SB 2995 — PEN CD-SERS-ALT FORMULA

*LRB09616688AMC31972b* SB2995 96THEngrossed GENERALLRB096 ASSEMBLY16688 StateAMC of31972 Illinoisb andAN 2010ACT SB2995concerning Introducedpublic 2/3/2010,employee bybenefits. Sen.

John M.

Sullivan SYNOPSIS AS INTRODUCED:

ILCS 5/14-110 from Ch.

108 1/2, par.

14-110 Amends the State Employee Article of the Illinois Pension Code.

Allows a person employed on a full-time basis by the Illinois Department of Transportation in the position of highway maintainer who has in excess of years of eligible creditable service under the alternative formula to elect to establish eligible creditable service under the alternative formula for up to 5 years of his or her service at Illinois Veterans Homes.

Effective immediately.

LRB096 16688 AMC 31972 b FISCAL NOTE ACT PENSION IMPACT MAY APPLY NOTE ACT MAY APPLY A BILL FOR SB2995 LRB096 16688 AMC 31972 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 10 years to and including 20 years of creditable service, and 2 3/4% SB2995 Engrossed - 2 - LRB096 16688 AMC 31972 b for each year of creditable service above 20 years;

SB2995 Engrossed - 3 - LRB096 16688 AMC 31972 b (4) special agent;

A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that SB2995 Engrossed - 4 - LRB096 16688 AMC 31972 b training is required of persons serving in that position.

(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 SB2995 Engrossed - 5 - LRB096 16688 AMC 31972 b Division of Criminal Investigation, the Division of Internal Investigation, the Division of Operations, or any other Division or organizational entity in the Department of State Police is 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 SB2995 Engrossed - 6 - LRB096 16688 AMC 31972 b 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 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 SB2995 Engrossed - 7 - LRB096 16688 AMC 31972 b 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 that security unit, or (iv) is a mental health police officer.

(9) "Central Management Services security police officer" means any person employed by the Department of Central Management Services who is vested with such law enforcement duties as render him ineligible for coverage SB2995 Engrossed - 8 - LRB096 16688 AMC 31972 b under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.

SB2995 Engrossed - 9 - LRB096 16688 AMC 31972 b (12) The term "investigator for the Department of State Police" means a person employed by the Department of State 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.

SB2995 Engrossed - 10 - LRB096 16688 AMC 31972 b (15) The term "investigator for the Office of the State's Attorneys Appellate Prosecutor" means a person 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.

A person who was employed as an arson investigator on January 1, 1995 and is no longer in service but not yet receiving a retirement annuity may convert his or her creditable service for employment as an arson investigator into eligible creditable service by paying to the System the difference between the employee contributions actually paid for that service and the amounts that would have been contributed if the applicant were contributing at the rate applicable to persons with the same social security status earning SB2995 Engrossed - 11 - LRB096 16688 AMC 31972 b eligible creditable service on the date of application.

SB2995 Engrossed - 12 - LRB096 16688 AMC 31972 b (d) A security employee of the Department of Corrections or the Department of Juvenile Justice, and a security employee of the Department of Human Services who is not a mental health police officer, shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement:

Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of SB2995 Engrossed - 13 - LRB096 16688 AMC 31972 b Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section;

(f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, 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 SB2995 Engrossed - 14 - LRB096 16688 AMC 31972 b July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment.

SB2995 Engrossed - 15 - LRB096 16688 AMC 31972 b 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 to the date of payment.

SB2995 Engrossed - 16 - LRB096 16688 AMC 31972 b 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 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), a State policeman, conservation police officer, or investigator for the Secretary of State 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, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board 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, 9-121.10, or 15-134.4 SB2995 Engrossed - 17 - LRB096 16688 AMC 31972 b 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 effective 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 SB2995 Engrossed - 18 - LRB096 16688 AMC 31972 b 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) this amendatory Act of the 96th General Assembly 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.

(j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law SB2995 Engrossed - 19 - LRB096 16688 AMC 31972 b enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) 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 by March 31, 1998, 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 SB2995 Engrossed - 20 - LRB096 16688 AMC 31972 b 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 (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.

and (2) persons SB2995 Engrossed - 21 - LRB096 16688 AMC 31972 b employed by the Department of Juvenile Justice on or after the effective date of this amendatory Act of the 94th General Assembly who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have a bachelor's or advanced degree from an accredited college or university with a specialization in criminal justice, education, psychology, social work, or a closely related social science or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training.

(o) A personmember employed on a full-time basis by the Illinois Department of Transportation in the position of highway maintainer who has inat excessleast of 20 years of eligible creditable service under this Section may elect, within 6 months afterof the effective date of this amendatory Act of the 96th General Assembly, to SB2995 Engrossed - 22 - LRB096 16688 AMC 31972 b Assembly,convert to establish eligible creditable service for up to 5 years of hisservice orunder herthis serviceArticle rendered at Illinois Veterans Homes to service under this ArticleSection by paying to the Fund an amount equal to (1) the additionalincrease employeein contribution required under Section 14-133, plus (2) the additionalpresent employervalue contributionof requiredfuture underbenefits, Sectionas 14-131,calculated plusby (3) interest on items (1) and (2) at the actuariallySystem. assumed rate from the date of the service to the date of payment.

In calculating the increase in the present value of future benefits, the System shall use the same actuarial assumptions used in the most recent actuarial valuation.

The member must submit the required contributions prior to retirement.