95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0045

 

Introduced 1/31/2007, by Sen. Jeffrey M. Schoenberg

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-110   from Ch. 108 1/2, par. 14-110
40 ILCS 5/14-152.2 new

    Amends the State Employee Article of the Illinois Pension Code. Provides that certain persons employed by the Illinois State Toll Highway Authority and automotive mechanics employed by the Illinois Department of Transportation, Department of Central Management Services, or Illinois Department of Agriculture are eligible for the alternative (State Police) formula. Includes new benefit increase language. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning 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 changing
5 Section 14-110 and by adding Section 14-152.2 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8     (a) Any member who has withdrawn from service with not less
9 than 20 years of eligible creditable service and has attained
10 age 55, and any member who has withdrawn from service with not
11 less than 25 years of eligible creditable service and has
12 attained age 50, regardless of whether the attainment of either
13 of the specified ages occurs while the member is still in
14 service, shall be entitled to receive at the option of the
15 member, in lieu of the regular or minimum retirement annuity, a
16 retirement annuity computed as follows:
17         (i) for periods of service as a noncovered employee: if
18     retirement occurs on or after January 1, 2001, 3% of final
19     average compensation for each year of creditable service;
20     if retirement occurs before January 1, 2001, 2 1/4% of
21     final average compensation for each of the first 10 years
22     of creditable service, 2 1/2% for each year above 10 years
23     to and including 20 years of creditable service, and 2 3/4%

 

 

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

 

 

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1         (4) special agent;
2         (5) investigator for the Secretary of State;
3         (6) conservation police officer;
4         (7) investigator for the Department of Revenue;
5         (8) security employee of the Department of Human
6     Services;
7         (9) Central Management Services security police
8     officer;
9         (10) security employee of the Department of
10     Corrections or the Department of Juvenile Justice;
11         (11) dangerous drugs investigator;
12         (12) investigator for the Department of State Police;
13         (13) investigator for the Office of the Attorney
14     General;
15         (14) controlled substance inspector;
16         (15) investigator for the Office of the State's
17     Attorneys Appellate Prosecutor;
18         (16) Commerce Commission police officer;
19         (17) arson investigator;
20         (18) State highway maintenance worker; .
21         (19) tollway employee; and
22         (20) automotive mechanic.
23     A person employed in one of the positions specified in this
24 subsection is entitled to eligible creditable service for
25 service credit earned under this Article while undergoing the
26 basic police training course approved by the Illinois Law

 

 

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1 Enforcement Training Standards Board, if completion of that
2 training is required of persons serving in that position. For
3 the purposes of this Code, service during the required basic
4 police training course shall be deemed performance of the
5 duties of the specified position, even though the person is not
6 a sworn peace officer at the time of the training.
7     (c) For the purposes of this Section:
8         (1) The term "state policeman" includes any title or
9     position in the Department of State Police that is held by
10     an individual employed under the State Police Act.
11         (2) The term "fire fighter in the fire protection
12     service of a department" includes all officers in such fire
13     protection service including fire chiefs and assistant
14     fire chiefs.
15         (3) The term "air pilot" includes any employee whose
16     official job description on file in the Department of
17     Central Management Services, or in the department by which
18     he is employed if that department is not covered by the
19     Personnel Code, states that his principal duty is the
20     operation of aircraft, and who possesses a pilot's license;
21     however, the change in this definition made by this
22     amendatory Act of 1983 shall not operate to exclude any
23     noncovered employee who was an "air pilot" for the purposes
24     of this Section on January 1, 1984.
25         (4) The term "special agent" means any person who by
26     reason of employment by the Division of Narcotic Control,

 

 

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1     the Bureau of Investigation or, after July 1, 1977, the
2     Division of Criminal Investigation, the Division of
3     Internal Investigation, the Division of Operations, or any
4     other Division or organizational entity in the Department
5     of State Police is vested by law with duties to maintain
6     public order, investigate violations of the criminal law of
7     this State, enforce the laws of this State, make arrests
8     and recover property. The term "special agent" includes any
9     title or position in the Department of State Police that is
10     held by an individual employed under the State Police Act.
11         (5) The term "investigator for the Secretary of State"
12     means any person employed by the Office of the Secretary of
13     State and vested with such investigative duties as render
14     him ineligible for coverage under the Social Security Act
15     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
16     218(l)(1) of that Act.
17         A person who became employed as an investigator for the
18     Secretary of State between January 1, 1967 and December 31,
19     1975, and who has served as such until attainment of age
20     60, either continuously or with a single break in service
21     of not more than 3 years duration, which break terminated
22     before January 1, 1976, shall be entitled to have his
23     retirement annuity calculated in accordance with
24     subsection (a), notwithstanding that he has less than 20
25     years of credit for such service.
26         (6) The term "Conservation Police Officer" means any

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1     handler, custodian II, or custodian III.
2         (20) The term "automotive mechanic" means a person
3     employed as such by the Illinois Department of
4     Transportation, Department of Central Management Services,
5     or Illinois Department of Agriculture.
6     (d) A security employee of the Department of Corrections or
7 the Department of Juvenile Justice, and a security employee of
8 the Department of Human Services who is not a mental health
9 police officer, shall not be eligible for the alternative
10 retirement annuity provided by this Section unless he or she
11 meets the following minimum age and service requirements at the
12 time of retirement:
13         (i) 25 years of eligible creditable service and age 55;
14     or
15         (ii) beginning January 1, 1987, 25 years of eligible
16     creditable service and age 54, or 24 years of eligible
17     creditable service and age 55; or
18         (iii) beginning January 1, 1988, 25 years of eligible
19     creditable service and age 53, or 23 years of eligible
20     creditable service and age 55; or
21         (iv) beginning January 1, 1989, 25 years of eligible
22     creditable service and age 52, or 22 years of eligible
23     creditable service and age 55; or
24         (v) beginning January 1, 1990, 25 years of eligible
25     creditable service and age 51, or 21 years of eligible
26     creditable service and age 55; or

 

 

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1         (vi) beginning January 1, 1991, 25 years of eligible
2     creditable service and age 50, or 20 years of eligible
3     creditable service and age 55.
4     Persons who have service credit under Article 16 of this
5 Code for service as a security employee of the Department of
6 Corrections or the Department of Juvenile Justice, or the
7 Department of Human Services in a position requiring
8 certification as a teacher may count such service toward
9 establishing their eligibility under the service requirements
10 of this Section; but such service may be used only for
11 establishing such eligibility, and not for the purpose of
12 increasing or calculating any benefit.
13     (e) If a member enters military service while working in a
14 position in which eligible creditable service may be earned,
15 and returns to State service in the same or another such
16 position, and fulfills in all other respects the conditions
17 prescribed in this Article for credit for military service,
18 such military service shall be credited as eligible creditable
19 service for the purposes of the retirement annuity prescribed
20 in this Section.
21     (f) For purposes of calculating retirement annuities under
22 this Section, periods of service rendered after December 31,
23 1968 and before October 1, 1975 as a covered employee in the
24 position of special agent, conservation police officer, mental
25 health police officer, or investigator for the Secretary of
26 State, shall be deemed to have been service as a noncovered

 

 

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1 employee, provided that the employee pays to the System prior
2 to retirement an amount equal to (1) the difference between the
3 employee contributions that would have been required for such
4 service as a noncovered employee, and the amount of employee
5 contributions actually paid, plus (2) if payment is made after
6 July 31, 1987, regular interest on the amount specified in item
7 (1) from the date of service to the date of payment.
8     For purposes of calculating retirement annuities under
9 this Section, periods of service rendered after December 31,
10 1968 and before January 1, 1982 as a covered employee in the
11 position of investigator for the Department of Revenue shall be
12 deemed to have been service as a noncovered employee, provided
13 that the employee pays to the System prior to retirement an
14 amount equal to (1) the difference between the employee
15 contributions that would have been required for such service as
16 a noncovered employee, and the amount of employee contributions
17 actually paid, plus (2) if payment is made after January 1,
18 1990, regular interest on the amount specified in item (1) from
19 the date of service to the date of payment.
20     (g) A State policeman may elect, not later than January 1,
21 1990, to establish eligible creditable service for up to 10
22 years of his service as a policeman under Article 3, by filing
23 a written election with the Board, accompanied by payment of an
24 amount to be determined by the Board, equal to (i) the
25 difference between the amount of employee and employer
26 contributions transferred to the System under Section 3-110.5,

 

 

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1 and the amounts that would have been contributed had such
2 contributions been made at the rates applicable to State
3 policemen, plus (ii) interest thereon at the effective rate for
4 each year, compounded annually, from the date of service to the
5 date of payment.
6     Subject to the limitation in subsection (i), a State
7 policeman may elect, not later than July 1, 1993, to establish
8 eligible creditable service for up to 10 years of his service
9 as a member of the County Police Department under Article 9, by
10 filing a written election with the Board, accompanied by
11 payment of an amount to be determined by the Board, equal to
12 (i) the difference between the amount of employee and employer
13 contributions transferred to the System under Section 9-121.10
14 and the amounts that would have been contributed had those
15 contributions been made at the rates applicable to State
16 policemen, plus (ii) interest thereon at the effective rate for
17 each year, compounded annually, from the date of service to the
18 date of payment.
19     (h) Subject to the limitation in subsection (i), a State
20 policeman or investigator for the Secretary of State may elect
21 to establish eligible creditable service for up to 12 years of
22 his service as a policeman under Article 5, by filing a written
23 election with the Board on or before January 31, 1992, and
24 paying to the System by January 31, 1994 an amount to be
25 determined by the Board, equal to (i) the difference between
26 the amount of employee and employer contributions transferred

 

 

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1 to the System under Section 5-236, and the amounts that would
2 have been contributed had such contributions been made at the
3 rates applicable to State policemen, plus (ii) interest thereon
4 at the effective rate for each year, compounded annually, from
5 the date of service to the date of payment.
6     Subject to the limitation in subsection (i), a State
7 policeman, conservation police officer, or investigator for
8 the Secretary of State may elect to establish eligible
9 creditable service for up to 10 years of service as a sheriff's
10 law enforcement employee under Article 7, by filing a written
11 election with the Board on or before January 31, 1993, and
12 paying to the System by January 31, 1994 an amount to be
13 determined by the Board, equal to (i) the difference between
14 the amount of employee and employer contributions transferred
15 to the System under Section 7-139.7, and the amounts that would
16 have been contributed had such contributions been made at the
17 rates applicable to State policemen, plus (ii) interest thereon
18 at the effective rate for each year, compounded annually, from
19 the date of service to the date of payment.
20     (i) The total amount of eligible creditable service
21 established by any person under subsections (g), (h), (j), (k),
22 and (l) of this Section shall not exceed 12 years.
23     (j) Subject to the limitation in subsection (i), an
24 investigator for the Office of the State's Attorneys Appellate
25 Prosecutor or a controlled substance inspector may elect to
26 establish eligible creditable service for up to 10 years of his

 

 

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

 

 

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1 alternative formula employees, plus (2) an amount determined by
2 the Board to be the employer's normal cost of the benefits
3 accrued for the credit being established, plus (3) regular
4 interest on the amounts in items (1) and (2) from the first day
5 as an alternative formula employee after the employment for
6 which credit is being established to the date of payment.
7     (l) Subject to the limitation in subsection (i), a security
8 employee of the Department of Corrections may elect, not later
9 than July 1, 1998, to establish eligible creditable service for
10 up to 10 years of his or her service as a policeman under
11 Article 3, by filing a written election with the Board,
12 accompanied by payment of an amount to be determined by the
13 Board, equal to (i) the difference between the amount of
14 employee and employer contributions transferred to the System
15 under Section 3-110.5, and the amounts that would have been
16 contributed had such contributions been made at the rates
17 applicable to security employees of the Department of
18 Corrections, plus (ii) interest thereon at the effective rate
19 for each year, compounded annually, from the date of service to
20 the date of payment.
21     (m) The amendatory changes to this Section made by this
22 amendatory Act of the 94th General Assembly apply only to: (1)
23 security employees of the Department of Juvenile Justice
24 employed by the Department of Corrections before the effective
25 date of this amendatory Act of the 94th General Assembly and
26 transferred to the Department of Juvenile Justice by this

 

 

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1 amendatory Act of the 94th General Assembly; and (2) persons
2 employed by the Department of Juvenile Justice on or after the
3 effective date of this amendatory Act of the 94th General
4 Assembly who are required by subsection (b) of Section 3-2.5-15
5 of the Unified Code of Corrections to have a bachelor's or
6 advanced degree from an accredited college or university with a
7 specialization in criminal justice, education, psychology,
8 social work, or a closely related social science or, in the
9 case of persons who provide vocational training, who are
10 required to have adequate knowledge in the skill for which they
11 are providing the vocational training.
12 (Source: P.A. 94-4, eff. 6-1-05; 94-696, eff. 6-1-06.)
 
13     (40 ILCS 5/14-152.2 new)
14     Sec. 14-152.2. New benefit increases.
15     (a) The General Assembly finds and declares that the
16 amendment to Section 14-110 made by this amendatory Act of the
17 95th General Assembly that provides the alternative formula to
18 certain persons employed by the Illinois State Toll Highway
19 Authority constitutes a new benefit increase within the meaning
20 of Section 14-152.1. This new benefit increase will expire 5
21 years after the effective date of this amendatory Act. Funding
22 for this new benefit increase will be provided by additional
23 employee contributions under Section 14-133.
24     (b) The General Assembly finds and declares that the
25 amendment to Section 14-110 made by this amendatory Act of the

 

 

SB0045 - 20 - LRB095 07132 AMC 27259 b

1 95th General Assembly that provides the alternative formula to
2 persons employed as automotive mechanics by the Illinois
3 Department of Transportation, Department of Central Management
4 Services, or Illinois Department of Agriculture constitutes a
5 new benefit increase within the meaning of Section 14-152.1.
6 This new benefit increase will expire 5 years after the
7 effective date of this amendatory Act. Funding for this new
8 benefit increase will be provided by additional employee
9 contributions under Section 14-133.
 
10     Section 99. Effective date. This Act takes effect upon
11 becoming law.