Illinois General Assembly - Full Text of HB1568
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Full Text of HB1568  102nd General Assembly

HB1568eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB1568 EngrossedLRB102 03599 RJF 13612 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Administrative Procedure Act is
5amended 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
8option plan. To provide for the expeditious and timely
9implementation of Section 14-147.7 of the Illinois Pension
10Code, emergency rules implementing the deferred retirement
11option plan under Section 14-147.7 of the Illinois Pension
12Code and maintaining the deferred retirement option plan's
13compliance with applicable federal laws and regulations may be
14adopted in accordance with Section 5-45 by the Board of
15Trustees of the State Employees' Retirement System of
16Illinois. The adoption of emergency rules authorized by
17Section 5-45 and this Section is deemed to be necessary for the
18public interest, safety, and welfare.
19    This Section is repealed one year after the effective date
20of this amendatory Act of the 102nd General Assembly.
 
21    Section 10. The Department of Revenue Law of the Civil
22Administrative Code of Illinois is amended by adding Section

 

 

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12505-306 as follows:
 
2    (20 ILCS 2505/2505-306 new)
3    Sec. 2505-306. Retiring investigators; purchase of service
4firearm and badge. The Director shall establish a program to
5allow a Department investigator who is honorably retiring in
6good standing to purchase either one or both of the following:
7(1) any badge previously issued to the investigator by the
8Department; or (2) if the investigator has a currently valid
9Firearm Owner's Identification Card, the service firearm
10issued or previously issued to the investigator by the
11Department. The cost of the firearm shall be the replacement
12value of the firearm and not the firearm's fair market value.
 
13    Section 15. The State Finance Act is amended by adding
14Sections 5.970 and 6z-130 as follows:
 
15    (30 ILCS 105/5.970 new)
16    Sec. 5.970. The Law Enforcement Recruitment and Retention
17Fund.
 
18    (30 ILCS 105/6z-130 new)
19    Sec. 6z-130. The Law Enforcement Recruitment and Retention
20Fund. The Law Enforcement Recruitment and Retention Fund is
21hereby created as a special fund in the State treasury. Moneys
22in the fund shall consist of moneys transferred from the

 

 

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1General Revenue Fund to the Law Enforcement Recruitment and
2Retention Fund. This fund shall be used by the Illinois Law
3Enforcement Recruitment and Retention Board to provide grants
4pursuant to Section 3.2 of the Illinois Police Training Act
5and may be used to reimburse the Illinois Law Enforcement
6Training Standards Board pursuant to subsection (c) of Section
73.2 of the Illinois Police Training Act.
 
8    Section 20. The Illinois Pension Code is amended by
9changing Sections 1-160 and 14-152.1 and by adding Sections
107-142.2, 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,
14on or after January 1, 2011, first becomes a member or a
15participant under any reciprocal retirement system or pension
16fund established under this Code, other than a retirement
17system or pension fund established under Article 2, 3, 4, 5, 6,
187, 15, or 18 of this Code, notwithstanding any other provision
19of this Code to the contrary, but do not apply to any
20self-managed plan established under this Code or to any
21participant of the retirement plan established under Section
2222-101; except that this Section applies to a person who
23elected to establish alternative credits by electing in
24writing after January 1, 2011, but before August 8, 2011,

 

 

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1under Section 7-145.1 of this Code. Notwithstanding anything
2to the contrary in this Section, for purposes of this Section,
3a person who is a Tier 1 regular employee as defined in Section
47-109.4 of this Code or who participated in a retirement
5system under Article 15 prior to January 1, 2011 shall be
6deemed a person who first became a member or participant prior
7to January 1, 2011 under any retirement system or pension fund
8subject to this Section. The changes made to this Section by
9Public Act 98-596 are a clarification of existing law and are
10intended to be retroactive to January 1, 2011 (the effective
11date of Public Act 96-889), notwithstanding the provisions of
12Section 1-103.1 of this Code.
13    This Section does not apply to a person who first becomes a
14noncovered employee under Article 14 on or after the
15implementation date of the plan created under Section 1-161
16for that Article, unless that person elects under subsection
17(b) of Section 1-161 to instead receive the benefits provided
18under this Section and the applicable provisions of that
19Article.
20    This Section does not apply to a person who first becomes a
21member or participant under Article 16 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

 

 

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1    This Section does not apply to a person who elects under
2subsection (c-5) of Section 1-161 to receive the benefits
3under Section 1-161.
4    This Section does not apply to a person who first becomes a
5member or participant of an affected pension fund on or after 6
6months after the resolution or ordinance date, as defined in
7Section 1-162, unless that person elects under subsection (c)
8of Section 1-162 to receive the benefits provided under this
9Section and the applicable provisions of the Article under
10which he or she is a member or participant.
11    (b) "Final average salary" means, except as otherwise
12provided in this subsection, the average monthly (or annual)
13salary obtained by dividing the total salary or earnings
14calculated under the Article applicable to the member or
15participant during the 96 consecutive months (or 8 consecutive
16years) of service within the last 120 months (or 10 years) of
17service in which the total salary or earnings calculated under
18the applicable Article was the highest by the number of months
19(or years) of service in that period. For the purposes of a
20person who first becomes a member or participant of any
21retirement system or pension fund to which this Section
22applies on or after January 1, 2011, in this Code, "final
23average 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
9of Illinois who retires on or after June 1, 2021 and for whom
10the 2020-2021 school year is used in the calculation of the
11member's final average salary shall use the higher of the
12following for the purpose of determining the member's final
13average 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
26this Code (including without limitation the calculation of

 

 

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1benefits and employee contributions), the annual earnings,
2salary, or wages (based on the plan year) of a member or
3participant to whom this Section applies shall not exceed
4$106,800; however, that amount shall annually thereafter be
5increased by the lesser of (i) 3% of that amount, including all
6previous adjustments, or (ii) one-half the annual unadjusted
7percentage increase (but not less than zero) in the consumer
8price index-u for the 12 months ending with the September
9preceding each November 1, including all previous adjustments.
10    For the purposes of this Section, "consumer price index-u"
11means the index published by the Bureau of Labor Statistics of
12the United States Department of Labor that measures the
13average change in prices of goods and services purchased by
14all urban consumers, United States city average, all items,
151982-84 = 100. The new amount resulting from each annual
16adjustment shall be determined by the Public Pension Division
17of the Department of Insurance and made available to the
18boards of the retirement systems and pension funds by November
191 of each year.
20    (c) A member or participant is entitled to a retirement
21annuity upon written application if he or she has attained age
2267 (age 65, with respect to service under Article 12 that is
23subject to this Section, for a member or participant under
24Article 12 who first becomes a member or participant under
25Article 12 on or after January 1, 2022 or who makes the
26election under item (i) of subsection (d-15) of this Section)

 

 

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1and has at least 10 years of service credit and is otherwise
2eligible under the requirements of the applicable Article.
3    A member or participant who has attained age 62 (age 60,
4with respect to service under Article 12 that is subject to
5this Section, for a member or participant under Article 12 who
6first becomes a member or participant under Article 12 on or
7after January 1, 2022 or who makes the election under item (i)
8of subsection (d-15) of this Section) and has at least 10 years
9of service credit and is otherwise eligible under the
10requirements of the applicable Article may elect to receive
11the lower retirement annuity provided in subsection (d) of
12this Section.
13    (c-5) A person who first becomes a member or a participant
14subject to this Section on or after July 6, 2017 (the effective
15date of Public Act 100-23), notwithstanding any other
16provision of this Code to the contrary, is entitled to a
17retirement annuity under Article 8 or Article 11 upon written
18application if he or she has attained age 65 and has at least
1910 years of service credit and is otherwise eligible under the
20requirements of Article 8 or Article 11 of this Code,
21whichever is applicable.
22    (d) The retirement annuity of a member or participant who
23is retiring after attaining age 62 (age 60, with respect to
24service under Article 12 that is subject to this Section, for a
25member or participant under Article 12 who first becomes a
26member or participant under Article 12 on or after January 1,

 

 

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12022 or who makes the election under item (i) of subsection
2(d-15) of this Section) with at least 10 years of service
3credit shall be reduced by one-half of 1% for each full month
4that the member's age is under age 67 (age 65, with respect to
5service under Article 12 that is subject to this Section, for a
6member or participant under Article 12 who first becomes a
7member or participant under Article 12 on or after January 1,
82022 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
11Article 11 to an eligible person subject to subsection (c-5)
12of this Section who is retiring at age 60 with at least 10
13years of service credit shall be reduced by one-half of 1% for
14each full month that the member's age is under age 65.
15    (d-10) Each person who first became a member or
16participant under Article 8 or Article 11 of this Code on or
17after January 1, 2011 and prior to July 6, 2017 (the effective
18date of Public Act 100-23) this amendatory Act of the 100th
19General 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
11between October 1, 2017 and November 15, 2017. A person
12subject to this subsection who makes the required election
13shall remain bound by that election. A person subject to this
14subsection who fails for any reason to make the required
15election within the time specified in this subsection shall be
16deemed to have made the election under item (ii).
17    (d-15) Each person who first becomes a member or
18participant under Article 12 on or after January 1, 2011 and
19prior to January 1, 2022 shall make an irrevocable election
20either:
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
9between January 1, 2022 and April 1, 2022. A person subject to
10this subsection who makes the required election shall remain
11bound by that election. A person subject to this subsection
12who fails for any reason to make the required election within
13the time specified in this subsection shall be deemed to have
14made the election under item (ii).
15    (e) Any retirement annuity or supplemental annuity shall
16be subject to annual increases on the January 1 occurring
17either on or after the attainment of age 67 (age 65, with
18respect to service under Article 12 that is subject to this
19Section, for a member or participant under Article 12 who
20first becomes a member or participant under Article 12 on or
21after January 1, 2022 or who makes the election under item (i)
22of subsection (d-15); and beginning on July 6, 2017 (the
23effective date of Public Act 100-23) this amendatory Act of
24the 100th General Assembly, age 65 with respect to service
25under Article 8 or Article 11 for eligible persons who: (i) are
26subject to subsection (c-5) of this Section; or (ii) made the

 

 

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1election under item (i) of subsection (d-10) of this Section)
2or the first anniversary of the annuity start date, whichever
3is later. Each annual increase shall be calculated at 3% or
4one-half the annual unadjusted percentage increase (but not
5less than zero) in the consumer price index-u for the 12 months
6ending with the September preceding each November 1, whichever
7is less, of the originally granted retirement annuity. If the
8annual unadjusted percentage change in the consumer price
9index-u for the 12 months ending with the September preceding
10each November 1 is zero or there is a decrease, then the
11annuity shall not be increased.
12    For the purposes of Section 1-103.1 of this Code, the
13changes made to this Section by Public Act 102-263 this
14amendatory Act of the 102nd General Assembly are applicable
15without regard to whether the employee was in active service
16on or after August 6, 2021 (the effective date of Public Act
17102-263) this amendatory Act of the 102nd General Assembly.
18    For the purposes of Section 1-103.1 of this Code, the
19changes made to this Section by Public Act 100-23 this
20amendatory Act of the 100th General Assembly are applicable
21without regard to whether the employee was in active service
22on or after July 6, 2017 (the effective date of Public Act
23100-23) this amendatory Act of the 100th General Assembly.
24    (f) The initial survivor's or widow's annuity of an
25otherwise eligible survivor or widow of a retired member or
26participant who first became a member or participant on or

 

 

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1after January 1, 2011 shall be in the amount of 66 2/3% of the
2retired member's or participant's retirement annuity at the
3date of death. In the case of the death of a member or
4participant who has not retired and who first became a member
5or participant on or after January 1, 2011, eligibility for a
6survivor's or widow's annuity shall be determined by the
7applicable Article of this Code. The initial benefit shall be
866 2/3% of the earned annuity without a reduction due to age. A
9child's annuity of an otherwise eligible child shall be in the
10amount prescribed under each Article if applicable. Any
11survivor's or widow's annuity shall be increased (1) on each
12January 1 occurring on or after the commencement of the
13annuity if the deceased member died while receiving a
14retirement annuity or (2) in other cases, on each January 1
15occurring after the first anniversary of the commencement of
16the annuity. Each annual increase shall be calculated at 3% or
17one-half the annual unadjusted percentage increase (but not
18less than zero) in the consumer price index-u for the 12 months
19ending with the September preceding each November 1, whichever
20is less, of the originally granted survivor's annuity. If the
21annual unadjusted percentage change in the consumer price
22index-u for the 12 months ending with the September preceding
23each November 1 is zero or there is a decrease, then the
24annuity shall not be increased.
25    (g) The benefits in Section 14-110 apply only if the
26person is a State policeman, a fire fighter in the fire

 

 

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1protection service of a department, a conservation police
2officer, an investigator for the Secretary of State, an arson
3investigator, a Commerce Commission police officer,
4investigator for the Department of Revenue or the Illinois
5Gaming Board, a security employee of the Department of
6Corrections or the Department of Juvenile Justice, or a
7security employee of the Department of Innovation and
8Technology, as those terms are defined in subsection (b) and
9subsection (c) of Section 14-110. A person who meets the
10requirements of this Section is entitled to an annuity
11calculated under the provisions of Section 14-110, in lieu of
12the regular or minimum retirement annuity, only if the person
13has withdrawn from service with not less than 20 years of
14eligible creditable service and has attained age 60,
15regardless of whether the attainment of age 60 occurs while
16the person is still in service.
17    (g-5) The benefits in Section 14-110 apply if the person
18is a State policeman, investigator for the Secretary of State,
19conservation police officer, investigator for the Department
20of Revenue or the Illinois Gaming Board, investigator for the
21Office of the Attorney General, Commerce Commission police
22officer, or arson investigator, as those terms are defined in
23subsection (b) and subsection (c) of Section 14-110. A person
24who meets the requirements of this Section is entitled to an
25annuity calculated under the provisions of Section 14-110, in
26lieu of the regular or minimum retirement annuity, only if the

 

 

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1person has withdrawn from service with not less than 20 years
2of eligible creditable service and has attained age 55,
3regardless of whether the attainment of age 55 occurs while
4the person is still in service.
5    (h) If a person who first becomes a member or a participant
6of a retirement system or pension fund subject to this Section
7on or after January 1, 2011 is receiving a retirement annuity
8or retirement pension under that system or fund and becomes a
9member or participant under any other system or fund created
10by this Code and is employed on a full-time basis, except for
11those members or participants exempted from the provisions of
12this Section under subsection (a) of this Section, then the
13person's retirement annuity or retirement pension under that
14system or fund shall be suspended during that employment. Upon
15termination of that employment, the person's retirement
16annuity or retirement pension payments shall resume and be
17recalculated if recalculation is provided for under the
18applicable Article of this Code.
19    If a person who first becomes a member of a retirement
20system or pension fund subject to this Section on or after
21January 1, 2012 and is receiving a retirement annuity or
22retirement pension under that system or fund and accepts on a
23contractual basis a position to provide services to a
24governmental entity from which he or she has retired, then
25that person's annuity or retirement pension earned as an
26active employee of the employer shall be suspended during that

 

 

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1contractual service. A person receiving an annuity or
2retirement pension under this Code shall notify the pension
3fund or retirement system from which he or she is receiving an
4annuity or retirement pension, as well as his or her
5contractual employer, of his or her retirement status before
6accepting contractual employment. A person who fails to submit
7such notification shall be guilty of a Class A misdemeanor and
8required to pay a fine of $1,000. Upon termination of that
9contractual employment, the person's retirement annuity or
10retirement pension payments shall resume and, if appropriate,
11be recalculated under the applicable provisions of this Code.
12    (i) (Blank).
13    (j) In the case of a conflict between the provisions of
14this Section and any other provision of this Code, the
15provisions of this Section shall control.
16(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
17102-210, 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
22created under this Section that provides an alternative method
23of benefit accrual in the Fund.
24    "DROP member" means an eligible member who makes an
25election to participate in the DROP no later than January 1,

 

 

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12027.
2    "DROP period" means the period during which a DROP member
3participates in the DROP.
4    "Eligible member" means a participating employee of the
5Fund 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
16no later than January 1, 2024.
17    (c) Eligible members must make their election to
18participate in the DROP in writing with the Fund in a form
19acceptable to the Fund. The Fund must process the election and
20begin crediting an account on behalf of the member as soon as
21is practicable after the election has been received by the
22Fund.
23    (d) An eligible member may elect to participate in the
24DROP for a period not to exceed 5 years from the date of
25election.
26     (e) During the DROP period, the Fund shall credit a

 

 

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1notional account on behalf of the DROP member an amount equal
2to the monthly amount of retirement annuity the DROP member
3would otherwise be eligible to receive had the DROP member
4retired on the date of the election under this Section, minus
5any amounts required to be deducted under State or federal
6law, including, but not limited to, payments required under a
7Qualified Illinois Domestic Relations Order under Section
81-119. Any automatic annual increases that would have
9otherwise been applied to the DROP member's retirement annuity
10had the DROP member elected to retire instead of participate
11in the DROP shall accrue to the DROP member's monthly payment
12credited to the account prior to the expiration of the DROP and
13shall otherwise apply to the DROP member's annuity upon
14expiration of the DROP. The account shall be held on behalf of
15the DROP member.
16    (f) DROP members shall make contributions to the Fund
17during their participation in the DROP in an amount equal to
18the employee contributions under paragraph (1) of subsection
19(a) of Section 7-173 and subsection (a) of Section 7-173.1
20that would otherwise be required if the DROP member were an
21active participant of the Fund. Those amounts shall be
22credited to the general account of the Fund. Earnings paid to
23DROP members during their participation in the DROP shall be
24included in the calculation of employer contributions as
25required in Section 7-172.
26    (g) The amounts credited to the DROP account shall be held

 

 

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1in notional accounts by the Fund and shall be credited
2interest annually on each January 1 during the DROP period.
3Interest shall be calculated during the DROP period at a rate
4equal to the Market Yield on U.S. Treasury Securities at
510-Year Constant Maturity in effect at that time and shall be
6based on the amount in the DROP member's notional account on
7December 31 of the preceding year.
8    (h) Upon the later of the expiration or termination of the
9DROP member's participation in the DROP or the termination of
10disability benefits being paid to the DROP member, the account
11balance shall be paid to the DROP member as a lump sum. The
12Fund shall provide options for the transfer of the account
13consistent with its fiduciary duty and any applicable State or
14federal law. An expiration or termination of a DROP member's
15participation in the DROP may not occur after January 1, 2032.
16    (i) The DROP election is irrevocable, and the DROP member
17may not access the account prior to termination or expiration
18of the DROP member's participation in the DROP. The DROP
19member must terminate employment with the employer upon
20expiration of his or her participation in the DROP. The DROP
21member's participation in the DROP shall terminate prior to
22the 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
4DROP member must separate from the service of all employers
5under this Article for a period of not less than 60 days. Upon
6the later of the termination of the DROP or the termination of
7disability benefits being paid to the DROP member, the DROP
8member's retirement annuity from the Fund shall commence.
9    (j) The DROP member shall be considered in active service
10for purposes of eligibility for death and disability benefits.
11    While participating in the DROP, the DROP member shall not
12accrue additional service credit, including any service
13accruals, in the Fund and earnings paid to the DROP member
14while participating in the DROP shall not be included in the
15calculation of final rate of earnings, regardless of future
16pay increases, active cost of living adjustments, or
17promotions. Additionally, the DROP member shall not be
18eligible to make additional contributions under paragraph (2)
19of subsection (a) of Section 7-173. During the DROP period,
20the DROP member shall not be eligible for a distribution of any
21amounts accrued from previous contributions made under
22paragraph (2) of subsection (a) of Section 7-173.
23    Eligibility for a surviving spouse benefit under Section
247-154 shall be determined at the time of the DROP election.
25    The pickup of employee contribution requirements in
26Section 7-173.2 shall be applicable to amounts paid by the

 

 

HB1568 Engrossed- 21 -LRB102 03599 RJF 13612 b

1DROP member under subsection (f).
2    Any amounts due to an alternate payee under a Qualified
3Illinois Domestic Relations Order under Section 1-119 shall be
4calculated at the time of the DROP election, and such amounts
5shall be payable at the time of election.
6    If the DROP member's designated beneficiary predeceases
7the DROP member and the DROP member dies before designating a
8new beneficiary, the DROP member's DROP account shall be paid
9to the DROP member's estate.
10    (k) It is intended that the DROP shall not jeopardize the
11tax-qualified status of the Fund. The Board shall have the
12authority to adopt rules necessary or appropriate for the DROP
13to maintain compliance with applicable federal laws and
14regulations. Notwithstanding any other provision of this
15Article, all benefits provided under the DROP shall be subject
16to the requirements and limitations of the Internal Revenue
17Code 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
22created under this Section that provides an alternative method
23of benefit accrual in the System.
24    "Eligible member" means an employee who at the time of
25election in the DROP, which must occur no later than January 1,

 

 

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12027:
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
16conforms with the federal regulations of qualified plans
17provided by a firm familiar with such regulations, the DROP
18shall be made available to eligible members as soon as
19administratively practicable as determined by the Board.
20    (c) Eligible members must make their election to
21participate in the DROP in writing with the System in a form
22acceptable to the System. The System must process the election
23and begin crediting an account on behalf of the member as soon
24as is practicable after the election has been received by the
25System.
26    (d) An eligible member may elect to participate in the

 

 

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1DROP for a period not to exceed 5 years from the date of
2election, and the duration of that period shall be certified
3by the Illinois State Police and provided to the System.
4    (e) During the period of the DROP, the System shall credit
5into a notional account on behalf of the member an amount equal
6to the monthly amount of retirement annuity the member would
7otherwise be eligible to receive had the member retired on the
8date of the election under this Section, minus any amounts
9required to be deducted under State or federal law, including,
10but not limited to, payments required under a Qualified
11Illinois Domestic Relations Order under Section 1-119. Any
12automatic annual increases that would have otherwise been
13applied to the member's retirement annuity had the member
14elected to retire instead of participate in the DROP shall
15accrue to the member's monthly payment credited to the account
16prior to the expiration of the DROP and shall otherwise apply
17to the member's annuity upon expiration of the DROP. The
18account shall be held on behalf of the member.
19    (f) During the period a member participates in the DROP,
20the member shall cease all contributions to the System, but
21shall make the contributions required under Section 24-105.3.
22    (g) The amounts credited to the DROP account shall be held
23in notional accounts by the System and shall be credited
24interest annually on January 1. Interest shall be calculated
25at a rate equal to the Market Yield on U.S. Treasury Securities
26at 10-Year Constant Maturity in effect at that time and shall

 

 

HB1568 Engrossed- 24 -LRB102 03599 RJF 13612 b

1be based on the amount in the notional account on December 31
2of the preceding year.
3    (h) Upon expiration or termination of the member's
4participation in the DROP, the account balance shall be paid
5to the member as a lump sum. The System shall provide options
6for the transfer of the account consistent with its fiduciary
7duties and any applicable State or federal law. An expiration
8or termination of a member's participation in DROP may not
9occur after January 1, 2032.
10    (i) The DROP election is irrevocable, and the member may
11not access the account prior to termination or expiration of
12the member's participation in DROP. The member must terminate
13employment with the Illinois State Police upon expiration of
14the member's participation in DROP. The member's participation
15in 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
24the DROP member's notional account shall cease immediately
25upon the occurrence of any of the events as described in this
26subsection (i).

 

 

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1    (j) A member in the DROP or his or her beneficiary is not
2eligible for the benefits provided in Section 14-116, 14-123,
314-123.1, 14-124, 14-128, 14-130, 14-147.5, or 14-147.6 while
4participating in the DROP.
5    The member shall not accrue or establish additional
6service or earnings credits in the System while participating
7in the DROP.
8    Any amounts due to an alternate payee under a Qualified
9Illinois Domestic Relations Order under Section 1-119 shall be
10calculated at the time of the DROP election and such amounts
11shall be payable at the time of election.
12    If the member's designated beneficiary predeceases the
13member and the member dies before designating a new
14beneficiary, the member's DROP account shall be paid to the
15member's estate.
16    (k) It is intended that the DROP shall not jeopardize the
17tax qualified status of the System. The Board shall have the
18authority to adopt rules and policies necessary or
19appropriate, including adopting emergency rules, for the DROP
20to maintain compliance with applicable federal laws and
21regulations. Notwithstanding any other provision of this
22Article, all benefits provided under the DROP shall be subject
23to the requirements and limitations of the Internal Revenue
24Code of 1986.
 
25    (40 ILCS 5/14-152.1)

 

 

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1    Sec. 14-152.1. Application and expiration of new benefit
2increases.
3    (a) As used in this Section, "new benefit increase" means
4an increase in the amount of any benefit provided under this
5Article, or an expansion of the conditions of eligibility for
6any benefit under this Article, that results from an amendment
7to this Code that takes effect after June 1, 2005 (the
8effective date of Public Act 94-4). "New benefit increase",
9however, does not include any benefit increase resulting from
10the changes made to Article 1 or this Article by Public Act
1196-37, Public Act 100-23, Public Act 100-587, Public Act
12100-611, Public Act 101-10, Public Act 101-610, Public Act
13102-210, or this amendatory Act of the 102nd General Assembly
14this amendatory Act of the 102nd General Assembly.
15    (b) Notwithstanding any other provision of this Code or
16any subsequent amendment to this Code, every new benefit
17increase is subject to this Section and shall be deemed to be
18granted only in conformance with and contingent upon
19compliance with the provisions of this Section.
20    (c) The Public Act enacting a new benefit increase must
21identify and provide for payment to the System of additional
22funding at least sufficient to fund the resulting annual
23increase in cost to the System as it accrues.
24    Every new benefit increase is contingent upon the General
25Assembly providing the additional funding required under this
26subsection. The Commission on Government Forecasting and

 

 

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1Accountability shall analyze whether adequate additional
2funding has been provided for the new benefit increase and
3shall report its analysis to the Public Pension Division of
4the Department of Insurance. A new benefit increase created by
5a Public Act that does not include the additional funding
6required under this subsection is null and void. If the Public
7Pension Division determines that the additional funding
8provided for a new benefit increase under this subsection is
9or has become inadequate, it may so certify to the Governor and
10the State Comptroller and, in the absence of corrective action
11by the General Assembly, the new benefit increase shall expire
12at the end of the fiscal year in which the certification is
13made.
14    (d) Every new benefit increase shall expire 5 years after
15its effective date or on such earlier date as may be specified
16in the language enacting the new benefit increase or provided
17under subsection (c). This does not prevent the General
18Assembly from extending or re-creating a new benefit increase
19by law.
20    (e) Except as otherwise provided in the language creating
21the new benefit increase, a new benefit increase that expires
22under this Section continues to apply to persons who applied
23and qualified for the affected benefit while the new benefit
24increase was in effect and to the affected beneficiaries and
25alternate payees of such persons, but does not apply to any
26other person, including, without limitation, a person who

 

 

HB1568 Engrossed- 28 -LRB102 03599 RJF 13612 b

1continues in service after the expiration date and did not
2apply and qualify for the affected benefit while the new
3benefit increase was in effect.
4(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
5101-610, 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
8participation; deferred retirement option plan. An employee
9who participates in the deferred retirement option plan under
10Section 14-147.7 shall have at least 7.6% of his or her pretax
11gross compensation for each compensation period deferred into
12his or her deferred compensation account.
13    The Department of Central Management Services shall
14automatically enroll in the State Employees Deferred
15Compensation Plan any employee who elects to participate in
16the deferred retirement option plan under Section 14-147.7 and
17is not already enrolled in the State Employees Deferred
18Compensation Plan. The Illinois State Police shall provide the
19employee data necessary for enrollment to the Department of
20Central Management Services or its designee. An employee who
21participates in the deferred retirement option plan under
22Section 14-147.7 may increase the percentage of pretax gross
23compensation that is deferred into his or her account to the
24amount limited by the federal government.
 

 

 

HB1568 Engrossed- 29 -LRB102 03599 RJF 13612 b

1    Section 25. The Illinois Police Training Act is amended by
2adding Section 3.2 as follows:
 
3    (50 ILCS 705/3.2 new)
4    Sec. 3.2. Illinois Law Enforcement Recruitment and
5Retention Board.
6    (a) There is hereby created the Illinois Law Enforcement
7Recruitment and Retention Board. The Board shall be composed
8of:
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

 

 

HB1568 Engrossed- 30 -LRB102 03599 RJF 13612 b

1Training Standards Board shall be the chairperson of the Board
2until the Board elects officers.
3    Each appointed member shall serve for a term of 4 years.
4The Board shall meet at least quarterly and as often as is
5necessary to accomplish the Board's duties under this Section.
6Board members shall not be paid but may be reimbursed for the
7actual costs of travel to Board meetings.
8    (b) The Board shall review proposals and award grants for
9law enforcement personnel recruitment and retention efforts by
10employers of law enforcement personnel in Illinois or
11nonprofit entities that have established experience in
12recruitment and retention efforts in Illinois. The Board shall
13choose such employers or nonprofit entities to be awarded
14grant funds from the Law Enforcement Recruitment and Retention
15Fund. The Board shall establish forms and procedures for
16applying for grants. The Board shall establish procedures and
17processes for reviewing grants and making awards. In
18establishing these procedures and processes, the Board shall
19prioritize (1) serving underserved areas, (2) targeting grant
20requests that have a high likelihood of achieving the stated
21goals of the Board, (3) achieving geographic diversity among
22applicants that are awarded grants, (4) maximizing the effects
23of moneys spent on the actual recruitment and retention of law
24enforcement personnel, and (5) providing grants that can
25impact multiple employers either directly with the grant or by
26providing repeatable actions for other employers.

 

 

HB1568 Engrossed- 31 -LRB102 03599 RJF 13612 b

1    (c) The Illinois Law Enforcement Training Standards Board
2shall provide meeting space, either virtual or physical, as
3required. The Illinois Law Enforcement Training Standards
4Board shall provide staff and administrative support to the
5Illinois Law Enforcement Recruitment and Retention Board, and
6the Illinois Law Enforcement Recruitment and Retention Board
7may reimburse the Illinois Law Enforcement Training Standards
8Board from the Law Enforcement Recruitment and Retention Fund
9by mutual agreement.
10    (d) Any award or grant made under this Section is
11contingent on there being sufficient appropriations to and
12moneys available in the Law Enforcement Recruitment and
13Retention Fund.
 
14    Section 30. The Law Enforcement Intern Training Act is
15amended by adding Section 24 as follows:
 
16    (50 ILCS 708/24 new)
17    Sec. 24. Transfer credits from public institutions of
18higher education.
19    (a) As used in this Section, "public institutions of
20higher education" has the meaning ascribed to that term in the
21Board of Higher Education Act.
22    (b) The Board shall collaborate with the Illinois
23Community College Board and the Board of Higher Education to
24create a report with recommendations to the General Assembly

 

 

HB1568 Engrossed- 32 -LRB102 03599 RJF 13612 b

1for establishing minimum requirements for credits that may
2transfer from public institutions of higher education to
3satisfy the requirements of law enforcement and correctional
4intern courses under this Act.
5    (c) The report shall be submitted to the General Assembly
6no later than July 1, 2023.
 
7    Section 35. The Counties Code is amended by adding Section
83-6042 as follows:
 
9    (55 ILCS 5/3-6042 new)
10    Sec. 3-6042. Retiring employee; purchase of service
11firearm and badge. Each Sheriff shall establish a program to
12allow an employee of the Sheriff's Department who is honorably
13retiring in good standing to purchase either one or both of the
14following: (1) any badge previously issued to the employee by
15the Sheriff's Department; or (2) if the employee has a
16currently valid Firearm Owner's Identification Card, the
17service firearm issued or previously issued to the employee by
18the Sheriff's Department. The badge must be permanently and
19conspicuously marked in such a manner that the individual who
20possesses the badge is not mistaken for an actively serving
21law enforcement officer. The cost of the firearm shall be the
22replacement value of the firearm and not the firearm's fair
23market value.
 

 

 

HB1568 Engrossed- 33 -LRB102 03599 RJF 13612 b

1    Section 40. The Illinois Gambling Act is amended by adding
2Section 5.4 as follows:
 
3    (230 ILCS 10/5.4 new)
4    Sec. 5.4. Retiring investigators; purchase of service
5firearm and badge. The Board shall establish a program to
6allow an investigator appointed under paragraph (20.6) of
7subsection (c) of Section 4 who is honorably retiring in good
8standing to purchase either one or both of the following: (1)
9any badge previously issued to the investigator by the Board;
10or (2) if the investigator has a currently valid Firearm
11Owner's Identification Card, the service firearm issued or
12previously issued to the investigator by the Board. The badge
13must be permanently and conspicuously marked in such a manner
14that the individual who possesses the badge is not mistaken
15for an actively serving law enforcement officer. The cost of
16the firearm shall be the replacement value of the firearm and
17not the firearm's fair market value.
 
18    Section 45. The Unified Code of Corrections is amended by
19adding 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
22agents; purchase of service firearm and badge. The Director
23shall establish a program to allow a security employee or

 

 

HB1568 Engrossed- 34 -LRB102 03599 RJF 13612 b

1parole agent of the Department who is honorably retiring in
2good standing to purchase either one or both of the following:
3(1) any badge previously issued to the security employee or
4parole agent by the Department; or (2) if the security
5employee or parole agent has a currently valid Firearm Owner's
6Identification Card, the service firearm issued or previously
7issued to the security employee or parole agent by the
8Department. The badge must be permanently and conspicuously
9marked in such a manner that the individual who possesses the
10badge is not mistaken for an actively serving law enforcement
11officer. The cost of the firearm shall be the replacement
12value of the firearm and not the firearm's fair market value.
 
13    Section 50. The Probation and Probation Officers Act is
14amended by adding Section 15.2 as follows:
 
15    (730 ILCS 110/15.2 new)
16    Sec. 15.2. Retiring probation officer; purchase of service
17firearm and badge. Each department shall establish a program
18to allow a probation officer of the department who is
19honorably retiring in good standing to purchase either one or
20both of the following: (1) any badge previously issued to the
21probation officer by the department; or (2) if the probation
22officer has a currently valid Firearm Owner's Identification
23Card, the service firearm issued or previously issued to the
24probation officer by the department. The badge must be

 

 

HB1568 Engrossed- 35 -LRB102 03599 RJF 13612 b

1permanently and conspicuously marked in such a manner that the
2individual who possesses the badge is not mistaken for an
3actively serving law enforcement officer. The cost of the
4firearm shall be the replacement value of the firearm and not
5the firearm's fair market value.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law, except that Section 25 takes effect July 1, 2023
8and Section 30 takes effect January 1, 2023.