Full Text of HB1568 102nd General Assembly
HB1568eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Administrative Procedure Act is | 5 | | amended by adding Section 5-45.21 as follows: | 6 | | (5 ILCS 100/5-45.21 new) | 7 | | Sec. 5-45.21. Emergency rulemaking; deferred retirement | 8 | | option plan. To provide for the expeditious and timely | 9 | | implementation of Section 14-147.7 of the Illinois Pension | 10 | | Code, emergency rules implementing the deferred retirement | 11 | | option plan under Section 14-147.7 of the Illinois Pension | 12 | | Code and maintaining the deferred retirement option plan's | 13 | | compliance with applicable federal laws and regulations may be | 14 | | adopted in accordance with Section 5-45 by the Board of | 15 | | Trustees of the State Employees' Retirement System of | 16 | | Illinois. The adoption of emergency rules authorized by | 17 | | Section 5-45 and this Section is deemed to be necessary for the | 18 | | public interest, safety, and welfare. | 19 | | This Section is repealed one year after the effective date | 20 | | of this amendatory Act of the 102nd General Assembly. | 21 | | Section 10. The Department of Revenue Law of the
Civil | 22 | | Administrative Code of Illinois is amended by adding Section |
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| 1 | | 2505-306 as follows: | 2 | | (20 ILCS 2505/2505-306 new) | 3 | | Sec. 2505-306. Retiring investigators; purchase of service | 4 | | firearm and badge. The Director shall establish a program to | 5 | | allow a Department investigator who is honorably retiring in | 6 | | good standing to purchase either one or both of the following: | 7 | | (1) any badge previously issued to the investigator by the | 8 | | Department; or (2) if the investigator has a currently valid | 9 | | Firearm Owner's Identification Card, the service firearm | 10 | | issued or previously issued to the investigator by the | 11 | | Department. The cost of the firearm shall be the replacement | 12 | | value of the firearm and not the firearm's fair market value. | 13 | | Section 15. The State Finance Act is amended by adding | 14 | | Sections 5.970 and 6z-130 as follows: | 15 | | (30 ILCS 105/5.970 new) | 16 | | Sec. 5.970. The Law Enforcement Recruitment and Retention | 17 | | Fund. | 18 | | (30 ILCS 105/6z-130 new) | 19 | | Sec. 6z-130. The Law Enforcement Recruitment and Retention | 20 | | Fund. The Law Enforcement Recruitment and Retention Fund is | 21 | | hereby created as a special fund in the State treasury. Moneys | 22 | | in the fund shall consist of moneys transferred from the |
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| 1 | | General Revenue Fund to the Law Enforcement Recruitment and | 2 | | Retention Fund. This fund shall be used by the Illinois Law | 3 | | Enforcement Recruitment and Retention Board to provide grants | 4 | | pursuant to Section 3.2 of the Illinois Police Training Act | 5 | | and may be used to reimburse the Illinois Law Enforcement | 6 | | Training Standards Board pursuant to subsection (c) of Section | 7 | | 3.2 of the Illinois Police Training Act. | 8 | | Section 20. The Illinois Pension Code is amended by | 9 | | changing Sections 1-160 and 14-152.1 and by adding Sections | 10 | | 7-142.2, 14-147.7, and 24-105.3 as follows:
| 11 | | (40 ILCS 5/1-160)
| 12 | | Sec. 1-160. Provisions applicable to new hires. | 13 | | (a) The provisions of this Section apply to a person who, | 14 | | on or after January 1, 2011, first becomes a member or a | 15 | | participant under any reciprocal retirement system or pension | 16 | | fund established under this Code, other than a retirement | 17 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 18 | | 7, 15, or 18 of this Code, notwithstanding any other provision | 19 | | of this Code to the contrary, but do not apply to any | 20 | | self-managed plan established under this Code or to any | 21 | | participant of the retirement plan established under Section | 22 | | 22-101; except that this Section applies to a person who | 23 | | elected to establish alternative credits by electing in | 24 | | writing after January 1, 2011, but before August 8, 2011, |
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| 1 | | under Section 7-145.1 of this Code. Notwithstanding anything | 2 | | to the contrary in this Section, for purposes of this Section, | 3 | | a person who is a Tier 1 regular employee as defined in Section | 4 | | 7-109.4 of this Code or who participated in a retirement | 5 | | system under Article 15 prior to January 1, 2011 shall be | 6 | | deemed a person who first became a member or participant prior | 7 | | to January 1, 2011 under any retirement system or pension fund | 8 | | subject to this Section. The changes made to this Section by | 9 | | Public Act 98-596 are a clarification of existing law and are | 10 | | intended to be retroactive to January 1, 2011 (the effective | 11 | | date of Public Act 96-889), notwithstanding the provisions of | 12 | | Section 1-103.1 of this Code. | 13 | | This Section does not apply to a person who first becomes a | 14 | | noncovered employee under Article 14 on or after the | 15 | | implementation date of the plan created under Section 1-161 | 16 | | for that Article, unless that person elects under subsection | 17 | | (b) of Section 1-161 to instead receive the benefits provided | 18 | | under this Section and the applicable provisions of that | 19 | | Article. | 20 | | This Section does not apply to a person who first becomes a | 21 | | member or participant under Article 16 on or after the | 22 | | implementation date of the plan created under Section 1-161 | 23 | | for that Article, unless that person elects under subsection | 24 | | (b) of Section 1-161 to instead receive the benefits provided | 25 | | under this Section and the applicable provisions of that | 26 | | Article. |
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| 1 | | This Section does not apply to a person who elects under | 2 | | subsection (c-5) of Section 1-161 to receive the benefits | 3 | | under Section 1-161. | 4 | | This Section does not apply to a person who first becomes a | 5 | | member or participant of an affected pension fund on or after 6 | 6 | | months after the resolution or ordinance date, as defined in | 7 | | Section 1-162, unless that person elects under subsection (c) | 8 | | of Section 1-162 to receive the benefits provided under this | 9 | | Section and the applicable provisions of the Article under | 10 | | which he or she is a member or participant. | 11 | | (b) "Final average salary" means, except as otherwise | 12 | | provided in this subsection, the average monthly (or annual) | 13 | | salary obtained by dividing the total salary or earnings | 14 | | calculated under the Article applicable to the member or | 15 | | participant during the 96 consecutive months (or 8 consecutive | 16 | | years) of service within the last 120 months (or 10 years) of | 17 | | service in which the total salary or earnings calculated under | 18 | | the applicable Article was the highest by the number of months | 19 | | (or years) of service in that period. For the purposes of a | 20 | | person who first becomes a member or participant of any | 21 | | retirement system or pension fund to which this Section | 22 | | applies on or after January 1, 2011, in this Code, "final | 23 | | average salary" shall be substituted for the following: | 24 | | (1) (Blank). | 25 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 26 | | annual salary for any 4 consecutive years within the last |
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| 1 | | 10 years of service immediately preceding the date of | 2 | | withdrawal". | 3 | | (3) In Article 13, "average final salary". | 4 | | (4) In Article 14, "final average compensation". | 5 | | (5) In Article 17, "average salary". | 6 | | (6) In Section 22-207, "wages or salary received by | 7 | | him at the date of retirement or discharge". | 8 | | A member of the Teachers' Retirement System of the State | 9 | | of Illinois who retires on or after June 1, 2021 and for whom | 10 | | the 2020-2021 school year is used in the calculation of the | 11 | | member's final average salary shall use the higher of the | 12 | | following for the purpose of determining the member's final | 13 | | average salary: | 14 | | (A) the amount otherwise calculated under the first | 15 | | paragraph of this subsection; or | 16 | | (B) an amount calculated by the Teachers' Retirement | 17 | | System of the State of Illinois using the average of the | 18 | | monthly (or annual) salary obtained by dividing the total | 19 | | salary or earnings calculated under Article 16 applicable | 20 | | to the member or participant during the 96 months (or 8 | 21 | | years) of service within the last 120 months (or 10 years) | 22 | | of service in which the total salary or earnings | 23 | | calculated under the Article was the highest by the number | 24 | | of months (or years) of service in that period. | 25 | | (b-5) Beginning on January 1, 2011, for all purposes under | 26 | | this Code (including without limitation the calculation of |
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| 1 | | benefits and employee contributions), the annual earnings, | 2 | | salary, or wages (based on the plan year) of a member or | 3 | | participant to whom this Section applies shall not exceed | 4 | | $106,800; however, that amount shall annually thereafter be | 5 | | increased by the lesser of (i) 3% of that amount, including all | 6 | | previous adjustments, or (ii) one-half the annual unadjusted | 7 | | percentage increase (but not less than zero) in the consumer | 8 | | price index-u
for the 12 months ending with the September | 9 | | preceding each November 1, including all previous adjustments. | 10 | | For the purposes of this Section, "consumer price index-u" | 11 | | means
the index published by the Bureau of Labor Statistics of | 12 | | the United States
Department of Labor that measures the | 13 | | average change in prices of goods and
services purchased by | 14 | | all urban consumers, United States city average, all
items, | 15 | | 1982-84 = 100. The new amount resulting from each annual | 16 | | adjustment
shall be determined by the Public Pension Division | 17 | | of the Department of Insurance and made available to the | 18 | | boards of the retirement systems and pension funds by November | 19 | | 1 of each year. | 20 | | (c) A member or participant is entitled to a retirement
| 21 | | annuity upon written application if he or she has attained age | 22 | | 67 (age 65, with respect to service under Article 12 that is | 23 | | subject to this Section, for a member or participant under | 24 | | Article 12 who first becomes a member or participant under | 25 | | Article 12 on or after January 1, 2022 or who makes the | 26 | | election under item (i) of subsection (d-15) of this Section) |
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| 1 | | and has at least 10 years of service credit and is otherwise | 2 | | eligible under the requirements of the applicable Article. | 3 | | A member or participant who has attained age 62 (age 60, | 4 | | with respect to service under Article 12 that is subject to | 5 | | this Section, for a member or participant under Article 12 who | 6 | | first becomes a member or participant under Article 12 on or | 7 | | after January 1, 2022 or who makes the election under item (i) | 8 | | of subsection (d-15) of this Section) and has at least 10 years | 9 | | of service credit and is otherwise eligible under the | 10 | | requirements of the applicable Article may elect to receive | 11 | | the lower retirement annuity provided
in subsection (d) of | 12 | | this Section. | 13 | | (c-5) A person who first becomes a member or a participant | 14 | | subject to this Section on or after July 6, 2017 (the effective | 15 | | date of Public Act 100-23), notwithstanding any other | 16 | | provision of this Code to the contrary, is entitled to a | 17 | | retirement annuity under Article 8 or Article 11 upon written | 18 | | application if he or she has attained age 65 and has at least | 19 | | 10 years of service credit and is otherwise eligible under the | 20 | | requirements of Article 8 or Article 11 of this Code, | 21 | | whichever is applicable. | 22 | | (d) The retirement annuity of a member or participant who | 23 | | is retiring after attaining age 62 (age 60, with respect to | 24 | | service under Article 12 that is subject to this Section, for a | 25 | | member or participant under Article 12 who first becomes a | 26 | | member or participant under Article 12 on or after January 1, |
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| 1 | | 2022 or who makes the election under item (i) of subsection | 2 | | (d-15) of this Section) with at least 10 years of service | 3 | | credit shall be reduced by one-half
of 1% for each full month | 4 | | that the member's age is under age 67 (age 65, with respect to | 5 | | service under Article 12 that is subject to this Section, for a | 6 | | member or participant under Article 12 who first becomes a | 7 | | member or participant under Article 12 on or after January 1, | 8 | | 2022 or who makes the election under item (i) of subsection | 9 | | (d-15) of this Section). | 10 | | (d-5) The retirement annuity payable under Article 8 or | 11 | | Article 11 to an eligible person subject to subsection (c-5) | 12 | | of this Section who is retiring at age 60 with at least 10 | 13 | | years of service credit shall be reduced by one-half of 1% for | 14 | | each full month that the member's age is under age 65. | 15 | | (d-10) Each person who first became a member or | 16 | | participant under Article 8 or Article 11 of this Code on or | 17 | | after January 1, 2011 and prior to July 6, 2017 ( the effective | 18 | | date of Public Act 100-23) this amendatory Act of the 100th | 19 | | General Assembly shall make an irrevocable election either: | 20 | | (i) to be eligible for the reduced retirement age | 21 | | provided in subsections (c-5)
and (d-5) of this Section, | 22 | | the eligibility for which is conditioned upon the member | 23 | | or participant agreeing to the increases in employee | 24 | | contributions for age and service annuities provided in | 25 | | subsection (a-5) of Section 8-174 of this Code (for | 26 | | service under Article 8) or subsection (a-5) of Section |
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| 1 | | 11-170 of this Code (for service under Article 11); or | 2 | | (ii) to not agree to item (i) of this subsection | 3 | | (d-10), in which case the member or participant shall | 4 | | continue to be subject to the retirement age provisions in | 5 | | subsections (c) and (d) of this Section and the employee | 6 | | contributions for age and service annuity as provided in | 7 | | subsection (a) of Section 8-174 of this Code (for service | 8 | | under Article 8) or subsection (a) of Section 11-170 of | 9 | | this Code (for service under Article 11). | 10 | | The election provided for in this subsection shall be made | 11 | | between October 1, 2017 and November 15, 2017. A person | 12 | | subject to this subsection who makes the required election | 13 | | shall remain bound by that election. A person subject to this | 14 | | subsection who fails for any reason to make the required | 15 | | election within the time specified in this subsection shall be | 16 | | deemed to have made the election under item (ii). | 17 | | (d-15) Each person who first becomes a member or | 18 | | participant under Article 12 on or after January 1, 2011 and | 19 | | prior to January 1, 2022 shall make an irrevocable election | 20 | | either: | 21 | | (i) to be eligible for the reduced retirement age | 22 | | specified in subsections (c) and (d) of this Section, the | 23 | | eligibility for which is conditioned upon the member or | 24 | | participant agreeing to the increase in employee | 25 | | contributions for service annuities specified in | 26 | | subsection (b) of Section 12-150; or |
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| 1 | | (ii) to not agree to item (i) of this subsection | 2 | | (d-15), in which case the member or participant shall not | 3 | | be eligible for the reduced retirement age specified in | 4 | | subsections (c) and (d) of this Section and shall not be | 5 | | subject to the increase in employee contributions for | 6 | | service annuities specified in subsection (b) of Section | 7 | | 12-150. | 8 | | The election provided for in this subsection shall be made | 9 | | between January 1, 2022 and April 1, 2022. A person subject to | 10 | | this subsection who makes the required election shall remain | 11 | | bound by that election. A person subject to this subsection | 12 | | who fails for any reason to make the required election within | 13 | | the time specified in this subsection shall be deemed to have | 14 | | made the election under item (ii). | 15 | | (e) Any retirement annuity or supplemental annuity shall | 16 | | be subject to annual increases on the January 1 occurring | 17 | | either on or after the attainment of age 67 (age 65, with | 18 | | respect to service under Article 12 that is subject to this | 19 | | Section, for a member or participant under Article 12 who | 20 | | first becomes a member or participant under Article 12 on or | 21 | | after January 1, 2022 or who makes the election under item (i) | 22 | | of subsection (d-15); and beginning on July 6, 2017 ( the | 23 | | effective date of Public Act 100-23) this amendatory Act of | 24 | | the 100th General Assembly , age 65 with respect to service | 25 | | under Article 8 or Article 11 for eligible persons who: (i) are | 26 | | subject to subsection (c-5) of this Section; or (ii) made the |
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| 1 | | election under item (i) of subsection (d-10) of this Section) | 2 | | or the first anniversary of the annuity start date, whichever | 3 | | is later. Each annual increase shall be calculated at 3% or | 4 | | one-half the annual unadjusted percentage increase (but not | 5 | | less than zero) in the consumer price index-u for the 12 months | 6 | | ending with the September preceding each November 1, whichever | 7 | | is less, of the originally granted retirement annuity. If the | 8 | | annual unadjusted percentage change in the consumer price | 9 | | index-u for the 12 months ending with the September preceding | 10 | | each November 1 is zero or there is a decrease, then the | 11 | | annuity shall not be increased. | 12 | | For the purposes of Section 1-103.1 of this Code, the | 13 | | changes made to this Section by Public Act 102-263 this | 14 | | amendatory Act of the 102nd General Assembly are applicable | 15 | | without regard to whether the employee was in active service | 16 | | on or after August 6, 2021 ( the effective date of Public Act | 17 | | 102-263) this amendatory Act of the 102nd General Assembly . | 18 | | For the purposes of Section 1-103.1 of this Code, the | 19 | | changes made to this Section by Public Act 100-23 this | 20 | | amendatory Act of the 100th General Assembly are applicable | 21 | | without regard to whether the employee was in active service | 22 | | on or after July 6, 2017 ( the effective date of Public Act | 23 | | 100-23) this amendatory Act of the 100th General Assembly . | 24 | | (f) The initial survivor's or widow's annuity of an | 25 | | otherwise eligible survivor or widow of a retired member or | 26 | | participant who first became a member or participant on or |
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| 1 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 2 | | retired member's or participant's retirement annuity at the | 3 | | date of death. In the case of the death of a member or | 4 | | participant who has not retired and who first became a member | 5 | | or participant on or after January 1, 2011, eligibility for a | 6 | | survivor's or widow's annuity shall be determined by the | 7 | | applicable Article of this Code. The initial benefit shall be | 8 | | 66 2/3% of the earned annuity without a reduction due to age. A | 9 | | child's annuity of an otherwise eligible child shall be in the | 10 | | amount prescribed under each Article if applicable. Any | 11 | | survivor's or widow's annuity shall be increased (1) on each | 12 | | January 1 occurring on or after the commencement of the | 13 | | annuity if
the deceased member died while receiving a | 14 | | retirement annuity or (2) in
other cases, on each January 1 | 15 | | occurring after the first anniversary
of the commencement of | 16 | | the annuity. Each annual increase shall be calculated at 3% or | 17 | | one-half the annual unadjusted percentage increase (but not | 18 | | less than zero) in the consumer price index-u for the 12 months | 19 | | ending with the September preceding each November 1, whichever | 20 | | is less, of the originally granted survivor's annuity. If the | 21 | | annual unadjusted percentage change in the consumer price | 22 | | index-u for the 12 months ending with the September preceding | 23 | | each November 1 is zero or there is a decrease, then the | 24 | | annuity shall not be increased. | 25 | | (g) The benefits in Section 14-110 apply only if the | 26 | | person is a State policeman, a fire fighter in the fire |
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| 1 | | protection service of a department, a conservation police | 2 | | officer, an investigator for the Secretary of State, an arson | 3 | | investigator, a Commerce Commission police officer, | 4 | | investigator for the Department of Revenue or the
Illinois | 5 | | Gaming Board, a security employee of the Department of | 6 | | Corrections or the Department of Juvenile Justice, or a | 7 | | security employee of the Department of Innovation and | 8 | | Technology, as those terms are defined in subsection (b) and | 9 | | subsection (c) of Section 14-110. A person who meets the | 10 | | requirements of this Section is entitled to an annuity | 11 | | calculated under the provisions of Section 14-110, in lieu of | 12 | | the regular or minimum retirement annuity, only if the person | 13 | | has withdrawn from service with not less than 20
years of | 14 | | eligible creditable service and has attained age 60, | 15 | | regardless of whether
the attainment of age 60 occurs while | 16 | | the person is
still in service. | 17 | | (g-5) The benefits in Section 14-110 apply if the person | 18 | | is a State policeman, investigator for the Secretary of State, | 19 | | conservation police officer, investigator for the Department | 20 | | of Revenue or the
Illinois Gaming Board, investigator for the | 21 | | Office of the Attorney
General, Commerce Commission police | 22 | | officer, or arson investigator, as those terms are defined in | 23 | | subsection (b) and subsection (c) of Section 14-110. A person | 24 | | who meets the requirements of this Section is entitled to an | 25 | | annuity calculated under the provisions of Section 14-110, in | 26 | | lieu of the regular or minimum retirement annuity, only if the |
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| 1 | | person has withdrawn from service with not less than 20 years | 2 | | of eligible creditable service and has attained age 55, | 3 | | regardless of whether the attainment of age 55 occurs while | 4 | | the person is still in service. | 5 | | (h) If a person who first becomes a member or a participant | 6 | | of a retirement system or pension fund subject to this Section | 7 | | on or after January 1, 2011 is receiving a retirement annuity | 8 | | or retirement pension under that system or fund and becomes a | 9 | | member or participant under any other system or fund created | 10 | | by this Code and is employed on a full-time basis, except for | 11 | | those members or participants exempted from the provisions of | 12 | | this Section under subsection (a) of this Section, then the | 13 | | person's retirement annuity or retirement pension under that | 14 | | system or fund shall be suspended during that employment. Upon | 15 | | termination of that employment, the person's retirement | 16 | | annuity or retirement pension payments shall resume and be | 17 | | recalculated if recalculation is provided for under the | 18 | | applicable Article of this Code. | 19 | | If a person who first becomes a member of a retirement | 20 | | system or pension fund subject to this Section on or after | 21 | | January 1, 2012 and is receiving a retirement annuity or | 22 | | retirement pension under that system or fund and accepts on a | 23 | | contractual basis a position to provide services to a | 24 | | governmental entity from which he or she has retired, then | 25 | | that person's annuity or retirement pension earned as an | 26 | | active employee of the employer shall be suspended during that |
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| 1 | | contractual service. A person receiving an annuity or | 2 | | retirement pension under this Code shall notify the pension | 3 | | fund or retirement system from which he or she is receiving an | 4 | | annuity or retirement pension, as well as his or her | 5 | | contractual employer, of his or her retirement status before | 6 | | accepting contractual employment. A person who fails to submit | 7 | | such notification shall be guilty of a Class A misdemeanor and | 8 | | required to pay a fine of $1,000. Upon termination of that | 9 | | contractual employment, the person's retirement annuity or | 10 | | retirement pension payments shall resume and, if appropriate, | 11 | | be recalculated under the applicable provisions of this Code. | 12 | | (i) (Blank). | 13 | | (j) In the case of a conflict between the provisions of | 14 | | this Section and any other provision of this Code, the | 15 | | provisions of this Section shall control.
| 16 | | (Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21; | 17 | | 102-210, eff. 1-1-22; 102-263, eff. 8-6-21; revised 9-28-21.) | 18 | | (40 ILCS 5/7-142.2 new) | 19 | | Sec. 7-142.2. Deferred retirement option plan. | 20 | | (a) As used in this Section: | 21 | | "Deferred retirement option plan" or "DROP" means the plan | 22 | | created under this Section that provides an alternative method | 23 | | of benefit accrual in the Fund. | 24 | | "DROP member" means an eligible member who makes an | 25 | | election to participate in the DROP no later than January 1, |
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| 1 | | 2027. | 2 | | "DROP period" means the period during which a DROP member | 3 | | participates in the DROP. | 4 | | "Eligible member" means a participating employee of the | 5 | | Fund who, at the time of electing to participate in the DROP: | 6 | | (1) is otherwise eligible to retire under this Article | 7 | | with a benefit under Section 7-142.1; | 8 | | (2) has never received a retirement annuity from the | 9 | | Fund; | 10 | | (3) is in active service as a sheriff's law | 11 | | enforcement employee; and | 12 | | (4) has terminated participation with respect to any | 13 | | employer other than the employer for which the member is a | 14 | | sheriff's law enforcement employee. | 15 | | (b) The DROP shall be made available to eligible members | 16 | | no later than January 1, 2024. | 17 | | (c) Eligible members must make their election to | 18 | | participate in the DROP in writing with the Fund in a form | 19 | | acceptable to the Fund. The Fund must process the election and | 20 | | begin crediting an account on behalf of the member as soon as | 21 | | is practicable after the election has been received by the | 22 | | Fund. | 23 | | (d) An eligible member may elect to participate in the | 24 | | DROP for a period not to exceed 5 years from the date of | 25 | | election. | 26 | | (e) During the DROP period, the Fund shall credit a |
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| 1 | | notional account on behalf of the DROP member an amount equal | 2 | | to the monthly amount of retirement annuity the DROP member | 3 | | would otherwise be eligible to receive had the DROP member | 4 | | retired on the date of the election under this Section, minus | 5 | | any amounts required to be deducted under State or federal | 6 | | law, including, but not limited to, payments required under a | 7 | | Qualified Illinois Domestic Relations Order under Section | 8 | | 1-119. Any automatic annual increases that would have | 9 | | otherwise been applied to the DROP member's retirement annuity | 10 | | had the DROP member elected to retire instead of participate | 11 | | in the DROP shall accrue to the DROP member's monthly payment | 12 | | credited to the account prior to the expiration of the DROP and | 13 | | shall otherwise apply to the DROP member's annuity upon | 14 | | expiration of the DROP. The account shall be held on behalf of | 15 | | the DROP member. | 16 | | (f) DROP members shall make contributions to the Fund | 17 | | during their participation in the DROP in an amount equal to | 18 | | the employee contributions under paragraph (1) of subsection | 19 | | (a) of Section 7-173 and subsection (a) of Section 7-173.1 | 20 | | that would otherwise be required if the DROP member were an | 21 | | active participant of the Fund. Those amounts shall be | 22 | | credited to the general account of the Fund. Earnings paid to | 23 | | DROP members during their participation in the DROP shall be | 24 | | included in the calculation of employer contributions as | 25 | | required in Section 7-172. | 26 | | (g) The amounts credited to the DROP account shall be held |
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| 1 | | in notional accounts by the Fund and shall be credited | 2 | | interest annually on each January 1 during the DROP period. | 3 | | Interest shall be calculated during the DROP period at a rate | 4 | | equal to the Market Yield on U.S. Treasury Securities at | 5 | | 10-Year Constant Maturity in effect at that time and shall be | 6 | | based on the amount in the DROP member's notional account on | 7 | | December 31 of the preceding year. | 8 | | (h) Upon the later of the expiration or termination of the | 9 | | DROP member's participation in the DROP or the termination of | 10 | | disability benefits being paid to the DROP member, the account | 11 | | balance shall be paid to the DROP member as a lump sum. The | 12 | | Fund shall provide options for the transfer of the account | 13 | | consistent with its fiduciary duty and any applicable State or | 14 | | federal law. An expiration or termination of a DROP member's | 15 | | participation in the DROP may not occur after January 1, 2032. | 16 | | (i) The DROP election is irrevocable, and the DROP member | 17 | | may not access the account prior to termination or expiration | 18 | | of the DROP member's participation in the DROP. The DROP | 19 | | member must terminate employment with the employer upon | 20 | | expiration of his or her participation in the DROP. The DROP | 21 | | member's participation in the DROP shall terminate prior to | 22 | | the expiration date: | 23 | | (1) if the DROP member terminates employment with the | 24 | | employer prior to the expiration of the designated DROP | 25 | | period; | 26 | | (2) if the DROP member becomes eligible for and begins |
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| 1 | | collecting a disability benefit from the Fund; or | 2 | | (3) upon the death of the DROP member. | 3 | | Upon termination or expiration of the DROP period, the | 4 | | DROP member must separate from the service of all employers | 5 | | under this Article for a period of not less than 60 days. Upon | 6 | | the later of the termination of the DROP or the termination of | 7 | | disability benefits being paid to the DROP member, the DROP | 8 | | member's retirement annuity from the Fund shall commence. | 9 | | (j) The DROP member shall be considered in active service | 10 | | for purposes of eligibility for death and disability benefits. | 11 | | While participating in the DROP, the DROP member shall not | 12 | | accrue additional service credit, including any service | 13 | | accruals, in the Fund and earnings paid to the DROP member | 14 | | while participating in the DROP shall not be included in the | 15 | | calculation of final rate of earnings, regardless of future | 16 | | pay increases, active cost of living adjustments, or | 17 | | promotions. Additionally, the DROP member shall not be | 18 | | eligible to make additional contributions under paragraph (2) | 19 | | of subsection (a) of Section 7-173. During the DROP period, | 20 | | the DROP member shall not be eligible for a distribution of any | 21 | | amounts accrued from previous contributions made under | 22 | | paragraph (2) of subsection (a) of Section 7-173. | 23 | | Eligibility for a surviving spouse benefit under Section | 24 | | 7-154 shall be determined at the time of the DROP election. | 25 | | The pickup of employee contribution requirements in | 26 | | Section 7-173.2 shall be applicable to amounts paid by the |
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| 1 | | DROP member under subsection (f). | 2 | | Any amounts due to an alternate payee under a Qualified | 3 | | Illinois Domestic Relations Order under Section 1-119 shall be | 4 | | calculated at the time of the DROP election, and such amounts | 5 | | shall be payable at the time of election. | 6 | | If the DROP member's designated beneficiary predeceases | 7 | | the DROP member and the DROP member dies before designating a | 8 | | new beneficiary, the DROP member's DROP account shall be paid | 9 | | to the DROP member's estate. | 10 | | (k) It is intended that the DROP shall not jeopardize the | 11 | | tax-qualified status of the Fund. The Board shall have the | 12 | | authority to adopt rules necessary or appropriate for the DROP | 13 | | to maintain compliance with applicable federal laws and | 14 | | regulations. Notwithstanding any other provision of this | 15 | | Article, all benefits provided under the DROP shall be subject | 16 | | to the requirements and limitations of the Internal Revenue | 17 | | Code of 1986. | 18 | | (40 ILCS 5/14-147.7 new) | 19 | | Sec. 14-147.7. Deferred retirement option plan. | 20 | | (a) As used in this Section: | 21 | | "Deferred retirement option plan" or "DROP" means the plan | 22 | | created under this Section that provides an alternative method | 23 | | of benefit accrual in the System. | 24 | | "Eligible member" means an employee who at the time of | 25 | | election in the DROP, which must occur no later than January 1, |
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| 1 | | 2027: | 2 | | (1) is employed as a State policeman and has qualified | 3 | | to begin receiving retirement benefits as determined under | 4 | | Section 14-110; | 5 | | (2) has never received a retirement annuity from this | 6 | | System; | 7 | | (3) declines both accelerated pension benefit payment | 8 | | options under Sections 14-147.5 and 14-147.6; | 9 | | (4) provides documentation that he or she will be | 10 | | employed as a State policeman after his or her election to | 11 | | participate in the DROP; and | 12 | | (5) provides proof that he or she is enrolled in an | 13 | | eligible account under Section 457(d) of the Internal | 14 | | Revenue Code of 1986. | 15 | | (b) After the System accepts a determination that the DROP | 16 | | conforms with the federal regulations of qualified plans | 17 | | provided by a firm familiar with such regulations, the DROP | 18 | | shall be made available to eligible members as soon as | 19 | | administratively practicable as determined by the Board. | 20 | | (c) Eligible members must make their election to | 21 | | participate in the DROP in writing with the System in a form | 22 | | acceptable to the System. The System must process the election | 23 | | and begin crediting an account on behalf of the member as soon | 24 | | as is practicable after the election has been received by the | 25 | | System. | 26 | | (d) An eligible member may elect to participate in the |
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| 1 | | DROP for a period not to exceed 5 years from the date of | 2 | | election, and the duration of that period shall be certified | 3 | | by the Illinois State Police and provided to the System. | 4 | | (e) During the period of the DROP, the System shall credit | 5 | | into a notional account on behalf of the member an amount equal | 6 | | to the monthly amount of retirement annuity the member would | 7 | | otherwise be eligible to receive had the member retired on the | 8 | | date of the election under this Section, minus any amounts | 9 | | required to be deducted under State or federal law, including, | 10 | | but not limited to, payments required under a Qualified | 11 | | Illinois Domestic Relations Order under Section 1-119. Any | 12 | | automatic annual increases that would have otherwise been | 13 | | applied to the member's retirement annuity had the member | 14 | | elected to retire instead of participate in the DROP shall | 15 | | accrue to the member's monthly payment credited to the account | 16 | | prior to the expiration of the DROP and shall otherwise apply | 17 | | to the member's annuity upon expiration of the DROP. The | 18 | | account shall be held on behalf of the member. | 19 | | (f) During the period a member participates in the DROP, | 20 | | the member shall cease all contributions to the System, but | 21 | | shall make the contributions required under Section 24-105.3. | 22 | | (g) The amounts credited to the DROP account shall be held | 23 | | in notional accounts by the System and shall be credited | 24 | | interest annually on January 1. Interest shall be calculated | 25 | | at a rate equal to the Market Yield on U.S. Treasury Securities | 26 | | at 10-Year Constant Maturity in effect at that time and shall |
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| 1 | | be based on the amount in the notional account on December 31 | 2 | | of the preceding year. | 3 | | (h) Upon expiration or termination of the member's | 4 | | participation in the DROP, the account balance shall be paid | 5 | | to the member as a lump sum. The System shall provide options | 6 | | for the transfer of the account consistent with its fiduciary | 7 | | duties and any applicable State or federal law. An expiration | 8 | | or termination of a member's participation in DROP may not | 9 | | occur after January 1, 2032. | 10 | | (i) The DROP election is irrevocable, and the member may | 11 | | not access the account prior to termination or expiration of | 12 | | the member's participation in DROP. The member must terminate | 13 | | employment with the Illinois State Police upon expiration of | 14 | | the member's participation in DROP. The member's participation | 15 | | in the DROP shall terminate prior to the expiration date: | 16 | | (1) if the member terminates employment with the | 17 | | Illinois State Police prior to the expiration of the | 18 | | designated DROP period; | 19 | | (2) if the member receives income under the Public | 20 | | Employee Disability Act, the Workers' Compensation Act, or | 21 | | the Workers' Occupational Diseases Act; or | 22 | | (3) upon the death of the member. | 23 | | The monthly benefit payment accruals that are credited to | 24 | | the DROP member's notional account shall cease immediately | 25 | | upon the occurrence of any of the events as described in this | 26 | | subsection (i). |
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| 1 | | (j) A member in the DROP or his or her beneficiary is not | 2 | | eligible for the benefits provided in Section 14-116, 14-123, | 3 | | 14-123.1, 14-124, 14-128, 14-130, 14-147.5, or 14-147.6 while | 4 | | participating in the DROP. | 5 | | The member shall not accrue or establish additional | 6 | | service or earnings credits in the System while participating | 7 | | in the DROP. | 8 | | Any amounts due to an alternate payee under a Qualified | 9 | | Illinois Domestic Relations Order under Section 1-119 shall be | 10 | | calculated at the time of the DROP election and such amounts | 11 | | shall be payable at the time of election. | 12 | | If the member's designated beneficiary predeceases the | 13 | | member and the member dies before designating a new | 14 | | beneficiary, the member's DROP account shall be paid to the | 15 | | member's estate. | 16 | | (k) It is intended that the DROP shall not jeopardize the | 17 | | tax qualified status of the System. The Board shall have the | 18 | | authority to adopt rules and policies necessary or | 19 | | appropriate, including adopting emergency rules, for the DROP | 20 | | to maintain compliance with applicable federal laws and | 21 | | regulations. Notwithstanding any other provision of this | 22 | | Article, all benefits provided under the DROP shall be subject | 23 | | to the requirements and limitations of the Internal Revenue | 24 | | Code of 1986. | 25 | | (40 ILCS 5/14-152.1) |
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| 1 | | Sec. 14-152.1. Application and expiration of new benefit | 2 | | increases. | 3 | | (a) As used in this Section, "new benefit increase" means | 4 | | an increase in the amount of any benefit provided under this | 5 | | Article, or an expansion of the conditions of eligibility for | 6 | | any benefit under this Article, that results from an amendment | 7 | | to this Code that takes effect after June 1, 2005 (the | 8 | | effective date of Public Act 94-4). "New benefit increase", | 9 | | however, does not include any benefit increase resulting from | 10 | | the changes made to Article 1 or this Article by Public Act | 11 | | 96-37, Public Act 100-23, Public Act 100-587, Public Act | 12 | | 100-611, Public Act 101-10, Public Act 101-610, Public Act | 13 | | 102-210, or this amendatory Act of the 102nd General Assembly | 14 | | this amendatory Act of the 102nd General Assembly .
| 15 | | (b) Notwithstanding any other provision of this Code or | 16 | | any subsequent amendment to this Code, every new benefit | 17 | | increase is subject to this Section and shall be deemed to be | 18 | | granted only in conformance with and contingent upon | 19 | | compliance with the provisions of this Section.
| 20 | | (c) The Public Act enacting a new benefit increase must | 21 | | identify and provide for payment to the System of additional | 22 | | funding at least sufficient to fund the resulting annual | 23 | | increase in cost to the System as it accrues. | 24 | | Every new benefit increase is contingent upon the General | 25 | | Assembly providing the additional funding required under this | 26 | | subsection. The Commission on Government Forecasting and |
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| 1 | | Accountability shall analyze whether adequate additional | 2 | | funding has been provided for the new benefit increase and | 3 | | shall report its analysis to the Public Pension Division of | 4 | | the Department of Insurance. A new benefit increase created by | 5 | | a Public Act that does not include the additional funding | 6 | | required under this subsection is null and void. If the Public | 7 | | Pension Division determines that the additional funding | 8 | | provided for a new benefit increase under this subsection is | 9 | | or has become inadequate, it may so certify to the Governor and | 10 | | the State Comptroller and, in the absence of corrective action | 11 | | by the General Assembly, the new benefit increase shall expire | 12 | | at the end of the fiscal year in which the certification is | 13 | | made.
| 14 | | (d) Every new benefit increase shall expire 5 years after | 15 | | its effective date or on such earlier date as may be specified | 16 | | in the language enacting the new benefit increase or provided | 17 | | under subsection (c). This does not prevent the General | 18 | | Assembly from extending or re-creating a new benefit increase | 19 | | by law. | 20 | | (e) Except as otherwise provided in the language creating | 21 | | the new benefit increase, a new benefit increase that expires | 22 | | under this Section continues to apply to persons who applied | 23 | | and qualified for the affected benefit while the new benefit | 24 | | increase was in effect and to the affected beneficiaries and | 25 | | alternate payees of such persons, but does not apply to any | 26 | | other person, including, without limitation, a person who |
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| 1 | | continues in service after the expiration date and did not | 2 | | apply and qualify for the affected benefit while the new | 3 | | benefit increase was in effect.
| 4 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | 5 | | 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.) | 6 | | (40 ILCS 5/24-105.3 new) | 7 | | Sec. 24-105.3. Automatic enrollment and required | 8 | | participation; deferred retirement option plan. An employee | 9 | | who participates in the deferred retirement option plan under | 10 | | Section 14-147.7 shall have at least 7.6% of his or her pretax | 11 | | gross compensation for each compensation period deferred into | 12 | | his or her deferred compensation account. | 13 | | The Department of Central Management Services shall | 14 | | automatically enroll in the State Employees Deferred | 15 | | Compensation Plan any employee who elects to participate in | 16 | | the deferred retirement option plan under Section 14-147.7 and | 17 | | is not already enrolled in the State Employees Deferred | 18 | | Compensation Plan. The Illinois State Police shall provide the | 19 | | employee data necessary for enrollment to the Department of | 20 | | Central Management Services or its designee. An employee who | 21 | | participates in the deferred retirement option plan under | 22 | | Section 14-147.7 may increase the percentage of pretax gross | 23 | | compensation that is deferred into his or her account to the | 24 | | amount limited by the federal government.
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| 1 | | Section 25. The Illinois Police Training Act is amended by | 2 | | adding Section 3.2 as follows: | 3 | | (50 ILCS 705/3.2 new) | 4 | | Sec. 3.2. Illinois Law Enforcement Recruitment and | 5 | | Retention Board. | 6 | | (a) There is hereby created the Illinois Law Enforcement | 7 | | Recruitment and Retention Board. The Board shall be composed | 8 | | of: | 9 | | (1) one individual who is employed as a municipal law | 10 | | enforcement officer in a municipality with less than | 11 | | 1,000,000 people, appointed by the Senate President; | 12 | | (2) one individual who is employed as a deputy | 13 | | sheriff, appointed by the Senate Minority Leader of the | 14 | | Senate; | 15 | | (3) one individual who is a chief of police in a | 16 | | municipality with less than 1,000,000 people, appointed by | 17 | | the Speaker of the House of Representatives; | 18 | | (4) one individual who is a sheriff, appointed by the | 19 | | Minority Leader of the House of Representatives; | 20 | | (5) the Executive Director of the Illinois Law | 21 | | Enforcement Training Standards Board, or the Executive | 22 | | Director's designee; and | 23 | | (6) the Superintendent of the Chicago Police | 24 | | Department, or the Superintendent's designee. | 25 | | The Executive Director of the Illinois Law Enforcement |
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| 1 | | Training Standards Board shall be the chairperson of the Board | 2 | | until the Board elects officers. | 3 | | Each appointed member shall serve for a term of 4 years. | 4 | | The Board shall meet at least quarterly and as often as is | 5 | | necessary to accomplish the Board's duties under this Section. | 6 | | Board members shall not be paid but may be reimbursed for the | 7 | | actual costs of travel to Board meetings. | 8 | | (b) The Board shall review proposals and award grants for | 9 | | law enforcement personnel recruitment and retention efforts by | 10 | | employers of law enforcement personnel in Illinois or | 11 | | nonprofit entities that have established experience in | 12 | | recruitment and retention efforts in Illinois. The Board shall | 13 | | choose such employers or nonprofit entities to be awarded | 14 | | grant funds from the Law Enforcement Recruitment and Retention | 15 | | Fund. The Board shall establish forms and procedures for | 16 | | applying for grants. The Board shall establish procedures and | 17 | | processes for reviewing grants and making awards. In | 18 | | establishing these procedures and processes, the Board shall | 19 | | prioritize (1) serving underserved areas, (2) targeting grant | 20 | | requests that have a high likelihood of achieving the stated | 21 | | goals of the Board, (3) achieving geographic diversity among | 22 | | applicants that are awarded grants, (4) maximizing the effects | 23 | | of moneys spent on the actual recruitment and retention of law | 24 | | enforcement personnel, and (5) providing grants that can | 25 | | impact multiple employers either directly with the grant or by | 26 | | providing repeatable actions for other employers. |
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| 1 | | (c) The Illinois Law Enforcement Training Standards Board | 2 | | shall provide meeting space, either virtual or physical, as | 3 | | required. The Illinois Law Enforcement Training Standards | 4 | | Board shall provide staff and administrative support to the | 5 | | Illinois Law Enforcement Recruitment and Retention Board, and | 6 | | the Illinois Law Enforcement Recruitment and Retention Board | 7 | | may reimburse the Illinois Law Enforcement Training Standards | 8 | | Board from the Law Enforcement Recruitment and Retention Fund | 9 | | by mutual agreement. | 10 | | (d) Any award or grant made under this Section is | 11 | | contingent on there being sufficient appropriations to and | 12 | | moneys available in the Law Enforcement Recruitment and | 13 | | Retention Fund. | 14 | | Section 30. The Law Enforcement Intern Training Act is | 15 | | amended by adding Section 24 as follows: | 16 | | (50 ILCS 708/24 new) | 17 | | Sec. 24. Transfer credits from public institutions of | 18 | | higher education. | 19 | | (a) As used in this Section, "public institutions of | 20 | | higher education" has the meaning ascribed to that term in the | 21 | | Board of Higher Education Act. | 22 | | (b) The Board shall collaborate with the Illinois | 23 | | Community College Board and the Board of Higher Education to | 24 | | create a report with recommendations to the General Assembly |
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| 1 | | for establishing minimum requirements for credits that may | 2 | | transfer from public institutions of higher education to | 3 | | satisfy the requirements of law enforcement and correctional | 4 | | intern courses under this Act. | 5 | | (c) The report shall be submitted to the General Assembly | 6 | | no later than July 1, 2023. | 7 | | Section 35. The Counties Code is amended by adding Section | 8 | | 3-6042 as follows: | 9 | | (55 ILCS 5/3-6042 new) | 10 | | Sec. 3-6042. Retiring employee; purchase of service | 11 | | firearm and badge. Each Sheriff shall establish a program to | 12 | | allow an employee of the Sheriff's Department who is honorably | 13 | | retiring in good standing to purchase either one or both of the | 14 | | following: (1) any badge previously issued to the employee by | 15 | | the Sheriff's Department; or (2) if the employee has a | 16 | | currently valid Firearm Owner's Identification Card, the | 17 | | service firearm issued or previously issued to the employee by | 18 | | the Sheriff's Department. The badge must be permanently and | 19 | | conspicuously marked in such a manner that the individual who | 20 | | possesses the badge is not mistaken for an actively serving | 21 | | law enforcement officer. The cost of the firearm shall be the | 22 | | replacement value of the firearm and not the firearm's fair | 23 | | market value. |
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| 1 | | Section 40. The Illinois Gambling Act is amended by adding | 2 | | Section 5.4 as follows: | 3 | | (230 ILCS 10/5.4 new) | 4 | | Sec. 5.4. Retiring investigators; purchase of service | 5 | | firearm and badge. The Board shall establish a program to | 6 | | allow an investigator appointed under paragraph (20.6) of | 7 | | subsection (c) of Section 4 who is honorably retiring in good | 8 | | standing to purchase either one or both of the following: (1) | 9 | | any badge previously issued to the investigator by the Board; | 10 | | or (2) if the investigator has a currently valid Firearm | 11 | | Owner's Identification Card, the service firearm issued or | 12 | | previously issued to the investigator by the Board. The badge | 13 | | must be permanently and conspicuously marked in such a manner | 14 | | that the individual who possesses the badge is not mistaken | 15 | | for an actively serving law enforcement officer. The cost of | 16 | | the firearm shall be the replacement value of the firearm and | 17 | | not the firearm's fair market value. | 18 | | Section 45. The Unified Code of Corrections is amended by | 19 | | adding Section 3-2-10.5 as follows: | 20 | | (730 ILCS 5/3-2-10.5 new) | 21 | | Sec. 3-2-10.5. Retiring security employees and parole | 22 | | agents; purchase of service firearm and badge. The Director | 23 | | shall establish a program to allow a security employee or |
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| 1 | | parole agent of the Department who is honorably retiring in | 2 | | good standing to purchase either one or both of the following: | 3 | | (1) any badge previously issued to the security employee or | 4 | | parole agent by the Department; or (2) if the security | 5 | | employee or parole agent has a currently valid Firearm Owner's | 6 | | Identification Card, the service firearm issued or previously | 7 | | issued to the security employee or parole agent by the | 8 | | Department. The badge must be permanently and conspicuously | 9 | | marked in such a manner that the individual who possesses the | 10 | | badge is not mistaken for an actively serving law enforcement | 11 | | officer. The cost of the firearm shall be the replacement | 12 | | value of the firearm and not the firearm's fair market value. | 13 | | Section 50. The Probation and Probation Officers Act is | 14 | | amended by adding Section 15.2 as follows: | 15 | | (730 ILCS 110/15.2 new) | 16 | | Sec. 15.2. Retiring probation officer; purchase of service | 17 | | firearm and badge. Each department shall establish a program | 18 | | to allow a probation officer of the department who is | 19 | | honorably retiring in good standing to purchase either one or | 20 | | both of the following: (1) any badge previously issued to the | 21 | | probation officer by the department; or (2) if the probation | 22 | | officer has a currently valid Firearm Owner's Identification | 23 | | Card, the service firearm issued or previously issued to the | 24 | | probation officer by the department. The badge must be |
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| 1 | | permanently and conspicuously marked in such a manner that the | 2 | | individual who possesses the badge is not mistaken for an | 3 | | actively serving law enforcement officer. The cost of the | 4 | | firearm shall be the replacement value of the firearm and not | 5 | | the firearm's fair market value.
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law, except that Section 25 takes effect July 1, 2023 | 8 | | and Section 30 takes effect January 1, 2023.
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