State of Illinois
90th General Assembly
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90_SB1199

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

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