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

HB1568ham001 102ND GENERAL ASSEMBLY

Rep. Dave Vella

Filed: 4/4/2022

 

 


 

 


 
10200HB1568ham001LRB102 03599 RPS 38630 a

1
AMENDMENT TO HOUSE BILL 1568

2    AMENDMENT NO. ______. Amend House Bill 1568 by replacing
3everything after the enacting clause with the following:
 
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

 

 

10200HB1568ham001- 2 -LRB102 03599 RPS 38630 a

1Section 5-45 and this Section is deemed to be necessary for the
2public interest, safety, and welfare.
3    This Section is repealed one year after the effective date
4of this amendatory Act of the 102nd General Assembly.
 
5    Section 10. The Department of Revenue Law of the Civil
6Administrative Code of Illinois is amended by adding Section
72505-306 as follows:
 
8    (20 ILCS 2505/2505-306 new)
9    Sec. 2505-306. Retiring investigators; purchase of service
10firearm and badge. The Director shall establish a program to
11allow a Department investigator who is honorably retiring in
12good standing to purchase either one or both of the following:
13(1) any badge previously issued to the investigator by the
14Department; or (2) if the investigator has a currently valid
15Firearm Owner's Identification Card, the service firearm
16issued or previously issued to the investigator by the
17Department. The cost of the firearm shall be the replacement
18value of the firearm and not the firearm's fair market value.
 
19    Section 15. The State Finance Act is amended by adding
20Sections 5.970 and 6z-130 as follows:
 
21    (30 ILCS 105/5.970 new)
22    Sec. 5.970. The Law Enforcement Recruitment and Retention

 

 

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1Fund.
 
2    (30 ILCS 105/6z-130 new)
3    Sec. 6z-130. The Law Enforcement Recruitment and Retention
4Fund. The Law Enforcement Recruitment and Retention Fund is
5hereby created as a special fund in the State treasury. Moneys
6in the fund shall consist of moneys transferred from the
7General Revenue Fund to the Law Enforcement Recruitment and
8Retention Fund. This fund shall be used by the Illinois Law
9Enforcement Recruitment and Retention Board to provide grants
10pursuant to Section 3.2 of the Illinois Police Training Act
11and may be used to reimburse the Illinois Law Enforcement
12Training Standards Board pursuant to subsection (c) of Section
133.2 of the Illinois Police Training Act.
 
14    Section 20. The Illinois Pension Code is amended by
15changing Sections 1-160 and 14-152.1 and by adding Sections
167-142.2, 14-147.7, and 24-105.3 as follows:
 
17    (40 ILCS 5/1-160)
18    Sec. 1-160. Provisions applicable to new hires.
19    (a) The provisions of this Section apply to a person who,
20on or after January 1, 2011, first becomes a member or a
21participant under any reciprocal retirement system or pension
22fund established under this Code, other than a retirement
23system or pension fund established under Article 2, 3, 4, 5, 6,

 

 

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17, 15, or 18 of this Code, notwithstanding any other provision
2of this Code to the contrary, but do not apply to any
3self-managed plan established under this Code or to any
4participant of the retirement plan established under Section
522-101; except that this Section applies to a person who
6elected to establish alternative credits by electing in
7writing after January 1, 2011, but before August 8, 2011,
8under Section 7-145.1 of this Code. Notwithstanding anything
9to the contrary in this Section, for purposes of this Section,
10a person who is a Tier 1 regular employee as defined in Section
117-109.4 of this Code or who participated in a retirement
12system under Article 15 prior to January 1, 2011 shall be
13deemed a person who first became a member or participant prior
14to January 1, 2011 under any retirement system or pension fund
15subject to this Section. The changes made to this Section by
16Public Act 98-596 are a clarification of existing law and are
17intended to be retroactive to January 1, 2011 (the effective
18date of Public Act 96-889), notwithstanding the provisions of
19Section 1-103.1 of this Code.
20    This Section does not apply to a person who first becomes a
21noncovered employee under Article 14 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.

 

 

10200HB1568ham001- 5 -LRB102 03599 RPS 38630 a

1    This Section does not apply to a person who first becomes a
2member or participant under Article 16 on or after the
3implementation date of the plan created under Section 1-161
4for that Article, unless that person elects under subsection
5(b) of Section 1-161 to instead receive the benefits provided
6under this Section and the applicable provisions of that
7Article.
8    This Section does not apply to a person who elects under
9subsection (c-5) of Section 1-161 to receive the benefits
10under Section 1-161.
11    This Section does not apply to a person who first becomes a
12member or participant of an affected pension fund on or after 6
13months after the resolution or ordinance date, as defined in
14Section 1-162, unless that person elects under subsection (c)
15of Section 1-162 to receive the benefits provided under this
16Section and the applicable provisions of the Article under
17which he or she is a member or participant.
18    (b) "Final average salary" means, except as otherwise
19provided in this subsection, the average monthly (or annual)
20salary obtained by dividing the total salary or earnings
21calculated under the Article applicable to the member or
22participant during the 96 consecutive months (or 8 consecutive
23years) of service within the last 120 months (or 10 years) of
24service in which the total salary or earnings calculated under
25the applicable Article was the highest by the number of months
26(or years) of service in that period. For the purposes of a

 

 

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1person who first becomes a member or participant of any
2retirement system or pension fund to which this Section
3applies on or after January 1, 2011, in this Code, "final
4average salary" shall be substituted for the following:
5        (1) (Blank).
6        (2) In Articles 8, 9, 10, 11, and 12, "highest average
7    annual salary for any 4 consecutive years within the last
8    10 years of service immediately preceding the date of
9    withdrawal".
10        (3) In Article 13, "average final salary".
11        (4) In Article 14, "final average compensation".
12        (5) In Article 17, "average salary".
13        (6) In Section 22-207, "wages or salary received by
14    him at the date of retirement or discharge".
15    A member of the Teachers' Retirement System of the State
16of Illinois who retires on or after June 1, 2021 and for whom
17the 2020-2021 school year is used in the calculation of the
18member's final average salary shall use the higher of the
19following for the purpose of determining the member's final
20average salary:
21        (A) the amount otherwise calculated under the first
22    paragraph of this subsection; or
23        (B) an amount calculated by the Teachers' Retirement
24    System of the State of Illinois using the average of the
25    monthly (or annual) salary obtained by dividing the total
26    salary or earnings calculated under Article 16 applicable

 

 

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1    to the member or participant during the 96 months (or 8
2    years) of service within the last 120 months (or 10 years)
3    of service in which the total salary or earnings
4    calculated under the Article was the highest by the number
5    of months (or years) of service in that period.
6    (b-5) Beginning on January 1, 2011, for all purposes under
7this Code (including without limitation the calculation of
8benefits and employee contributions), the annual earnings,
9salary, or wages (based on the plan year) of a member or
10participant to whom this Section applies shall not exceed
11$106,800; however, that amount shall annually thereafter be
12increased by the lesser of (i) 3% of that amount, including all
13previous adjustments, or (ii) one-half the annual unadjusted
14percentage increase (but not less than zero) in the consumer
15price index-u for the 12 months ending with the September
16preceding each November 1, including all previous adjustments.
17    For the purposes of this Section, "consumer price index-u"
18means the index published by the Bureau of Labor Statistics of
19the United States Department of Labor that measures the
20average change in prices of goods and services purchased by
21all urban consumers, United States city average, all items,
221982-84 = 100. The new amount resulting from each annual
23adjustment shall be determined by the Public Pension Division
24of the Department of Insurance and made available to the
25boards of the retirement systems and pension funds by November
261 of each year.

 

 

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1    (c) A member or participant is entitled to a retirement
2annuity upon written application if he or she has attained age
367 (age 65, with respect to service under Article 12 that is
4subject to this Section, for a member or participant under
5Article 12 who first becomes a member or participant under
6Article 12 on or after January 1, 2022 or who makes the
7election under item (i) of subsection (d-15) of this Section)
8and has at least 10 years of service credit and is otherwise
9eligible under the requirements of the applicable Article.
10    A member or participant who has attained age 62 (age 60,
11with respect to service under Article 12 that is subject to
12this Section, for a member or participant under Article 12 who
13first becomes a member or participant under Article 12 on or
14after January 1, 2022 or who makes the election under item (i)
15of subsection (d-15) of this Section) and has at least 10 years
16of service credit and is otherwise eligible under the
17requirements of the applicable Article may elect to receive
18the lower retirement annuity provided in subsection (d) of
19this Section.
20    (c-5) A person who first becomes a member or a participant
21subject to this Section on or after July 6, 2017 (the effective
22date of Public Act 100-23), notwithstanding any other
23provision of this Code to the contrary, is entitled to a
24retirement annuity under Article 8 or Article 11 upon written
25application if he or she has attained age 65 and has at least
2610 years of service credit and is otherwise eligible under the

 

 

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1requirements of Article 8 or Article 11 of this Code,
2whichever is applicable.
3    (d) The retirement annuity of a member or participant who
4is retiring after attaining age 62 (age 60, 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) with at least 10 years of service
10credit shall be reduced by one-half of 1% for each full month
11that the member's age is under age 67 (age 65, with respect to
12service under Article 12 that is subject to this Section, for a
13member or participant under Article 12 who first becomes a
14member or participant under Article 12 on or after January 1,
152022 or who makes the election under item (i) of subsection
16(d-15) of this Section).
17    (d-5) The retirement annuity payable under Article 8 or
18Article 11 to an eligible person subject to subsection (c-5)
19of this Section who is retiring at age 60 with at least 10
20years of service credit shall be reduced by one-half of 1% for
21each full month that the member's age is under age 65.
22    (d-10) Each person who first became a member or
23participant under Article 8 or Article 11 of this Code on or
24after January 1, 2011 and prior to July 6, 2017 (the effective
25date of Public Act 100-23) this amendatory Act of the 100th
26General Assembly shall make an irrevocable election either:

 

 

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1        (i) to be eligible for the reduced retirement age
2    provided in subsections (c-5) and (d-5) of this Section,
3    the eligibility for which is conditioned upon the member
4    or participant agreeing to the increases in employee
5    contributions for age and service annuities provided in
6    subsection (a-5) of Section 8-174 of this Code (for
7    service under Article 8) or subsection (a-5) of Section
8    11-170 of this Code (for service under Article 11); or
9        (ii) to not agree to item (i) of this subsection
10    (d-10), in which case the member or participant shall
11    continue to be subject to the retirement age provisions in
12    subsections (c) and (d) of this Section and the employee
13    contributions for age and service annuity as provided in
14    subsection (a) of Section 8-174 of this Code (for service
15    under Article 8) or subsection (a) of Section 11-170 of
16    this Code (for service under Article 11).
17    The election provided for in this subsection shall be made
18between October 1, 2017 and November 15, 2017. A person
19subject to this subsection who makes the required election
20shall remain bound by that election. A person subject to this
21subsection who fails for any reason to make the required
22election within the time specified in this subsection shall be
23deemed to have made the election under item (ii).
24    (d-15) Each person who first becomes a member or
25participant under Article 12 on or after January 1, 2011 and
26prior to January 1, 2022 shall make an irrevocable election

 

 

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1either:
2        (i) to be eligible for the reduced retirement age
3    specified in subsections (c) and (d) of this Section, the
4    eligibility for which is conditioned upon the member or
5    participant agreeing to the increase in employee
6    contributions for service annuities specified in
7    subsection (b) of Section 12-150; or
8        (ii) to not agree to item (i) of this subsection
9    (d-15), in which case the member or participant shall not
10    be eligible for the reduced retirement age specified in
11    subsections (c) and (d) of this Section and shall not be
12    subject to the increase in employee contributions for
13    service annuities specified in subsection (b) of Section
14    12-150.
15    The election provided for in this subsection shall be made
16between January 1, 2022 and April 1, 2022. A person subject to
17this subsection who makes the required election shall remain
18bound by that election. A person subject to this subsection
19who fails for any reason to make the required election within
20the time specified in this subsection shall be deemed to have
21made the election under item (ii).
22    (e) Any retirement annuity or supplemental annuity shall
23be subject to annual increases on the January 1 occurring
24either on or after the attainment of age 67 (age 65, with
25respect to service under Article 12 that is subject to this
26Section, for a member or participant under Article 12 who

 

 

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1first becomes a member or participant under Article 12 on or
2after January 1, 2022 or who makes the election under item (i)
3of subsection (d-15); and beginning on July 6, 2017 (the
4effective date of Public Act 100-23) this amendatory Act of
5the 100th General Assembly, age 65 with respect to service
6under Article 8 or Article 11 for eligible persons who: (i) are
7subject to subsection (c-5) of this Section; or (ii) made the
8election under item (i) of subsection (d-10) of this Section)
9or the first anniversary of the annuity start date, whichever
10is later. Each annual increase shall be calculated at 3% or
11one-half the annual unadjusted percentage increase (but not
12less than zero) in the consumer price index-u for the 12 months
13ending with the September preceding each November 1, whichever
14is less, of the originally granted retirement annuity. If the
15annual unadjusted percentage change in the consumer price
16index-u for the 12 months ending with the September preceding
17each November 1 is zero or there is a decrease, then the
18annuity shall not be increased.
19    For the purposes of Section 1-103.1 of this Code, the
20changes made to this Section by Public Act 102-263 this
21amendatory Act of the 102nd General Assembly are applicable
22without regard to whether the employee was in active service
23on or after August 6, 2021 (the effective date of Public Act
24102-263) this amendatory Act of the 102nd General Assembly.
25    For the purposes of Section 1-103.1 of this Code, the
26changes made to this Section by Public Act 100-23 this

 

 

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1amendatory Act of the 100th General Assembly are applicable
2without regard to whether the employee was in active service
3on or after July 6, 2017 (the effective date of Public Act
4100-23) this amendatory Act of the 100th General Assembly.
5    (f) The initial survivor's or widow's annuity of an
6otherwise eligible survivor or widow of a retired member or
7participant who first became a member or participant on or
8after January 1, 2011 shall be in the amount of 66 2/3% of the
9retired member's or participant's retirement annuity at the
10date of death. In the case of the death of a member or
11participant who has not retired and who first became a member
12or participant on or after January 1, 2011, eligibility for a
13survivor's or widow's annuity shall be determined by the
14applicable Article of this Code. The initial benefit shall be
1566 2/3% of the earned annuity without a reduction due to age. A
16child's annuity of an otherwise eligible child shall be in the
17amount prescribed under each Article if applicable. Any
18survivor's or widow's annuity shall be increased (1) on each
19January 1 occurring on or after the commencement of the
20annuity if the deceased member died while receiving a
21retirement annuity or (2) in other cases, on each January 1
22occurring after the first anniversary of the commencement of
23the annuity. Each annual increase shall be calculated at 3% or
24one-half the annual unadjusted percentage increase (but not
25less than zero) in the consumer price index-u for the 12 months
26ending with the September preceding each November 1, whichever

 

 

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1is less, of the originally granted survivor's annuity. If the
2annual unadjusted percentage change in the consumer price
3index-u for the 12 months ending with the September preceding
4each November 1 is zero or there is a decrease, then the
5annuity shall not be increased.
6    (g) The benefits in Section 14-110 apply only if the
7person is a State policeman, a fire fighter in the fire
8protection service of a department, a conservation police
9officer, an investigator for the Secretary of State, an arson
10investigator, a Commerce Commission police officer,
11investigator for the Department of Revenue or the Illinois
12Gaming Board, a security employee of the Department of
13Corrections or the Department of Juvenile Justice, or a
14security employee of the Department of Innovation and
15Technology, as those terms are defined in subsection (b) and
16subsection (c) of Section 14-110. A person who meets the
17requirements of this Section is entitled to an annuity
18calculated under the provisions of Section 14-110, in lieu of
19the regular or minimum retirement annuity, only if the person
20has withdrawn from service with not less than 20 years of
21eligible creditable service and has attained age 60,
22regardless of whether the attainment of age 60 occurs while
23the person is still in service.
24    (g-5) The benefits in Section 14-110 apply if the person
25is a State policeman, investigator for the Secretary of State,
26conservation police officer, investigator for the Department

 

 

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1of Revenue or the Illinois Gaming Board, investigator for the
2Office of the Attorney General, Commerce Commission police
3officer, or arson investigator, as those terms are defined in
4subsection (b) and subsection (c) of Section 14-110. A person
5who meets the requirements of this Section is entitled to an
6annuity calculated under the provisions of Section 14-110, in
7lieu of the regular or minimum retirement annuity, only if the
8person has withdrawn from service with not less than 20 years
9of eligible creditable service and has attained age 55,
10regardless of whether the attainment of age 55 occurs while
11the person is still in service.
12    (h) If a person who first becomes a member or a participant
13of a retirement system or pension fund subject to this Section
14on or after January 1, 2011 is receiving a retirement annuity
15or retirement pension under that system or fund and becomes a
16member or participant under any other system or fund created
17by this Code and is employed on a full-time basis, except for
18those members or participants exempted from the provisions of
19this Section under subsection (a) of this Section, then the
20person's retirement annuity or retirement pension under that
21system or fund shall be suspended during that employment. Upon
22termination of that employment, the person's retirement
23annuity or retirement pension payments shall resume and be
24recalculated if recalculation is provided for under the
25applicable Article of this Code.
26    If a person who first becomes a member of a retirement

 

 

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1system or pension fund subject to this Section on or after
2January 1, 2012 and is receiving a retirement annuity or
3retirement pension under that system or fund and accepts on a
4contractual basis a position to provide services to a
5governmental entity from which he or she has retired, then
6that person's annuity or retirement pension earned as an
7active employee of the employer shall be suspended during that
8contractual service. A person receiving an annuity or
9retirement pension under this Code shall notify the pension
10fund or retirement system from which he or she is receiving an
11annuity or retirement pension, as well as his or her
12contractual employer, of his or her retirement status before
13accepting contractual employment. A person who fails to submit
14such notification shall be guilty of a Class A misdemeanor and
15required to pay a fine of $1,000. Upon termination of that
16contractual employment, the person's retirement annuity or
17retirement pension payments shall resume and, if appropriate,
18be recalculated under the applicable provisions of this Code.
19    (i) (Blank).
20    (j) In the case of a conflict between the provisions of
21this Section and any other provision of this Code, the
22provisions of this Section shall control.
23(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
24102-210, eff. 1-1-22; 102-263, eff. 8-6-21; revised 9-28-21.)
 
25    (40 ILCS 5/7-142.2 new)

 

 

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1    Sec. 7-142.2. Deferred retirement option plan.
2    (a) As used in this Section:
3    "Deferred retirement option plan" or "DROP" means the plan
4created under this Section that provides an alternative method
5of benefit accrual in the Fund.
6    "DROP member" means an eligible member who makes an
7election to participate in the DROP no later than January 1,
82027.
9    "DROP period" means the period during which a DROP member
10participates in the DROP.
11    "Eligible member" means a participating employee of the
12Fund who, at the time of electing to participate in the DROP:
13        (1) is otherwise eligible to retire under this Article
14    with a benefit under Section 7-142.1;
15        (2) has never received a retirement annuity from the
16    Fund;
17        (3) is in active service as a sheriff's law
18    enforcement employee; and
19        (4) has terminated participation with respect to any
20    employer other than the employer for which the member is a
21    sheriff's law enforcement employee.
22    (b) The DROP shall be made available to eligible members
23no later than January 1, 2024.
24    (c) Eligible members must make their election to
25participate in the DROP in writing with the Fund in a form
26acceptable to the Fund. The Fund must process the election and

 

 

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1begin crediting an account on behalf of the member as soon as
2is practicable after the election has been received by the
3Fund.
4    (d) An eligible member may elect to participate in the
5DROP for a period not to exceed 5 years from the date of
6election.
7     (e) During the DROP period, the Fund shall credit a
8notional account on behalf of the DROP member an amount equal
9to the monthly amount of retirement annuity the DROP member
10would otherwise be eligible to receive had the DROP member
11retired on the date of the election under this Section, minus
12any amounts required to be deducted under State or federal
13law, including, but not limited to, payments required under a
14Qualified Illinois Domestic Relations Order under Section
151-119. Any automatic annual increases that would have
16otherwise been applied to the DROP member's retirement annuity
17had the DROP member elected to retire instead of participate
18in the DROP shall accrue to the DROP member's monthly payment
19credited to the account prior to the expiration of the DROP and
20shall otherwise apply to the DROP member's annuity upon
21expiration of the DROP. The account shall be held on behalf of
22the DROP member.
23    (f) DROP members shall make contributions to the Fund
24during their participation in the DROP in an amount equal to
25the employee contributions under paragraph (1) of subsection
26(a) of Section 7-173 and subsection (a) of Section 7-173.1

 

 

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1that would otherwise be required if the DROP member were an
2active participant of the Fund. Those amounts shall be
3credited to the general account of the Fund. Earnings paid to
4DROP members during their participation in the DROP shall be
5included in the calculation of employer contributions as
6required in Section 7-172.
7    (g) The amounts credited to the DROP account shall be held
8in notional accounts by the Fund and shall be credited
9interest annually on each January 1 during the DROP period.
10Interest shall be calculated during the DROP period at a rate
11equal to the Market Yield on U.S. Treasury Securities at
1210-Year Constant Maturity in effect at that time and shall be
13based on the amount in the DROP member's notional account on
14December 31 of the preceding year.
15    (h) Upon the later of the expiration or termination of the
16DROP member's participation in the DROP or the termination of
17disability benefits being paid to the DROP member, the account
18balance shall be paid to the DROP member as a lump sum. The
19Fund shall provide options for the transfer of the account
20consistent with its fiduciary duty and any applicable State or
21federal law. An expiration or termination of a DROP member's
22participation in the DROP may not occur after January 1, 2032.
23    (i) The DROP election is irrevocable, and the DROP member
24may not access the account prior to termination or expiration
25of the DROP member's participation in the DROP. The DROP
26member must terminate employment with the employer upon

 

 

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1expiration of his or her participation in the DROP. The DROP
2member's participation in the DROP shall terminate prior to
3the expiration date:
4        (1) if the DROP member terminates employment with the
5    employer prior to the expiration of the designated DROP
6    period;
7        (2) if the DROP member becomes eligible for and begins
8    collecting a disability benefit from the Fund; or
9        (3) upon the death of the DROP member.
10    Upon termination or expiration of the DROP period, the
11DROP member must separate from the service of all employers
12under this Article for a period of not less than 60 days. Upon
13the later of the termination of the DROP or the termination of
14disability benefits being paid to the DROP member, the DROP
15member's retirement annuity from the Fund shall commence.
16    (j) The DROP member shall be considered in active service
17for purposes of eligibility for death and disability benefits.
18    While participating in the DROP, the DROP member shall not
19accrue additional service credit, including any service
20accruals, in the Fund and earnings paid to the DROP member
21while participating in the DROP shall not be included in the
22calculation of final rate of earnings, regardless of future
23pay increases, active cost of living adjustments, or
24promotions. Additionally, the DROP member shall not be
25eligible to make additional contributions under paragraph (2)
26of subsection (a) of Section 7-173. During the DROP period,

 

 

10200HB1568ham001- 21 -LRB102 03599 RPS 38630 a

1the DROP member shall not be eligible for a distribution of any
2amounts accrued from previous contributions made under
3paragraph (2) of subsection (a) of Section 7-173.
4    Eligibility for a surviving spouse benefit under Section
57-154 shall be determined at the time of the DROP election.
6    The pickup of employee contribution requirements in
7Section 7-173.2 shall be applicable to amounts paid by the
8DROP member under subsection (f).
9    Any amounts due to an alternate payee under a Qualified
10Illinois Domestic Relations Order under Section 1-119 shall be
11calculated at the time of the DROP election, and such amounts
12shall be payable at the time of election.
13    If the DROP member's designated beneficiary predeceases
14the DROP member and the DROP member dies before designating a
15new beneficiary, the DROP member's DROP account shall be paid
16to the DROP member's estate.
17    (k) It is intended that the DROP shall not jeopardize the
18tax-qualified status of the Fund. The Board shall have the
19authority to adopt rules necessary or appropriate 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 5/14-147.7 new)

 

 

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1    Sec. 14-147.7. Deferred retirement option plan.
2    (a) As used in this Section:
3    "Deferred retirement option plan" or "DROP" means the plan
4created under this Section that provides an alternative method
5of benefit accrual in the System.
6    "Eligible member" means an employee who at the time of
7election in the DROP, which must occur no later than January 1,
82027:
9        (1) is employed as a State policeman and has qualified
10    to begin receiving retirement benefits as determined under
11    Section 14-110;
12        (2) has never received a retirement annuity from this
13    System;
14        (3) declines both accelerated pension benefit payment
15    options under Sections 14-147.5 and 14-147.6;
16        (4) provides documentation that he or she will be
17    employed as a State policeman after his or her election to
18    participate in the DROP; and
19        (5) provides proof that he or she is enrolled in an
20    eligible account under Section 457(d) of the Internal
21    Revenue Code of 1986.
22    (b) After the System accepts a determination that the DROP
23conforms with the federal regulations of qualified plans
24provided by a firm familiar with such regulations, the DROP
25shall be made available to eligible members as soon as
26administratively practicable as determined by the Board.

 

 

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1    (c) Eligible members must make their election to
2participate in the DROP in writing with the System in a form
3acceptable to the System. The System must process the election
4and begin crediting an account on behalf of the member as soon
5as is practicable after the election has been received by the
6System.
7    (d) An eligible member may elect to participate in the
8DROP for a period not to exceed 5 years from the date of
9election, and the duration of that period shall be certified
10by the Illinois State Police and provided to the System.
11    (e) During the period of the DROP, the System shall credit
12into a notional account on behalf of the member an amount equal
13to the monthly amount of retirement annuity the member would
14otherwise be eligible to receive had the member retired on the
15date of the election under this Section, minus any amounts
16required to be deducted under State or federal law, including,
17but not limited to, payments required under a Qualified
18Illinois Domestic Relations Order under Section 1-119. Any
19automatic annual increases that would have otherwise been
20applied to the member's retirement annuity had the member
21elected to retire instead of participate in the DROP shall
22accrue to the member's monthly payment credited to the account
23prior to the expiration of the DROP and shall otherwise apply
24to the member's annuity upon expiration of the DROP. The
25account shall be held on behalf of the member.
26    (f) During the period a member participates in the DROP,

 

 

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1the member shall cease all contributions to the System, but
2shall make the contributions required under Section 24-105.3.
3    (g) The amounts credited to the DROP account shall be held
4in notional accounts by the System and shall be credited
5interest annually on January 1. Interest shall be calculated
6at a rate equal to the Market Yield on U.S. Treasury Securities
7at 10-Year Constant Maturity in effect at that time and shall
8be based on the amount in the notional account on December 31
9of the preceding year.
10    (h) Upon expiration or termination of the member's
11participation in the DROP, the account balance shall be paid
12to the member as a lump sum. The System shall provide options
13for the transfer of the account consistent with its fiduciary
14duties and any applicable State or federal law. An expiration
15or termination of a member's participation in DROP may not
16occur after January 1, 2032.
17    (i) The DROP election is irrevocable, and the member may
18not access the account prior to termination or expiration of
19the member's participation in DROP. The member must terminate
20employment with the Illinois State Police upon expiration of
21the member's participation in DROP. The member's participation
22in the DROP shall terminate prior to the expiration date:
23        (1) if the member terminates employment with the
24    Illinois State Police prior to the expiration of the
25    designated DROP period;
26        (2) if the member receives income under the Public

 

 

10200HB1568ham001- 25 -LRB102 03599 RPS 38630 a

1    Employee Disability Act, the Workers' Compensation Act, or
2    the Workers' Occupational Diseases Act; or
3        (3) upon the death of the member.
4    The monthly benefit payment accruals that are credited to
5the DROP member's notional account shall cease immediately
6upon the occurrence of any of the events as described in this
7subsection (i).
8    (j) A member in the DROP or his or her beneficiary is not
9eligible for the benefits provided in Section 14-116, 14-123,
1014-123.1, 14-124, 14-128, 14-130, 14-147.5, or 14-147.6 while
11participating in the DROP.
12    The member shall not accrue or establish additional
13service or earnings credits in the System while participating
14in the DROP.
15    Any amounts due to an alternate payee under a Qualified
16Illinois Domestic Relations Order under Section 1-119 shall be
17calculated at the time of the DROP election and such amounts
18shall be payable at the time of election.
19    If the member's designated beneficiary predeceases the
20member and the member dies before designating a new
21beneficiary, the member's DROP account shall be paid to the
22member's estate.
23    (k) It is intended that the DROP shall not jeopardize the
24tax qualified status of the System. The Board shall have the
25authority to adopt rules and policies necessary or
26appropriate, including adopting emergency rules, for the DROP

 

 

10200HB1568ham001- 26 -LRB102 03599 RPS 38630 a

1to maintain compliance with applicable federal laws and
2regulations. Notwithstanding any other provision of this
3Article, all benefits provided under the DROP shall be subject
4to the requirements and limitations of the Internal Revenue
5Code of 1986.
 
6    (40 ILCS 5/14-152.1)
7    Sec. 14-152.1. Application and expiration of new benefit
8increases.
9    (a) As used in this Section, "new benefit increase" means
10an increase in the amount of any benefit provided under this
11Article, or an expansion of the conditions of eligibility for
12any benefit under this Article, that results from an amendment
13to this Code that takes effect after June 1, 2005 (the
14effective date of Public Act 94-4). "New benefit increase",
15however, does not include any benefit increase resulting from
16the changes made to Article 1 or this Article by Public Act
1796-37, Public Act 100-23, Public Act 100-587, Public Act
18100-611, Public Act 101-10, Public Act 101-610, Public Act
19102-210, or this amendatory Act of the 102nd General Assembly
20this amendatory Act of the 102nd General Assembly.
21    (b) Notwithstanding any other provision of this Code or
22any subsequent amendment to this Code, every new benefit
23increase is subject to this Section and shall be deemed to be
24granted only in conformance with and contingent upon
25compliance with the provisions of this Section.

 

 

10200HB1568ham001- 27 -LRB102 03599 RPS 38630 a

1    (c) The Public Act enacting a new benefit increase must
2identify and provide for payment to the System of additional
3funding at least sufficient to fund the resulting annual
4increase in cost to the System as it accrues.
5    Every new benefit increase is contingent upon the General
6Assembly providing the additional funding required under this
7subsection. The Commission on Government Forecasting and
8Accountability shall analyze whether adequate additional
9funding has been provided for the new benefit increase and
10shall report its analysis to the Public Pension Division of
11the Department of Insurance. A new benefit increase created by
12a Public Act that does not include the additional funding
13required under this subsection is null and void. If the Public
14Pension Division determines that the additional funding
15provided for a new benefit increase under this subsection is
16or has become inadequate, it may so certify to the Governor and
17the State Comptroller and, in the absence of corrective action
18by the General Assembly, the new benefit increase shall expire
19at the end of the fiscal year in which the certification is
20made.
21    (d) Every new benefit increase shall expire 5 years after
22its effective date or on such earlier date as may be specified
23in the language enacting the new benefit increase or provided
24under subsection (c). This does not prevent the General
25Assembly from extending or re-creating a new benefit increase
26by law.

 

 

10200HB1568ham001- 28 -LRB102 03599 RPS 38630 a

1    (e) Except as otherwise provided in the language creating
2the new benefit increase, a new benefit increase that expires
3under this Section continues to apply to persons who applied
4and qualified for the affected benefit while the new benefit
5increase was in effect and to the affected beneficiaries and
6alternate payees of such persons, but does not apply to any
7other person, including, without limitation, a person who
8continues in service after the expiration date and did not
9apply and qualify for the affected benefit while the new
10benefit increase was in effect.
11(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
12101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
 
13    (40 ILCS 5/24-105.3 new)
14    Sec. 24-105.3. Automatic enrollment and required
15participation; deferred retirement option plan. An employee
16who participates in the deferred retirement option plan under
17Section 14-147.7 shall have at least 7.6% of his or her pretax
18gross compensation for each compensation period deferred into
19his or her deferred compensation account.
20    The Department of Central Management Services shall
21automatically enroll in the State Employees Deferred
22Compensation Plan any employee who elects to participate in
23the deferred retirement option plan under Section 14-147.7 and
24is not already enrolled in the State Employees Deferred
25Compensation Plan. The Illinois State Police shall provide the

 

 

10200HB1568ham001- 29 -LRB102 03599 RPS 38630 a

1employee data necessary for enrollment to the Department of
2Central Management Services or its designee. An employee who
3participates in the deferred retirement option plan under
4Section 14-147.7 may increase the percentage of pretax gross
5compensation that is deferred into his or her account to the
6amount limited by the federal government.
 
7    Section 25. The Illinois Police Training Act is amended by
8adding Section 3.2 as follows:
 
9    (50 ILCS 705/3.2 new)
10    Sec. 3.2. Illinois Law Enforcement Recruitment and
11Retention Board.
12    (a) There is hereby created the Illinois Law Enforcement
13Recruitment and Retention Board. The Board shall be composed
14of:
15        (1) one individual who is employed as a municipal law
16    enforcement officer in a municipality with less than
17    1,000,000 people, appointed by the Senate President;
18        (2) one individual who is employed as a deputy
19    sheriff, appointed by the Senate Minority Leader of the
20    Senate;
21        (3) one individual who is a chief of police in a
22    municipality with less than 1,000,000 people, appointed by
23    the Speaker of the House of Representatives;
24        (4) one individual who is a sheriff, appointed by the

 

 

10200HB1568ham001- 30 -LRB102 03599 RPS 38630 a

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

 

 

10200HB1568ham001- 31 -LRB102 03599 RPS 38630 a

1applicants that are awarded grants, (4) maximizing the effects
2of moneys spent on the actual recruitment and retention of law
3enforcement personnel, and (5) providing grants that can
4impact multiple employers either directly with the grant or by
5providing repeatable actions for other employers.
6    (c) The Illinois Law Enforcement Training Standards Board
7shall provide meeting space, either virtual or physical, as
8required. The Illinois Law Enforcement Training Standards
9Board shall provide staff and administrative support to the
10Illinois Law Enforcement Recruitment and Retention Board, and
11the Illinois Law Enforcement Recruitment and Retention Board
12may reimburse the Illinois Law Enforcement Training Standards
13Board from the Law Enforcement Recruitment and Retention Fund
14by mutual agreement.
15    (d) Any award or grant made under this Section is
16contingent on there being sufficient appropriations to and
17moneys available in the Law Enforcement Recruitment and
18Retention Fund.
 
19    Section 30. The Law Enforcement Intern Training Act is
20amended by adding Section 24 as follows:
 
21    (50 ILCS 708/24 new)
22    Sec. 24. Transfer credits from community colleges.
23    (a) As used in this Section, "community colleges" has the
24meaning ascribed to that term in the Public Community College

 

 

10200HB1568ham001- 32 -LRB102 03599 RPS 38630 a

1Act.
2    (b) The Board and the Illinois Community College Board
3shall create a report with recommendations to the General
4Assembly for establishing minimum requirements for credits
5that may transfer from community colleges to satisfy the
6requirements of law enforcement and correctional intern
7courses under this Act.
8    (c) The report shall be submitted to the General Assembly
9no later than July 1, 2023.
 
10    Section 35. The Counties Code is amended by adding Section
113-6042 as follows:
 
12    (55 ILCS 5/3-6042 new)
13    Sec. 3-6042. Retiring employee; purchase of service
14firearm and badge. Each Sheriff shall establish a program to
15allow an employee of the Sheriff's Department who is honorably
16retiring in good standing to purchase either one or both of the
17following: (1) any badge previously issued to the employee by
18the Sheriff's Department; or (2) if the employee has a
19currently valid Firearm Owner's Identification Card, the
20service firearm issued or previously issued to the employee by
21the Sheriff's Department. The badge must be permanently and
22conspicuously marked in such a manner that the individual who
23possesses the badge is not mistaken for an actively serving
24law enforcement officer. The cost of the firearm shall be the

 

 

10200HB1568ham001- 33 -LRB102 03599 RPS 38630 a

1replacement value of the firearm and not the firearm's fair
2market value.
 
3    Section 40. The Illinois Gambling Act is amended by adding
4Section 5.4 as follows:
 
5    (230 ILCS 10/5.4 new)
6    Sec. 5.4. Retiring investigators; purchase of service
7firearm and badge. The Board shall establish a program to
8allow an investigator appointed under paragraph (20.6) of
9subsection (c) of Section 4 who is honorably retiring in good
10standing to purchase either one or both of the following: (1)
11any badge previously issued to the investigator by the Board;
12or (2) if the investigator has a currently valid Firearm
13Owner's Identification Card, the service firearm issued or
14previously issued to the investigator by the Board. The badge
15must be permanently and conspicuously marked in such a manner
16that the individual who possesses the badge is not mistaken
17for an actively serving law enforcement officer. The cost of
18the firearm shall be the replacement value of the firearm and
19not the firearm's fair market value.
 
20    Section 45. The Unified Code of Corrections is amended by
21adding Section 3-2-10.5 as follows:
 
22    (730 ILCS 5/3-2-10.5 new)

 

 

10200HB1568ham001- 34 -LRB102 03599 RPS 38630 a

1    Sec. 3-2-10.5. Retiring security employees and parole
2agents; purchase of service firearm and badge. The Director
3shall establish a program to allow a security employee or
4parole agent of the Department who is honorably retiring in
5good standing to purchase either one or both of the following:
6(1) any badge previously issued to the security employee or
7parole agent by the Department; or (2) if the security
8employee or parole agent has a currently valid Firearm Owner's
9Identification Card, the service firearm issued or previously
10issued to the security employee or parole agent by the
11Department. The badge must be permanently and conspicuously
12marked in such a manner that the individual who possesses the
13badge is not mistaken for an actively serving law enforcement
14officer. The cost of the firearm shall be the replacement
15value of the firearm and not the firearm's fair market value.
 
16    Section 50. The Probation and Probation Officers Act is
17amended by adding Section 15.2 as follows:
 
18    (730 ILCS 110/15.2 new)
19    Sec. 15.2. Retiring probation officer; purchase of service
20firearm and badge. Each department shall establish a program
21to allow a probation officer of the department who is
22honorably retiring in good standing to purchase either one or
23both of the following: (1) any badge previously issued to the
24probation officer by the department; or (2) if the probation

 

 

10200HB1568ham001- 35 -LRB102 03599 RPS 38630 a

1officer has a currently valid Firearm Owner's Identification
2Card, the service firearm issued or previously issued to the
3probation officer by the department. The badge must be
4permanently and conspicuously marked in such a manner that the
5individual who possesses the badge is not mistaken for an
6actively serving law enforcement officer. The cost of the
7firearm shall be the replacement value of the firearm and not
8the firearm's fair market value.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law, except that Section 25 takes effect July 1, 2023
11and Section 30 takes effect January 1, 2023.".