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91_HB3864
LRB9110422EGfgA
1 AN ACT to amend the Illinois Pension Code.
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 Sections 14-108 and 14-110 as follows:
6 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
7 Sec. 14-108. Amount of retirement annuity. A member who
8 has contributed to the System for at least 12 months shall be
9 entitled to a prior service annuity for each year of
10 certified prior service credited to him, except that a member
11 shall receive 1/3 of the prior service annuity for each year
12 of service for which contributions have been made and all of
13 such annuity shall be payable after the member has made
14 contributions for a period of 3 years. Proportionate amounts
15 shall be payable for service of less than a full year after
16 completion of at least 12 months.
17 The total period of service to be considered in
18 establishing the measure of prior service annuity shall
19 include service credited in the Teachers' Retirement System
20 of the State of Illinois and the State Universities
21 Retirement System for which contributions have been made by
22 the member to such systems; provided that at least 1 year of
23 the total period of 3 years prescribed for the allowance of a
24 full measure of prior service annuity shall consist of
25 membership service in this system for which credit has been
26 granted.
27 (a) In the case of a member who retires on or after
28 January 1, 1998 and is a noncovered employee, the retirement
29 annuity for membership service and prior service shall be
30 2.2% of final average compensation for each year of service.
31 Any service credit established as a covered employee shall be
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1 computed as stated in paragraph (b).
2 (b) In the case of a member who retires on or after
3 January 1, 1998 and is a covered employee, the retirement
4 annuity for membership service and prior service shall be
5 computed as stated in paragraph (a) for all service credit
6 established as a noncovered employee; for service credit
7 established as a covered employee it shall be 1.67% of final
8 average compensation for each year of service.
9 (c) For a member with 30 but less than 35 years of
10 creditable service retiring after attaining age 55 but before
11 age 60, the retirement annuity shall be reduced by 1/2 of 1%
12 for each month that the member's age is under age 60 at the
13 time of retirement.
14 (d) A retirement annuity shall not exceed 75% of final
15 average compensation, subject to such extension as may result
16 from the application of Section 14-114 or Section 14-115.
17 (e) The retirement annuity payable to any covered
18 employee who is a member of the System and in service on
19 January 1, 1969, or in service thereafter in 1969 as a result
20 of legislation enacted by the Illinois General Assembly
21 transferring the member to State employment from county
22 employment in a county Department of Public Aid in counties
23 of 3,000,000 or more population, under a plan of coordination
24 with the Old Age, Survivors and Disability provisions
25 thereof, if not fully insured for Old Age Insurance payments
26 under the Federal Old Age, Survivors and Disability Insurance
27 provisions at the date of acceptance of a retirement annuity,
28 shall not be less than the amount for which the member would
29 have been eligible if coordination were not applicable.
30 (f) The retirement annuity payable to any covered
31 employee who is a member of the System and in service on
32 January 1, 1969, or in service thereafter in 1969 as a result
33 of the legislation designated in the immediately preceding
34 paragraph, if fully insured for Old Age Insurance payments
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1 under the Federal Social Security Act at the date of
2 acceptance of a retirement annuity, shall not be less than an
3 amount which when added to the Primary Insurance Benefit
4 payable to the member upon attainment of age 65 under such
5 Federal Act, will equal the annuity which would otherwise be
6 payable if the coordinated plan of coverage were not
7 applicable.
8 (g) In the case of a member who is a noncovered
9 employee, the retirement annuity for membership service as a
10 security employee of the Department of Corrections or
11 security employee of the Department of Human Services shall
12 be: if retirement occurs on or after January 1, 2001, 3% of
13 final average compensation for each year of creditable
14 service; or if retirement occurs before January 1, 2001, 1.9%
15 of final average compensation for each of the first 10 years
16 of service,; 2.1% for each of the next 10 years of service,;
17 2.25% for each year of service in excess of 20 but not
18 exceeding 30,; and 2.5% for each year in excess of 30; except
19 that the annuity may be calculated under subsection (a)
20 rather than this subsection (g) if the resulting annuity is
21 greater.
22 (h) In the case of a member who is a covered employee,
23 the retirement annuity for membership service as a security
24 employee of the Department of Corrections or security
25 employee of the Department of Human Services shall be: if
26 retirement occurs on or after January 1, 2001, 2.5% of final
27 average compensation for each year of creditable service; if
28 retirement occurs before January 1, 2001, 1.67% of final
29 average compensation for each of the first 10 years of
30 service,; 1.90% for each of the next 10 years of service,;
31 2.10% for each year of service in excess of 20 but not
32 exceeding 30,; and 2.30% for each year in excess of 30.
33 (i) For the purposes of this Section and Section 14-133
34 of this Act, the term "security employee of the Department of
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1 Corrections" and the term "security employee of the
2 Department of Human Services" shall have the meanings
3 ascribed to them in subsection (c) of Section 14-110.
4 (j) The retirement annuity computed pursuant to
5 paragraphs (g) or (h) shall be applicable only to those
6 security employees of the Department of Corrections and
7 security employees of the Department of Human Services who
8 have at least 20 years of membership service and who are not
9 eligible for the alternative retirement annuity provided
10 under Section 14-110. However, persons transferring to this
11 System under Section 14-108.2 who have service credit under
12 Article 16 of this Code may count such service toward
13 establishing their eligibility under the 20-year service
14 requirement of this subsection; but such service may be used
15 only for establishing such eligibility, and not for the
16 purpose of increasing or calculating any benefit.
17 (k) (Blank).
18 (l) The changes to this Section made by this amendatory
19 Act of 1997 (changing certain retirement annuity formulas
20 from a stepped rate to a flat rate) apply to members who
21 retire on or after January 1, 1998, without regard to whether
22 employment terminated before the effective date of this
23 amendatory Act of 1997. An annuity shall not be calculated
24 in steps by using the new flat rate for some steps and the
25 superseded stepped rate for other steps of the same type of
26 service.
27 (Source: P.A. 89-507, eff. 7-1-97; 90-65, eff. 7-7-97;
28 90-448, eff. 8-16-97; 90-655, eff. 7-30-98.)
29 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
30 Sec. 14-110. Alternative retirement annuity.
31 (a) Any member who has withdrawn from service with not
32 less than 20 years of eligible creditable service and has
33 attained age 55, and any member who has withdrawn from
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1 service with not less than 25 years of eligible creditable
2 service and has attained age 50, regardless of whether the
3 attainment of either of the specified ages occurs while the
4 member is still in service, shall be entitled to receive at
5 the option of the member, in lieu of the regular or minimum
6 retirement annuity, a retirement annuity computed as follows:
7 (i) for periods of service as a noncovered
8 employee: if retirement occurs on or after January 1,
9 2001, 3% of final average compensation for each year of
10 creditable service; if retirement occurs before January
11 1, 2001, 2 1/4% of final average compensation for each of
12 the first 10 years of creditable service, 2 1/2% for each
13 year above 10 years to and including 20 years of
14 creditable service, and 2 3/4% for each year of
15 creditable service above 20 years; and
16 (ii) for periods of eligible creditable service as
17 a covered employee: if retirement occurs on or after
18 January 1, 2001, 2.5% of final average compensation for
19 each year of creditable service; if retirement occurs
20 before January 1, 2001, 1.67% of final average
21 compensation for each of the first 10 years of such
22 service, 1.90% for each of the next 10 years of such
23 service, 2.10% for each year of such service in excess of
24 20 but not exceeding 30, and 2.30% for each year in
25 excess of 30.
26 Such annuity shall be subject to a maximum of 75% of
27 final average compensation if retirement occurs before
28 January 1, 2001 or to a maximum of 80% of final average
29 compensation if retirement occurs on or after January 1,
30 2001.
31 These rates shall not be applicable to any service
32 performed by a member as a covered employee which is not
33 eligible creditable service. Service as a covered employee
34 which is not eligible creditable service shall be subject to
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1 the rates and provisions of 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 Law
33 Enforcement Training Standards Board, if completion of that
34 training is required of persons serving in that position.
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1 For the purposes of this Code, service during the required
2 basic police training course shall be deemed performance of
3 the duties of the specified position, even though the person
4 is not a sworn peace officer at the time of the training.
5 (c) For the purposes of this Section:
6 (1) The term "state policeman" includes any title
7 or position in the Department of State Police that is
8 held by an individual employed under the State Police
9 Act.
10 (2) The term "fire fighter in the fire protection
11 service of a department" includes all officers in such
12 fire protection service including fire chiefs and
13 assistant fire chiefs.
14 (3) The term "air pilot" includes any employee
15 whose official job description on file in the Department
16 of Central Management Services, or in the department by
17 which he is employed if that department is not covered by
18 the Personnel Code, states that his principal duty is the
19 operation of aircraft, and who possesses a pilot's
20 license; however, the change in this definition made by
21 this amendatory Act of 1983 shall not operate to exclude
22 any noncovered employee who was an "air pilot" for the
23 purposes of this Section on January 1, 1984.
24 (4) The term "special agent" means any person who
25 by reason of employment by the Division of Narcotic
26 Control, the Bureau of Investigation or, after July 1,
27 1977, the Division of Criminal Investigation, the
28 Division of Internal Investigation or any other Division
29 or organizational entity in the Department of State
30 Police is vested by law with duties to maintain public
31 order, investigate violations of the criminal law of this
32 State, enforce the laws of this State, make arrests and
33 recover property. The term "special agent" includes any
34 title or position in the Department of State Police that
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1 is held by an individual employed under the State Police
2 Act.
3 (5) The term "investigator for the Secretary of
4 State" means any person employed by the Office of the
5 Secretary of State and vested with such investigative
6 duties as render him ineligible for coverage under the
7 Social Security Act by reason of Sections 218(d)(5)(A),
8 218(d)(8)(D) and 218(l)(1) of that Act.
9 A person who became employed as an investigator for
10 the Secretary of State between January 1, 1967 and
11 December 31, 1975, and who has served as such until
12 attainment of age 60, either continuously or with a
13 single break in service of not more than 3 years
14 duration, which break terminated before January 1, 1976,
15 shall be entitled to have his retirement annuity
16 calculated in accordance with subsection (a),
17 notwithstanding that he has less than 20 years of credit
18 for such service.
19 (6) The term "Conservation Police Officer" means
20 any person employed by the Division of Law Enforcement of
21 the Department of Natural Resources and vested with such
22 law enforcement duties as render him ineligible for
23 coverage under the Social Security Act by reason of
24 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
25 that Act. The term "Conservation Police Officer"
26 includes the positions of Chief Conservation Police
27 Administrator and Assistant Conservation Police
28 Administrator.
29 (7) The term "investigator for the Department of
30 Revenue" means any person employed by the Department of
31 Revenue and vested with such investigative duties as
32 render him 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.
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1 (8) The term "security employee of the Department
2 of Human Services" means any person employed by the
3 Department of Human Services who is employed at the
4 Chester Mental Health Center and has daily contact with
5 the residents thereof, or who is a mental health police
6 officer. "Mental health police officer" means any person
7 employed by the Department of Human Services in a
8 position pertaining to the Department's mental health and
9 developmental disabilities functions who is vested with
10 such law enforcement duties as render the person
11 ineligible for coverage under the Social Security Act by
12 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
13 218(l)(1) of that Act.
14 (9) "Central Management Services security police
15 officer" means any person employed by the Department of
16 Central Management Services who is vested with such law
17 enforcement duties as render him ineligible for coverage
18 under the Social Security Act by reason of Sections
19 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
20 (10) The term "security employee of the Department
21 of Corrections" means any employee of the Department of
22 Corrections or the former Department of Personnel, and
23 any member or employee of the Prisoner Review Board, who
24 has daily contact with inmates by working within a
25 correctional facility or who is a parole officer or an
26 employee who has direct contact with committed persons in
27 the performance of his or her job duties.
28 (11) The term "dangerous drugs investigator" means
29 any person who is employed as such by the Department of
30 Human Services.
31 (12) The term "investigator for the Department of
32 State Police" means a person employed by the Department
33 of State Police who is vested under Section 4 of the
34 Narcotic Control Division Abolition Act with such law
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1 enforcement powers as render him ineligible for coverage
2 under the Social Security Act by reason of Sections
3 218(d)(5)(A), 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
8 coverage under the Social Security Act by reason of
9 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
10 Act. For the period before January 1, 1989, the term
11 includes all persons who were employed as investigators
12 by the Office of the Attorney General, without regard to
13 social security status.
14 (14) "Controlled substance inspector" means any
15 person who is employed as such by the Department of
16 Professional Regulation and is vested with such law
17 enforcement duties as render him ineligible for coverage
18 under the Social Security Act by reason of Sections
19 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
20 The term "controlled substance inspector" includes the
21 Program Executive of Enforcement and the Assistant
22 Program 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
27 Appellate Prosecutor's Act.
28 (16) "Commerce Commission police officer" means any
29 person employed by the Illinois Commerce Commission who
30 is vested with such law enforcement duties as render him
31 ineligible for coverage under the Social Security Act by
32 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
33 218(l)(1) of that Act.
34 (17) "Arson investigator" means any person who is
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1 employed as such by the Office of the State Fire Marshal
2 and is vested with such law enforcement duties as render
3 the person ineligible for coverage under the Social
4 Security Act by reason of Sections 218(d)(5)(A),
5 218(d)(8)(D), and 218(l)(1) of that Act. A person who
6 was employed as an arson investigator on January 1, 1995
7 and is no longer in service but not yet receiving a
8 retirement annuity may convert his or her creditable
9 service for employment as an arson investigator into
10 eligible creditable service by paying to the System the
11 difference between the employee contributions actually
12 paid for that service and the amounts that would have
13 been contributed if the applicant were contributing at
14 the rate applicable to persons with the same social
15 security status earning eligible creditable service on
16 the date of application.
17 (d) A security employee of the Department of
18 Corrections, and a security employee of the Department of
19 Human Services who is not a mental health police officer,
20 shall not be eligible for the alternative retirement annuity
21 provided by this Section unless he or she meets the following
22 minimum age and service requirements at the time of
23 retirement:
24 (i) 25 years of eligible creditable service and age
25 55; or
26 (ii) beginning January 1, 1987, 25 years of
27 eligible creditable service and age 54, or 24 years of
28 eligible creditable service and age 55; or
29 (iii) beginning January 1, 1988, 25 years of
30 eligible creditable service and age 53, or 23 years of
31 eligible creditable service and age 55; or
32 (iv) beginning January 1, 1989, 25 years of
33 eligible creditable service and age 52, or 22 years of
34 eligible creditable service and age 55; or
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1 (v) beginning January 1, 1990, 25 years of eligible
2 creditable service and age 51, or 21 years of eligible
3 creditable service and age 55; or
4 (vi) beginning January 1, 1991, 25 years of
5 eligible creditable service and age 50, or 20 years of
6 eligible creditable service and age 55.
7 Persons who have service credit under Article 16 of this
8 Code for service as a security employee of the Department of
9 Corrections in a position requiring certification as a
10 teacher may count such service toward establishing their
11 eligibility under the service requirements of this Section;
12 but such service may be used only for establishing such
13 eligibility, and not for the purpose of increasing or
14 calculating any benefit.
15 (e) If a member enters military service while working in
16 a position in which eligible creditable service may be
17 earned, and returns to State service in the same or another
18 such position, and fulfills in all other respects the
19 conditions prescribed in this Article for credit for military
20 service, such military service shall be credited as eligible
21 creditable service for the purposes of the retirement annuity
22 prescribed in this Section.
23 (f) For purposes of calculating retirement annuities
24 under this Section, periods of service rendered after
25 December 31, 1968 and before October 1, 1975 as a covered
26 employee in the position of special agent, conservation
27 police officer, mental health police officer, or investigator
28 for the Secretary of State, shall be deemed to have been
29 service as a noncovered employee, provided that the employee
30 pays to the System prior to retirement an amount equal to (1)
31 the difference between the employee contributions that would
32 have been required for such service as a noncovered employee,
33 and the amount of employee contributions actually paid, plus
34 (2) if payment is made after July 31, 1987, regular interest
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1 on the amount specified in item (1) from the date of service
2 to the date of payment.
3 For purposes of calculating retirement annuities under
4 this Section, periods of service rendered after December 31,
5 1968 and before January 1, 1982 as a covered employee in the
6 position of investigator for the Department of Revenue shall
7 be deemed to have been service as a noncovered employee,
8 provided that the employee pays to the System prior to
9 retirement an amount equal to (1) the difference between the
10 employee contributions that would have been required for such
11 service as a noncovered employee, and the amount of employee
12 contributions actually paid, plus (2) if payment is made
13 after January 1, 1990, regular interest on the amount
14 specified in item (1) from the date of service to the date of
15 payment.
16 (g) A State policeman may elect, not later than January
17 1, 1990, to establish eligible creditable service for up to
18 10 years of his service as a policeman under Article 3, by
19 filing a written election with the Board, accompanied by
20 payment of an amount to be determined by the Board, equal to
21 (i) the difference between the amount of employee and
22 employer contributions transferred to the System under
23 Section 3-110.5, and the amounts that would have been
24 contributed had such contributions been made at the rates
25 applicable to State policemen, plus (ii) interest thereon at
26 the effective rate for each year, compounded annually, from
27 the date of service to the date of payment.
28 Subject to the limitation in subsection (i), a State
29 policeman may elect, not later than July 1, 1993, to
30 establish eligible creditable service for up to 10 years of
31 his service as a member of the County Police Department under
32 Article 9, by filing a written election with the Board,
33 accompanied by payment of an amount to be determined by the
34 Board, equal to (i) the difference between the amount of
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1 employee and employer contributions transferred to the System
2 under Section 9-121.10 and the amounts that would have been
3 contributed had those contributions been made at the rates
4 applicable to State policemen, plus (ii) interest thereon at
5 the effective rate for each year, compounded annually, from
6 the date of service to the date of payment.
7 (h) Subject to the limitation in subsection (i), a State
8 policeman or investigator for the Secretary of State may
9 elect to establish eligible creditable service for up to 12
10 years of his service as a policeman under Article 5, by
11 filing a written election with the Board on or before January
12 31, 1992, and paying to the System by January 31, 1994 an
13 amount to be determined by the Board, equal to (i) the
14 difference between the amount of employee and employer
15 contributions transferred to the System under Section 5-236,
16 and the amounts that would have been contributed had such
17 contributions been made at the rates applicable to State
18 policemen, plus (ii) interest thereon at the effective rate
19 for each year, compounded annually, from the date of service
20 to the date of payment.
21 Subject to the limitation in subsection (i), a State
22 policeman, conservation police officer, or investigator for
23 the Secretary of State may elect to establish eligible
24 creditable service for up to 10 years of service as a
25 sheriff's law enforcement employee under Article 7, by filing
26 a written election with the Board on or before January 31,
27 1993, and paying to the System by January 31, 1994 an amount
28 to be determined by the Board, equal to (i) the difference
29 between the amount of employee and employer contributions
30 transferred to the System under Section 7-139.7, and the
31 amounts that would have been contributed had such
32 contributions been made at the rates applicable to State
33 policemen, plus (ii) interest thereon at the effective rate
34 for each year, compounded annually, from the date of service
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1 to the date of payment.
2 (i) The total amount of eligible creditable service
3 established by any person under subsections (g), (h), (j),
4 (k), and (l) of this Section shall not exceed 12 years.
5 (j) Subject to the limitation in subsection (i), an
6 investigator for the Office of the State's Attorneys
7 Appellate Prosecutor or a controlled substance inspector may
8 elect to establish eligible creditable service for up to 10
9 years of his service as a policeman under Article 3 or a
10 sheriff's law enforcement employee under Article 7, by filing
11 a written election with the Board, accompanied by payment of
12 an amount to be determined by the Board, equal to (1) the
13 difference between the amount of employee and employer
14 contributions transferred to the System under Section 3-110.6
15 or 7-139.8, and the amounts that would have been contributed
16 had such contributions been made at the rates applicable to
17 State policemen, plus (2) interest thereon at the effective
18 rate for each year, compounded annually, from the date of
19 service to the date of payment.
20 (k) Subject to the limitation in subsection (i) of this
21 Section, an alternative formula employee may elect to
22 establish eligible creditable service for periods spent as a
23 full-time law enforcement officer or full-time corrections
24 officer employed by the federal government or by a state or
25 local government located outside of Illinois, for which
26 credit is not held in any other public employee pension fund
27 or retirement system. To obtain this credit, the applicant
28 must file a written application with the Board by March 31,
29 1998, accompanied by evidence of eligibility acceptable to
30 the Board and payment of an amount to be determined by the
31 Board, equal to (1) employee contributions for the credit
32 being established, based upon the applicant's salary on the
33 first day as an alternative formula employee after the
34 employment for which credit is being established and the
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1 rates then applicable to alternative formula employees, plus
2 (2) an amount determined by the Board to be the employer's
3 normal cost of the benefits accrued for the credit being
4 established, plus (3) regular interest on the amounts in
5 items (1) and (2) from the first day as an alternative
6 formula employee after the employment for which credit is
7 being established to the date of payment.
8 (l) Subject to the limitation in subsection (i), a
9 security employee of the Department of Corrections may elect,
10 not later than July 1, 1998, to establish eligible creditable
11 service for up to 10 years of his or her service as a
12 policeman under Article 3, by filing a written election with
13 the Board, accompanied by payment of an amount to be
14 determined by the Board, equal to (i) the difference between
15 the amount of employee and employer contributions transferred
16 to the System under Section 3-110.5, and the amounts that
17 would have been contributed had such contributions been made
18 at the rates applicable to security employees of the
19 Department of Corrections, plus (ii) interest thereon at the
20 effective rate for each year, compounded annually, from the
21 date of service to the date of payment.
22 (Source: P.A. 90-32, eff. 6-27-97; 91-357, eff. 7-29-99.)
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.