Illinois General Assembly - Full Text of HB1170
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Full Text of HB1170  93rd General Assembly

HB1170 93rd General Assembly


093_HB1170

 
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 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Section 14-110 as follows:

 6        (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
 7        Sec. 14-110.  Alternative retirement annuity.
 8        (a)  Any  member  who  has withdrawn from service with at
 9    least not less than 20 years of eligible  creditable  service
10    and  has  attained  age  55, and any member who has withdrawn
11    from  service  with  not  less  than  25  years  of  eligible
12    creditable service and has attained  age  50,  regardless  of
13    whether the attainment of either of the specified ages occurs
14    while  the  member  is still in service, shall be entitled to
15    receive at the option of the member, in lieu of  the  regular
16    or minimum retirement annuity, a retirement  annuity computed
17    as follows:
18             (i)  for   periods   of   service  as  a  noncovered
19        employee: if retirement occurs on  or  after  January  1,
20        2001,  3%  of final average compensation for each year of
21        creditable service; if retirement occurs  before  January
22        1, 2001, 2 1/4% of final average compensation for each of
23        the first 10 years of creditable service, 2 1/2% for each
24        year  above  10  years  to  and  including  20  years  of
25        creditable   service,   and  2  3/4%  for  each  year  of
26        creditable service above 20 years; and
27             (ii)  for periods of eligible creditable service  as
28        a  covered  employee:  if  retirement  occurs on or after
29        January 1, 2001, 2.5% of final average  compensation  for
30        each  year  of  creditable  service; if retirement occurs
31        before  January  1,  2001,   1.67%   of   final   average
 
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 1        compensation  for  each  of  the  first  10 years of such
 2        service, 1.90% for each of the  next  10  years  of  such
 3        service, 2.10% for each year of such service in excess of
 4        20  but  not  exceeding  30,  and  2.30% for each year in
 5        excess of 30.
 6        Such annuity shall be subject to  a  maximum  of  75%  of
 7    final   average  compensation  if  retirement  occurs  before
 8    January 1, 2001 or to a  maximum  of  80%  of  final  average
 9    compensation  if  retirement  occurs  on  or after January 1,
10    2001.
11        These rates  shall  not  be  applicable  to  any  service
12    performed  by  a  member  as  a covered employee which is not
13    eligible creditable service.  Service as a  covered  employee
14    which  is not eligible creditable service shall be subject to
15    the rates and provisions of Section 14-108.
16        (b)  For  the  purpose   of   this   Section,   "eligible
17    creditable  service"  means creditable service resulting from
18    service in one or more of the following positions:
19             (1)  State policeman;
20             (2)  fire fighter in the fire protection service  of
21        a department;
22             (3)  air pilot;
23             (4)  special agent;
24             (5)  investigator for the Secretary of State;
25             (6)  conservation police officer;
26             (7)  investigator for the Department of Revenue;
27             (8)  security  employee  of  the Department of Human
28        Services;
29             (9)  Central  Management  Services  security  police
30        officer;
31             (10)  security  employee  of   the   Department   of
32        Corrections;
33             (11)  dangerous drugs investigator;
34             (12)  investigator   for  the  Department  of  State
 
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 1        Police;
 2             (13)  investigator for the Office  of  the  Attorney
 3        General;
 4             (14)  controlled substance inspector;
 5             (15)  investigator  for  the  Office  of the State's
 6        Attorneys Appellate Prosecutor;
 7             (16)  Commerce Commission police officer;
 8             (17)  arson investigator;
 9             (18)  State highway maintenance worker.
10        A person employed in one of the  positions  specified  in
11    this  subsection  is  entitled to eligible creditable service
12    for service credit earned under this Article while undergoing
13    the basic police training course approved by the Illinois Law
14    Enforcement Training Standards Board, if completion  of  that
15    training is required of persons serving in that position. For
16    the  purposes of this Code, service during the required basic
17    police training course shall be  deemed  performance  of  the
18    duties  of  the specified position, even though the person is
19    not a sworn peace officer at the time of the training.
20        (c)  For the purposes of this Section:
21             (1)  The term "state policeman" includes  any  title
22        or  position  in  the  Department of State Police that is
23        held by an individual employed  under  the  State  Police
24        Act.
25             (2)  The  term  "fire fighter in the fire protection
26        service of a department" includes all  officers  in  such
27        fire   protection   service  including  fire  chiefs  and
28        assistant fire chiefs.
29             (3)  The term  "air  pilot"  includes  any  employee
30        whose  official job description on file in the Department
31        of Central Management Services, or in the  department  by
32        which he is employed if that department is not covered by
33        the Personnel Code, states that his principal duty is the
34        operation  of  aircraft,  and  who  possesses  a  pilot's
 
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 1        license;  however,  the change in this definition made by
 2        this amendatory Act of 1983 shall not operate to  exclude
 3        any  noncovered  employee  who was an "air pilot" for the
 4        purposes of this Section on January 1, 1984.
 5             (4)  The term "special agent" means any  person  who
 6        by  reason  of  employment  by  the  Division of Narcotic
 7        Control, the Bureau of Investigation or,  after  July  1,
 8        1977,   the   Division  of  Criminal  Investigation,  the
 9        Division  of  Internal  Investigation,  the  Division  of
10        Operations,  or  any  other  Division  or  organizational
11        entity in the Department of State Police is vested by law
12        with  duties  to  maintain  public   order,   investigate
13        violations of the criminal law of this State, enforce the
14        laws  of  this  State, make arrests and recover property.
15        The term "special agent" includes any title  or  position
16        in  the  Department  of  State  Police that is held by an
17        individual employed under the State Police Act.
18             (5)  The term "investigator  for  the  Secretary  of
19        State"  means  any  person  employed by the Office of the
20        Secretary of State and  vested  with  such  investigative
21        duties  as  render  him ineligible for coverage under the
22        Social Security Act by reason of  Sections  218(d)(5)(A),
23        218(d)(8)(D) and 218(l)(1) of that Act.
24             A  person who became employed as an investigator for
25        the Secretary  of  State  between  January  1,  1967  and
26        December  31,  1975,  and  who  has  served as such until
27        attainment of age  60,  either  continuously  or  with  a
28        single  break  in  service  of  not  more  than  3  years
29        duration,  which break terminated before January 1, 1976,
30        shall  be  entitled  to  have  his   retirement   annuity
31        calculated     in   accordance   with   subsection   (a),
32        notwithstanding that he has less than 20 years of  credit
33        for such service.
34             (6)  The  term  "Conservation  Police Officer" means
 
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 1        any person employed by the Division of Law Enforcement of
 2        the Department of Natural Resources and vested with  such
 3        law  enforcement  duties  as  render  him  ineligible for
 4        coverage under the  Social  Security  Act  by  reason  of
 5        Sections  218(d)(5)(A),  218(d)(8)(D),  and  218(l)(1) of
 6        that  Act.   The  term  "Conservation   Police   Officer"
 7        includes  the  positions  of  Chief  Conservation  Police
 8        Administrator    and    Assistant   Conservation   Police
 9        Administrator.
10             (7)  The term "investigator for  the  Department  of
11        Revenue"  means  any person employed by the Department of
12        Revenue and vested  with  such  investigative  duties  as
13        render  him  ineligible  for  coverage  under  the Social
14        Security  Act  by  reason   of   Sections   218(d)(5)(A),
15        218(d)(8)(D) and 218(l)(1) of that Act.
16             (8)  The  term  "security employee of the Department
17        of Human Services"  means  any  person  employed  by  the
18        Department  of  Human Services who (i) is employed at the
19        Chester Mental Health Center and has daily  contact  with
20        the residents thereof, (ii) is employed within a security
21        unit  at  a  facility  operated by the Department and has
22        daily contact with the residents of  the  security  unit,
23        (iii)   is   employed  at  a  facility  operated  by  the
24        Department that includes a security unit and is regularly
25        scheduled to work at least 50%  of  his  or  her  working
26        hours  within  that  security  unit,  or (iv) is a mental
27        health police officer.  "Mental  health  police  officer"
28        means  any  person  employed  by  the Department of Human
29        Services in a position  pertaining  to  the  Department's
30        mental  health  and  developmental disabilities functions
31        who is vested with such law enforcement duties as  render
32        the  person  ineligible  for  coverage  under  the Social
33        Security  Act  by  reason   of   Sections   218(d)(5)(A),
34        218(d)(8)(D)  and 218(l)(1) of that Act.  "Security unit"
 
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 1        means that portion of a facility that is devoted  to  the
 2        care,  containment, and treatment of persons committed to
 3        the Department of  Human  Services  as  sexually  violent
 4        persons,  persons  unfit  to  stand trial, or persons not
 5        guilty by reason  of  insanity.   With  respect  to  past
 6        employment,   references   to  the  Department  of  Human
 7        Services  include  its  predecessor,  the  Department  of
 8        Mental Health and Developmental Disabilities.
 9             The changes  made  to  this  subdivision  (c)(8)  by
10        Public  Act 92-14 apply to persons who retire on or after
11        January 1, 2001, notwithstanding Section 1-103.1.
12             (9)  "Central Management  Services  security  police
13        officer"  means  any person employed by the Department of
14        Central Management Services who is vested with  such  law
15        enforcement  duties as render him ineligible for coverage
16        under the Social  Security  Act  by  reason  of  Sections
17        218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
18             (10)  The  term "security employee of the Department
19        of Corrections" means any employee of the  Department  of
20        Corrections  or  the  former Department of Personnel, and
21        any member or employee of the Prisoner Review Board,  who
22        has  daily  contact  with  inmates  by  working  within a
23        correctional facility or who is a parole  officer  or  an
24        employee who has direct contact with committed persons in
25        the performance of his or her job duties.
26             (11)  The  term "dangerous drugs investigator" means
27        any person who is employed as such by the  Department  of
28        Human Services.
29             (12)  The  term  "investigator for the Department of
30        State Police" means a person employed by  the  Department
31        of  State  Police  who  is  vested under Section 4 of the
32        Narcotic Control Division Abolition  Act  with  such  law
33        enforcement  powers as render him ineligible for coverage
34        under the Social  Security  Act  by  reason  of  Sections
 
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 1        218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
 2             (13)  "Investigator  for  the Office of the Attorney
 3        General" means any person who is employed as such by  the
 4        Office  of  the  Attorney General and is vested with such
 5        investigative  duties  as  render  him   ineligible   for
 6        coverage  under  the  Social  Security  Act  by reason of
 7        Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
 8        Act.  For the period before January  1,  1989,  the  term
 9        includes  all  persons who were employed as investigators
10        by the Office of the Attorney General, without regard  to
11        social security status.
12             (14)  "Controlled  substance  inspector"  means  any
13        person  who  is  employed  as  such  by the Department of
14        Professional Regulation  and  is  vested  with  such  law
15        enforcement  duties as render him ineligible for coverage
16        under the Social  Security  Act  by  reason  of  Sections
17        218(d)(5)(A),  218(d)(8)(D)  and  218(l)(1)  of that Act.
18        The term "controlled substance  inspector"  includes  the
19        Program   Executive  of  Enforcement  and  the  Assistant
20        Program Executive of Enforcement.
21             (15)  The term "investigator for the Office  of  the
22        State's  Attorneys  Appellate  Prosecutor" means a person
23        employed in that capacity on a full time basis under  the
24        authority  of  Section  7.06  of  the  State's  Attorneys
25        Appellate Prosecutor's Act.
26             (16)  "Commerce Commission police officer" means any
27        person  employed  by the Illinois Commerce Commission who
28        is vested with such law enforcement duties as render  him
29        ineligible  for coverage under the Social Security Act by
30        reason  of  Sections  218(d)(5)(A),   218(d)(8)(D),   and
31        218(l)(1) of that Act.
32             (17)  "Arson  investigator"  means any person who is
33        employed as such by the Office of the State Fire  Marshal
34        and  is vested with such law enforcement duties as render
 
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 1        the person  ineligible  for  coverage  under  the  Social
 2        Security   Act   by   reason  of  Sections  218(d)(5)(A),
 3        218(d)(8)(D), and 218(l)(1) of that Act.   A  person  who
 4        was  employed as an arson investigator on January 1, 1995
 5        and is no longer in  service  but  not  yet  receiving  a
 6        retirement  annuity  may  convert  his  or her creditable
 7        service for employment  as  an  arson  investigator  into
 8        eligible  creditable  service by paying to the System the
 9        difference between the  employee  contributions  actually
10        paid  for  that  service  and the amounts that would have
11        been contributed if the applicant  were  contributing  at
12        the  rate  applicable  to  persons  with  the same social
13        security status earning eligible  creditable  service  on
14        the date of application.
15             (18)  The  term  "State  highway maintenance worker"
16        means a person who is either of the following:
17                  (i)  A person employed on a full-time basis  by
18             the  Illinois  Department  of  Transportation in the
19             position of highway maintainer, highway  maintenance
20             lead  worker,  highway maintenance lead/lead worker,
21             heavy construction equipment operator, power  shovel
22             operator,  or  bridge  mechanic; and whose principal
23             responsibility is to perform, on  the  roadway,  the
24             actual  maintenance  necessary  to keep the highways
25             that form a part of  the  State  highway  system  in
26             serviceable condition for vehicular traffic.
27                  (ii)  A person employed on a full-time basis by
28             the  Illinois  State  Toll  Highway Authority in the
29             position   of   equipment   operator/laborer    H-4,
30             equipment    operator/laborer    H-6,  welder   H-4,
31             welder      H-6,     mechanical/electrical      H-4,
32             mechanical/electrical    H-6,    water/sewer    H-4,
33             water/sewer   H-6,   sign   maker/hanger  H-4,  sign
34             maker/hanger  H-6,  roadway  lighting  H-4,  roadway
 
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 1             lighting  H-6,  structural  H-4,   structural   H-6,
 2             painter  H-4,  or  painter  H-6; and whose principal
 3             responsibility is to perform, on  the  roadway,  the
 4             actual maintenance necessary to keep the Authority's
 5             tollways  in  serviceable  condition  for  vehicular
 6             traffic.
 7        (d)  A   security   employee   of   the   Department   of
 8    Corrections,  and  a  security  employee of the Department of
 9    Human Services who is not a  mental  health  police  officer,
10    shall  not be eligible for the alternative retirement annuity
11    provided by this Section unless he or she meets the following
12    minimum  age  and  service  requirements  at  the   time   of
13    retirement:
14             (i)  25 years of eligible creditable service and age
15        55; or
16             (ii)  beginning   January   1,  1987,  25  years  of
17        eligible creditable service and age 54, or  24  years  of
18        eligible creditable service and age 55; or
19             (iii)  beginning   January  1,  1988,  25  years  of
20        eligible creditable service and age 53, or  23  years  of
21        eligible creditable service and age 55; or
22             (iv)  beginning   January   1,  1989,  25  years  of
23        eligible creditable service and age 52, or  22  years  of
24        eligible creditable service and age 55; or
25             (v)  beginning January 1, 1990, 25 years of eligible
26        creditable  service  and  age 51, or 21 years of eligible
27        creditable service and age 55; or
28             (vi)  beginning  January  1,  1991,  25   years   of
29        eligible  creditable  service  and age 50, or 20 years of
30        eligible creditable service and age 55.
31        Persons who have service credit under Article 16 of  this
32    Code  for service as a security employee of the Department of
33    Corrections or the Department of Human Services in a position
34    requiring certification as a teacher may count  such  service
 
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 1    toward  establishing  their  eligibility  under  the  service
 2    requirements  of  this  Section; but such service may be used
 3    only for establishing  such  eligibility,  and  not  for  the
 4    purpose of increasing or calculating any benefit.
 5        (e)  If a member enters military service while working in
 6    a  position  in  which  eligible  creditable  service  may be
 7    earned, and returns to State service in the same  or  another
 8    such  position,  and  fulfills  in  all  other  respects  the
 9    conditions prescribed in this Article for credit for military
10    service,  such military service shall be credited as eligible
11    creditable service for the purposes of the retirement annuity
12    prescribed in this Section.
13        (f)  For purposes  of  calculating  retirement  annuities
14    under   this  Section,  periods  of  service  rendered  after
15    December 31, 1968 and before October 1,  1975  as  a  covered
16    employee  in  the  position  of  special  agent, conservation
17    police officer, mental health police officer, or investigator
18    for the Secretary of State, shall  be  deemed  to  have  been
19    service  as a noncovered employee, provided that the employee
20    pays to the System prior to retirement an amount equal to (1)
21    the difference between the employee contributions that  would
22    have been required for such service as a noncovered employee,
23    and  the amount of employee contributions actually paid, plus
24    (2) if payment is made after July 31, 1987, regular  interest
25    on  the amount specified in item (1) from the date of service
26    to the date of payment.
27        For purposes of calculating  retirement  annuities  under
28    this  Section, periods of service rendered after December 31,
29    1968 and before January 1, 1982 as a covered employee in  the
30    position  of investigator for the Department of Revenue shall
31    be deemed to have been  service  as  a  noncovered  employee,
32    provided  that  the  employee  pays  to  the  System prior to
33    retirement an amount equal to (1) the difference between  the
34    employee contributions that would have been required for such
 
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 1    service  as a noncovered employee, and the amount of employee
 2    contributions actually paid, plus  (2)  if  payment  is  made
 3    after  January  1,  1990,  regular  interest  on  the  amount
 4    specified in item (1) from the date of service to the date of
 5    payment.
 6        (g)  A  State policeman may elect, not later than January
 7    1, 1990, to establish eligible creditable service for  up  to
 8    10  years  of  his service as a policeman under Article 3, by
 9    filing a written election  with  the  Board,  accompanied  by
10    payment  of an amount to be determined by the Board, equal to
11    (i)  the  difference  between  the  amount  of  employee  and
12    employer  contributions  transferred  to  the  System   under
13    Section  3-110.5,  and  the  amounts  that  would  have  been
14    contributed  had  such  contributions  been made at the rates
15    applicable to State policemen, plus (ii) interest thereon  at
16    the  effective  rate for each year, compounded annually, from
17    the date of service to the date of payment.
18        Subject to the limitation  in  subsection  (i),  a  State
19    policeman  may  elect,  not  later  than  July  1,  1993,  to
20    establish  eligible  creditable service for up to 10 years of
21    his service as a member of the County Police Department under
22    Article 9, by filing  a  written  election  with  the  Board,
23    accompanied  by  payment of an amount to be determined by the
24    Board, equal to (i) the  difference  between  the  amount  of
25    employee and employer contributions transferred to the System
26    under  Section  9-121.10 and the amounts that would have been
27    contributed had those contributions been made  at  the  rates
28    applicable  to State policemen, plus (ii) interest thereon at
29    the effective rate for each year, compounded  annually,  from
30    the date of service to the date of payment.
31        (h)  Subject to the limitation in subsection (i), a State
32    policeman  or  investigator  for  the  Secretary of State may
33    elect to establish eligible creditable service for up  to  12
34    years  of  his  service  as  a  policeman under Article 5, by
 
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 1    filing a written election with the Board on or before January
 2    31, 1992, and paying to the System by  January  31,  1994  an
 3    amount  to  be  determined  by  the  Board,  equal to (i) the
 4    difference  between  the  amount  of  employee  and  employer
 5    contributions transferred to the System under Section  5-236,
 6    and  the  amounts  that  would have been contributed had such
 7    contributions been made at  the  rates  applicable  to  State
 8    policemen,  plus  (ii) interest thereon at the effective rate
 9    for each year, compounded annually, from the date of  service
10    to the date of payment.
11        Subject  to  the  limitation  in  subsection (i), a State
12    policeman, conservation police officer, or  investigator  for
13    the  Secretary  of  State  may  elect  to  establish eligible
14    creditable service for  up  to  10  years  of  service  as  a
15    sheriff's law enforcement employee under Article 7, by filing
16    a  written  election  with the Board on or before January 31,
17    1993, and paying to the System by January 31, 1994 an  amount
18    to  be  determined  by the Board, equal to (i) the difference
19    between the amount of  employee  and  employer  contributions
20    transferred  to  the  System  under  Section 7-139.7, and the
21    amounts  that  would   have   been   contributed   had   such
22    contributions  been  made  at  the  rates applicable to State
23    policemen, plus (ii) interest thereon at the  effective  rate
24    for  each year, compounded annually, from the date of service
25    to the date of payment.
26        (i)  The total  amount  of  eligible  creditable  service
27    established  by  any  person under subsections (g), (h), (j),
28    (k), and (l) of this Section shall not exceed 12 years.
29        (j)  Subject to the  limitation  in  subsection  (i),  an
30    investigator   for   the  Office  of  the  State's  Attorneys
31    Appellate Prosecutor or a controlled substance inspector  may
32    elect  to  establish eligible creditable service for up to 10
33    years of his service as a policeman  under  Article  3  or  a
34    sheriff's law enforcement employee under Article 7, by filing
 
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 1    a  written election with the Board, accompanied by payment of
 2    an amount to be determined by the Board,  equal  to  (1)  the
 3    difference  between  the  amount  of  employee  and  employer
 4    contributions transferred to the System under Section 3-110.6
 5    or  7-139.8, and the amounts that would have been contributed
 6    had such contributions been made at the rates  applicable  to
 7    State  policemen,  plus (2) interest thereon at the effective
 8    rate for each year, compounded annually,  from  the  date  of
 9    service to the date of payment.
10        (k)  Subject  to the limitation in subsection (i) of this
11    Section,  an  alternative  formula  employee  may  elect   to
12    establish  eligible creditable service for periods spent as a
13    full-time law enforcement officer  or  full-time  corrections
14    officer  employed  by the federal government or by a state or
15    local government  located  outside  of  Illinois,  for  which
16    credit  is not held in any other public employee pension fund
17    or retirement system.  To obtain this credit,  the  applicant
18    must  file  a written application with the Board by March 31,
19    1998, accompanied by evidence of  eligibility  acceptable  to
20    the  Board  and  payment of an amount to be determined by the
21    Board, equal to (1) employee  contributions  for  the  credit
22    being  established,  based upon the applicant's salary on the
23    first day  as  an  alternative  formula  employee  after  the
24    employment  for  which  credit  is  being established and the
25    rates then applicable to alternative formula employees,  plus
26    (2)  an  amount  determined by the Board to be the employer's
27    normal cost of the benefits  accrued  for  the  credit  being
28    established,  plus  (3)  regular  interest  on the amounts in
29    items (1) and (2)  from  the  first  day  as  an  alternative
30    formula  employee  after  the  employment for which credit is
31    being established to the date of payment.
32        (l)  Subject to  the  limitation  in  subsection  (i),  a
33    security employee of the Department of Corrections may elect,
34    not later than July 1, 1998, to establish eligible creditable
 
                            -14-     LRB093 06394 EFG 06514 b
 1    service  for  up  to  10  years  of  his  or her service as a
 2    policeman under Article 3, by filing a written election  with
 3    the  Board,  accompanied  by  payment  of  an  amount  to  be
 4    determined  by the Board, equal to (i) the difference between
 5    the amount of employee and employer contributions transferred
 6    to the System under Section 3-110.5,  and  the  amounts  that
 7    would  have been contributed had such contributions been made
 8    at  the  rates  applicable  to  security  employees  of   the
 9    Department  of Corrections, plus (ii) interest thereon at the
10    effective rate for each year, compounded annually,  from  the
11    date of service to the date of payment.
12    (Source: P.A.  91-357,  eff.  7-29-99;  91-760,  eff. 1-1-01;
13    92-14,  eff.  6-28-01;  92-257,  eff.  8-6-01;  92-651,  eff.
14    7-11-02.)