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91_HB1593 LRB9101656EGfg 1 AN ACT to amend the Illinois Pension Code by changing 2 Section 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 Section 14-110 as follows: 7 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) 8 Sec. 14-110. Alternative retirement annuity. 9 (a) Any member who has withdrawn from service with not 10 less than 20 years of eligible creditable service and has 11 attained age 55, and any member who has withdrawn from 12 service with not less than 25 years of eligible creditable 13 service and has attained age 50, regardless of whether the 14 attainment of either of the specified ages occurs while the 15 member is still in service, shall be entitled to receive at 16 the option of the member, in lieu of the regular or minimum 17 retirement annuity, a retirement annuity computed as 18 follows: 19 (i) for periods of service as a noncovered 20 employee, 2 1/4% of final average compensation for each 21 of the first 10 years of creditable service, 2 1/2% for 22 each year above 10 years to and including 20 years of 23 creditable service, and 2 3/4% for each year of 24 creditable service above 20 years; and 25 (ii) for periods of eligible creditable service as 26 a covered employee, 1.67% of final average compensation 27 for each of the first 10 years of such service, 1.90% for 28 each of the next 10 years of such service, 2.10% for each 29 year of such service in excess of 20 but not exceeding 30 30, and 2.30% for each year in excess of 30. 31 Such annuity shall be subject to a maximum of 75% of -2- LRB9101656EGfg 1 final average compensation. These rates shall not be 2 applicable to any service performed by a member as a covered 3 employee which is not eligible creditable service. Service 4 as a covered employee which is not eligible creditable 5 service shall be subject to the rates and provisions of 6 Section 14-108. 7 (b) For the purpose of this Section, "eligible 8 creditable service" means creditable service resulting from 9 service in one or more of the following positions: 10 (1) State policeman; 11 (2) fire fighter in the fire protection service of 12 a department; 13 (3) air pilot; 14 (4) special agent; 15 (5) investigator for the Secretary of State; 16 (6) conservation police officer; 17 (7) investigator for the Department of Revenue; 18 (8) security employee of the Department of Human 19 Services; 20 (9) Central Management Services security police 21 officer; 22 (10) security employee of the Department of 23 Corrections; 24 (11) dangerous drugs investigator; 25 (12) investigator for the Department of State 26 Police; 27 (13) investigator for the Office of the Attorney 28 General; 29 (14) controlled substance inspector; 30 (15) investigator for the Office of the State's 31 Attorneys Appellate Prosecutor; 32 (16) Commerce Commission police officer; 33 (17) arson investigator. 34 A person employed in one of the positions specified in -3- LRB9101656EGfg 1 this subsection is entitled to eligible creditable service 2 for service credit earned under this Article while undergoing 3 the basic police training course approved by the Illinois 4Local GovernmentalLaw EnforcementOfficersTraining 5 Standards Board, if completion of that training is required 6 of persons serving in that position. For the purposes of 7 this Code, service during the required basic police training 8 course shall be deemed performance of the duties of the 9 specified position, even though the person is not a sworn 10 peace officer at the time of the training. 11 (c) For the purposes of this Section: 12 (1) The term "state policeman" includes any title 13 or position in the Department of State Police that is 14 held by an individual employed under the State Police 15 Act. 16 (2) The term "fire fighter in the fire protection 17 service of a department" includes all officers in such 18 fire protection service including fire chiefs and 19 assistant fire chiefs. 20 (3) The term "air pilot" includes any employee 21 whose official job description on file in the Department 22 of Central Management Services, or in the department by 23 which he is employed if that department is not covered by 24 the Personnel Code, states that his principal duty is the 25 operation of aircraft, and who possesses a pilot's 26 license; however, the change in this definition made by 27 this amendatory Act of 1983 shall not operate to exclude 28 any noncovered employee who was an "air pilot" for the 29 purposes of this Section on January 1, 1984. 30 (4) The term "special agent" means any person who 31 by reason of employment by the Division of Narcotic 32 Control, the Bureau of Investigation or, after July 1, 33 1977, the Division of Criminal Investigation, the 34 Division of Internal Investigation or any other Division -4- LRB9101656EGfg 1 or organizational entity in the Department of State 2 Police is vested by law with duties to maintain public 3 order, investigate violations of the criminal law of this 4 State, enforce the laws of this State, make arrests and 5 recover property. The term "special agent" includes any 6 title or position in the Department of State Police that 7 is held by an individual employed under the State Police 8 Act. 9 (5) The term "investigator for the Secretary of 10 State" means any person employed by the Office of the 11 Secretary of State and vested with such investigative 12 duties as render him ineligible for coverage under the 13 Social Security Act by reason of Sections 218(d)(5)(A), 14 218(d)(8)(D) and 218(l)(1) of that Act. 15 A person who became employed as an investigator for 16 the Secretary of State between January 1, 1967 and 17 December 31, 1975, and who has served as such until 18 attainment of age 60, either continuously or with a 19 single break in service of not more than 3 years 20 duration, which break terminated before January 1, 1976, 21 shall be entitled to have his retirement annuity 22 calculated in accordance with subsection (a), 23 notwithstanding that he has less than 20 years of credit 24 for such service. 25 (6) The term "Conservation Police Officer" means 26 any person employed by the Division of Law Enforcement of 27 the Department of Natural Resources and vested with such 28 law enforcement duties as render him ineligible for 29 coverage under the Social Security Act by reason of 30 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of 31 that Act. The term "Conservation Police Officer" 32 includes the positions of Chief Conservation Police 33 Administrator and Assistant Conservation Police 34 Administrator. -5- LRB9101656EGfg 1 (7) The term "investigator for the Department of 2 Revenue" means any person employed by the Department of 3 Revenue and vested with such investigative duties as 4 render him 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. 7 (8) The term "security employee of the Department 8 of Human Services" means any person employed by the 9 Department of Human Services who is employed at the 10 Chester Mental Health Center and has daily contact with 11 the residents thereof, or who is a mental health police 12 officer. "Mental health police officer" means any person 13 employed by the Department of Human Services in a 14 position pertaining to the Department's mental health and 15 developmental disabilities functions who is vested with 16 such law enforcement duties as render the person 17 ineligible for coverage under the Social Security Act by 18 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 19 218(l)(1) of that Act. 20 (9) "Central Management Services security police 21 officer" means any person employed by the Department of 22 Central Management Services who is 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. 26 (10) The term "security employee of the Department 27 of Corrections" means any employee of the Department of 28 Corrections or the former Department of Personnel, and 29 any member or employee of the Prisoner Review Board, who 30 has daily contact with inmates by working within a 31 correctional facility or who is a parole officer or an 32 employee who has direct contact with committed persons in 33 the performance of his or her job duties. 34 (11) The term "dangerous drugs investigator" means -6- LRB9101656EGfg 1 any person who is employed as such by the Department of 2 Human Services. 3 (12) The term "investigator for the Department of 4 State Police" means a person employed by the Department 5 of State Police who is vested under Section 4 of the 6 Narcotic Control Division Abolition Act with such law 7 enforcement powers 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. 10 (13) "Investigator for the Office of the Attorney 11 General" means any person who is employed as such by the 12 Office of the Attorney General and is vested with such 13 investigative duties as render him ineligible for 14 coverage under the Social Security Act by reason of 15 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that 16 Act. For the period before January 1, 1989, the term 17 includes all persons who were employed as investigators 18 by the Office of the Attorney General, without regard to 19 social security status. 20 (14) "Controlled substance inspector" means any 21 person who is employed as such by the Department of 22 Professional Regulation and is 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. 26 The term "controlled substance inspector" includes the 27 Program Executive of Enforcement and the Assistant 28 Program Executive of Enforcement. 29 (15) The term "investigator for the Office of the 30 State's Attorneys Appellate Prosecutor" means a person 31 employed in that capacity on a full time basis under the 32 authority of Section 7.06 of the State's Attorneys 33 Appellate Prosecutor's Act. 34 (16) "Commerce Commission police officer" means any -7- LRB9101656EGfg 1 person employed by the Illinois Commerce Commission who 2 is vested with such law enforcement duties as render him 3 ineligible for coverage under the Social Security Act by 4 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 5 218(l)(1) of that Act. 6 (17) "Arson investigator" means any person who is 7 employed as such by the Office of the State Fire Marshal 8 and is vested with such law enforcement duties as render 9 the person ineligible for coverage under the Social 10 Security Act by reason of Sections 218(d)(5)(A), 11 218(d)(8)(D), and 218(l)(1) of that Act. A person who 12 was employed as an arson investigator on January 1, 1995 13 and is no longer in service but not yet receiving a 14 retirement annuity may convert his or her creditable 15 service for employment as an arson investigator into 16 eligible creditable service by paying to the System the 17 difference between the employee contributions actually 18 paid for that service and the amounts that would have 19 been contributed if the applicant were contributing at 20 the rate applicable to persons with the same social 21 security status earning eligible creditable service on 22 the date of application. 23 (d) A security employee of the Department of 24 Corrections, and a security employee of the Department of 25 Human Services who is not a mental health police officer, 26 shall not be eligible for the alternative retirement annuity 27 provided by this Section unless he or she meets the following 28 minimum age and service requirements at the time of 29 retirement: 30 (i) 25 years of eligible creditable service and age 31 55; or 32 (ii) beginning January 1, 1987, 25 years of 33 eligible creditable service and age 54, or 24 years of 34 eligible creditable service and age 55; or -8- LRB9101656EGfg 1 (iii) beginning January 1, 1988, 25 years of 2 eligible creditable service and age 53, or 23 years of 3 eligible creditable service and age 55; or 4 (iv) beginning January 1, 1989, 25 years of 5 eligible creditable service and age 52, or 22 years of 6 eligible creditable service and age 55; or 7 (v) beginning January 1, 1990, 25 years of eligible 8 creditable service and age 51, or 21 years of eligible 9 creditable service and age 55; or 10 (vi) beginning January 1, 1991, 25 years of 11 eligible creditable service and age 50, or 20 years of 12 eligible creditable service and age 55. 13 Persons who have service credit under Article 16 of this 14 Code for service as a security employee of the Department of 15 Corrections in a position requiring certification as a 16 teacher may count such service toward establishing their 17 eligibility under the service requirements of this Section; 18 but such service may be used only for establishing such 19 eligibility, and not for the purpose of increasing or 20 calculating any benefit. 21 (e) If a member enters military service while working in 22 a position in which eligible creditable service may be 23 earned, and returns to State service in the same or another 24 such position, and fulfills in all other respects the 25 conditions prescribed in this Article for credit for military 26 service, such military service shall be credited as eligible 27 creditable service for the purposes of the retirement annuity 28 prescribed in this Section. 29 (f) For purposes of calculating retirement annuities 30 under this Section, periods of service rendered after 31 December 31, 1968 and before October 1, 1975 as a covered 32 employee in the position of special agent, conservation 33 police officer, mental health police officer, or investigator 34 for the Secretary of State, shall be deemed to have been -9- LRB9101656EGfg 1 service as a noncovered employee, provided that the employee 2 pays to the System prior to retirement an amount equal to (1) 3 the difference between the employee contributions that would 4 have been required for such service as a noncovered employee, 5 and the amount of employee contributions actually paid, plus 6 (2) if payment is made after July 31, 1987, regular interest 7 on the amount specified in item (1) from the date of service 8 to the date of payment. 9 For purposes of calculating retirement annuities under 10 this Section, periods of service rendered after December 31, 11 1968 and before January 1, 1982 as a covered employee in the 12 position of investigator for the Department of Revenue shall 13 be deemed to have been service as a noncovered employee, 14 provided that the employee pays to the System prior to 15 retirement an amount equal to (1) the difference between the 16 employee contributions that would have been required for such 17 service as a noncovered employee, and the amount of employee 18 contributions actually paid, plus (2) if payment is made 19 after January 1, 1990, regular interest on the amount 20 specified in item (1) from the date of service to the date of 21 payment. 22 (g) A State policeman may elect, not later than January 23 1, 1990, to establish eligible creditable service for up to 24 10 years of his service as a policeman under Article 3, by 25 filing a written election with the Board, accompanied by 26 payment of an amount to be determined by the Board, equal to 27 (i) the difference between the amount of employee and 28 employer contributions transferred to the System under 29 Section 3-110.5, and the amounts that would have been 30 contributed had such contributions been made at the rates 31 applicable to State policemen, plus (ii) interest thereon at 32 the effective rate for each year, compounded annually, from 33 the date of service to the date of payment. 34 Subject to the limitation in subsection (i), a State -10- LRB9101656EGfg 1 policeman may elect, not later than July 1, 1993, to 2 establish eligible creditable service for up to 10 years of 3 his service as a member of the County Police Department under 4 Article 9, by filing a written election with the Board, 5 accompanied by payment of an amount to be determined by the 6 Board, equal to (i) the difference between the amount of 7 employee and employer contributions transferred to the System 8 under Section 9-121.10 and the amounts that would have been 9 contributed had those contributions been made at the rates 10 applicable to State policemen, plus (ii) interest thereon at 11 the effective rate for each year, compounded annually, from 12 the date of service to the date of payment. 13 (h) Subject to the limitation in subsection (i), a State 14 policeman or investigator for the Secretary of State may 15 elect to establish eligible creditable service for up to 12 16 years of his service as a policeman under Article 5, by 17 filing a written election with the Board on or before January 18 31, 1992, and paying to the System by January 31, 1994 an 19 amount to be determined by the Board, equal to (i) the 20 difference between the amount of employee and employer 21 contributions transferred to the System under Section 5-236, 22 and the amounts that would have been contributed had such 23 contributions been made at the rates applicable to State 24 policemen, plus (ii) interest thereon at the effective rate 25 for each year, compounded annually, from the date of service 26 to the date of payment. 27 Subject to the limitation in subsection (i), a State 28 policeman, conservation police officer, or investigator for 29 the Secretary of State may elect to establish eligible 30 creditable service for up to 10 years of service as a 31 sheriff's law enforcement employee under Article 7, by filing 32 a written election with the Board on or before January 31, 33 1993, and paying to the System by January 31, 1994 an amount 34 to be determined by the Board, equal to (i) the difference -11- LRB9101656EGfg 1 between the amount of employee and employer contributions 2 transferred to the System under Section 7-139.7, and the 3 amounts that would have been contributed had such 4 contributions been made at the rates applicable to State 5 policemen, plus (ii) interest thereon at the effective rate 6 for each year, compounded annually, from the date of service 7 to the date of payment. 8 (i) The total amount of eligible creditable service 9 established by any person under subsections (g), (h), (j), 10 (k), and (l) of this Section shall not exceed 12 years. 11 (j) Subject to the limitation in subsection (i), an 12 investigator for the Office of the State's Attorneys 13 Appellate Prosecutor or a controlled substance inspector may 14 elect to establish eligible creditable service for up to 10 15 years of his service as a policeman under Article 3 or a 16 sheriff's law enforcement employee under Article 7, by filing 17 a written election with the Board, accompanied by payment of 18 an amount to be determined by the Board, equal to (1) the 19 difference between the amount of employee and employer 20 contributions transferred to the System under Section 3-110.6 21 or 7-139.8, and the amounts that would have been contributed 22 had such contributions been made at the rates applicable to 23 State policemen, plus (2) interest thereon at the effective 24 rate for each year, compounded annually, from the date of 25 service to the date of payment. 26 (k) Subject to the limitation in subsection (i) of this 27 Section, an alternative formula employee may elect to 28 establish eligible creditable service for periods spent as a 29 full-time law enforcement officer or full-time corrections 30 officer employed by the federal government or by a state or 31 local government located outside of Illinois, for which 32 credit is not held in any other public employee pension fund 33 or retirement system. To obtain this credit, the applicant 34 must file a written application with the Board by March 31, -12- LRB9101656EGfg 1 1998, accompanied by evidence of eligibility acceptable to 2 the Board and payment of an amount to be determined by the 3 Board, equal to (1) employee contributions for the credit 4 being established, based upon the applicant's salary on the 5 first day as an alternative formula employee after the 6 employment for which credit is being established and the 7 rates then applicable to alternative formula employees, plus 8 (2) an amount determined by the Board to be the employer's 9 normal cost of the benefits accrued for the credit being 10 established, plus (3) regular interest on the amounts in 11 items (1) and (2) from the first day as an alternative 12 formula employee after the employment for which credit is 13 being established to the date of payment. 14 (l) Subject to the limitation in subsection (i), a 15 security employee of the Department of Corrections may elect, 16 not later than July 1, 1998, to establish eligible creditable 17 service for up to 10 years of his or her service as a 18 policeman under Article 3, by filing a written election with 19 the Board, accompanied by payment of an amount to be 20 determined by the Board, equal to (i) the difference between 21 the amount of employee and employer contributions transferred 22 to the System under Section 3-110.5, and the amounts that 23 would have been contributed had such contributions been made 24 at the rates applicable to security employees of the 25 Department of Corrections, plus (ii) interest thereon at the 26 effective rate for each year, compounded annually, from the 27 date of service to the date of payment. 28 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96; 29 89-507, eff. 7-1-97; 90-32, eff. 6-27-97; revised 7-10-98.) 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.