 3% of that amount, including all
3previous adjustments, or (ii) one-half the annual unadjusted
4percentage increase (but not less than zero) in the consumer
5price index-u for the 12 months ending with the September
6preceding each November 1, including all previous adjustments.
7    For the purposes of this Section, "consumer price index-u"
8means the index published by the Bureau of Labor Statistics of
9the United States Department of Labor that measures the
10average change in prices of goods and services purchased by
11all urban consumers, United States city average, all items,
121982-84 = 100. The new amount resulting from each annual
13adjustment shall be determined by the Public Pension Division
14of the Department of Insurance and made available to the
15boards of the retirement systems and pension funds by November
161 of each year.
17    (b-10) Beginning on January 1, 2024, for all purposes
18under this Code (including, without limitation, the
19calculation of benefits and employee contributions), the
20annual earnings, salary, or wages (based on the plan year) of a
21member or participant under Article 9 to whom this Section
22applies shall include an annual earnings, salary, or wage cap
23that tracks the Social Security wage base. Maximum annual
24earnings, wages, or salary shall be the annual contribution
25and benefit base established for the applicable year by the
26Commissioner of the Social Security Administration under the

 

 

HB5449- 6 -LRB103 38496 RPS 68632 b

1federal Social Security Act.
2    However, in no event shall the annual earnings, salary, or
3wages for the purposes of this Article and Article 9 exceed any
4limitation imposed on annual earnings, salary, or wages under
5Section 1-117. Under no circumstances shall the maximum amount
6of annual earnings, salary, or wages be greater than the
7amount set forth in this subsection (b-10) as a result of
8reciprocal service or any provisions regarding reciprocal
9services, nor shall the Fund under Article 9 be required to pay
10any refund as a result of the application of this maximum
11annual earnings, salary, and wage cap.
12    Nothing in this subsection (b-10) shall cause or otherwise
13result in any retroactive adjustment of any employee
14contributions. Nothing in this subsection (b-10) shall cause
15or otherwise result in any retroactive adjustment of
16disability or other payments made between January 1, 2011 and
17January 1, 2024.
18    (c) A member or participant is entitled to a retirement
19annuity upon written application if he or she has attained age
2067 (age 65, with respect to service under Article 12 that is
21subject to this Section, for a member or participant under
22Article 12 who first becomes a member or participant under
23Article 12 on or after January 1, 2022 or who makes the
24election under item (i) of subsection (d-15) of this Section)
25and has at least 10 years of service credit and is otherwise
26eligible under the requirements of the applicable Article.

 

 

HB5449- 7 -LRB103 38496 RPS 68632 b

1    A member or participant who has attained age 62 (age 60,
2with respect to service under Article 12 that is subject to
3this Section, for a member or participant under Article 12 who
4first becomes a member or participant under Article 12 on or
5after January 1, 2022 or who makes the election under item (i)
6of subsection (d-15) of this Section) and has at least 10 years
7of service credit and is otherwise eligible under the
8requirements of the applicable Article may elect to receive
9the lower retirement annuity provided in subsection (d) of
10this Section.
11    (c-5) A person who first becomes a member or a participant
12subject to this Section on or after July 6, 2017 (the effective
13date of Public Act 100-23), notwithstanding any other
14provision of this Code to the contrary, is entitled to a
15retirement annuity under Article 8 or Article 11 upon written
16application if he or she has attained age 65 and has at least
1710 years of service credit and is otherwise eligible under the
18requirements of Article 8 or Article 11 of this Code,
19whichever is applicable.
20    (d) The retirement annuity of a member or participant who
21is retiring after attaining age 62 (age 60, with respect to
22service under Article 12 that is subject to this Section, for a
23member or participant under Article 12 who first becomes a
24member or participant under Article 12 on or after January 1,
252022 or who makes the election under item (i) of subsection
26(d-15) of this Section) with at least 10 years of service

 

 

HB5449- 8 -LRB103 38496 RPS 68632 b

1credit shall be reduced by one-half of 1% for each full month
2that the member's age is under age 67 (age 65, with respect to
3service under Article 12 that is subject to this Section, for a
4member or participant under Article 12 who first becomes a
5member or participant under Article 12 on or after January 1,
62022 or who makes the election under item (i) of subsection
7(d-15) of this Section).
8    (d-5) The retirement annuity payable under Article 8 or
9Article 11 to an eligible person subject to subsection (c-5)
10of this Section who is retiring at age 60 with at least 10
11years of service credit shall be reduced by one-half of 1% for
12each full month that the member's age is under age 65.
13    (d-10) Each person who first became a member or
14participant under Article 8 or Article 11 of this Code on or
15after January 1, 2011 and prior to July 6, 2017 (the effective
16date of Public Act 100-23) shall make an irrevocable election
17either:
18        (i) to be eligible for the reduced retirement age
19    provided in subsections (c-5) and (d-5) of this Section,
20    the eligibility for which is conditioned upon the member
21    or participant agreeing to the increases in employee
22    contributions for age and service annuities provided in
23    subsection (a-5) of Section 8-174 of this Code (for
24    service under Article 8) or subsection (a-5) of Section
25    11-170 of this Code (for service under Article 11); or
26        (ii) to not agree to item (i) of this subsection

 

 

HB5449- 9 -LRB103 38496 RPS 68632 b

1    (d-10), in which case the member or participant shall
2    continue to be subject to the retirement age provisions in
3    subsections (c) and (d) of this Section and the employee
4    contributions for age and service annuity as provided in
5    subsection (a) of Section 8-174 of this Code (for service
6    under Article 8) or subsection (a) of Section 11-170 of
7    this Code (for service under Article 11).
8    The election provided for in this subsection shall be made
9between October 1, 2017 and November 15, 2017. A person
10subject to this subsection who makes the required election
11shall remain bound by that election. A person subject to this
12subsection who fails for any reason to make the required
13election within the time specified in this subsection shall be
14deemed to have made the election under item (ii).
15    (d-15) Each person who first becomes a member or
16participant under Article 12 on or after January 1, 2011 and
17prior to January 1, 2022 shall make an irrevocable election
18either:
19        (i) to be eligible for the reduced retirement age
20    specified in subsections (c) and (d) of this Section, the
21    eligibility for which is conditioned upon the member or
22    participant agreeing to the increase in employee
23    contributions for service annuities specified in
24    subsection (b) of Section 12-150; or
25        (ii) to not agree to item (i) of this subsection
26    (d-15), in which case the member or participant shall not

 

 

HB5449- 10 -LRB103 38496 RPS 68632 b

1    be eligible for the reduced retirement age specified in
2    subsections (c) and (d) of this Section and shall not be
3    subject to the increase in employee contributions for
4    service annuities specified in subsection (b) of Section
5    12-150.
6    The election provided for in this subsection shall be made
7between January 1, 2022 and April 1, 2022. A person subject to
8this subsection who makes the required election shall remain
9bound by that election. A person subject to this subsection
10who fails for any reason to make the required election within
11the time specified in this subsection shall be deemed to have
12made the election under item (ii).
13    (e) Any retirement annuity or supplemental annuity shall
14be subject to annual increases on the January 1 occurring
15either on or after the attainment of age 67 (age 65, with
16respect to service under Article 12 that is subject to this
17Section, for a member or participant under Article 12 who
18first becomes a member or participant under Article 12 on or
19after January 1, 2022 or who makes the election under item (i)
20of subsection (d-15); and beginning on July 6, 2017 (the
21effective date of Public Act 100-23), age 65 with respect to
22service under Article 8 or Article 11 for eligible persons
23who: (i) are subject to subsection (c-5) of this Section; or
24(ii) made the election under item (i) of subsection (d-10) of
25this Section) or the first anniversary of the annuity start
26date, whichever is later. Each annual increase shall be

 

 

HB5449- 11 -LRB103 38496 RPS 68632 b

1calculated at 3% or one-half the annual unadjusted percentage
2increase (but not less than zero) in the consumer price
3index-u for the 12 months ending with the September preceding
4each November 1, whichever is less, of the originally granted
5retirement annuity. If the annual unadjusted percentage change
6in the consumer price index-u for the 12 months ending with the
7September preceding each November 1 is zero or there is a
8decrease, then the annuity shall not be increased.
9    For the purposes of Section 1-103.1 of this Code, the
10changes made to this Section by Public Act 102-263 are
11applicable without regard to whether the employee was in
12active service on or after August 6, 2021 (the effective date
13of Public Act 102-263).
14    For the purposes of Section 1-103.1 of this Code, the
15changes made to this Section by Public Act 100-23 are
16applicable without regard to whether the employee was in
17active service on or after July 6, 2017 (the effective date of
18Public Act 100-23).
19    (f) The initial survivor's or widow's annuity of an
20otherwise eligible survivor or widow of a retired member or
21participant who first became a member or participant on or
22after January 1, 2011 shall be in the amount of 66 2/3% of the
23retired member's or participant's retirement annuity at the
24date of death. In the case of the death of a member or
25participant who has not retired and who first became a member
26or participant on or after January 1, 2011, eligibility for a

 

 

HB5449- 12 -LRB103 38496 RPS 68632 b

1survivor's or widow's annuity shall be determined by the
2applicable Article of this Code. The initial benefit shall be
366 2/3% of the earned annuity without a reduction due to age. A
4child's annuity of an otherwise eligible child shall be in the
5amount prescribed under each Article if applicable. Any
6survivor's or widow's annuity shall be increased (1) on each
7January 1 occurring on or after the commencement of the
8annuity if the deceased member died while receiving a
9retirement annuity or (2) in other cases, on each January 1
10occurring after the first anniversary of the commencement of
11the annuity. Each annual increase shall be calculated at 3% or
12one-half the annual unadjusted percentage increase (but not
13less than zero) in the consumer price index-u for the 12 months
14ending with the September preceding each November 1, whichever
15is less, of the originally granted survivor's annuity. If the
16annual unadjusted percentage change in the consumer price
17index-u for the 12 months ending with the September preceding
18each November 1 is zero or there is a decrease, then the
19annuity shall not be increased.
20    (g) The benefits in Section 14-110 apply if the person is a
21fire fighter in the fire protection service of a department, a
22security employee of the Department of Corrections or the
23Department of Juvenile Justice, or a security employee of the
24Department of Innovation and Technology, as those terms are
25defined in subsection (b) and subsection (c) of Section
2614-110. A person who meets the requirements of this Section is

 

 

HB5449- 13 -LRB103 38496 RPS 68632 b

1entitled to an annuity calculated under the provisions of
2Section 14-110, in lieu of the regular or minimum retirement
3annuity, only if the person has withdrawn from service with
4not less than 20 years of eligible creditable service and has
5attained age 60, regardless of whether the attainment of age
660 occurs while the person is still in service.
7    (g-1) The benefits in Section 14-110 apply if the person
8is a security employee of the Department of Human Services, a
9security employee of the Department of Corrections or the
10Department of Juvenile Justice, or an investigator for the
11Department of the Lottery, as those terms are defined in
12subsection (b) and subsection (c) of Section 14-110. A person
13who meets the requirements of this Section is entitled to an
14annuity calculated under the provisions of Section 14-110, in
15lieu of the regular or minimum retirement annuity, only if the
16person has withdrawn from service with not less than 20 years
17of eligible creditable service and has attained age 55,
18regardless of whether the attainment of age 55 occurs while
19the person is still in service.
20    (g-5) The benefits in Section 14-110 apply if the person
21is a State policeman, investigator for the Secretary of State,
22conservation police officer, investigator for the Department
23of Revenue or the Illinois Gaming Board, investigator for the
24Office of the Attorney General, Commerce Commission police
25officer, or arson investigator, as those terms are defined in
26subsection (b) and subsection (c) of Section 14-110. A person

 

 

HB5449- 14 -LRB103 38496 RPS 68632 b

1who meets the requirements of this Section is entitled to an
2annuity calculated under the provisions of Section 14-110, in
3lieu of the regular or minimum retirement annuity, only if the
4person has withdrawn from service with not less than 20 years
5of eligible creditable service and has attained age 55,
6regardless of whether the attainment of age 55 occurs while
7the person is still in service.
8    (h) If a person who first becomes a member or a participant
9of a retirement system or pension fund subject to this Section
10on or after January 1, 2011 is receiving a retirement annuity
11or retirement pension under that system or fund and becomes a
12member or participant under any other system or fund created
13by this Code and is employed on a full-time basis, except for
14those members or participants exempted from the provisions of
15this Section under subsection (a) of this Section, then the
16person's retirement annuity or retirement pension under that
17system or fund shall be suspended during that employment. Upon
18termination of that employment, the person's retirement
19annuity or retirement pension payments shall resume and be
20recalculated if recalculation is provided for under the
21applicable Article of this Code.
22    If a person who first becomes a member of a retirement
23system or pension fund subject to this Section on or after
24January 1, 2012 and is receiving a retirement annuity or
25retirement pension under that system or fund and accepts on a
26contractual basis a position to provide services to a

 

 

HB5449- 15 -LRB103 38496 RPS 68632 b

1governmental entity from which he or she has retired, then
2that person's annuity or retirement pension earned as an
3active employee of the employer shall be suspended during that
4contractual service. A person receiving an annuity or
5retirement pension under this Code shall notify the pension
6fund or retirement system from which he or she is receiving an
7annuity or retirement pension, as well as his or her
8contractual employer, of his or her retirement status before
9accepting contractual employment. A person who fails to submit
10such notification shall be guilty of a Class A misdemeanor and
11required to pay a fine of $1,000. Upon termination of that
12contractual employment, the person's retirement annuity or
13retirement pension payments shall resume and, if appropriate,
14be recalculated under the applicable provisions of this Code.
15    (i) (Blank).
16    (j) In the case of a conflict between the provisions of
17this Section and any other provision of this Code, the
18provisions of this Section shall control.
19(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
20102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
215-6-22.)
 
22    (Text of Section from P.A. 102-813)
23    Sec. 1-160. Provisions applicable to new hires.
24    (a) The provisions of this Section apply to a person who,
25on or after January 1, 2011, first becomes a member or a

 

 

HB5449- 16 -LRB103 38496 RPS 68632 b

1participant under any reciprocal retirement system or pension
2fund established under this Code, other than a retirement
3system or pension fund established under Article 2, 3, 4, 5, 6,
47, 15, or 18 of this Code, notwithstanding any other provision
5of this Code to the contrary, but do not apply to any
6self-managed plan established under this Code or to any
7participant of the retirement plan established under Section
822-101; except that this Section applies to a person who
9elected to establish alternative credits by electing in
10writing after January 1, 2011, but before August 8, 2011,
11under Section 7-145.1 of this Code. Notwithstanding anything
12to the contrary in this Section, for purposes of this Section,
13a person who is a Tier 1 regular employee as defined in Section
147-109.4 of this Code or who participated in a retirement
15system under Article 15 prior to January 1, 2011 shall be
16deemed a person who first became a member or participant prior
17to January 1, 2011 under any retirement system or pension fund
18subject to this Section. The changes made to this Section by
19Public Act 98-596 are a clarification of existing law and are
20intended to be retroactive to January 1, 2011 (the effective
21date of Public Act 96-889), notwithstanding the provisions of
22Section 1-103.1 of this Code.
23    This Section does not apply to a person who first becomes a
24noncovered employee under Article 14 on or after the
25implementation date of the plan created under Section 1-161
26for that Article, unless that person elects under subsection

 

 

HB5449- 17 -LRB103 38496 RPS 68632 b

1(b) of Section 1-161 to instead receive the benefits provided
2under this Section and the applicable provisions of that
3Article.
4    This Section does not apply to a person who first becomes a
5member or participant under Article 16 on or after the
6implementation date of the plan created under Section 1-161
7for that Article, unless that person elects under subsection
8(b) of Section 1-161 to instead receive the benefits provided
9under this Section and the applicable provisions of that
10Article.
11    This Section does not apply to a person who elects under
12subsection (c-5) of Section 1-161 to receive the benefits
13under Section 1-161.
14    This Section does not apply to a person who first becomes a
15member or participant of an affected pension fund on or after 6
16months after the resolution or ordinance date, as defined in
17Section 1-162, unless that person elects under subsection (c)
18of Section 1-162 to receive the benefits provided under this
19Section and the applicable provisions of the Article under
20which he or she is a member or participant.
21    (b) "Final average salary" means, except as otherwise
22provided in this subsection, the average monthly (or annual)
23salary obtained by dividing the total salary or earnings
24calculated under the Article applicable to the member or
25participant during the 96 consecutive months (or 8 consecutive
26years) of service within the last 120 months (or 10 years) of

 

 

HB5449- 18 -LRB103 38496 RPS 68632 b

1service in which the total salary or earnings calculated under
2the applicable Article was the highest by the number of months
3(or years) of service in that period. For the purposes of a
4person who first becomes a member or participant of any
5retirement system or pension fund to which this Section
6applies on or after January 1, 2011, in this Code, "final
7average salary" shall be substituted for the following:
8        (1) (Blank).
9        (2) In Articles 8, 9, 10, 11, and 12, "highest average
10    annual salary for any 4 consecutive years within the last
11    10 years of service immediately preceding the date of
12    withdrawal".
13        (3) In Article 13, "average final salary".
14        (4) In Article 14, "final average compensation".
15        (5) In Article 17, "average salary".
16        (6) In Section 22-207, "wages or salary received by
17    him at the date of retirement or discharge".
18    A member of the Teachers' Retirement System of the State
19of Illinois who retires on or after June 1, 2021 and for whom
20the 2020-2021 school year is used in the calculation of the
21member's final average salary shall use the higher of the
22following for the purpose of determining the member's final
23average salary:
24        (A) the amount otherwise calculated under the first
25    paragraph of this subsection; or
26        (B) an amount calculated by the Teachers' Retirement

 

 

HB5449- 19 -LRB103 38496 RPS 68632 b

1    System of the State of Illinois using the average of the
2    monthly (or annual) salary obtained by dividing the total
3    salary or earnings calculated under Article 16 applicable
4    to the member or participant during the 96 months (or 8
5    years) of service within the last 120 months (or 10 years)
6    of service in which the total salary or earnings
7    calculated under the Article was the highest by the number
8    of months (or years) of service in that period.
9    (b-5) Beginning on January 1, 2011, for all purposes under
10this Code (including without limitation the calculation of
11benefits and employee contributions), the annual earnings,
12salary, or wages (based on the plan year) of a member or
13participant to whom this Section applies shall not exceed
14$106,800; however, that amount shall annually thereafter be
15increased by the lesser of (i) 3% of that amount, including all
16previous adjustments, or (ii) one-half the annual unadjusted
17percentage increase (but not less than zero) in the consumer
18price index-u for the 12 months ending with the September
19preceding each November 1, including all previous adjustments.
20    For the purposes of this Section, "consumer price index-u"
21means the index published by the Bureau of Labor Statistics of
22the United States Department of Labor that measures the
23average change in prices of goods and services purchased by
24all urban consumers, United States city average, all items,
251982-84 = 100. The new amount resulting from each annual
26adjustment shall be determined by the Public Pension Division

 

 

HB5449- 20 -LRB103 38496 RPS 68632 b

1of the Department of Insurance and made available to the
2boards of the retirement systems and pension funds by November
31 of each year.
4    (b-10) Beginning on January 1, 2024, for all purposes
5under this Code (including, without limitation, the
6calculation of benefits and employee contributions), the
7annual earnings, salary, or wages (based on the plan year) of a
8member or participant under Article 9 to whom this Section
9applies shall include an annual earnings, salary, or wage cap
10that tracks the Social Security wage base. Maximum annual
11earnings, wages, or salary shall be the annual contribution
12and benefit base established for the applicable year by the
13Commissioner of the Social Security Administration under the
14federal Social Security Act.
15    However, in no event shall the annual earnings, salary, or
16wages for the purposes of this Article and Article 9 exceed any
17limitation imposed on annual earnings, salary, or wages under
18Section 1-117. Under no circumstances shall the maximum amount
19of annual earnings, salary, or wages be greater than the
20amount set forth in this subsection (b-10) as a result of
21reciprocal service or any provisions regarding reciprocal
22services, nor shall the Fund under Article 9 be required to pay
23any refund as a result of the application of this maximum
24annual earnings, salary, and wage cap.
25    Nothing in this subsection (b-10) shall cause or otherwise
26result in any retroactive adjustment of any employee

 

 

HB5449- 21 -LRB103 38496 RPS 68632 b

1contributions. Nothing in this subsection (b-10) shall cause
2or otherwise result in any retroactive adjustment of
3disability or other payments made between January 1, 2011 and
4January 1, 2024.
5    (c) A member or participant is entitled to a retirement
6annuity upon written application if he or she has attained age
767 (age 65, with respect to service under Article 12 that is
8subject to this Section, for a member or participant under
9Article 12 who first becomes a member or participant under
10Article 12 on or after January 1, 2022 or who makes the
11election under item (i) of subsection (d-15) of this Section)
12and has at least 10 years of service credit and is otherwise
13eligible under the requirements of the applicable Article.
14    A member or participant who has attained age 62 (age 60,
15with respect to service under Article 12 that is subject to
16this Section, for a member or participant under Article 12 who
17first becomes a member or participant under Article 12 on or
18after January 1, 2022 or who makes the election under item (i)
19of subsection (d-15) of this Section) and has at least 10 years
20of service credit and is otherwise eligible under the
21requirements of the applicable Article may elect to receive
22the lower retirement annuity provided in subsection (d) of
23this Section.
24    (c-5) A person who first becomes a member or a participant
25subject to this Section on or after July 6, 2017 (the effective
26date of Public Act 100-23), notwithstanding any other

 

 

HB5449- 22 -LRB103 38496 RPS 68632 b

1provision of this Code to the contrary, is entitled to a
2retirement annuity under Article 8 or Article 11 upon written
3application if he or she has attained age 65 and has at least
410 years of service credit and is otherwise eligible under the
5requirements of Article 8 or Article 11 of this Code,
6whichever is applicable.
7    (d) The retirement annuity of a member or participant who
8is retiring after attaining age 62 (age 60, with respect to
9service under Article 12 that is subject to this Section, for a
10member or participant under Article 12 who first becomes a
11member or participant under Article 12 on or after January 1,
122022 or who makes the election under item (i) of subsection
13(d-15) of this Section) with at least 10 years of service
14credit shall be reduced by one-half of 1% for each full month
15that the member's age is under age 67 (age 65, with respect to
16service under Article 12 that is subject to this Section, for a
17member or participant under Article 12 who first becomes a
18member or participant under Article 12 on or after January 1,
192022 or who makes the election under item (i) of subsection
20(d-15) of this Section).
21    (d-5) The retirement annuity payable under Article 8 or
22Article 11 to an eligible person subject to subsection (c-5)
23of this Section who is retiring at age 60 with at least 10
24years of service credit shall be reduced by one-half of 1% for
25each full month that the member's age is under age 65.
26    (d-10) Each person who first became a member or

 

 

HB5449- 23 -LRB103 38496 RPS 68632 b

1participant under Article 8 or Article 11 of this Code on or
2after January 1, 2011 and prior to July 6, 2017 (the effective
3date of Public Act 100-23) shall make an irrevocable election
4either:
5        (i) to be eligible for the reduced retirement age
6    provided in subsections (c-5) and (d-5) of this Section,
7    the eligibility for which is conditioned upon the member
8    or participant agreeing to the increases in employee
9    contributions for age and service annuities provided in
10    subsection (a-5) of Section 8-174 of this Code (for
11    service under Article 8) or subsection (a-5) of Section
12    11-170 of this Code (for service under Article 11); or
13        (ii) to not agree to item (i) of this subsection
14    (d-10), in which case the member or participant shall
15    continue to be subject to the retirement age provisions in
16    subsections (c) and (d) of this Section and the employee
17    contributions for age and service annuity as provided in
18    subsection (a) of Section 8-174 of this Code (for service
19    under Article 8) or subsection (a) of Section 11-170 of
20    this Code (for service under Article 11).
21    The election provided for in this subsection shall be made
22between October 1, 2017 and November 15, 2017. A person
23subject to this subsection who makes the required election
24shall remain bound by that election. A person subject to this
25subsection who fails for any reason to make the required
26election within the time specified in this subsection shall be

 

 

HB5449- 24 -LRB103 38496 RPS 68632 b

1deemed to have made the election under item (ii).
2    (d-15) Each person who first becomes a member or
3participant under Article 12 on or after January 1, 2011 and
4prior to January 1, 2022 shall make an irrevocable election
5either:
6        (i) to be eligible for the reduced retirement age
7    specified in subsections (c) and (d) of this Section, the
8    eligibility for which is conditioned upon the member or
9    participant agreeing to the increase in employee
10    contributions for service annuities specified in
11    subsection (b) of Section 12-150; or
12        (ii) to not agree to item (i) of this subsection
13    (d-15), in which case the member or participant shall not
14    be eligible for the reduced retirement age specified in
15    subsections (c) and (d) of this Section and shall not be
16    subject to the increase in employee contributions for
17    service annuities specified in subsection (b) of Section
18    12-150.
19    The election provided for in this subsection shall be made
20between January 1, 2022 and April 1, 2022. A person subject to
21this subsection who makes the required election shall remain
22bound by that election. A person subject to this subsection
23who fails for any reason to make the required election within
24the time specified in this subsection shall be deemed to have
25made the election under item (ii).
26    (e) Any retirement annuity or supplemental annuity shall

 

 

HB5449- 25 -LRB103 38496 RPS 68632 b

1be subject to annual increases on the January 1 occurring
2either on or after the attainment of age 67 (age 65, with
3respect to service under Article 12 that is subject to this
4Section, for a member or participant under Article 12 who
5first becomes a member or participant under Article 12 on or
6after January 1, 2022 or who makes the election under item (i)
7of subsection (d-15); and beginning on July 6, 2017 (the
8effective date of Public Act 100-23), age 65 with respect to
9service under Article 8 or Article 11 for eligible persons
10who: (i) are subject to subsection (c-5) of this Section; or
11(ii) made the election under item (i) of subsection (d-10) of
12this Section) or the first anniversary of the annuity start
13date, whichever is later. Each annual increase shall be
14calculated at 3% or one-half the annual unadjusted percentage
15increase (but not less than zero) in the consumer price
16index-u for the 12 months ending with the September preceding
17each November 1, whichever is less, of the originally granted
18retirement annuity. If the annual unadjusted percentage change
19in the consumer price index-u for the 12 months ending with the
20September preceding each November 1 is zero or there is a
21decrease, then the annuity shall not be increased.
22    For the purposes of Section 1-103.1 of this Code, the
23changes made to this Section by Public Act 102-263 are
24applicable without regard to whether the employee was in
25active service on or after August 6, 2021 (the effective date
26of Public Act 102-263).

 

 

HB5449- 26 -LRB103 38496 RPS 68632 b

1    For the purposes of Section 1-103.1 of this Code, the
2changes made to this Section by Public Act 100-23 are
3applicable without regard to whether the employee was in
4active service on or after July 6, 2017 (the effective date of
5Public Act 100-23).
6    (f) The initial survivor's or widow's annuity of an
7otherwise eligible survivor or widow of a retired member or
8participant who first became a member or participant on or
9after January 1, 2011 shall be in the amount of 66 2/3% of the
10retired member's or participant's retirement annuity at the
11date of death. In the case of the death of a member or
12participant who has not retired and who first became a member
13or participant on or after January 1, 2011, eligibility for a
14survivor's or widow's annuity shall be determined by the
15applicable Article of this Code. The initial benefit shall be
1666 2/3% of the earned annuity without a reduction due to age. A
17child's annuity of an otherwise eligible child shall be in the
18amount prescribed under each Article if applicable. Any
19survivor's or widow's annuity shall be increased (1) on each
20January 1 occurring on or after the commencement of the
21annuity if the deceased member died while receiving a
22retirement annuity or (2) in other cases, on each January 1
23occurring after the first anniversary of the commencement of
24the annuity. Each annual increase shall be calculated at 3% or
25one-half the annual unadjusted percentage increase (but not
26less than zero) in the consumer price index-u for the 12 months

 

 

HB5449- 27 -LRB103 38496 RPS 68632 b

1ending with the September preceding each November 1, whichever
2is less, of the originally granted survivor's annuity. If the
3annual unadjusted percentage change in the consumer price
4index-u for the 12 months ending with the September preceding
5each November 1 is zero or there is a decrease, then the
6annuity shall not be increased.
7    (g) The benefits in Section 14-110 apply only if the
8person is a State policeman, a fire fighter in the fire
9protection service of a department, a conservation police
10officer, an investigator for the Secretary of State, an arson
11investigator, a Commerce Commission police officer,
12investigator for the Department of Revenue or the Illinois
13Gaming Board, a security employee of the Department of
14Corrections or the Department of Juvenile Justice, or a
15security employee of the Department of Innovation and
16Technology, as those terms are defined in subsection (b) and
17subsection (c) of Section 14-110. A person who meets the
18requirements of this Section is entitled to an annuity
19calculated under the provisions of Section 14-110, in lieu of
20the regular or minimum retirement annuity, only if the person
21has withdrawn from service with not less than 20 years of
22eligible creditable service and has attained age 60,
23regardless of whether the attainment of age 60 occurs while
24the person is still in service.
25    (g-1) The benefits in Section 14-110 apply if the person
26is a security employee of the Department of Human Services, a

 

 

HB5449- 28 -LRB103 38496 RPS 68632 b

1security employee of the Department of Corrections or the
2Department of Juvenile Justice, or an investigator for the
3Department of the Lottery, as those terms are defined in
4subsection (b) and subsection (c) of Section 14-110. A person
5who meets the requirements of this Section is entitled to an
6annuity calculated under the provisions of Section 14-110, in
7lieu of the regular or minimum retirement annuity, only if the
8person has withdrawn from service with not less than 20 years
9of eligible creditable service and has attained age 55,
10regardless of whether the attainment of age 55 occurs while
11the person is still in service.
12    (h) If a person who first becomes a member or a participant
13of a retirement system or pension fund subject to this Section
14on or after January 1, 2011 is receiving a retirement annuity
15or retirement pension under that system or fund and becomes a
16member or participant under any other system or fund created
17by this Code and is employed on a full-time basis, except for
18those members or participants exempted from the provisions of
19this Section under subsection (a) of this Section, then the
20person's retirement annuity or retirement pension under that
21system or fund shall be suspended during that employment. Upon
22termination of that employment, the person's retirement
23annuity or retirement pension payments shall resume and be
24recalculated if recalculation is provided for under the
25applicable Article of this Code.
26    If a person who first becomes a member of a retirement

 

 

HB5449- 29 -LRB103 38496 RPS 68632 b

1system or pension fund subject to this Section on or after
2January 1, 2012 and is receiving a retirement annuity or
3retirement pension under that system or fund and accepts on a
4contractual basis a position to provide services to a
5governmental entity from which he or she has retired, then
6that person's annuity or retirement pension earned as an
7active employee of the employer shall be suspended during that
8contractual service. A person receiving an annuity or
9retirement pension under this Code shall notify the pension
10fund or retirement system from which he or she is receiving an
11annuity or retirement pension, as well as his or her
12contractual employer, of his or her retirement status before
13accepting contractual employment. A person who fails to submit
14such notification shall be guilty of a Class A misdemeanor and
15required to pay a fine of $1,000. Upon termination of that
16contractual employment, the person's retirement annuity or
17retirement pension payments shall resume and, if appropriate,
18be recalculated under the applicable provisions of this Code.
19    (i) (Blank).
20    (j) In the case of a conflict between the provisions of
21this Section and any other provision of this Code, the
22provisions of this Section shall control.
23(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
24102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
255-13-22.)
 

 

 

HB5449- 30 -LRB103 38496 RPS 68632 b

1    (Text of Section from P.A. 102-956)
2    Sec. 1-160. Provisions applicable to new hires.
3    (a) The provisions of this Section apply to a person who,
4on or after January 1, 2011, first becomes a member or a
5participant under any reciprocal retirement system or pension
6fund established under this Code, other than a retirement
7system or pension fund established under Article 2, 3, 4, 5, 6,
87, 15, or 18 of this Code, notwithstanding any other provision
9of this Code to the contrary, but do not apply to any
10self-managed plan established under this Code or to any
11participant of the retirement plan established under Section
1222-101; except that this Section applies to a person who
13elected to establish alternative credits by electing in
14writing after January 1, 2011, but before August 8, 2011,
15under Section 7-145.1 of this Code. Notwithstanding anything
16to the contrary in this Section, for purposes of this Section,
17a person who is a Tier 1 regular employee as defined in Section
187-109.4 of this Code or who participated in a retirement
19system under Article 15 prior to January 1, 2011 shall be
20deemed a person who first became a member or participant prior
21to January 1, 2011 under any retirement system or pension fund
22subject to this Section. The changes made to this Section by
23Public Act 98-596 are a clarification of existing law and are
24intended to be retroactive to January 1, 2011 (the effective
25date of Public Act 96-889), notwithstanding the provisions of
26Section 1-103.1 of this Code.

 

 

HB5449- 31 -LRB103 38496 RPS 68632 b

1    This Section does not apply to a person who first becomes a
2noncovered employee under Article 14 on or after the
3implementation date of the plan created under Section 1-161
4for that Article, unless that person elects under subsection
5(b) of Section 1-161 to instead receive the benefits provided
6under this Section and the applicable provisions of that
7Article.
8    This Section does not apply to a person who first becomes a
9member or participant under Article 16 on or after the
10implementation date of the plan created under Section 1-161
11for that Article, unless that person elects under subsection
12(b) of Section 1-161 to instead receive the benefits provided
13under this Section and the applicable provisions of that
14Article.
15    This Section does not apply to a person who elects under
16subsection (c-5) of Section 1-161 to receive the benefits
17under Section 1-161.
18    This Section does not apply to a person who first becomes a
19member or participant of an affected pension fund on or after 6
20months after the resolution or ordinance date, as defined in
21Section 1-162, unless that person elects under subsection (c)
22of Section 1-162 to receive the benefits provided under this
23Section and the applicable provisions of the Article under
24which he or she is a member or participant.
25    (b) "Final average salary" means, except as otherwise
26provided in this subsection, the average monthly (or annual)

 

 

HB5449- 32 -LRB103 38496 RPS 68632 b

1salary obtained by dividing the total salary or earnings
2calculated under the Article applicable to the member or
3participant during the 96 consecutive months (or 8 consecutive
4years) of service within the last 120 months (or 10 years) of
5service in which the total salary or earnings calculated under
6the applicable Article was the highest by the number of months
7(or years) of service in that period. For the purposes of a
8person who first becomes a member or participant of any
9retirement system or pension fund to which this Section
10applies on or after January 1, 2011, in this Code, "final
11average salary" shall be substituted for the following:
12        (1) (Blank).
13        (2) In Articles 8, 9, 10, 11, and 12, "highest average
14    annual salary for any 4 consecutive years within the last
15    10 years of service immediately preceding the date of
16    withdrawal".
17        (3) In Article 13, "average final salary".
18        (4) In Article 14, "final average compensation".
19        (5) In Article 17, "average salary".
20        (6) In Section 22-207, "wages or salary received by
21    him at the date of retirement or discharge".
22    A member of the Teachers' Retirement System of the State
23of Illinois who retires on or after June 1, 2021 and for whom
24the 2020-2021 school year is used in the calculation of the
25member's final average salary shall use the higher of the
26following for the purpose of determining the member's final

 

 

HB5449- 33 -LRB103 38496 RPS 68632 b

1average salary:
2        (A) the amount otherwise calculated under the first
3    paragraph of this subsection; or
4        (B) an amount calculated by the Teachers' Retirement
5    System of the State of Illinois using the average of the
6    monthly (or annual) salary obtained by dividing the total
7    salary or earnings calculated under Article 16 applicable
8    to the member or participant during the 96 months (or 8
9    years) of service within the last 120 months (or 10 years)
10    of service in which the total salary or earnings
11    calculated under the Article was the highest by the number
12    of months (or years) of service in that period.
13    (b-5) Beginning on January 1, 2011, for all purposes under
14this Code (including without limitation the calculation of
15benefits and employee contributions), the annual earnings,
16salary, or wages (based on the plan year) of a member or
17participant to whom this Section applies shall not exceed
18$106,800; however, that amount shall annually thereafter be
19increased by the lesser of (i) 3% of that amount, including all
20previous adjustments, or (ii) one-half the annual unadjusted
21percentage increase (but not less than zero) in the consumer
22price index-u for the 12 months ending with the September
23preceding each November 1, including all previous adjustments.
24    For the purposes of this Section, "consumer price index-u"
25means the index published by the Bureau of Labor Statistics of
26the United States Department of Labor that measures the

 

 

HB5449- 34 -LRB103 38496 RPS 68632 b

1average change in prices of goods and services purchased by
2all urban consumers, United States city average, all items,
31982-84 = 100. The new amount resulting from each annual
4adjustment shall be determined by the Public Pension Division
5of the Department of Insurance and made available to the
6boards of the retirement systems and pension funds by November
71 of each year.
8    (b-10) Beginning on January 1, 2024, for all purposes
9under this Code (including, without limitation, the
10calculation of benefits and employee contributions), the
11annual earnings, salary, or wages (based on the plan year) of a
12member or participant under Article 9 to whom this Section
13applies shall include an annual earnings, salary, or wage cap
14that tracks the Social Security wage base. Maximum annual
15earnings, wages, or salary shall be the annual contribution
16and benefit base established for the applicable year by the
17Commissioner of the Social Security Administration under the
18federal Social Security Act.
19    However, in no event shall the annual earnings, salary, or
20wages for the purposes of this Article and Article 9 exceed any
21limitation imposed on annual earnings, salary, or wages under
22Section 1-117. Under no circumstances shall the maximum amount
23of annual earnings, salary, or wages be greater than the
24amount set forth in this subsection (b-10) as a result of
25reciprocal service or any provisions regarding reciprocal
26services, nor shall the Fund under Article 9 be required to pay

 

 

HB5449- 35 -LRB103 38496 RPS 68632 b

1any refund as a result of the application of this maximum
2annual earnings, salary, and wage cap.
3    Nothing in this subsection (b-10) shall cause or otherwise
4result in any retroactive adjustment of any employee
5contributions. Nothing in this subsection (b-10) shall cause
6or otherwise result in any retroactive adjustment of
7disability or other payments made between January 1, 2011 and
8January 1, 2024.
9    (c) A member or participant is entitled to a retirement
10annuity upon written application if he or she has attained age
1167 (age 65, with respect to service under Article 12 that is
12subject to this Section, for a member or participant under
13Article 12 who first becomes a member or participant under
14Article 12 on or after January 1, 2022 or who makes the
15election under item (i) of subsection (d-15) of this Section)
16and has at least 10 years of service credit and is otherwise
17eligible under the requirements of the applicable Article.
18    A member or participant who has attained age 62 (age 60,
19with respect to service under Article 12 that is subject to
20this Section, for a member or participant under Article 12 who
21first becomes a member or participant under Article 12 on or
22after January 1, 2022 or who makes the election under item (i)
23of subsection (d-15) of this Section) and has at least 10 years
24of service credit and is otherwise eligible under the
25requirements of the applicable Article may elect to receive
26the lower retirement annuity provided in subsection (d) of

 

 

HB5449- 36 -LRB103 38496 RPS 68632 b

1this Section.
2    (c-5) A person who first becomes a member or a participant
3subject to this Section on or after July 6, 2017 (the effective
4date of Public Act 100-23), notwithstanding any other
5provision of this Code to the contrary, is entitled to a
6retirement annuity under Article 8 or Article 11 upon written
7application if he or she has attained age 65 and has at least
810 years of service credit and is otherwise eligible under the
9requirements of Article 8 or Article 11 of this Code,
10whichever is applicable.
11    (d) The retirement annuity of a member or participant who
12is retiring after attaining age 62 (age 60, with respect to
13service under Article 12 that is subject to this Section, for a
14member or participant under Article 12 who first becomes a
15member or participant under Article 12 on or after January 1,
162022 or who makes the election under item (i) of subsection
17(d-15) of this Section) with at least 10 years of service
18credit shall be reduced by one-half of 1% for each full month
19that the member's age is under age 67 (age 65, with respect to
20service under Article 12 that is subject to this Section, for a
21member or participant under Article 12 who first becomes a
22member or participant under Article 12 on or after January 1,
232022 or who makes the election under item (i) of subsection
24(d-15) of this Section).
25    (d-5) The retirement annuity payable under Article 8 or
26Article 11 to an eligible person subject to subsection (c-5)

 

 

HB5449- 37 -LRB103 38496 RPS 68632 b

1of this Section who is retiring at age 60 with at least 10
2years of service credit shall be reduced by one-half of 1% for
3each full month that the member's age is under age 65.
4    (d-10) Each person who first became a member or
5participant under Article 8 or Article 11 of this Code on or
6after January 1, 2011 and prior to July 6, 2017 (the effective
7date of Public Act 100-23) shall make an irrevocable election
8either:
9        (i) to be eligible for the reduced retirement age
10    provided in subsections (c-5) and (d-5) of this Section,
11    the eligibility for which is conditioned upon the member
12    or participant agreeing to the increases in employee
13    contributions for age and service annuities provided in
14    subsection (a-5) of Section 8-174 of this Code (for
15    service under Article 8) or subsection (a-5) of Section
16    11-170 of this Code (for service under Article 11); or
17        (ii) to not agree to item (i) of this subsection
18    (d-10), in which case the member or participant shall
19    continue to be subject to the retirement age provisions in
20    subsections (c) and (d) of this Section and the employee
21    contributions for age and service annuity as provided in
22    subsection (a) of Section 8-174 of this Code (for service
23    under Article 8) or subsection (a) of Section 11-170 of
24    this Code (for service under Article 11).
25    The election provided for in this subsection shall be made
26between October 1, 2017 and November 15, 2017. A person

 

 

HB5449- 38 -LRB103 38496 RPS 68632 b

1subject to this subsection who makes the required election
2shall remain bound by that election. A person subject to this
3subsection who fails for any reason to make the required
4election within the time specified in this subsection shall be
5deemed to have made the election under item (ii).
6    (d-15) Each person who first becomes a member or
7participant under Article 12 on or after January 1, 2011 and
8prior to January 1, 2022 shall make an irrevocable election
9either:
10        (i) to be eligible for the reduced retirement age
11    specified in subsections (c) and (d) of this Section, the
12    eligibility for which is conditioned upon the member or
13    participant agreeing to the increase in employee
14    contributions for service annuities specified in
15    subsection (b) of Section 12-150; or
16        (ii) to not agree to item (i) of this subsection
17    (d-15), in which case the member or participant shall not
18    be eligible for the reduced retirement age specified in
19    subsections (c) and (d) of this Section and shall not be
20    subject to the increase in employee contributions for
21    service annuities specified in subsection (b) of Section
22    12-150.
23    The election provided for in this subsection shall be made
24between January 1, 2022 and April 1, 2022. A person subject to
25this subsection who makes the required election shall remain
26bound by that election. A person subject to this subsection

 

 

HB5449- 39 -LRB103 38496 RPS 68632 b

1who fails for any reason to make the required election within
2the time specified in this subsection shall be deemed to have
3made the election under item (ii).
4    (e) Any retirement annuity or supplemental annuity shall
5be subject to annual increases on the January 1 occurring
6either on or after the attainment of age 67 (age 65, with
7respect to service under Article 12 that is subject to this
8Section, for a member or participant under Article 12 who
9first becomes a member or participant under Article 12 on or
10after January 1, 2022 or who makes the election under item (i)
11of subsection (d-15); and beginning on July 6, 2017 (the
12effective date of Public Act 100-23), age 65 with respect to
13service under Article 8 or Article 11 for eligible persons
14who: (i) are subject to subsection (c-5) of this Section; or
15(ii) made the election under item (i) of subsection (d-10) of
16this Section) or the first anniversary of the annuity start
17date, whichever is later. Each annual increase shall be
18calculated at 3% or one-half the annual unadjusted percentage
19increase (but not less than zero) in the consumer price
20index-u for the 12 months ending with the September preceding
21each November 1, whichever is less, of the originally granted
22retirement annuity. If the annual unadjusted percentage change
23in the consumer price index-u for the 12 months ending with the
24September preceding each November 1 is zero or there is a
25decrease, then the annuity shall not be increased.
26    For the purposes of Section 1-103.1 of this Code, the

 

 

HB5449- 40 -LRB103 38496 RPS 68632 b

1changes made to this Section by Public Act 102-263 are
2applicable without regard to whether the employee was in
3active service on or after August 6, 2021 (the effective date
4of Public Act 102-263).
5    For the purposes of Section 1-103.1 of this Code, the
6changes made to this Section by Public Act 100-23 are
7applicable without regard to whether the employee was in
8active service on or after July 6, 2017 (the effective date of
9Public Act 100-23).
10    (f) The initial survivor's or widow's annuity of an
11otherwise eligible survivor or widow of a retired member or
12participant who first became a member or participant on or
13after January 1, 2011 shall be in the amount of 66 2/3% of the
14retired member's or participant's retirement annuity at the
15date of death. In the case of the death of a member or
16participant who has not retired and who first became a member
17or participant on or after January 1, 2011, eligibility for a
18survivor's or widow's annuity shall be determined by the
19applicable Article of this Code. The initial benefit shall be
2066 2/3% of the earned annuity without a reduction due to age. A
21child's annuity of an otherwise eligible child shall be in the
22amount prescribed under each Article if applicable. Any
23survivor's or widow's annuity shall be increased (1) on each
24January 1 occurring on or after the commencement of the
25annuity if the deceased member died while receiving a
26retirement annuity or (2) in other cases, on each January 1

 

 

HB5449- 41 -LRB103 38496 RPS 68632 b

1occurring after the first anniversary of the commencement of
2the annuity. Each annual increase shall be calculated at 3% or
3one-half the annual unadjusted percentage increase (but not
4less than zero) in the consumer price index-u for the 12 months
5ending with the September preceding each November 1, whichever
6is less, of the originally granted survivor's annuity. If the
7annual unadjusted percentage change in the consumer price
8index-u for the 12 months ending with the September preceding
9each November 1 is zero or there is a decrease, then the
10annuity shall not be increased.
11    (g) The benefits in Section 14-110 apply only if the
12person is a State policeman, a fire fighter in the fire
13protection service of a department, a conservation police
14officer, an investigator for the Secretary of State, an
15investigator for the Office of the Attorney General, an arson
16investigator, a Commerce Commission police officer,
17investigator for the Department of Revenue or the Illinois
18Gaming Board, a security employee of the Department of
19Corrections or the Department of Juvenile Justice, or a
20security employee of the Department of Innovation and
21Technology, as those terms are defined in subsection (b) and
22subsection (c) of Section 14-110. A person who meets the
23requirements of this Section is entitled to an annuity
24calculated under the provisions of Section 14-110, in lieu of
25the regular or minimum retirement annuity, only if the person
26has withdrawn from service with not less than 20 years of

 

 

HB5449- 42 -LRB103 38496 RPS 68632 b

1eligible creditable service and has attained age 60,
2regardless of whether the attainment of age 60 occurs while
3the person is still in service.
4    (g-1) The benefits in Section 14-110 apply if the person
5is a security employee of the Department of Human Services, a
6security employee of the Department of Corrections or the
7Department of Juvenile Justice, or an investigator for the
8Department of the Lottery, as those terms are defined in
9subsection (b) and subsection (c) of Section 14-110. A person
10who meets the requirements of this Section is entitled to an
11annuity calculated under the provisions of Section 14-110, in
12lieu of the regular or minimum retirement annuity, only if the
13person has withdrawn from service with not less than 20 years
14of eligible creditable service and has attained age 55,
15regardless of whether the attainment of age 55 occurs while
16the person is still in service.
17    (h) If a person who first becomes a member or a participant
18of a retirement system or pension fund subject to this Section
19on or after January 1, 2011 is receiving a retirement annuity
20or retirement pension under that system or fund and becomes a
21member or participant under any other system or fund created
22by this Code and is employed on a full-time basis, except for
23those members or participants exempted from the provisions of
24this Section under subsection (a) of this Section, then the
25person's retirement annuity or retirement pension under that
26system or fund shall be suspended during that employment. Upon

 

 

HB5449- 43 -LRB103 38496 RPS 68632 b

1termination of that employment, the person's retirement
2annuity or retirement pension payments shall resume and be
3recalculated if recalculation is provided for under the
4applicable Article of this Code.
5    If a person who first becomes a member of a retirement
6system or pension fund subject to this Section on or after
7January 1, 2012 and is receiving a retirement annuity or
8retirement pension under that system or fund and accepts on a
9contractual basis a position to provide services to a
10governmental entity from which he or she has retired, then
11that person's annuity or retirement pension earned as an
12active employee of the employer shall be suspended during that
13contractual service. A person receiving an annuity or
14retirement pension under this Code shall notify the pension
15fund or retirement system from which he or she is receiving an
16annuity or retirement pension, as well as his or her
17contractual employer, of his or her retirement status before
18accepting contractual employment. A person who fails to submit
19such notification shall be guilty of a Class A misdemeanor and
20required to pay a fine of $1,000. Upon termination of that
21contractual employment, the person's retirement annuity or
22retirement pension payments shall resume and, if appropriate,
23be recalculated under the applicable provisions of this Code.
24    (i) (Blank).
25    (j) In the case of a conflict between the provisions of
26this Section and any other provision of this Code, the

 

 

HB5449- 44 -LRB103 38496 RPS 68632 b

1provisions of this Section shall control.
2(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
3102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
48-11-23.)
 
5    (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
6    (Text of Section from P.A. 102-813 and 103-34)
7    Sec. 14-110. Alternative retirement annuity.
8    (a) Any member who has withdrawn from service with not
9less than 20 years of eligible creditable service and has
10attained age 55, and any member who has withdrawn from service
11with not less than 25 years of eligible creditable service and
12has attained age 50, regardless of whether the attainment of
13either of the specified ages occurs while the member is still
14in service, shall be entitled to receive at the option of the
15member, in lieu of the regular or minimum retirement annuity,
16a retirement annuity computed as follows:
17        (i) for periods of service as a noncovered employee:
18    if retirement occurs on or after January 1, 2001, 3% of
19    final average compensation for each year of creditable
20    service; if retirement occurs before January 1, 2001, 2
21    1/4% of final average compensation for each of the first
22    10 years of creditable service, 2 1/2% for each year above
23    10 years to and including 20 years of creditable service,
24    and 2 3/4% for each year of creditable service above 20
25    years; and

 

 

HB5449- 45 -LRB103 38496 RPS 68632 b

1        (ii) for periods of eligible creditable service as a
2    covered employee: if retirement occurs on or after January
3    1, 2001, 2.5% of final average compensation for each year
4    of creditable service; if retirement occurs before January
5    1, 2001, 1.67% of final average compensation for each of
6    the first 10 years of such service, 1.90% for each of the
7    next 10 years of such service, 2.10% for each year of such
8    service in excess of 20 but not exceeding 30, and 2.30% for
9    each year in excess of 30.
10    Such annuity shall be subject to a maximum of 75% of final
11average compensation if retirement occurs before January 1,
122001 or to a maximum of 80% of final average compensation if
13retirement occurs on or after January 1, 2001.
14    These rates shall not be applicable to any service
15performed by a member as a covered employee which is not
16eligible creditable service. Service as a covered employee
17which is not eligible creditable service shall be subject to
18the rates and provisions of Section 14-108.
19    (b) For the purpose of this Section, "eligible creditable
20service" means creditable service resulting from service in
21one or more of the following positions:
22        (1) State policeman;
23        (2) fire fighter in the fire protection service of a
24    department;
25        (3) air pilot;
26        (4) special agent;

 

 

HB5449- 46 -LRB103 38496 RPS 68632 b

1        (5) investigator for the Secretary of State;
2        (6) conservation police officer;
3        (7) investigator for the Department of Revenue or the
4    Illinois Gaming Board;
5        (8) security employee of the Department of Human
6    Services;
7        (9) Central Management Services security police
8    officer;
9        (10) security employee of the Department of
10    Corrections or the Department of Juvenile Justice;
11        (11) dangerous drugs investigator;
12        (12) investigator for the Illinois State Police;
13        (13) investigator for the Office of the Attorney
14    General;
15        (14) controlled substance inspector;
16        (15) investigator for the Office of the State's
17    Attorneys Appellate Prosecutor;
18        (16) Commerce Commission police officer;
19        (17) arson investigator;
20        (18) State highway maintenance worker;
21        (19) security employee of the Department of Innovation
22    and Technology; or
23        (20) transferred employee; or .
24        (21) investigator for the Department of the Lottery.
25    A person employed in one of the positions specified in
26this subsection is entitled to eligible creditable service for

 

 

HB5449- 47 -LRB103 38496 RPS 68632 b

1service credit earned under this Article while undergoing the
2basic police training course approved by the Illinois Law
3Enforcement Training Standards Board, if completion of that
4training is required of persons serving in that position. For
5the purposes of this Code, service during the required basic
6police training course shall be deemed performance of the
7duties of the specified position, even though the person is
8not a sworn peace officer at the time of the training.
9    A person under paragraph (20) is entitled to eligible
10creditable service for service credit earned under this
11Article on and after his or her transfer by Executive Order No.
122003-10, Executive Order No. 2004-2, or Executive Order No.
132016-1.
14    (c) For the purposes of this Section:
15        (1) The term "State policeman" includes any title or
16    position in the Illinois State Police that is held by an
17    individual employed under the Illinois State Police Act.
18        (2) The term "fire fighter in the fire protection
19    service of a department" includes all officers in such
20    fire protection service including fire chiefs and
21    assistant fire chiefs.
22        (3) The term "air pilot" includes any employee whose
23    official job description on file in the Department of
24    Central Management Services, or in the department by which
25    he is employed if that department is not covered by the
26    Personnel Code, states that his principal duty is the

 

 

HB5449- 48 -LRB103 38496 RPS 68632 b

1    operation of aircraft, and who possesses a pilot's
2    license; however, the change in this definition made by
3    Public Act 83-842 shall not operate to exclude any
4    noncovered employee who was an "air pilot" for the
5    purposes of this Section on January 1, 1984.
6        (4) The term "special agent" means any person who by
7    reason of employment by the Division of Narcotic Control,
8    the Bureau of Investigation or, after July 1, 1977, the
9    Division of Criminal Investigation, the Division of
10    Internal Investigation, the Division of Operations, the
11    Division of Patrol, or any other Division or
12    organizational entity in the Illinois State Police is
13    vested by law with duties to maintain public order,
14    investigate violations of the criminal law of this State,
15    enforce the laws of this State, make arrests and recover
16    property. The term "special agent" includes any title or
17    position in the Illinois State Police that is held by an
18    individual employed under the Illinois State Police Act.
19        (5) The term "investigator for the Secretary of State"
20    means any person employed by the Office of the Secretary
21    of State and vested with such investigative duties as
22    render him ineligible for coverage under the Social
23    Security Act by reason of Sections 218(d)(5)(A),
24    218(d)(8)(D) and 218(l)(1) of that Act.
25        A person who became employed as an investigator for
26    the Secretary of State between January 1, 1967 and

 

 

HB5449- 49 -LRB103 38496 RPS 68632 b

1    December 31, 1975, and who has served as such until
2    attainment of age 60, either continuously or with a single
3    break in service of not more than 3 years duration, which
4    break terminated before January 1, 1976, shall be entitled
5    to have his retirement annuity calculated in accordance
6    with subsection (a), notwithstanding that he has less than
7    20 years of credit for such service.
8        (6) The term "Conservation Police Officer" means any
9    person employed by the Division of Law Enforcement of the
10    Department of Natural Resources and vested with such law
11    enforcement duties as render him ineligible for coverage
12    under the Social Security Act by reason of Sections
13    218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
14    term "Conservation Police Officer" includes the positions
15    of Chief Conservation Police Administrator and Assistant
16    Conservation Police Administrator.
17        (7) The term "investigator for the Department of
18    Revenue" means any person employed by the Department of
19    Revenue and vested with such investigative duties as
20    render him ineligible for coverage under the Social
21    Security Act by reason of Sections 218(d)(5)(A),
22    218(d)(8)(D) and 218(l)(1) of that Act.
23        The term "investigator for the Illinois Gaming Board"
24    means any person employed as such by the Illinois Gaming
25    Board and vested with such peace officer duties as render
26    the person ineligible for coverage under the Social

 

 

HB5449- 50 -LRB103 38496 RPS 68632 b

1    Security Act by reason of Sections 218(d)(5)(A),
2    218(d)(8)(D), and 218(l)(1) of that Act.
3        (8) The term "security employee of the Department of
4    Human Services" means any person employed by the
5    Department of Human Services who (i) is employed at the
6    Chester Mental Health Center and has daily contact with
7    the residents thereof, (ii) is employed within a security
8    unit at a facility operated by the Department and has
9    daily contact with the residents of the security unit,
10    (iii) is employed at a facility operated by the Department
11    that includes a security unit and is regularly scheduled
12    to work at least 50% of his or her working hours within
13    that security unit, or (iv) is a mental health police
14    officer. "Mental health police officer" means any person
15    employed by the Department of Human Services in a position
16    pertaining to the Department's mental health and
17    developmental disabilities functions who is vested with
18    such law enforcement duties as render the person
19    ineligible for coverage under the Social Security Act by
20    reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
21    218(l)(1) of that Act. "Security unit" means that portion
22    of a facility that is devoted to the care, containment,
23    and treatment of persons committed to the Department of
24    Human Services as sexually violent persons, persons unfit
25    to stand trial, or persons not guilty by reason of
26    insanity. With respect to past employment, references to

 

 

HB5449- 51 -LRB103 38496 RPS 68632 b

1    the Department of Human Services include its predecessor,
2    the Department of Mental Health and Developmental
3    Disabilities.
4        The changes made to this subdivision (c)(8) by Public
5    Act 92-14 apply to persons who retire on or after January
6    1, 2001, notwithstanding Section 1-103.1.
7        (9) "Central Management Services security police
8    officer" means any person employed by the Department of
9    Central Management Services who is vested with such law
10    enforcement duties as render him ineligible for coverage
11    under the Social Security Act by reason of Sections
12    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
13        (10) For a member who first became an employee under
14    this Article before July 1, 2005, the term "security
15    employee of the Department of Corrections or the
16    Department of Juvenile Justice" means any employee of the
17    Department of Corrections or the Department of Juvenile
18    Justice or the former Department of Personnel, and any
19    member or employee of the Prisoner Review Board, who has
20    daily contact with inmates or youth by working within a
21    correctional facility or Juvenile facility operated by the
22    Department of Juvenile Justice or who is a parole officer
23    or an employee who has direct contact with committed
24    persons in the performance of his or her job duties. For a
25    member who first becomes an employee under this Article on
26    or after July 1, 2005, the term means an employee of the

 

 

HB5449- 52 -LRB103 38496 RPS 68632 b

1    Department of Corrections or the Department of Juvenile
2    Justice who is any of the following: (i) officially
3    headquartered at a correctional facility or Juvenile
4    facility operated by the Department of Juvenile Justice,
5    (ii) a parole officer, (iii) a member of the apprehension
6    unit, (iv) a member of the intelligence unit, (v) a member
7    of the sort team, or (vi) an investigator.
8        (11) The term "dangerous drugs investigator" means any
9    person who is employed as such by the Department of Human
10    Services.
11        (12) The term "investigator for the Illinois State
12    Police" means a person employed by the Illinois State
13    Police who is vested under Section 4 of the Narcotic
14    Control Division Abolition Act with such law enforcement
15    powers as render him ineligible for coverage under the
16    Social Security Act by reason of Sections 218(d)(5)(A),
17    218(d)(8)(D) and 218(l)(1) of that Act.
18        (13) "Investigator for the Office of the Attorney
19    General" means any person who is employed as such by the
20    Office of the Attorney General and is vested with such
21    investigative duties as render him ineligible for coverage
22    under the Social Security Act by reason of Sections
23    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
24    the period before January 1, 1989, the term includes all
25    persons who were employed as investigators by the Office
26    of the Attorney General, without regard to social security

 

 

HB5449- 53 -LRB103 38496 RPS 68632 b

1    status.
2        (14) "Controlled substance inspector" means any person
3    who is employed as such by the Department of Professional
4    Regulation and is vested with such law enforcement duties
5    as render him ineligible for coverage under the Social
6    Security Act by reason of Sections 218(d)(5)(A),
7    218(d)(8)(D) and 218(l)(1) of that Act. The term
8    "controlled substance inspector" includes the Program
9    Executive of Enforcement and the Assistant Program
10    Executive of Enforcement.
11        (15) The term "investigator for the Office of the
12    State's Attorneys Appellate Prosecutor" means a person
13    employed in that capacity on a full-time basis under the
14    authority of Section 7.06 of the State's Attorneys
15    Appellate Prosecutor's Act.
16        (16) "Commerce Commission police officer" means any
17    person employed by the Illinois Commerce Commission who is
18    vested with such law enforcement duties as render him
19    ineligible for coverage under the Social Security Act by
20    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
21    218(l)(1) of that Act.
22        (17) "Arson investigator" means any person who is
23    employed as such by the Office of the State Fire Marshal
24    and is vested with such law enforcement duties as render
25    the person ineligible for coverage under the Social
26    Security Act by reason of Sections 218(d)(5)(A),

 

 

HB5449- 54 -LRB103 38496 RPS 68632 b

1    218(d)(8)(D), and 218(l)(1) of that Act. A person who was
2    employed as an arson investigator on January 1, 1995 and
3    is no longer in service but not yet receiving a retirement
4    annuity may convert his or her creditable service for
5    employment as an arson investigator into eligible
6    creditable service by paying to the System the difference
7    between the employee contributions actually paid for that
8    service and the amounts that would have been contributed
9    if the applicant were contributing at the rate applicable
10    to persons with the same social security status earning
11    eligible creditable service on the date of application.
12        (18) The term "State highway maintenance worker" means
13    a person who is either of the following:
14            (i) A person employed on a full-time basis by the
15        Illinois Department of Transportation in the position
16        of highway maintainer, highway maintenance lead
17        worker, highway maintenance lead/lead worker, heavy
18        construction equipment operator, power shovel
19        operator, or bridge mechanic; and whose principal
20        responsibility is to perform, on the roadway, the
21        actual maintenance necessary to keep the highways that
22        form a part of the State highway system in serviceable
23        condition for vehicular traffic.
24            (ii) A person employed on a full-time basis by the
25        Illinois State Toll Highway Authority in the position
26        of equipment operator/laborer H-4, equipment

 

 

HB5449- 55 -LRB103 38496 RPS 68632 b

1        operator/laborer H-6, welder H-4, welder H-6,
2        mechanical/electrical H-4, mechanical/electrical H-6,
3        water/sewer H-4, water/sewer H-6, sign maker/hanger
4        H-4, sign maker/hanger H-6, roadway lighting H-4,
5        roadway lighting H-6, structural H-4, structural H-6,
6        painter H-4, or painter H-6; and whose principal
7        responsibility is to perform, on the roadway, the
8        actual maintenance necessary to keep the Authority's
9        tollways in serviceable condition for vehicular
10        traffic.
11        (19) The term "security employee of the Department of
12    Innovation and Technology" means a person who was a
13    security employee of the Department of Corrections or the
14    Department of Juvenile Justice, was transferred to the
15    Department of Innovation and Technology pursuant to
16    Executive Order 2016-01, and continues to perform similar
17    job functions under that Department.
18        (20) "Transferred employee" means an employee who was
19    transferred to the Department of Central Management
20    Services by Executive Order No. 2003-10 or Executive Order
21    No. 2004-2 or transferred to the Department of Innovation
22    and Technology by Executive Order No. 2016-1, or both, and
23    was entitled to eligible creditable service for services
24    immediately preceding the transfer.
25        (21) "Investigator for the Department of the Lottery"
26    means any person who is employed by the Department of the

 

 

HB5449- 56 -LRB103 38496 RPS 68632 b

1    Lottery and is vested with such investigative duties which
2    render him or her 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. An investigator
5    for the Department of the Lottery who qualifies under this
6    Section shall earn eligible creditable service and be
7    required to make contributions at the rate specified in
8    paragraph (3) of subsection (a) of Section 14-133 for all
9    periods of service as an investigator for the Department
10    of the Lottery.
11    (d) A security employee of the Department of Corrections
12or the Department of Juvenile Justice, a security employee of
13the Department of Human Services who is not a mental health
14police officer, and a security employee of the Department of
15Innovation and Technology shall not be eligible for the
16alternative retirement annuity provided by this Section unless
17he or she meets the following minimum age and service
18requirements at the time of retirement:
19        (i) 25 years of eligible creditable service and age
20    55; or
21        (ii) beginning January 1, 1987, 25 years of eligible
22    creditable service and age 54, or 24 years of eligible
23    creditable service and age 55; or
24        (iii) beginning January 1, 1988, 25 years of eligible
25    creditable service and age 53, or 23 years of eligible
26    creditable service and age 55; or

 

 

HB5449- 57 -LRB103 38496 RPS 68632 b

1        (iv) beginning January 1, 1989, 25 years of eligible
2    creditable service and age 52, or 22 years of eligible
3    creditable service and age 55; or
4        (v) beginning January 1, 1990, 25 years of eligible
5    creditable service and age 51, or 21 years of eligible
6    creditable service and age 55; or
7        (vi) beginning January 1, 1991, 25 years of eligible
8    creditable service and age 50, or 20 years of eligible
9    creditable service and age 55.
10    Persons who have service credit under Article 16 of this
11Code for service as a security employee of the Department of
12Corrections or the Department of Juvenile Justice, or the
13Department of Human Services in a position requiring
14certification as a teacher may count such service toward
15establishing their eligibility under the service requirements
16of this Section; but such service may be used only for
17establishing such eligibility, and not for the purpose of
18increasing or calculating any benefit.
19    (e) If a member enters military service while working in a
20position in which eligible creditable service may be earned,
21and returns to State service in the same or another such
22position, and fulfills in all other respects the conditions
23prescribed in this Article for credit for military service,
24such military service shall be credited as eligible creditable
25service for the purposes of the retirement annuity prescribed
26in this Section.

 

 

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1    (f) For purposes of calculating retirement annuities under
2this Section, periods of service rendered after December 31,
31968 and before October 1, 1975 as a covered employee in the
4position of special agent, conservation police officer, mental
5health police officer, or investigator for the Secretary of
6State, shall be deemed to have been service as a noncovered
7employee, provided that the employee pays to the System prior
8to retirement an amount equal to (1) the difference between
9the employee contributions that would have been required for
10such service as a noncovered employee, and the amount of
11employee contributions actually paid, plus (2) if payment is
12made after July 31, 1987, regular interest on the amount
13specified in item (1) from the date of service to the date of
14payment.
15    For purposes of calculating retirement annuities under
16this Section, periods of service rendered after December 31,
171968 and before January 1, 1982 as a covered employee in the
18position of investigator for the Department of Revenue shall
19be deemed to have been service as a noncovered employee,
20provided that the employee pays to the System prior to
21retirement an amount equal to (1) the difference between the
22employee contributions that would have been required for such
23service as a noncovered employee, and the amount of employee
24contributions actually paid, plus (2) if payment is made after
25January 1, 1990, regular interest on the amount specified in
26item (1) from the date of service to the date of payment.

 

 

HB5449- 59 -LRB103 38496 RPS 68632 b

1    (g) A State policeman may elect, not later than January 1,
21990, to establish eligible creditable service for up to 10
3years of his service as a policeman under Article 3, by filing
4a written election with the Board, accompanied by payment of
5an amount to be determined by the Board, equal to (i) the
6difference between the amount of employee and employer
7contributions transferred to the System under Section 3-110.5,
8and the amounts that would have been contributed had such
9contributions been made at the rates applicable to State
10policemen, plus (ii) interest thereon at the effective rate
11for each year, compounded annually, from the date of service
12to the date of payment.
13    Subject to the limitation in subsection (i), a State
14policeman may elect, not later than July 1, 1993, to establish
15eligible creditable service for up to 10 years of his service
16as a member of the County Police Department under Article 9, by
17filing a written election with the Board, accompanied by
18payment of an amount to be determined by the Board, equal to
19(i) the difference between the amount of employee and employer
20contributions transferred to the System under Section 9-121.10
21and the amounts that would have been contributed had those
22contributions been made at the rates applicable to State
23policemen, plus (ii) interest thereon at the effective rate
24for each year, compounded annually, from the date of service
25to the date of payment.
26    (h) Subject to the limitation in subsection (i), a State

 

 

HB5449- 60 -LRB103 38496 RPS 68632 b

1policeman or investigator for the Secretary of State may elect
2to establish eligible creditable service for up to 12 years of
3his service as a policeman under Article 5, by filing a written
4election with the Board on or before January 31, 1992, and
5paying to the System by January 31, 1994 an amount to be
6determined by the Board, equal to (i) the difference between
7the amount of employee and employer contributions transferred
8to the System under Section 5-236, and the amounts that would
9have been contributed had such contributions been made at the
10rates applicable to State policemen, plus (ii) interest
11thereon at the effective rate for each year, compounded
12annually, from the date of service to the date of payment.
13    Subject to the limitation in subsection (i), a State
14policeman, conservation police officer, or investigator for
15the Secretary of State may elect to establish eligible
16creditable service for up to 10 years of service as a sheriff's
17law enforcement employee under Article 7, by filing a written
18election with the Board on or before January 31, 1993, and
19paying to the System by January 31, 1994 an amount to be
20determined by the Board, equal to (i) the difference between
21the amount of employee and employer contributions transferred
22to the System under Section 7-139.7, and the amounts that
23would have been contributed had such contributions been made
24at the rates applicable to State policemen, plus (ii) interest
25thereon at the effective rate for each year, compounded
26annually, from the date of service to the date of payment.

 

 

HB5449- 61 -LRB103 38496 RPS 68632 b

1    Subject to the limitation in subsection (i), a State
2policeman, conservation police officer, or investigator for
3the Secretary of State may elect to establish eligible
4creditable service for up to 5 years of service as a police
5officer under Article 3, a policeman under Article 5, a
6sheriff's law enforcement employee under Article 7, a member
7of the county police department under Article 9, or a police
8officer under Article 15 by filing a written election with the
9Board and paying to the System an amount to be determined by
10the Board, equal to (i) the difference between the amount of
11employee and employer contributions transferred to the System
12under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
13and the amounts that would have been contributed had such
14contributions been made at the rates applicable to State
15policemen, plus (ii) interest thereon at the effective rate
16for each year, compounded annually, from the date of service
17to the date of payment.
18    Subject to the limitation in subsection (i), an
19investigator for the Office of the Attorney General, or an
20investigator for the Department of Revenue, may elect to
21establish eligible creditable service for up to 5 years of
22service as a police officer under Article 3, a policeman under
23Article 5, a sheriff's law enforcement employee under Article
247, or a member of the county police department under Article 9
25by filing a written election with the Board within 6 months
26after August 25, 2009 (the effective date of Public Act

 

 

HB5449- 62 -LRB103 38496 RPS 68632 b

196-745) and paying to the System an amount to be determined by
2the Board, equal to (i) the difference between the amount of
3employee and employer contributions transferred to the System
4under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
5amounts that would have been contributed had such
6contributions been made at the rates applicable to State
7policemen, plus (ii) interest thereon at the actuarially
8assumed rate for each year, compounded annually, from the date
9of service to the date of payment.
10    Subject to the limitation in subsection (i), a State
11policeman, conservation police officer, investigator for the
12Office of the Attorney General, an investigator for the
13Department of Revenue, or investigator for the Secretary of
14State may elect to establish eligible creditable service for
15up to 5 years of service as a person employed by a
16participating municipality to perform police duties, or law
17enforcement officer employed on a full-time basis by a forest
18preserve district under Article 7, a county corrections
19officer, or a court services officer under Article 9, by
20filing a written election with the Board within 6 months after
21August 25, 2009 (the effective date of Public Act 96-745) and
22paying to the System an amount to be determined by the Board,
23equal to (i) the difference between the amount of employee and
24employer contributions transferred to the System under
25Sections 7-139.8 and 9-121.10 and the amounts that would have
26been contributed had such contributions been made at the rates

 

 

HB5449- 63 -LRB103 38496 RPS 68632 b

1applicable to State policemen, plus (ii) interest thereon at
2the actuarially assumed rate for each year, compounded
3annually, from the date of service to the date of payment.
4    Subject to the limitation in subsection (i), a State
5policeman, arson investigator, or Commerce Commission police
6officer may elect to establish eligible creditable service for
7up to 5 years of service as a person employed by a
8participating municipality to perform police duties under
9Article 7, a county corrections officer, a court services
10officer under Article 9, or a firefighter under Article 4 by
11filing a written election with the Board within 6 months after
12July 30, 2021 (the effective date of Public Act 102-210) and
13paying to the System an amount to be determined by the Board
14equal to (i) the difference between the amount of employee and
15employer contributions transferred to the System under
16Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
17would have been contributed had such contributions been made
18at the rates applicable to State policemen, plus (ii) interest
19thereon at the actuarially assumed rate for each year,
20compounded annually, from the date of service to the date of
21payment.
22    Subject to the limitation in subsection (i), a
23conservation police officer may elect to establish eligible
24creditable service for up to 5 years of service as a person
25employed by a participating municipality to perform police
26duties under Article 7, a county corrections officer, or a

 

 

HB5449- 64 -LRB103 38496 RPS 68632 b

1court services officer under Article 9 by filing a written
2election with the Board within 6 months after July 30, 2021
3(the effective date of Public Act 102-210) and paying to the
4System an amount to be determined by the Board equal to (i) the
5difference between the amount of employee and employer
6contributions transferred to the System under Sections 7-139.8
7and 9-121.10 and the amounts that would have been contributed
8had such contributions been made at the rates applicable to
9State policemen, plus (ii) interest thereon at the actuarially
10assumed rate for each year, compounded annually, from the date
11of service to the date of payment.
12    Notwithstanding the limitation in subsection (i), a State
13policeman or conservation police officer may elect to convert
14service credit earned under this Article to eligible
15creditable service, as defined by this Section, by filing a
16written election with the board within 6 months after July 30,
172021 (the effective date of Public Act 102-210) and paying to
18the System an amount to be determined by the Board equal to (i)
19the difference between the amount of employee contributions
20originally paid for that service and the amounts that would
21have been contributed had such contributions been made at the
22rates applicable to State policemen, plus (ii) the difference
23between the employer's normal cost of the credit prior to the
24conversion authorized by Public Act 102-210 and the employer's
25normal cost of the credit converted in accordance with Public
26Act 102-210, plus (iii) interest thereon at the actuarially

 

 

HB5449- 65 -LRB103 38496 RPS 68632 b

1assumed rate for each year, compounded annually, from the date
2of service to the date of payment.
3    (i) The total amount of eligible creditable service
4established by any person under subsections (g), (h), (j),
5(k), (l), (l-5), and (o) of this Section shall not exceed 12
6years.
7    (j) Subject to the limitation in subsection (i), an
8investigator for the Office of the State's Attorneys Appellate
9Prosecutor or a controlled substance inspector may elect to
10establish eligible creditable service for up to 10 years of
11his service as a policeman under Article 3 or a sheriff's law
12enforcement employee under Article 7, by filing a written
13election with the Board, accompanied by payment of an amount
14to be determined by the Board, equal to (1) the difference
15between the amount of employee and employer contributions
16transferred to the System under Section 3-110.6 or 7-139.8,
17and the amounts that would have been contributed had such
18contributions been made at the rates applicable to State
19policemen, plus (2) interest thereon at the effective rate for
20each year, compounded annually, from the date of service to
21the date of payment.
22    (k) Subject to the limitation in subsection (i) of this
23Section, an alternative formula employee may elect to
24establish eligible creditable service for periods spent as a
25full-time law enforcement officer or full-time corrections
26officer employed by the federal government or by a state or

 

 

HB5449- 66 -LRB103 38496 RPS 68632 b

1local government located outside of Illinois, for which credit
2is not held in any other public employee pension fund or
3retirement system. To obtain this credit, the applicant must
4file a written application with the Board by March 31, 1998,
5accompanied by evidence of eligibility acceptable to the Board
6and payment of an amount to be determined by the Board, equal
7to (1) employee contributions for the credit being
8established, based upon the applicant's salary on the first
9day as an alternative formula employee after the employment
10for which credit is being established and the rates then
11applicable to alternative formula employees, plus (2) an
12amount determined by the Board to be the employer's normal
13cost of the benefits accrued for the credit being established,
14plus (3) regular interest on the amounts in items (1) and (2)
15from the first day as an alternative formula employee after
16the employment for which credit is being established to the
17date of payment.
18    (l) Subject to the limitation in subsection (i), a
19security employee of the Department of Corrections may elect,
20not later than July 1, 1998, to establish eligible creditable
21service for up to 10 years of his or her service as a policeman
22under Article 3, by filing a written election with the Board,
23accompanied by payment of an amount to be determined by the
24Board, equal to (i) the difference between the amount of
25employee and employer contributions transferred to the System
26under Section 3-110.5, and the amounts that would have been

 

 

HB5449- 67 -LRB103 38496 RPS 68632 b

1contributed had such contributions been made at the rates
2applicable to security employees of the Department of
3Corrections, plus (ii) interest thereon at the effective rate
4for each year, compounded annually, from the date of service
5to the date of payment.
6    (l-5) Subject to the limitation in subsection (i) of this
7Section, a State policeman may elect to establish eligible
8creditable service for up to 5 years of service as a full-time
9law enforcement officer employed by the federal government or
10by a state or local government located outside of Illinois for
11which credit is not held in any other public employee pension
12fund or retirement system. To obtain this credit, the
13applicant must file a written application with the Board no
14later than 3 years after January 1, 2020 (the effective date of
15Public Act 101-610), accompanied by evidence of eligibility
16acceptable to the Board and payment of an amount to be
17determined by the Board, equal to (1) employee contributions
18for the credit being established, based upon the applicant's
19salary on the first day as an alternative formula employee
20after the employment for which credit is being established and
21the rates then applicable to alternative formula employees,
22plus (2) an amount determined by the Board to be the employer's
23normal cost of the benefits accrued for the credit being
24established, plus (3) regular interest on the amounts in items
25(1) and (2) from the first day as an alternative formula
26employee after the employment for which credit is being

 

 

HB5449- 68 -LRB103 38496 RPS 68632 b

1established to the date of payment.
2    (m) The amendatory changes to this Section made by Public
3Act 94-696 apply only to: (1) security employees of the
4Department of Juvenile Justice employed by the Department of
5Corrections before June 1, 2006 (the effective date of Public
6Act 94-696) and transferred to the Department of Juvenile
7Justice by Public Act 94-696; and (2) persons employed by the
8Department of Juvenile Justice on or after June 1, 2006 (the
9effective date of Public Act 94-696) who are required by
10subsection (b) of Section 3-2.5-15 of the Unified Code of
11Corrections to have any bachelor's or advanced degree from an
12accredited college or university or, in the case of persons
13who provide vocational training, who are required to have
14adequate knowledge in the skill for which they are providing
15the vocational training.
16    Beginning with the pay period that immediately follows the
17effective date of this amendatory Act of the 103rd General
18Assembly, the bachelor's or advanced degree requirement of
19subsection (b) of Section 3-2.5-15 of the Unified Code of
20Corrections shall no longer determine the eligibility to earn
21eligible creditable service for a person employed by the
22Department of Juvenile Justice.
23    An employee may elect to convert into eligible creditable
24service his or her creditable service earned with the
25Department of Juvenile Justice while employed in a position
26that required the employee to do any one or more of the

 

 

HB5449- 69 -LRB103 38496 RPS 68632 b

1following: (1) participate or assist in the rehabilitative and
2vocational training of delinquent youths; (2) supervise the
3daily activities and assume direct and continuing
4responsibility for the youth's security, welfare, and
5development; or (3) participate in the personal rehabilitation
6of delinquent youth by training, supervising, and assisting
7lower-level personnel. To convert that creditable service to
8eligible creditable service, the employee must pay to the
9System the difference between the employee contributions
10actually paid for that service and the amounts that would have
11been contributed if the applicant were contributing at the
12rate applicable to persons with the same Social Security
13status earning eligible creditable service on the date of
14application.
15    (n) A person employed in a position under subsection (b)
16of this Section who has purchased service credit under
17subsection (j) of Section 14-104 or subsection (b) of Section
1814-105 in any other capacity under this Article may convert up
19to 5 years of that service credit into service credit covered
20under this Section by paying to the Fund an amount equal to (1)
21the additional employee contribution required under Section
2214-133, plus (2) the additional employer contribution required
23under Section 14-131, plus (3) interest on items (1) and (2) at
24the actuarially assumed rate from the date of the service to
25the date of payment.
26    (o) Subject to the limitation in subsection (i), a

 

 

HB5449- 70 -LRB103 38496 RPS 68632 b

1conservation police officer, investigator for the Secretary of
2State, Commerce Commission police officer, investigator for
3the Department of Revenue or the Illinois Gaming Board, or
4arson investigator subject to subsection (g) of Section 1-160
5may elect to convert up to 8 years of service credit
6established before January 1, 2020 (the effective date of
7Public Act 101-610) as a conservation police officer,
8investigator for the Secretary of State, Commerce Commission
9police officer, investigator for the Department of Revenue or
10the Illinois Gaming Board, or arson investigator under this
11Article into eligible creditable service by filing a written
12election with the Board no later than one year after January 1,
132020 (the effective date of Public Act 101-610), accompanied
14by payment of an amount to be determined by the Board equal to
15(i) the difference between the amount of the employee
16contributions actually paid for that service and the amount of
17the employee contributions that would have been paid had the
18employee contributions been made as a noncovered employee
19serving in a position in which eligible creditable service, as
20defined in this Section, may be earned, plus (ii) interest
21thereon at the effective rate for each year, compounded
22annually, from the date of service to the date of payment.
23    (q) A security employee of the Department of Human
24Services who is subject to subsection (g-1) of Section 1-160
25may elect to convert up to 13 years of service credit
26established before the effective date of this amendatory Act

 

 

HB5449- 71 -LRB103 38496 RPS 68632 b

1of the 103rd General Assembly as a security employee of the
2Department of Human Services to eligible creditable service by
3filing a written election with the Board no later than one year
4after the effective date of this amendatory Act of the 103rd
5General Assembly, accompanied by payment of an amount, to be
6determined by the Board, equal to (i) the difference between
7the amount of the employee contributions actually paid for
8that service and the amount of the employee contributions that
9would have been paid had the employee contributions been made
10as a covered employee serving in a position in which eligible
11creditable service, as defined in this Section, may be earned,
12plus (ii) interest thereon at the effective rate for each
13year, compounded annually, from the date of service to the
14date of payment.
15(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
16102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)
 
17    (Text of Section from P.A. 102-856 and 103-34)
18    Sec. 14-110. Alternative retirement annuity.
19    (a) Any member who has withdrawn from service with not
20less than 20 years of eligible creditable service and has
21attained age 55, and any member who has withdrawn from service
22with not less than 25 years of eligible creditable service and
23has attained age 50, regardless of whether the attainment of
24either of the specified ages occurs while the member is still
25in service, shall be entitled to receive at the option of the

 

 

HB5449- 72 -LRB103 38496 RPS 68632 b

1member, in lieu of the regular or minimum retirement annuity,
2a retirement annuity computed as follows:
3        (i) for periods of service as a noncovered employee:
4    if retirement occurs on or after January 1, 2001, 3% of
5    final average compensation for each year of creditable
6    service; if retirement occurs before January 1, 2001, 2
7    1/4% of final average compensation for each of the first
8    10 years of creditable service, 2 1/2% for each year above
9    10 years to and including 20 years of creditable service,
10    and 2 3/4% for each year of creditable service above 20
11    years; and
12        (ii) for periods of eligible creditable service as a
13    covered employee: if retirement occurs on or after January
14    1, 2001, 2.5% of final average compensation for each year
15    of creditable service; if retirement occurs before January
16    1, 2001, 1.67% of final average compensation for each of
17    the first 10 years of such service, 1.90% for each of the
18    next 10 years of such service, 2.10% for each year of such
19    service in excess of 20 but not exceeding 30, and 2.30% for
20    each year in excess of 30.
21    Such annuity shall be subject to a maximum of 75% of final
22average compensation if retirement occurs before January 1,
232001 or to a maximum of 80% of final average compensation if
24retirement occurs on or after January 1, 2001.
25    These rates shall not be applicable to any service
26performed by a member as a covered employee which is not

 

 

HB5449- 73 -LRB103 38496 RPS 68632 b

1eligible creditable service. Service as a covered employee
2which is not eligible creditable service shall be subject to
3the rates and provisions of Section 14-108.
4    (b) For the purpose of this Section, "eligible creditable
5service" means creditable service resulting from service in
6one or more of the following positions:
7        (1) State policeman;
8        (2) fire fighter in the fire protection service of a
9    department;
10        (3) air pilot;
11        (4) special agent;
12        (5) investigator for the Secretary of State;
13        (6) conservation police officer;
14        (7) investigator for the Department of Revenue or the
15    Illinois Gaming Board;
16        (8) security employee of the Department of Human
17    Services;
18        (9) Central Management Services security police
19    officer;
20        (10) security employee of the Department of
21    Corrections or the Department of Juvenile Justice;
22        (11) dangerous drugs investigator;
23        (12) investigator for the Illinois State Police;
24        (13) investigator for the Office of the Attorney
25    General;
26        (14) controlled substance inspector;

 

 

HB5449- 74 -LRB103 38496 RPS 68632 b

1        (15) investigator for the Office of the State's
2    Attorneys Appellate Prosecutor;
3        (16) Commerce Commission police officer;
4        (17) arson investigator;
5        (18) State highway maintenance worker;
6        (19) security employee of the Department of Innovation
7    and Technology; or
8        (20) transferred employee; or .
9        (21) investigator for the Department of the Lottery.
10    A person employed in one of the positions specified in
11this subsection is entitled to eligible creditable service for
12service credit earned under this Article while undergoing the
13basic police training course approved by the Illinois Law
14Enforcement Training Standards Board, if completion of that
15training is required of persons serving in that position. For
16the purposes of this Code, service during the required basic
17police training course shall be deemed performance of the
18duties of the specified position, even though the person is
19not a sworn peace officer at the time of the training.
20    A person under paragraph (20) is entitled to eligible
21creditable service for service credit earned under this
22Article on and after his or her transfer by Executive Order No.
232003-10, Executive Order No. 2004-2, or Executive Order No.
242016-1.
25    (c) For the purposes of this Section:
26        (1) The term "State policeman" includes any title or

 

 

HB5449- 75 -LRB103 38496 RPS 68632 b

1    position in the Illinois State Police that is held by an
2    individual employed under the Illinois State Police Act.
3        (2) The term "fire fighter in the fire protection
4    service of a department" includes all officers in such
5    fire protection service including fire chiefs and
6    assistant fire chiefs.
7        (3) The term "air pilot" includes any employee whose
8    official job description on file in the Department of
9    Central Management Services, or in the department by which
10    he is employed if that department is not covered by the
11    Personnel Code, states that his principal duty is the
12    operation of aircraft, and who possesses a pilot's
13    license; however, the change in this definition made by
14    Public Act 83-842 shall not operate to exclude any
15    noncovered employee who was an "air pilot" for the
16    purposes of this Section on January 1, 1984.
17        (4) The term "special agent" means any person who by
18    reason of employment by the Division of Narcotic Control,
19    the Bureau of Investigation or, after July 1, 1977, the
20    Division of Criminal Investigation, the Division of
21    Internal Investigation, the Division of Operations, the
22    Division of Patrol, or any other Division or
23    organizational entity in the Illinois State Police is
24    vested by law with duties to maintain public order,
25    investigate violations of the criminal law of this State,
26    enforce the laws of this State, make arrests and recover

 

 

HB5449- 76 -LRB103 38496 RPS 68632 b

1    property. The term "special agent" includes any title or
2    position in the Illinois State Police that is held by an
3    individual employed under the Illinois State Police Act.
4        (5) The term "investigator for the Secretary of State"
5    means any person employed by the Office of the Secretary
6    of State and vested with such investigative duties as
7    render him ineligible for coverage under the Social
8    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 single
14    break in service of not more than 3 years duration, which
15    break terminated before January 1, 1976, shall be entitled
16    to have his retirement annuity calculated in accordance
17    with subsection (a), notwithstanding that he has less than
18    20 years of credit for such service.
19        (6) The term "Conservation Police Officer" means any
20    person employed by the Division of Law Enforcement of the
21    Department of Natural Resources and vested with such law
22    enforcement duties as render him ineligible for coverage
23    under the Social Security Act by reason of Sections
24    218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
25    term "Conservation Police Officer" includes the positions
26    of Chief Conservation Police Administrator and Assistant

 

 

HB5449- 77 -LRB103 38496 RPS 68632 b

1    Conservation Police Administrator.
2        (7) The term "investigator for the Department of
3    Revenue" means any person employed by the Department of
4    Revenue and vested with such investigative duties as
5    render him ineligible for coverage under the Social
6    Security Act by reason of Sections 218(d)(5)(A),
7    218(d)(8)(D) and 218(l)(1) of that Act.
8        The term "investigator for the Illinois Gaming Board"
9    means any person employed as such by the Illinois Gaming
10    Board and vested with such peace officer duties as render
11    the person 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 of
15    Human Services" means any person employed by the
16    Department of Human Services who (i) is employed at the
17    Chester Mental Health Center and has daily contact with
18    the residents thereof, (ii) is employed within a security
19    unit at a facility operated by the Department and has
20    daily contact with the residents of the security unit,
21    (iii) is employed at a facility operated by the Department
22    that includes a security unit and is regularly scheduled
23    to work at least 50% of his or her working hours within
24    that security unit, or (iv) is a mental health police
25    officer. "Mental health police officer" means any person
26    employed by the Department of Human Services in a position

 

 

HB5449- 78 -LRB103 38496 RPS 68632 b

1    pertaining to the Department's mental health and
2    developmental disabilities functions who is vested with
3    such law enforcement duties as render the person
4    ineligible for coverage under the Social Security Act by
5    reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
6    218(l)(1) of that Act. "Security unit" means that portion
7    of a facility that is devoted to the care, containment,
8    and treatment of persons committed to the Department of
9    Human Services as sexually violent persons, persons unfit
10    to stand trial, or persons not guilty by reason of
11    insanity. With respect to past employment, references to
12    the Department of Human Services include its predecessor,
13    the Department of Mental Health and Developmental
14    Disabilities.
15        The changes made to this subdivision (c)(8) by Public
16    Act 92-14 apply to persons who retire on or after January
17    1, 2001, notwithstanding Section 1-103.1.
18        (9) "Central Management Services security police
19    officer" means any person employed by the Department of
20    Central Management Services who is vested with such law
21    enforcement duties as render him ineligible for coverage
22    under the Social Security Act by reason of Sections
23    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
24        (10) For a member who first became an employee under
25    this Article before July 1, 2005, the term "security
26    employee of the Department of Corrections or the

 

 

HB5449- 79 -LRB103 38496 RPS 68632 b

1    Department of Juvenile Justice" means any employee of the
2    Department of Corrections or the Department of Juvenile
3    Justice or the former Department of Personnel, and any
4    member or employee of the Prisoner Review Board, who has
5    daily contact with inmates or youth by working within a
6    correctional facility or Juvenile facility operated by the
7    Department of Juvenile Justice or who is a parole officer
8    or an employee who has direct contact with committed
9    persons in the performance of his or her job duties. For a
10    member who first becomes an employee under this Article on
11    or after July 1, 2005, the term means an employee of the
12    Department of Corrections or the Department of Juvenile
13    Justice who is any of the following: (i) officially
14    headquartered at a correctional facility or Juvenile
15    facility operated by the Department of Juvenile Justice,
16    (ii) a parole officer, (iii) a member of the apprehension
17    unit, (iv) a member of the intelligence unit, (v) a member
18    of the sort team, or (vi) an investigator.
19        (11) The term "dangerous drugs investigator" means any
20    person who is employed as such by the Department of Human
21    Services.
22        (12) The term "investigator for the Illinois State
23    Police" means a person employed by the Illinois State
24    Police who is vested under Section 4 of the Narcotic
25    Control Division Abolition Act with such law enforcement
26    powers as render him ineligible for coverage under the

 

 

HB5449- 80 -LRB103 38496 RPS 68632 b

1    Social Security Act by reason of Sections 218(d)(5)(A),
2    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 coverage
7    under the Social Security Act by reason of Sections
8    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
9    the period before January 1, 1989, the term includes all
10    persons who were employed as investigators by the Office
11    of the Attorney General, without regard to social security
12    status.
13        (14) "Controlled substance inspector" means any person
14    who is employed as such by the Department of Professional
15    Regulation and is vested with such law enforcement duties
16    as render him 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. The term
19    "controlled substance inspector" includes the Program
20    Executive of Enforcement and the Assistant Program
21    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.

 

 

HB5449- 81 -LRB103 38496 RPS 68632 b

1        (16) "Commerce Commission police officer" means any
2    person employed by the Illinois Commerce Commission who is
3    vested with such law enforcement duties as render him
4    ineligible for coverage under the Social Security Act by
5    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
6    218(l)(1) of that Act.
7        (17) "Arson investigator" means any person who is
8    employed as such by the Office of the State Fire Marshal
9    and is vested with such law enforcement duties as render
10    the person ineligible for coverage under the Social
11    Security Act by reason of Sections 218(d)(5)(A),
12    218(d)(8)(D), and 218(l)(1) of that Act. A person who was
13    employed as an arson investigator on January 1, 1995 and
14    is no longer in service but not yet receiving a retirement
15    annuity may convert his or her creditable service for
16    employment as an arson investigator into eligible
17    creditable service by paying to the System the difference
18    between the employee contributions actually paid for that
19    service and the amounts that would have been contributed
20    if the applicant were contributing at the rate applicable
21    to persons with the same social security status earning
22    eligible creditable service on the date of application.
23        (18) The term "State highway maintenance worker" means
24    a person who is either of the following:
25            (i) A person employed on a full-time basis by the
26        Illinois Department of Transportation in the position

 

 

HB5449- 82 -LRB103 38496 RPS 68632 b

1        of highway maintainer, highway maintenance lead
2        worker, highway maintenance lead/lead worker, heavy
3        construction equipment operator, power shovel
4        operator, or bridge mechanic; and whose principal
5        responsibility is to perform, on the roadway, the
6        actual maintenance necessary to keep the highways that
7        form a part of the State highway system in serviceable
8        condition for vehicular traffic.
9            (ii) A person employed on a full-time basis by the
10        Illinois State Toll Highway Authority in the position
11        of equipment operator/laborer H-4, equipment
12        operator/laborer H-6, welder H-4, welder H-6,
13        mechanical/electrical H-4, mechanical/electrical H-6,
14        water/sewer H-4, water/sewer H-6, sign maker/hanger
15        H-4, sign maker/hanger H-6, roadway lighting H-4,
16        roadway lighting H-6, structural H-4, structural H-6,
17        painter H-4, or painter H-6; and whose principal
18        responsibility is to perform, on the roadway, the
19        actual maintenance necessary to keep the Authority's
20        tollways in serviceable condition for vehicular
21        traffic.
22        (19) The term "security employee of the Department of
23    Innovation and Technology" means a person who was a
24    security employee of the Department of Corrections or the
25    Department of Juvenile Justice, was transferred to the
26    Department of Innovation and Technology pursuant to

 

 

HB5449- 83 -LRB103 38496 RPS 68632 b

1    Executive Order 2016-01, and continues to perform similar
2    job functions under that Department.
3        (20) "Transferred employee" means an employee who was
4    transferred to the Department of Central Management
5    Services by Executive Order No. 2003-10 or Executive Order
6    No. 2004-2 or transferred to the Department of Innovation
7    and Technology by Executive Order No. 2016-1, or both, and
8    was entitled to eligible creditable service for services
9    immediately preceding the transfer.
10        (21) "Investigator for the Department of the Lottery"
11    means any person who is employed by the Department of the
12    Lottery and is vested with such investigative duties which
13    render him or her 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. An investigator
16    for the Department of the Lottery who qualifies under this
17    Section shall earn eligible creditable service and be
18    required to make contributions at the rate specified in
19    paragraph (3) of subsection (a) of Section 14-133 for all
20    periods of service as an investigator for the Department
21    of the Lottery.
22    (d) A security employee of the Department of Corrections
23or the Department of Juvenile Justice, a security employee of
24the Department of Human Services who is not a mental health
25police officer, and a security employee of the Department of
26Innovation and Technology shall not be eligible for the

 

 

HB5449- 84 -LRB103 38496 RPS 68632 b

1alternative retirement annuity provided by this Section unless
2he or she meets the following minimum age and service
3requirements at the time of retirement:
4        (i) 25 years of eligible creditable service and age
5    55; or
6        (ii) beginning January 1, 1987, 25 years of eligible
7    creditable service and age 54, or 24 years of eligible
8    creditable service and age 55; or
9        (iii) beginning January 1, 1988, 25 years of eligible
10    creditable service and age 53, or 23 years of eligible
11    creditable service and age 55; or
12        (iv) beginning January 1, 1989, 25 years of eligible
13    creditable service and age 52, or 22 years of eligible
14    creditable service and age 55; or
15        (v) beginning January 1, 1990, 25 years of eligible
16    creditable service and age 51, or 21 years of eligible
17    creditable service and age 55; or
18        (vi) beginning January 1, 1991, 25 years of eligible
19    creditable service and age 50, or 20 years of eligible
20    creditable service and age 55.
21    Persons who have service credit under Article 16 of this
22Code for service as a security employee of the Department of
23Corrections or the Department of Juvenile Justice, or the
24Department of Human Services in a position requiring
25certification as a teacher may count such service toward
26establishing their eligibility under the service requirements

 

 

HB5449- 85 -LRB103 38496 RPS 68632 b

1of this Section; but such service may be used only for
2establishing such eligibility, and not for the purpose of
3increasing or calculating any benefit.
4    (e) If a member enters military service while working in a
5position in which eligible creditable service may be earned,
6and returns to State service in the same or another such
7position, and fulfills in all other respects the conditions
8prescribed in this Article for credit for military service,
9such military service shall be credited as eligible creditable
10service for the purposes of the retirement annuity prescribed
11in this Section.
12    (f) For purposes of calculating retirement annuities under
13this Section, periods of service rendered after December 31,
141968 and before October 1, 1975 as a covered employee in the
15position of special agent, conservation police officer, mental
16health police officer, or investigator for the Secretary of
17State, shall be deemed to have been service as a noncovered
18employee, provided that the employee pays to the System prior
19to retirement an amount equal to (1) the difference between
20the employee contributions that would have been required for
21such service as a noncovered employee, and the amount of
22employee contributions actually paid, plus (2) if payment is
23made after July 31, 1987, regular interest on the amount
24specified in item (1) from the date of service to the date of
25payment.
26    For purposes of calculating retirement annuities under

 

 

HB5449- 86 -LRB103 38496 RPS 68632 b

1this Section, periods of service rendered after December 31,
21968 and before January 1, 1982 as a covered employee in the
3position of investigator for the Department of Revenue shall
4be deemed to have been service as a noncovered employee,
5provided that the employee pays to the System prior to
6retirement an amount equal to (1) the difference between the
7employee contributions that would have been required for such
8service as a noncovered employee, and the amount of employee
9contributions actually paid, plus (2) if payment is made after
10January 1, 1990, regular interest on the amount specified in
11item (1) from the date of service to the date of payment.
12    (g) A State policeman may elect, not later than January 1,
131990, to establish eligible creditable service for up to 10
14years of his service as a policeman under Article 3, by filing
15a written election with the Board, accompanied by payment of
16an amount to be determined by the Board, equal to (i) the
17difference between the amount of employee and employer
18contributions transferred to the System under Section 3-110.5,
19and the amounts that would have been contributed had such
20contributions been made at the rates applicable to State
21policemen, plus (ii) interest thereon at the effective rate
22for each year, compounded annually, from the date of service
23to the date of payment.
24    Subject to the limitation in subsection (i), a State
25policeman may elect, not later than July 1, 1993, to establish
26eligible creditable service for up to 10 years of his service

 

 

HB5449- 87 -LRB103 38496 RPS 68632 b

1as a member of the County Police Department under Article 9, by
2filing a written election with the Board, accompanied by
3payment of an amount to be determined by the Board, equal to
4(i) the difference between the amount of employee and employer
5contributions transferred to the System under Section 9-121.10
6and the amounts that would have been contributed had those
7contributions been made at the rates applicable to State
8policemen, plus (ii) interest thereon at the effective rate
9for each year, compounded annually, from the date of service
10to the date of payment.
11    (h) Subject to the limitation in subsection (i), a State
12policeman or investigator for the Secretary of State may elect
13to establish eligible creditable service for up to 12 years of
14his service as a policeman under Article 5, by filing a written
15election with the Board on or before January 31, 1992, and
16paying to the System by January 31, 1994 an amount to be
17determined by the Board, equal to (i) the difference between
18the amount of employee and employer contributions transferred
19to the System under Section 5-236, and the amounts that would
20have been contributed had such contributions been made at the
21rates applicable to State policemen, plus (ii) interest
22thereon at the effective rate for each year, compounded
23annually, from the date of service to the date of payment.
24    Subject to the limitation in subsection (i), a State
25policeman, conservation police officer, or investigator for
26the Secretary of State may elect to establish eligible

 

 

HB5449- 88 -LRB103 38496 RPS 68632 b

1creditable service for up to 10 years of service as a sheriff's
2law enforcement employee under Article 7, by filing a written
3election with the Board on or before January 31, 1993, and
4paying to the System by January 31, 1994 an amount to be
5determined by the Board, equal to (i) the difference between
6the amount of employee and employer contributions transferred
7to the System under Section 7-139.7, and the amounts that
8would have been contributed had such contributions been made
9at the rates applicable to State policemen, plus (ii) interest
10thereon at the effective rate for each year, compounded
11annually, from the date of service to the date of payment.
12    Subject to the limitation in subsection (i), a State
13policeman, conservation police officer, or investigator for
14the Secretary of State may elect to establish eligible
15creditable service for up to 5 years of service as a police
16officer under Article 3, a policeman under Article 5, a
17sheriff's law enforcement employee under Article 7, a member
18of the county police department under Article 9, or a police
19officer under Article 15 by filing a written election with the
20Board and paying to the System an amount to be determined by
21the Board, equal to (i) the difference between the amount of
22employee and employer contributions transferred to the System
23under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
24and the amounts that would have been contributed had such
25contributions been made at the rates applicable to State
26policemen, plus (ii) interest thereon at the effective rate

 

 

HB5449- 89 -LRB103 38496 RPS 68632 b

1for each year, compounded annually, from the date of service
2to the date of payment.
3    Subject to the limitation in subsection (i), an
4investigator for the Office of the Attorney General, or an
5investigator for the Department of Revenue, may elect to
6establish eligible creditable service for up to 5 years of
7service as a police officer under Article 3, a policeman under
8Article 5, a sheriff's law enforcement employee under Article
97, or a member of the county police department under Article 9
10by filing a written election with the Board within 6 months
11after August 25, 2009 (the effective date of Public Act
1296-745) and paying to the System an amount to be determined by
13the Board, equal to (i) the difference between the amount of
14employee and employer contributions transferred to the System
15under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
16amounts that would have been contributed had such
17contributions been made at the rates applicable to State
18policemen, plus (ii) interest thereon at the actuarially
19assumed rate for each year, compounded annually, from the date
20of service to the date of payment.
21    Subject to the limitation in subsection (i), a State
22policeman, conservation police officer, investigator for the
23Office of the Attorney General, an investigator for the
24Department of Revenue, or investigator for the Secretary of
25State may elect to establish eligible creditable service for
26up to 5 years of service as a person employed by a

 

 

HB5449- 90 -LRB103 38496 RPS 68632 b

1participating municipality to perform police duties, or law
2enforcement officer employed on a full-time basis by a forest
3preserve district under Article 7, a county corrections
4officer, or a court services officer under Article 9, by
5filing a written election with the Board within 6 months after
6August 25, 2009 (the effective date of Public Act 96-745) and
7paying to the System an amount to be determined by the Board,
8equal to (i) the difference between the amount of employee and
9employer contributions transferred to the System under
10Sections 7-139.8 and 9-121.10 and the amounts that would have
11been contributed had such contributions been made at the rates
12applicable to State policemen, plus (ii) interest thereon at
13the actuarially assumed rate for each year, compounded
14annually, from the date of service to the date of payment.
15    Subject to the limitation in subsection (i), a State
16policeman, arson investigator, or Commerce Commission police
17officer may elect to establish eligible creditable service for
18up to 5 years of service as a person employed by a
19participating municipality to perform police duties under
20Article 7, a county corrections officer, a court services
21officer under Article 9, or a firefighter under Article 4 by
22filing a written election with the Board within 6 months after
23July 30, 2021 (the effective date of Public Act 102-210) and
24paying to the System an amount to be determined by the Board
25equal to (i) the difference between the amount of employee and
26employer contributions transferred to the System under

 

 

HB5449- 91 -LRB103 38496 RPS 68632 b

1Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
2would have been contributed had such contributions been made
3at the rates applicable to State policemen, plus (ii) interest
4thereon at the actuarially assumed rate for each year,
5compounded annually, from the date of service to the date of
6payment.
7    Subject to the limitation in subsection (i), a
8conservation police officer may elect to establish eligible
9creditable service for up to 5 years of service as a person
10employed by a participating municipality to perform police
11duties under Article 7, a county corrections officer, or a
12court services officer under Article 9 by filing a written
13election with the Board within 6 months after July 30, 2021
14(the effective date of Public Act 102-210) and paying to the
15System an amount to be determined by the Board equal to (i) the
16difference between the amount of employee and employer
17contributions transferred to the System under Sections 7-139.8
18and 9-121.10 and the amounts that would have been contributed
19had such contributions been made at the rates applicable to
20State policemen, plus (ii) interest thereon at the actuarially
21assumed rate for each year, compounded annually, from the date
22of service to the date of payment.
23    Subject to the limitation in subsection (i), an
24investigator for the Department of Revenue, investigator for
25the Illinois Gaming Board, investigator for the Secretary of
26State, or arson investigator may elect to establish eligible

 

 

HB5449- 92 -LRB103 38496 RPS 68632 b

1creditable service for up to 5 years of service as a person
2employed by a participating municipality to perform police
3duties under Article 7, a county corrections officer, a court
4services officer under Article 9, or a firefighter under
5Article 4 by filing a written election with the Board within 6
6months after the effective date of this amendatory Act of the
7102nd General Assembly and paying to the System an amount to be
8determined by the Board equal to (i) the difference between
9the amount of employee and employer contributions transferred
10to the System under Sections 4-108.8, 7-139.8, and 9-121.10
11and the amounts that would have been contributed had such
12contributions been made at the rates applicable to State
13policemen, plus (ii) interest thereon at the actuarially
14assumed rate for each year, compounded annually, from the date
15of service to the date of payment.
16    Notwithstanding the limitation in subsection (i), a State
17policeman or conservation police officer may elect to convert
18service credit earned under this Article to eligible
19creditable service, as defined by this Section, by filing a
20written election with the board within 6 months after July 30,
212021 (the effective date of Public Act 102-210) and paying to
22the System an amount to be determined by the Board equal to (i)
23the difference between the amount of employee contributions
24originally paid for that service and the amounts that would
25have been contributed had such contributions been made at the
26rates applicable to State policemen, plus (ii) the difference

 

 

HB5449- 93 -LRB103 38496 RPS 68632 b

1between the employer's normal cost of the credit prior to the
2conversion authorized by Public Act 102-210 and the employer's
3normal cost of the credit converted in accordance with Public
4Act 102-210, plus (iii) interest thereon at the actuarially
5assumed rate for each year, compounded annually, from the date
6of service to the date of payment.
7    Notwithstanding the limitation in subsection (i), an
8investigator for the Department of Revenue, investigator for
9the Illinois Gaming Board, investigator for the Secretary of
10State, or arson investigator may elect to convert service
11credit earned under this Article to eligible creditable
12service, as defined by this Section, by filing a written
13election with the Board within 6 months after the effective
14date of this amendatory Act of the 102nd General Assembly and
15paying to the System an amount to be determined by the Board
16equal to (i) the difference between the amount of employee
17contributions originally paid for that service and the amounts
18that would have been contributed had such contributions been
19made at the rates applicable to investigators for the
20Department of Revenue, investigators for the Illinois Gaming
21Board, investigators for the Secretary of State, or arson
22investigators, plus (ii) the difference between the employer's
23normal cost of the credit prior to the conversion authorized
24by this amendatory Act of the 102nd General Assembly and the
25employer's normal cost of the credit converted in accordance
26with this amendatory Act of the 102nd General Assembly, plus

 

 

HB5449- 94 -LRB103 38496 RPS 68632 b

1(iii) interest thereon at the actuarially assumed rate for
2each year, compounded annually, from the date of service to
3the date of payment.
4    (i) The total amount of eligible creditable service
5established by any person under subsections (g), (h), (j),
6(k), (l), (l-5), and (o) of this Section shall not exceed 12
7years.
8    (j) Subject to the limitation in subsection (i), an
9investigator for the Office of the State's Attorneys Appellate
10Prosecutor or a controlled substance inspector may elect to
11establish eligible creditable service for up to 10 years of
12his service as a policeman under Article 3 or a sheriff's law
13enforcement employee under Article 7, by filing a written
14election with the Board, accompanied by payment of an amount
15to be determined by the Board, equal to (1) the difference
16between the amount of employee and employer contributions
17transferred to the System under Section 3-110.6 or 7-139.8,
18and the amounts that would have been contributed had such
19contributions been made at the rates applicable to State
20policemen, plus (2) interest thereon at the effective rate for
21each year, compounded annually, from the date of service to
22the date of payment.
23    (k) Subject to the limitation in subsection (i) of this
24Section, an alternative formula employee may elect to
25establish eligible creditable service for periods spent as a
26full-time law enforcement officer or full-time corrections

 

 

HB5449- 95 -LRB103 38496 RPS 68632 b

1officer employed by the federal government or by a state or
2local government located outside of Illinois, for which credit
3is not held in any other public employee pension fund or
4retirement system. To obtain this credit, the applicant must
5file a written application with the Board by March 31, 1998,
6accompanied by evidence of eligibility acceptable to the Board
7and payment of an amount to be determined by the Board, equal
8to (1) employee contributions for the credit being
9established, based upon the applicant's salary on the first
10day as an alternative formula employee after the employment
11for which credit is being established and the rates then
12applicable to alternative formula employees, plus (2) an
13amount determined by the Board to be the employer's normal
14cost of the benefits accrued for the credit being established,
15plus (3) regular interest on the amounts in items (1) and (2)
16from the first day as an alternative formula employee after
17the employment for which credit is being established to the
18date of payment.
19    (l) Subject to the limitation in subsection (i), a
20security employee of the Department of Corrections may elect,
21not later than July 1, 1998, to establish eligible creditable
22service for up to 10 years of his or her service as a policeman
23under Article 3, by filing a written election with the Board,
24accompanied by payment of an amount to be determined by the
25Board, equal to (i) the difference between the amount of
26employee and employer contributions transferred to the System

 

 

HB5449- 96 -LRB103 38496 RPS 68632 b

1under Section 3-110.5, and the amounts that would have been
2contributed had such contributions been made at the rates
3applicable to security employees of the Department of
4Corrections, plus (ii) interest thereon at the effective rate
5for each year, compounded annually, from the date of service
6to the date of payment.
7    (l-5) Subject to the limitation in subsection (i) of this
8Section, a State policeman may elect to establish eligible
9creditable service for up to 5 years of service as a full-time
10law enforcement officer employed by the federal government or
11by a state or local government located outside of Illinois for
12which credit is not held in any other public employee pension
13fund or retirement system. To obtain this credit, the
14applicant must file a written application with the Board no
15later than 3 years after January 1, 2020 (the effective date of
16Public Act 101-610), accompanied by evidence of eligibility
17acceptable to the Board and payment of an amount to be
18determined by the Board, equal to (1) employee contributions
19for the credit being established, based upon the applicant's
20salary on the first day as an alternative formula employee
21after the employment for which credit is being established and
22the rates then applicable to alternative formula employees,
23plus (2) an amount determined by the Board to be the employer's
24normal cost of the benefits accrued for the credit being
25established, plus (3) regular interest on the amounts in items
26(1) and (2) from the first day as an alternative formula

 

 

HB5449- 97 -LRB103 38496 RPS 68632 b

1employee after the employment for which credit is being
2established to the date of payment.
3    (m) The amendatory changes to this Section made by Public
4Act 94-696 apply only to: (1) security employees of the
5Department of Juvenile Justice employed by the Department of
6Corrections before June 1, 2006 (the effective date of Public
7Act 94-696) and transferred to the Department of Juvenile
8Justice by Public Act 94-696; and (2) persons employed by the
9Department of Juvenile Justice on or after June 1, 2006 (the
10effective date of Public Act 94-696) who are required by
11subsection (b) of Section 3-2.5-15 of the Unified Code of
12Corrections to have any bachelor's or advanced degree from an
13accredited college or university or, in the case of persons
14who provide vocational training, who are required to have
15adequate knowledge in the skill for which they are providing
16the vocational training.
17    Beginning with the pay period that immediately follows the
18effective date of this amendatory Act of the 103rd General
19Assembly, the bachelor's or advanced degree requirement of
20subsection (b) of Section 3-2.5-15 of the Unified Code of
21Corrections shall no longer determine the eligibility to earn
22eligible creditable service for a person employed by the
23Department of Juvenile Justice.
24    An employee may elect to convert into eligible creditable
25service his or her creditable service earned with the
26Department of Juvenile Justice while employed in a position

 

 

HB5449- 98 -LRB103 38496 RPS 68632 b

1that required the employee to do any one or more of the
2following: (1) participate or assist in the rehabilitative and
3vocational training of delinquent youths; (2) supervise the
4daily activities and assume direct and continuing
5responsibility for the youth's security, welfare, and
6development; or (3) participate in the personal rehabilitation
7of delinquent youth by training, supervising, and assisting
8lower-level personnel. To convert that creditable service to
9eligible creditable service, the employee must pay to the
10System the difference between the employee contributions
11actually paid for that service and the amounts that would have
12been contributed if the applicant were contributing at the
13rate applicable to persons with the same Social Security
14status earning eligible creditable service on the date of
15application.
16    (n) A person employed in a position under subsection (b)
17of this Section who has purchased service credit under
18subsection (j) of Section 14-104 or subsection (b) of Section
1914-105 in any other capacity under this Article may convert up
20to 5 years of that service credit into service credit covered
21under this Section by paying to the Fund an amount equal to (1)
22the additional employee contribution required under Section
2314-133, plus (2) the additional employer contribution required
24under Section 14-131, plus (3) interest on items (1) and (2) at
25the actuarially assumed rate from the date of the service to
26the date of payment.

 

 

HB5449- 99 -LRB103 38496 RPS 68632 b

1    (o) Subject to the limitation in subsection (i), a
2conservation police officer, investigator for the Secretary of
3State, Commerce Commission police officer, investigator for
4the Department of Revenue or the Illinois Gaming Board, or
5arson investigator subject to subsection (g) of Section 1-160
6may elect to convert up to 8 years of service credit
7established before January 1, 2020 (the effective date of
8Public Act 101-610) as a conservation police officer,
9investigator for the Secretary of State, Commerce Commission
10police officer, investigator for the Department of Revenue or
11the Illinois Gaming Board, or arson investigator under this
12Article into eligible creditable service by filing a written
13election with the Board no later than one year after January 1,
142020 (the effective date of Public Act 101-610), accompanied
15by payment of an amount to be determined by the Board equal to
16(i) the difference between the amount of the employee
17contributions actually paid for that service and the amount of
18the employee contributions that would have been paid had the
19employee contributions been made as a noncovered employee
20serving in a position in which eligible creditable service, as
21defined in this Section, may be earned, plus (ii) interest
22thereon at the effective rate for each year, compounded
23annually, from the date of service to the date of payment.
24    (q) A security employee of the Department of Human
25Services who is subject to subsection (g-1) of Section 1-160
26may elect to convert up to 13 years of service credit

 

 

HB5449- 100 -LRB103 38496 RPS 68632 b

1established before the effective date of this amendatory Act
2of the 103rd General Assembly as a security employee of the
3Department of Human Services to eligible creditable service by
4filing a written election with the Board no later than one year
5after the effective date of this amendatory Act of the 103rd
6General Assembly, accompanied by payment of an amount, to be
7determined by the Board, equal to (i) the difference between
8the amount of the employee contributions actually paid for
9that service and the amount of the employee contributions that
10would have been paid had the employee contributions been made
11as a covered employee serving in a position in which eligible
12creditable service, as defined in this Section, may be earned,
13plus (ii) interest thereon at the effective rate for each
14year, compounded annually, from the date of service to the
15date of payment.
16(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
17102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)
 
18    (Text of Section from P.A. 102-956 and 103-34)
19    Sec. 14-110. Alternative retirement annuity.
20    (a) Any member who has withdrawn from service with not
21less than 20 years of eligible creditable service and has
22attained age 55, and any member who has withdrawn from service
23with not less than 25 years of eligible creditable service and
24has attained age 50, regardless of whether the attainment of
25either of the specified ages occurs while the member is still

 

 

HB5449- 101 -LRB103 38496 RPS 68632 b

1in service, shall be entitled to receive at the option of the
2member, in lieu of the regular or minimum retirement annuity,
3a retirement annuity computed as follows:
4        (i) for periods of service as a noncovered employee:
5    if retirement occurs on or after January 1, 2001, 3% of
6    final average compensation for each year of creditable
7    service; if retirement occurs before January 1, 2001, 2
8    1/4% of final average compensation for each of the first
9    10 years of creditable service, 2 1/2% for each year above
10    10 years to and including 20 years of creditable service,
11    and 2 3/4% for each year of creditable service above 20
12    years; and
13        (ii) for periods of eligible creditable service as a
14    covered employee: if retirement occurs on or after January
15    1, 2001, 2.5% of final average compensation for each year
16    of creditable service; if retirement occurs before January
17    1, 2001, 1.67% of final average compensation for each of
18    the first 10 years of such service, 1.90% for each of the
19    next 10 years of such service, 2.10% for each year of such
20    service in excess of 20 but not exceeding 30, and 2.30% for
21    each year in excess of 30.
22    Such annuity shall be subject to a maximum of 75% of final
23average compensation if retirement occurs before January 1,
242001 or to a maximum of 80% of final average compensation if
25retirement occurs on or after January 1, 2001.
26    These rates shall not be applicable to any service

 

 

HB5449- 102 -LRB103 38496 RPS 68632 b

1performed by a member as a covered employee which is not
2eligible creditable service. Service as a covered employee
3which is not eligible creditable service shall be subject to
4the rates and provisions of Section 14-108.
5    (b) For the purpose of this Section, "eligible creditable
6service" means creditable service resulting from service in
7one or more of the following positions:
8        (1) State policeman;
9        (2) fire fighter in the fire protection service of a
10    department;
11        (3) air pilot;
12        (4) special agent;
13        (5) investigator for the Secretary of State;
14        (6) conservation police officer;
15        (7) investigator for the Department of Revenue or the
16    Illinois Gaming Board;
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 or the Department of Juvenile Justice;
23        (11) dangerous drugs investigator;
24        (12) investigator for the Illinois State Police;
25        (13) investigator for the Office of the Attorney
26    General;

 

 

HB5449- 103 -LRB103 38496 RPS 68632 b

1        (14) controlled substance inspector;
2        (15) investigator for the Office of the State's
3    Attorneys Appellate Prosecutor;
4        (16) Commerce Commission police officer;
5        (17) arson investigator;
6        (18) State highway maintenance worker;
7        (19) security employee of the Department of Innovation
8    and Technology; or
9        (20) transferred employee; or .
10        (21) investigator for the Department of the Lottery.
11    A person employed in one of the positions specified in
12this subsection is entitled to eligible creditable service for
13service credit earned under this Article while undergoing the
14basic police training course approved by the Illinois Law
15Enforcement Training Standards Board, if completion of that
16training is required of persons serving in that position. For
17the purposes of this Code, service during the required basic
18police training course shall be deemed performance of the
19duties of the specified position, even though the person is
20not a sworn peace officer at the time of the training.
21    A person under paragraph (20) is entitled to eligible
22creditable service for service credit earned under this
23Article on and after his or her transfer by Executive Order No.
242003-10, Executive Order No. 2004-2, or Executive Order No.
252016-1.
26    (c) For the purposes of this Section:

 

 

HB5449- 104 -LRB103 38496 RPS 68632 b

1        (1) The term "State policeman" includes any title or
2    position in the Illinois State Police that is held by an
3    individual employed under the Illinois State Police Act.
4        (2) The term "fire fighter in the fire protection
5    service of a department" includes all officers in such
6    fire protection service including fire chiefs and
7    assistant fire chiefs.
8        (3) The term "air pilot" includes any employee whose
9    official job description on file in the Department of
10    Central Management Services, or in the department by which
11    he is employed if that department is not covered by the
12    Personnel Code, states that his principal duty is the
13    operation of aircraft, and who possesses a pilot's
14    license; however, the change in this definition made by
15    Public Act 83-842 shall not operate to exclude any
16    noncovered employee who was an "air pilot" for the
17    purposes of this Section on January 1, 1984.
18        (4) The term "special agent" means any person who by
19    reason of employment by the Division of Narcotic Control,
20    the Bureau of Investigation or, after July 1, 1977, the
21    Division of Criminal Investigation, the Division of
22    Internal Investigation, the Division of Operations, the
23    Division of Patrol, or any other Division or
24    organizational entity in the Illinois State Police is
25    vested by law with duties to maintain public order,
26    investigate violations of the criminal law of this State,

 

 

HB5449- 105 -LRB103 38496 RPS 68632 b

1    enforce the laws of this State, make arrests and recover
2    property. The term "special agent" includes any title or
3    position in the Illinois State Police that is held by an
4    individual employed under the Illinois State Police Act.
5        (5) The term "investigator for the Secretary of State"
6    means any person employed by the Office of the Secretary
7    of State and vested with such investigative duties as
8    render him ineligible for coverage under the Social
9    Security Act by reason of Sections 218(d)(5)(A),
10    218(d)(8)(D) and 218(l)(1) of that Act.
11        A person who became employed as an investigator for
12    the Secretary of State between January 1, 1967 and
13    December 31, 1975, and who has served as such until
14    attainment of age 60, either continuously or with a single
15    break in service of not more than 3 years duration, which
16    break terminated before January 1, 1976, shall be entitled
17    to have his retirement annuity calculated in accordance
18    with subsection (a), notwithstanding that he has less than
19    20 years of credit for such service.
20        (6) The term "Conservation Police Officer" means any
21    person employed by the Division of Law Enforcement of the
22    Department of Natural Resources and vested with such law
23    enforcement duties as render him ineligible for coverage
24    under the Social Security Act by reason of Sections
25    218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
26    term "Conservation Police Officer" includes the positions

 

 

HB5449- 106 -LRB103 38496 RPS 68632 b

1    of Chief Conservation Police Administrator and Assistant
2    Conservation Police Administrator.
3        (7) The term "investigator for the Department of
4    Revenue" means any person employed by the Department of
5    Revenue and vested with such investigative duties as
6    render him ineligible for coverage under the Social
7    Security Act by reason of Sections 218(d)(5)(A),
8    218(d)(8)(D) and 218(l)(1) of that Act.
9        The term "investigator for the Illinois Gaming Board"
10    means any person employed as such by the Illinois Gaming
11    Board and vested with such peace officer duties as render
12    the person ineligible for coverage under the Social
13    Security Act by reason of Sections 218(d)(5)(A),
14    218(d)(8)(D), and 218(l)(1) of that Act.
15        (8) The term "security employee of the Department of
16    Human Services" means any person employed by the
17    Department of Human Services who (i) is employed at the
18    Chester Mental Health Center and has daily contact with
19    the residents thereof, (ii) is employed within a security
20    unit at a facility operated by the Department and has
21    daily contact with the residents of the security unit,
22    (iii) is employed at a facility operated by the Department
23    that includes a security unit and is regularly scheduled
24    to work at least 50% of his or her working hours within
25    that security unit, or (iv) is a mental health police
26    officer. "Mental health police officer" means any person

 

 

HB5449- 107 -LRB103 38496 RPS 68632 b

1    employed by the Department of Human Services in a position
2    pertaining to the Department's mental health and
3    developmental disabilities functions who is vested with
4    such law enforcement duties as render the person
5    ineligible for coverage under the Social Security Act by
6    reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
7    218(l)(1) of that Act. "Security unit" means that portion
8    of a facility that is devoted to the care, containment,
9    and treatment of persons committed to the Department of
10    Human Services as sexually violent persons, persons unfit
11    to stand trial, or persons not guilty by reason of
12    insanity. With respect to past employment, references to
13    the Department of Human Services include its predecessor,
14    the Department of Mental Health and Developmental
15    Disabilities.
16        The changes made to this subdivision (c)(8) by Public
17    Act 92-14 apply to persons who retire on or after January
18    1, 2001, notwithstanding Section 1-103.1.
19        (9) "Central Management Services security police
20    officer" means any person employed by the Department of
21    Central Management Services who is vested with such law
22    enforcement duties as render him ineligible for coverage
23    under the Social Security Act by reason of Sections
24    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
25        (10) For a member who first became an employee under
26    this Article before July 1, 2005, the term "security

 

 

HB5449- 108 -LRB103 38496 RPS 68632 b

1    employee of the Department of Corrections or the
2    Department of Juvenile Justice" means any employee of the
3    Department of Corrections or the Department of Juvenile
4    Justice or the former Department of Personnel, and any
5    member or employee of the Prisoner Review Board, who has
6    daily contact with inmates or youth by working within a
7    correctional facility or Juvenile facility operated by the
8    Department of Juvenile Justice or who is a parole officer
9    or an employee who has direct contact with committed
10    persons in the performance of his or her job duties. For a
11    member who first becomes an employee under this Article on
12    or after July 1, 2005, the term means an employee of the
13    Department of Corrections or the Department of Juvenile
14    Justice who is any of the following: (i) officially
15    headquartered at a correctional facility or Juvenile
16    facility operated by the Department of Juvenile Justice,
17    (ii) a parole officer, (iii) a member of the apprehension
18    unit, (iv) a member of the intelligence unit, (v) a member
19    of the sort team, or (vi) an investigator.
20        (11) The term "dangerous drugs investigator" means any
21    person who is employed as such by the Department of Human
22    Services.
23        (12) The term "investigator for the Illinois State
24    Police" means a person employed by the Illinois State
25    Police who is vested under Section 4 of the Narcotic
26    Control Division Abolition Act with such law enforcement

 

 

HB5449- 109 -LRB103 38496 RPS 68632 b

1    powers as render him ineligible for coverage under the
2    Social Security Act by reason of Sections 218(d)(5)(A),
3    218(d)(8)(D) and 218(l)(1) of that Act.
4        (13) "Investigator for the Office of the Attorney
5    General" means any person who is employed as such by the
6    Office of the Attorney General and is vested with such
7    investigative duties as render him ineligible for coverage
8    under the Social Security Act by reason of Sections
9    218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
10    the period before January 1, 1989, the term includes all
11    persons who were employed as investigators by the Office
12    of the Attorney General, without regard to social security
13    status.
14        (14) "Controlled substance inspector" means any person
15    who is employed as such by the Department of Professional
16    Regulation and is vested with such law enforcement duties
17    as render him ineligible for coverage under the Social
18    Security Act by reason of Sections 218(d)(5)(A),
19    218(d)(8)(D) and 218(l)(1) of that Act. The term
20    "controlled substance inspector" includes the Program
21    Executive of Enforcement and the Assistant Program
22    Executive of Enforcement.
23        (15) The term "investigator for the Office of the
24    State's Attorneys Appellate Prosecutor" means a person
25    employed in that capacity on a full-time basis under the
26    authority of Section 7.06 of the State's Attorneys

 

 

HB5449- 110 -LRB103 38496 RPS 68632 b

1    Appellate Prosecutor's Act.
2        (16) "Commerce Commission police officer" means any
3    person employed by the Illinois Commerce Commission who is
4    vested with such law enforcement duties as render him
5    ineligible for coverage under the Social Security Act by
6    reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
7    218(l)(1) of that Act.
8        (17) "Arson investigator" means any person who is
9    employed as such by the Office of the State Fire Marshal
10    and is vested with such law enforcement duties as render
11    the person 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. A person who was
14    employed as an arson investigator on January 1, 1995 and
15    is no longer in service but not yet receiving a retirement
16    annuity may convert his or her creditable service for
17    employment as an arson investigator into eligible
18    creditable service by paying to the System the difference
19    between the employee contributions actually paid for that
20    service and the amounts that would have been contributed
21    if the applicant were contributing at the rate applicable
22    to persons with the same social security status earning
23    eligible creditable service on the date of application.
24        (18) The term "State highway maintenance worker" means
25    a person who is either of the following:
26            (i) A person employed on a full-time basis by the

 

 

HB5449- 111 -LRB103 38496 RPS 68632 b

1        Illinois Department of Transportation in the position
2        of highway maintainer, highway maintenance lead
3        worker, highway maintenance lead/lead worker, heavy
4        construction equipment operator, power shovel
5        operator, or bridge mechanic; and whose principal
6        responsibility is to perform, on the roadway, the
7        actual maintenance necessary to keep the highways that
8        form a part of the State highway system in serviceable
9        condition for vehicular traffic.
10            (ii) A person employed on a full-time basis by the
11        Illinois State Toll Highway Authority in the position
12        of equipment operator/laborer H-4, equipment
13        operator/laborer H-6, welder H-4, welder H-6,
14        mechanical/electrical H-4, mechanical/electrical H-6,
15        water/sewer H-4, water/sewer H-6, sign maker/hanger
16        H-4, sign maker/hanger H-6, roadway lighting H-4,
17        roadway lighting H-6, structural H-4, structural H-6,
18        painter H-4, or painter H-6; and whose principal
19        responsibility is to perform, on the roadway, the
20        actual maintenance necessary to keep the Authority's
21        tollways in serviceable condition for vehicular
22        traffic.
23        (19) The term "security employee of the Department of
24    Innovation and Technology" means a person who was a
25    security employee of the Department of Corrections or the
26    Department of Juvenile Justice, was transferred to the

 

 

HB5449- 112 -LRB103 38496 RPS 68632 b

1    Department of Innovation and Technology pursuant to
2    Executive Order 2016-01, and continues to perform similar
3    job functions under that Department.
4        (20) "Transferred employee" means an employee who was
5    transferred to the Department of Central Management
6    Services by Executive Order No. 2003-10 or Executive Order
7    No. 2004-2 or transferred to the Department of Innovation
8    and Technology by Executive Order No. 2016-1, or both, and
9    was entitled to eligible creditable service for services
10    immediately preceding the transfer.
11        (21) "Investigator for the Department of the Lottery"
12    means any person who is employed by the Department of the
13    Lottery and is vested with such investigative duties which
14    render him or her ineligible for coverage under the Social
15    Security Act by reason of Sections 218(d)(5)(A),
16    218(d)(8)(D), and 218(l)(1) of that Act. An investigator
17    for the Department of the Lottery who qualifies under this
18    Section shall earn eligible creditable service and be
19    required to make contributions at the rate specified in
20    paragraph (3) of subsection (a) of Section 14-133 for all
21    periods of service as an investigator for the Department
22    of the Lottery.
23    (d) A security employee of the Department of Corrections
24or the Department of Juvenile Justice, a security employee of
25the Department of Human Services who is not a mental health
26police officer, and a security employee of the Department of

 

 

HB5449- 113 -LRB103 38496 RPS 68632 b

1Innovation and Technology shall not be eligible for the
2alternative retirement annuity provided by this Section unless
3he or she meets the following minimum age and service
4requirements at the time of retirement:
5        (i) 25 years of eligible creditable service and age
6    55; or
7        (ii) beginning January 1, 1987, 25 years of eligible
8    creditable service and age 54, or 24 years of eligible
9    creditable service and age 55; or
10        (iii) beginning January 1, 1988, 25 years of eligible
11    creditable service and age 53, or 23 years of eligible
12    creditable service and age 55; or
13        (iv) beginning January 1, 1989, 25 years of eligible
14    creditable service and age 52, or 22 years of eligible
15    creditable service and age 55; or
16        (v) beginning January 1, 1990, 25 years of eligible
17    creditable service and age 51, or 21 years of eligible
18    creditable service and age 55; or
19        (vi) beginning January 1, 1991, 25 years of eligible
20    creditable service and age 50, or 20 years of eligible
21    creditable service and age 55.
22    Persons who have service credit under Article 16 of this
23Code for service as a security employee of the Department of
24Corrections or the Department of Juvenile Justice, or the
25Department of Human Services in a position requiring
26certification as a teacher may count such service toward

 

 

HB5449- 114 -LRB103 38496 RPS 68632 b

1establishing their eligibility under the service requirements
2of this Section; but such service may be used only for
3establishing such eligibility, and not for the purpose of
4increasing or calculating any benefit.
5    (e) If a member enters military service while working in a
6position in which eligible creditable service may be earned,
7and returns to State service in the same or another such
8position, and fulfills in all other respects the conditions
9prescribed in this Article for credit for military service,
10such military service shall be credited as eligible creditable
11service for the purposes of the retirement annuity prescribed
12in this Section.
13    (f) For purposes of calculating retirement annuities under
14this Section, periods of service rendered after December 31,
151968 and before October 1, 1975 as a covered employee in the
16position of special agent, conservation police officer, mental
17health police officer, or investigator for the Secretary of
18State, shall be deemed to have been service as a noncovered
19employee, provided that the employee pays to the System prior
20to retirement an amount equal to (1) the difference between
21the employee contributions that would have been required for
22such service as a noncovered employee, and the amount of
23employee contributions actually paid, plus (2) if payment is
24made after July 31, 1987, regular interest on the amount
25specified in item (1) from the date of service to the date of
26payment.

 

 

HB5449- 115 -LRB103 38496 RPS 68632 b

1    For purposes of calculating retirement annuities under
2this Section, periods of service rendered after December 31,
31968 and before January 1, 1982 as a covered employee in the
4position of investigator for the Department of Revenue shall
5be deemed to have been service as a noncovered employee,
6provided that the employee pays to the System prior to
7retirement an amount equal to (1) the difference between the
8employee contributions that would have been required for such
9service as a noncovered employee, and the amount of employee
10contributions actually paid, plus (2) if payment is made after
11January 1, 1990, regular interest on the amount specified in
12item (1) from the date of service to the date of payment.
13    (g) A State policeman may elect, not later than January 1,
141990, to establish eligible creditable service for up to 10
15years of his service as a policeman under Article 3, by filing
16a written election with the Board, accompanied by payment of
17an amount to be determined by the Board, equal to (i) the
18difference between the amount of employee and employer
19contributions transferred to the System under Section 3-110.5,
20and the amounts that would have been contributed had such
21contributions been made at the rates applicable to State
22policemen, plus (ii) interest thereon at the effective rate
23for each year, compounded annually, from the date of service
24to the date of payment.
25    Subject to the limitation in subsection (i), a State
26policeman may elect, not later than July 1, 1993, to establish

 

 

HB5449- 116 -LRB103 38496 RPS 68632 b

1eligible creditable service for up to 10 years of his service
2as a member of the County Police Department under Article 9, by
3filing a written election with the Board, accompanied by
4payment of an amount to be determined by the Board, equal to
5(i) the difference between the amount of employee and employer
6contributions transferred to the System under Section 9-121.10
7and the amounts that would have been contributed had those
8contributions been made at the rates applicable to State
9policemen, plus (ii) interest thereon at the effective rate
10for each year, compounded annually, from the date of service
11to the date of payment.
12    (h) Subject to the limitation in subsection (i), a State
13policeman or investigator for the Secretary of State may elect
14to establish eligible creditable service for up to 12 years of
15his service as a policeman under Article 5, by filing a written
16election with the Board on or before January 31, 1992, and
17paying to the System by January 31, 1994 an amount to be
18determined by the Board, equal to (i) the difference between
19the amount of employee and employer contributions transferred
20to the System under Section 5-236, and the amounts that would
21have been contributed had such contributions been made at the
22rates applicable to State policemen, plus (ii) interest
23thereon at the effective rate for each year, compounded
24annually, from the date of service to the date of payment.
25    Subject to the limitation in subsection (i), a State
26policeman, conservation police officer, or investigator for

 

 

HB5449- 117 -LRB103 38496 RPS 68632 b

1the Secretary of State may elect to establish eligible
2creditable service for up to 10 years of service as a sheriff's
3law enforcement employee under Article 7, by filing a written
4election with the Board on or before January 31, 1993, and
5paying to the System by January 31, 1994 an amount to be
6determined by the Board, equal to (i) the difference between
7the amount of employee and employer contributions transferred
8to the System under Section 7-139.7, and the amounts that
9would have been contributed had such contributions been made
10at the rates applicable to State policemen, plus (ii) interest
11thereon at the effective rate for each year, compounded
12annually, from the date of service to the date of payment.
13    Subject to the limitation in subsection (i), a State
14policeman, conservation police officer, or investigator for
15the Secretary of State may elect to establish eligible
16creditable service for up to 5 years of service as a police
17officer under Article 3, a policeman under Article 5, a
18sheriff's law enforcement employee under Article 7, a member
19of the county police department under Article 9, or a police
20officer under Article 15 by filing a written election with the
21Board and paying to the System an amount to be determined by
22the Board, equal to (i) the difference between the amount of
23employee and employer contributions transferred to the System
24under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4
25and the amounts that would have been contributed had such
26contributions been made at the rates applicable to State

 

 

HB5449- 118 -LRB103 38496 RPS 68632 b

1policemen, plus (ii) interest thereon at the effective rate
2for each year, compounded annually, from the date of service
3to the date of payment.
4    Subject to the limitation in subsection (i), an
5investigator for the Office of the Attorney General, or an
6investigator for the Department of Revenue, may elect to
7establish eligible creditable service for up to 5 years of
8service as a police officer under Article 3, a policeman under
9Article 5, a sheriff's law enforcement employee under Article
107, or a member of the county police department under Article 9
11by filing a written election with the Board within 6 months
12after August 25, 2009 (the effective date of Public Act
1396-745) and paying to the System an amount to be determined by
14the Board, equal to (i) the difference between the amount of
15employee and employer contributions transferred to the System
16under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the
17amounts that would have been contributed had such
18contributions been made at the rates applicable to State
19policemen, plus (ii) interest thereon at the actuarially
20assumed rate for each year, compounded annually, from the date
21of service to the date of payment.
22    Subject to the limitation in subsection (i), a State
23policeman, conservation police officer, investigator for the
24Office of the Attorney General, an investigator for the
25Department of Revenue, or investigator for the Secretary of
26State may elect to establish eligible creditable service for

 

 

HB5449- 119 -LRB103 38496 RPS 68632 b

1up to 5 years of service as a person employed by a
2participating municipality to perform police duties, or law
3enforcement officer employed on a full-time basis by a forest
4preserve district under Article 7, a county corrections
5officer, or a court services officer under Article 9, by
6filing a written election with the Board within 6 months after
7August 25, 2009 (the effective date of Public Act 96-745) and
8paying to the System an amount to be determined by the Board,
9equal to (i) the difference between the amount of employee and
10employer contributions transferred to the System under
11Sections 7-139.8 and 9-121.10 and the amounts that would have
12been contributed had such contributions been made at the rates
13applicable to State policemen, plus (ii) interest thereon at
14the actuarially assumed rate for each year, compounded
15annually, from the date of service to the date of payment.
16    Subject to the limitation in subsection (i), a State
17policeman, arson investigator, or Commerce Commission police
18officer may elect to establish eligible creditable service for
19up to 5 years of service as a person employed by a
20participating municipality to perform police duties under
21Article 7, a county corrections officer, a court services
22officer under Article 9, or a firefighter under Article 4 by
23filing a written election with the Board within 6 months after
24July 30, 2021 (the effective date of Public Act 102-210) and
25paying to the System an amount to be determined by the Board
26equal to (i) the difference between the amount of employee and

 

 

HB5449- 120 -LRB103 38496 RPS 68632 b

1employer contributions transferred to the System under
2Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that
3would have been contributed had such contributions been made
4at the rates applicable to State policemen, plus (ii) interest
5thereon at the actuarially assumed rate for each year,
6compounded annually, from the date of service to the date of
7payment.
8    Subject to the limitation in subsection (i), a
9conservation police officer may elect to establish eligible
10creditable service for up to 5 years of service as a person
11employed by a participating municipality to perform police
12duties under Article 7, a county corrections officer, or a
13court services officer under Article 9 by filing a written
14election with the Board within 6 months after July 30, 2021
15(the effective date of Public Act 102-210) and paying to the
16System an amount to be determined by the Board equal to (i) the
17difference between the amount of employee and employer
18contributions transferred to the System under Sections 7-139.8
19and 9-121.10 and the amounts that would have been contributed
20had such contributions been made at the rates applicable to
21State policemen, plus (ii) interest thereon at the actuarially
22assumed rate for each year, compounded annually, from the date
23of service to the date of payment.
24    Notwithstanding the limitation in subsection (i), a State
25policeman or conservation police officer may elect to convert
26service credit earned under this Article to eligible

 

 

HB5449- 121 -LRB103 38496 RPS 68632 b

1creditable service, as defined by this Section, by filing a
2written election with the board within 6 months after July 30,
32021 (the effective date of Public Act 102-210) and paying to
4the System an amount to be determined by the Board equal to (i)
5the difference between the amount of employee contributions
6originally paid for that service and the amounts that would
7have been contributed had such contributions been made at the
8rates applicable to State policemen, plus (ii) the difference
9between the employer's normal cost of the credit prior to the
10conversion authorized by Public Act 102-210 and the employer's
11normal cost of the credit converted in accordance with Public
12Act 102-210, plus (iii) interest thereon at the actuarially
13assumed rate for each year, compounded annually, from the date
14of service to the date of payment.
15    (i) The total amount of eligible creditable service
16established by any person under subsections (g), (h), (j),
17(k), (l), (l-5), (o), and (p) of this Section shall not exceed
1812 years.
19    (j) Subject to the limitation in subsection (i), an
20investigator for the Office of the State's Attorneys Appellate
21Prosecutor or a controlled substance inspector may elect to
22establish eligible creditable service for up to 10 years of
23his service as a policeman under Article 3 or a sheriff's law
24enforcement employee under Article 7, by filing a written
25election with the Board, accompanied by payment of an amount
26to be determined by the Board, equal to (1) the difference

 

 

HB5449- 122 -LRB103 38496 RPS 68632 b

1between the amount of employee and employer contributions
2transferred to the System under Section 3-110.6 or 7-139.8,
3and the amounts that would have been contributed had such
4contributions been made at the rates applicable to State
5policemen, plus (2) interest thereon at the effective rate for
6each year, compounded annually, from the date of service to
7the date of payment.
8    (k) Subject to the limitation in subsection (i) of this
9Section, an alternative formula employee may elect to
10establish eligible creditable service for periods spent as a
11full-time law enforcement officer or full-time corrections
12officer employed by the federal government or by a state or
13local government located outside of Illinois, for which credit
14is not held in any other public employee pension fund or
15retirement system. To obtain this credit, the applicant must
16file a written application with the Board by March 31, 1998,
17accompanied by evidence of eligibility acceptable to the Board
18and payment of an amount to be determined by the Board, equal
19to (1) employee contributions for the credit being
20established, based upon the applicant's salary on the first
21day as an alternative formula employee after the employment
22for which credit is being established and the rates then
23applicable to alternative formula employees, plus (2) an
24amount determined by the Board to be the employer's normal
25cost of the benefits accrued for the credit being established,
26plus (3) regular interest on the amounts in items (1) and (2)

 

 

HB5449- 123 -LRB103 38496 RPS 68632 b

1from the first day as an alternative formula employee after
2the employment for which credit is being established to the
3date of payment.
4    (l) Subject to the limitation in subsection (i), a
5security employee of the Department of Corrections may elect,
6not later than July 1, 1998, to establish eligible creditable
7service for up to 10 years of his or her service as a policeman
8under Article 3, by filing a written election with the Board,
9accompanied by payment of an amount to be determined by the
10Board, equal to (i) the difference between the amount of
11employee and employer contributions transferred to the System
12under Section 3-110.5, and the amounts that would have been
13contributed had such contributions been made at the rates
14applicable to security employees of the Department of
15Corrections, plus (ii) interest thereon at the effective rate
16for each year, compounded annually, from the date of service
17to the date of payment.
18    (l-5) Subject to the limitation in subsection (i) of this
19Section, a State policeman may elect to establish eligible
20creditable service for up to 5 years of service as a full-time
21law enforcement officer employed by the federal government or
22by a state or local government located outside of Illinois for
23which credit is not held in any other public employee pension
24fund or retirement system. To obtain this credit, the
25applicant must file a written application with the Board no
26later than 3 years after January 1, 2020 (the effective date of

 

 

HB5449- 124 -LRB103 38496 RPS 68632 b

1Public Act 101-610), accompanied by evidence of eligibility
2acceptable to the Board and payment of an amount to be
3determined by the Board, equal to (1) employee contributions
4for the credit being established, based upon the applicant's
5salary on the first day as an alternative formula employee
6after the employment for which credit is being established and
7the rates then applicable to alternative formula employees,
8plus (2) an amount determined by the Board to be the employer's
9normal cost of the benefits accrued for the credit being
10established, plus (3) regular interest on the amounts in items
11(1) and (2) from the first day as an alternative formula
12employee after the employment for which credit is being
13established to the date of payment.
14    (m) The amendatory changes to this Section made by Public
15Act 94-696 apply only to: (1) security employees of the
16Department of Juvenile Justice employed by the Department of
17Corrections before June 1, 2006 (the effective date of Public
18Act 94-696) and transferred to the Department of Juvenile
19Justice by Public Act 94-696; and (2) persons employed by the
20Department of Juvenile Justice on or after June 1, 2006 (the
21effective date of Public Act 94-696) who are required by
22subsection (b) of Section 3-2.5-15 of the Unified Code of
23Corrections to have any bachelor's or advanced degree from an
24accredited college or university or, in the case of persons
25who provide vocational training, who are required to have
26adequate knowledge in the skill for which they are providing

 

 

HB5449- 125 -LRB103 38496 RPS 68632 b

1the vocational training.
2    Beginning with the pay period that immediately follows the
3effective date of this amendatory Act of the 103rd General
4Assembly, the bachelor's or advanced degree requirement of
5subsection (b) of Section 3-2.5-15 of the Unified Code of
6Corrections shall no longer determine the eligibility to earn
7eligible creditable service for a person employed by the
8Department of Juvenile Justice.
9    An employee may elect to convert into eligible creditable
10service his or her creditable service earned with the
11Department of Juvenile Justice while employed in a position
12that required the employee to do any one or more of the
13following: (1) participate or assist in the rehabilitative and
14vocational training of delinquent youths; (2) supervise the
15daily activities and assume direct and continuing
16responsibility for the youth's security, welfare, and
17development; or (3) participate in the personal rehabilitation
18of delinquent youth by training, supervising, and assisting
19lower-level personnel. To convert that creditable service to
20eligible creditable service, the employee must pay to the
21System the difference between the employee contributions
22actually paid for that service and the amounts that would have
23been contributed if the applicant were contributing at the
24rate applicable to persons with the same Social Security
25status earning eligible creditable service on the date of
26application.

 

 

HB5449- 126 -LRB103 38496 RPS 68632 b

1    (n) A person employed in a position under subsection (b)
2of this Section who has purchased service credit under
3subsection (j) of Section 14-104 or subsection (b) of Section
414-105 in any other capacity under this Article may convert up
5to 5 years of that service credit into service credit covered
6under this Section by paying to the Fund an amount equal to (1)
7the additional employee contribution required under Section
814-133, plus (2) the additional employer contribution required
9under Section 14-131, plus (3) interest on items (1) and (2) at
10the actuarially assumed rate from the date of the service to
11the date of payment.
12    (o) Subject to the limitation in subsection (i), a
13conservation police officer, investigator for the Secretary of
14State, Commerce Commission police officer, investigator for
15the Department of Revenue or the Illinois Gaming Board, or
16arson investigator subject to subsection (g) of Section 1-160
17may elect to convert up to 8 years of service credit
18established before January 1, 2020 (the effective date of
19Public Act 101-610) as a conservation police officer,
20investigator for the Secretary of State, Commerce Commission
21police officer, investigator for the Department of Revenue or
22the Illinois Gaming Board, or arson investigator under this
23Article into eligible creditable service by filing a written
24election with the Board no later than one year after January 1,
252020 (the effective date of Public Act 101-610), accompanied
26by payment of an amount to be determined by the Board equal to

 

 

HB5449- 127 -LRB103 38496 RPS 68632 b

1(i) the difference between the amount of the employee
2contributions actually paid for that service and the amount of
3the employee contributions that would have been paid had the
4employee contributions been made as a noncovered employee
5serving in a position in which eligible creditable service, as
6defined in this Section, may be earned, plus (ii) interest
7thereon at the effective rate for each year, compounded
8annually, from the date of service to the date of payment.
9    (p) Subject to the limitation in subsection (i), an
10investigator for the Office of the Attorney General subject to
11subsection (g) of Section 1-160 may elect to convert up to 8
12years of service credit established before the effective date
13of this amendatory Act of the 102nd General Assembly as an
14investigator for the Office of the Attorney General under this
15Article into eligible creditable service by filing a written
16election with the Board no later than one year after the
17effective date of this amendatory Act of the 102nd General
18Assembly, accompanied by payment of an amount to be determined
19by the Board equal to (i) the difference between the amount of
20the employee contributions actually paid for that service and
21the amount of the employee contributions that would have been
22paid had the employee contributions been made as a noncovered
23employee serving in a position in which eligible creditable
24service, as defined in this Section, may be earned, plus (ii)
25interest thereon at the effective rate for each year,
26compounded annually, from the date of service to the date of

 

 

HB5449- 128 -LRB103 38496 RPS 68632 b

1payment.
2    (q) A security employee of the Department of Human
3Services who is subject to subsection (g-1) of Section 1-160
4may elect to convert up to 13 years of service credit
5established before the effective date of this amendatory Act
6of the 103rd General Assembly as a security employee of the
7Department of Human Services to eligible creditable service by
8filing a written election with the Board no later than one year
9after the effective date of this amendatory Act of the 103rd
10General Assembly, accompanied by payment of an amount, to be
11determined by the Board, equal to (i) the difference between
12the amount of the employee contributions actually paid for
13that service and the amount of the employee contributions that
14would have been paid had the employee contributions been made
15as a covered employee serving in a position in which eligible
16creditable service, as defined in this Section, may be earned,
17plus (ii) interest thereon at the effective rate for each
18year, compounded annually, from the date of service to the
19date of payment.
20(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
21102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)
 
22    (40 ILCS 5/14-152.1)
23    Sec. 14-152.1. Application and expiration of new benefit
24increases.
25    (a) As used in this Section, "new benefit increase" means

 

 

HB5449- 129 -LRB103 38496 RPS 68632 b

1an increase in the amount of any benefit provided under this
2Article, or an expansion of the conditions of eligibility for
3any benefit under this Article, that results from an amendment
4to this Code that takes effect after June 1, 2005 (the
5effective date of Public Act 94-4). "New benefit increase",
6however, does not include any benefit increase resulting from
7the changes made to Article 1 or this Article by Public Act
896-37, Public Act 100-23, Public Act 100-587, Public Act
9100-611, Public Act 101-10, Public Act 101-610, Public Act
10102-210, Public Act 102-856, Public Act 102-956, or this
11amendatory Act of the 103rd General Assembly this amendatory
12Act of the 102nd General Assembly.
13    (b) Notwithstanding any other provision of this Code or
14any subsequent amendment to this Code, every new benefit
15increase is subject to this Section and shall be deemed to be
16granted only in conformance with and contingent upon
17compliance with the provisions of this Section.
18    (c) The Public Act enacting a new benefit increase must
19identify and provide for payment to the System of additional
20funding at least sufficient to fund the resulting annual
21increase in cost to the System as it accrues.
22    Every new benefit increase is contingent upon the General
23Assembly providing the additional funding required under this
24subsection. The Commission on Government Forecasting and
25Accountability shall analyze whether adequate additional
26funding has been provided for the new benefit increase and

 

 

HB5449- 130 -LRB103 38496 RPS 68632 b

1shall report its analysis to the Public Pension Division of
2the Department of Insurance. A new benefit increase created by
3a Public Act that does not include the additional funding
4required under this subsection is null and void. If the Public
5Pension Division determines that the additional funding
6provided for a new benefit increase under this subsection is
7or has become inadequate, it may so certify to the Governor and
8the State Comptroller and, in the absence of corrective action
9by the General Assembly, the new benefit increase shall expire
10at the end of the fiscal year in which the certification is
11made.
12    (d) Every new benefit increase shall expire 5 years after
13its effective date or on such earlier date as may be specified
14in the language enacting the new benefit increase or provided
15under subsection (c). This does not prevent the General
16Assembly from extending or re-creating a new benefit increase
17by law.
18    (e) Except as otherwise provided in the language creating
19the new benefit increase, a new benefit increase that expires
20under this Section continues to apply to persons who applied
21and qualified for the affected benefit while the new benefit
22increase was in effect and to the affected beneficiaries and
23alternate payees of such persons, but does not apply to any
24other person, including, without limitation, a person who
25continues in service after the expiration date and did not
26apply and qualify for the affected benefit while the new

 

 

HB5449- 131 -LRB103 38496 RPS 68632 b

1benefit increase was in effect.
2(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
3101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
41-1-23; 102-956, eff. 5-27-22.)
 
5    Section 99. Effective date. This Act takes effect January
61, 2025.