SB 1937 — PENSION CODE-VARIOUS

*LRB10409509RPS19572b* SB1937 104THEngrossed GENERALLRB104 ASSEMBLY09509 StateRPS of19572 Illinoisb andAN 2026ACT SB1937concerning Introducedpublic 2/6/2025,employee bybenefits. Sen.

Robert F.

Martwick SYNOPSIS AS INTRODUCED:

ILCS 5/14-110 from Ch.

108 1/2, par.

14-110 ILCS 5/14-152.1 Amends the State Employee Article of the Illinois Pension Code.

Provides that a member who is eligible to receive an alternative retirement annuity may elect to receive an estimated payment that shall commence no later than 30 days after the later of either the member's last day of employment or 30 days after the member files for the retirement benefit with the System.

Provides that the estimated payment shall be the best estimate by the System of the total monthly amount due to the member based on the information that the System possesses at the time of the estimate.

Provides that if the amount of the estimate is greater or less than the actual amount of the monthly annuity, the System shall pay or recover the difference within 6 months after the start of the monthly annuity.

Excludes a benefit increase resulting from the amendatory Act from the definition of "new benefit increase".

Effective immediately.

LRB104 09509 RPS 19572 b A BILL FOR SB1937 LRB104 09509 RPS 19572 b AN ACT concerning public employee benefits.

if retirement occurs before January 1, 2001, 2 1/4% of final average compensation for each of the first 10 years of creditable service, 2 1/2% for each year above SB1937 Engrossed - 2 - LRB104 09509 RPS 19572 b 10 years to and including 20 years of creditable service, and 2 3/4% for each year of creditable service above 20 years;

(a-5) A member who is eligible to receive an alternative retirement annuity under this Section may elect to receive an estimated payment that shall commence no later than 30 days after the later of either the member's last day of employment or 30 days after the member files for the retirement benefit SB1937 Engrossed - 3 - LRB104 09509 RPS 19572 b with the System.

SB1937 Engrossed - 4 - LRB104 09509 RPS 19572 b (12) investigator for the Illinois State Police;

SB1937 Engrossed - 5 - LRB104 09509 RPS 19572 b 2016-1.

(4) The term "special agent" means any person who by reason of employment by the Division of Narcotic Control, the Bureau of Investigation or, after July 1, 1977, the Division of Criminal Investigation, the Division of Internal Investigation, the Division of Operations, the Division of Patrol, or any other Division or organizational entity in the Illinois State Police is SB1937 Engrossed - 6 - LRB104 09509 RPS 19572 b vested by law with duties to maintain public order, investigate violations of the criminal law of this State, enforce the laws of this State, make arrests and recover property.

(6) The term "Conservation Police Officer" means any person employed by the Division of Law Enforcement of the Department of Natural Resources and vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections SB1937 Engrossed - 7 - LRB104 09509 RPS 19572 b 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.

(8) The term "security employee of the Department of Human Services" means any person employed by the Department of Human Services who (i) is employed at the Chester Mental Health Center and has daily contact with the residents thereof, (ii) is employed within a security unit at a facility operated by the Department and has daily contact with the residents of the security unit, (iii) is employed at a facility operated by the Department that includes a security unit and is regularly scheduled to work at least 50% of his or her working hours within SB1937 Engrossed - 8 - LRB104 09509 RPS 19572 b that security unit, or (iv) is a mental health police officer.

SB1937 Engrossed - 9 - LRB104 09509 RPS 19572 b (10) For a member who first became an employee under this Article before July 1, 2005, the term "security employee of the Department of Corrections or the Department of Juvenile Justice" means any employee of the Department of Corrections or the Department of Juvenile Justice or the former Department of Personnel, and any member or employee of the Prisoner Review Board, who has daily contact with inmates or youth by working within a correctional facility or Juvenile facility operated by the Department of Juvenile Justice or who is a parole officer or an employee who has direct contact with committed persons in the performance of his or her job duties.

(12) The term "investigator for the Illinois State Police" means a person employed by the Illinois State SB1937 Engrossed - 10 - LRB104 09509 RPS 19572 b Police who is vested under Section 4 of the Narcotic Control Division Abolition Act with such law enforcement powers as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.

(15) The term "investigator for the Office of the State's Attorneys Appellate Prosecutor" means a person SB1937 Engrossed - 11 - LRB104 09509 RPS 19572 b employed in that capacity on a full-time basis under the authority of Section 7.06 of the State's Attorneys Appellate Prosecutor's Act.

(18) The term "State highway maintenance worker" means SB1937 Engrossed - 12 - LRB104 09509 RPS 19572 b a person who is either of the following:

(19) The term "security employee of the Department of Innovation and Technology" means a person who was a SB1937 Engrossed - 13 - LRB104 09509 RPS 19572 b security employee of the Department of Corrections or the Department of Juvenile Justice, was transferred to the Department of Innovation and Technology pursuant to Executive Order 2016-01, and continues to perform similar job functions under that Department.

or (iii) beginning January 1, 1988, 25 years of eligible SB1937 Engrossed - 14 - LRB104 09509 RPS 19572 b creditable service and age 53, or 23 years of eligible creditable service and age 55;

(e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable SB1937 Engrossed - 15 - LRB104 09509 RPS 19572 b service for the purposes of the retirement annuity prescribed in this Section.

For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after SB1937 Engrossed - 16 - LRB104 09509 RPS 19572 b January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment.

Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service SB1937 Engrossed - 17 - LRB104 09509 RPS 19572 b to the date of payment.

Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest SB1937 Engrossed - 18 - LRB104 09509 RPS 19572 b thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General, or an investigator for the Department of Revenue, may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, or a member of the county police department under Article 9 SB1937 Engrossed - 19 - LRB104 09509 RPS 19572 b by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.

Subject to the limitation in subsection (i), a State policeman, conservation police officer, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district under Article 7, a county corrections officer, or a court services officer under Article 9, by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under SB1937 Engrossed - 20 - LRB104 09509 RPS 19572 b Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.

Subject to the limitation in subsection (i), a conservation police officer may elect to establish eligible creditable service for up to 5 years of service as a person SB1937 Engrossed - 21 - LRB104 09509 RPS 19572 b employed by a participating municipality to perform police duties under Article 7, a county corrections officer, or a court services officer under Article 9 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.

Notwithstanding the limitation in subsection (i), a State policeman or conservation police officer may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by Public Act 102-210 and the employer's SB1937 Engrossed - 22 - LRB104 09509 RPS 19572 b normal cost of the credit converted in accordance with Public Act 102-210, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.

(k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a SB1937 Engrossed - 23 - LRB104 09509 RPS 19572 b full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system.

(l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of SB1937 Engrossed - 24 - LRB104 09509 RPS 19572 b employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.

To obtain this credit, the applicant must file a written application with the Board no later than 3 years after January 1, 2020 (the effective date of Public Act 101-610), accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items SB1937 Engrossed - 25 - LRB104 09509 RPS 19572 b (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.

(n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at SB1937 Engrossed - 26 - LRB104 09509 RPS 19572 b the actuarially assumed rate from the date of the service to the date of payment.

SB1937 Engrossed - 27 - LRB104 09509 RPS 19572 b 102-813, eff.

if retirement occurs before January SB1937 Engrossed - 28 - LRB104 09509 RPS 19572 b 1, 2001, 1.67% of final average compensation for each of the first 10 years of such service, 1.90% for each of the next 10 years of such service, 2.10% for each year of such service in excess of 20 but not exceeding 30, and 2.30% for each year in excess of 30.

SB1937 Engrossed - 29 - LRB104 09509 RPS 19572 b (b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions: