Bill Text: IL HB3765 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Illinois Pension Code. In the State Employee Article of the Code, provides that, with regard to persons subject to the Tier 2 provisions, an investigator for the Department of the Lottery is entitled to an annuity calculated under the alternative retirement annuity provisions, in lieu of the regular or minimum retirement annuity, only if the person has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, regardless of whether the attainment of age 55 occurs while the person is still in service. Authorizes an investigator for the Department of the Lottery to establish eligible creditable service under the alternative retirement annuity provisions. Provides that a specified educational requirement for persons employed by the Department of Juvenile Justice shall no longer determine the eligibility to earn eligible creditable service under the alternative retirement annuity provisions, and authorizes the conversion of service credit to eligible creditable service. Excludes a benefit increase resulting from the amendatory Act from the definition of "new benefit increase". Establishes a deferred retirement option plan for certain police officers, firefighters, sheriff's law enforcement employees, and deputy sheriffs in the Cook County Police Department who are otherwise eligible to retire under which a participant may continue in active service for up to 5 years while having his or her retirement pension paid into a special account. Provides that the election to participate in the deferred retirement option plan must be made before January 1, 2029. Provides that the Retirement Systems Reciprocal Act (Article 20 of the Code) is adopted and made a part of the Downstate Police, Downstate Firefighter, Chicago Police, and Chicago Firefighter Articles. In the Chicago Teacher Article of the Code, provides that when computing days of validated service, contributors shall receive the greater of: (1) one day of service credit for each day for which they are paid salary representing a partial or a full day of employment rendered to an employer or the Board of Trustees of the Fund; or (2) 10 days of service credit for each 10-day period of employment in which the contributor worked 50% or more of the regularly scheduled hours (instead of one day of service credit for each day for which they are paid salary representing a partial or a full day of employment rendered to an employer or the Board). Amends the State Mandates Act to require implementation without reimbursement.

Spectrum: Slight Partisan Bill (Democrat 8-4)

Status: (Engrossed) 2024-05-23 - Added as Alternate Chief Co-Sponsor Sen. Christopher Belt [HB3765 Detail]

Download: Illinois-2023-HB3765-Engrossed.html

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HB3765 Engrossed LRB103 31021 RPS 57638 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 1-160, 14-110, 14-152.1, and 17-114 and by
adding Sections 1-168, 3-144.3, 4-138.15, 5-240, and 6-232 as
follows:
(40 ILCS 5/1-160)
(Text of Section from P.A. 102-719)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything

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to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under

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subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of

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withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,

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salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution

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and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)

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

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2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section

HB3765 Engrossed - 9 - LRB103 31021 RPS 57638 b
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or

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(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of

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this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or

HB3765 Engrossed - 12 - LRB103 31021 RPS 57638 b
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply if the person is a
fire fighter in the fire protection service of a department, a
security employee of the Department of Corrections or the
Department of Juvenile Justice, or a security employee of the
Department of Innovation and Technology, as those terms are

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defined in subsection (b) and subsection (c) of Section
14-110. A person who meets the requirements of this Section is
entitled to an annuity calculated under the provisions of
Section 14-110, in lieu of the regular or minimum retirement
annuity, only if the person has withdrawn from service with
not less than 20 years of eligible creditable service and has
attained age 60, regardless of whether the attainment of age
60 occurs while the person is still in service.
(g-1) The benefits in Section 14-110 apply if the person
is an investigator for the Department of the Lottery, as that
term is defined in subsection (b) and subsection (c) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or
minimum retirement annuity, only if the person has withdrawn
from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of
whether the attainment of age 55 occurs while the person is
still in service.
(g-5) The benefits in Section 14-110 apply if the person
is a State policeman, investigator for the Secretary of State,
conservation police officer, investigator for the Department
of Revenue or the Illinois Gaming Board, investigator for the
Office of the Attorney General, Commerce Commission police
officer, or arson investigator, as those terms are defined in
subsection (b) and subsection (c) of Section 14-110. A person

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who meets the requirements of this Section is entitled to an
annuity calculated under the provisions of Section 14-110, in
lieu of the regular or minimum retirement annuity, only if the
person has withdrawn from service with not less than 20 years
of eligible creditable service and has attained age 55,
regardless of whether the attainment of age 55 occurs while
the person is still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a

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governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-719, eff.
5-6-22.)
(Text of Section from P.A. 102-813)
Sec. 1-160. Provisions applicable to new hires.
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a

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participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection

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(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of

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

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System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division

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of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee

HB3765 Engrossed - 21 - LRB103 31021 RPS 57638 b
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other

HB3765 Engrossed - 22 - LRB103 31021 RPS 57638 b
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or

HB3765 Engrossed - 23 - LRB103 31021 RPS 57638 b
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be

HB3765 Engrossed - 24 - LRB103 31021 RPS 57638 b
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall

HB3765 Engrossed - 25 - LRB103 31021 RPS 57638 b
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).

HB3765 Engrossed - 26 - LRB103 31021 RPS 57638 b
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months

HB3765 Engrossed - 27 - LRB103 31021 RPS 57638 b
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while
the person is still in service.
(g-1) The benefits in Section 14-110 apply if the person
is an investigator for the Department of the Lottery, as that

HB3765 Engrossed - 28 - LRB103 31021 RPS 57638 b
term is defined in subsection (b) and subsection (c) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or
minimum retirement annuity, only if the person has withdrawn
from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of
whether the attainment of age 55 occurs while the person is
still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.
If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or

HB3765 Engrossed - 29 - LRB103 31021 RPS 57638 b
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 101-610, eff. 1-1-20; 102-16, eff. 6-17-21;
102-210, eff. 1-1-22; 102-263, eff. 8-6-21; 102-813, eff.
5-13-22.)
(Text of Section from P.A. 102-956)
Sec. 1-160. Provisions applicable to new hires.

HB3765 Engrossed - 30 - LRB103 31021 RPS 57638 b
(a) The provisions of this Section apply to a person who,
on or after January 1, 2011, first becomes a member or a
participant under any reciprocal retirement system or pension
fund established under this Code, other than a retirement
system or pension fund established under Article 2, 3, 4, 5, 6,
7, 15, or 18 of this Code, notwithstanding any other provision
of this Code to the contrary, but do not apply to any
self-managed plan established under this Code or to any
participant of the retirement plan established under Section
22-101; except that this Section applies to a person who
elected to establish alternative credits by electing in
writing after January 1, 2011, but before August 8, 2011,
under Section 7-145.1 of this Code. Notwithstanding anything
to the contrary in this Section, for purposes of this Section,
a person who is a Tier 1 regular employee as defined in Section
7-109.4 of this Code or who participated in a retirement
system under Article 15 prior to January 1, 2011 shall be
deemed a person who first became a member or participant prior
to January 1, 2011 under any retirement system or pension fund
subject to this Section. The changes made to this Section by
Public Act 98-596 are a clarification of existing law and are
intended to be retroactive to January 1, 2011 (the effective
date of Public Act 96-889), notwithstanding the provisions of
Section 1-103.1 of this Code.
This Section does not apply to a person who first becomes a
noncovered employee under Article 14 on or after the

HB3765 Engrossed - 31 - LRB103 31021 RPS 57638 b
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who first becomes a
member or participant under Article 16 on or after the
implementation date of the plan created under Section 1-161
for that Article, unless that person elects under subsection
(b) of Section 1-161 to instead receive the benefits provided
under this Section and the applicable provisions of that
Article.
This Section does not apply to a person who elects under
subsection (c-5) of Section 1-161 to receive the benefits
under Section 1-161.
This Section does not apply to a person who first becomes a
member or participant of an affected pension fund on or after 6
months after the resolution or ordinance date, as defined in
Section 1-162, unless that person elects under subsection (c)
of Section 1-162 to receive the benefits provided under this
Section and the applicable provisions of the Article under
which he or she is a member or participant.
(b) "Final average salary" means, except as otherwise
provided in this subsection, the average monthly (or annual)
salary obtained by dividing the total salary or earnings
calculated under the Article applicable to the member or

HB3765 Engrossed - 32 - LRB103 31021 RPS 57638 b
participant during the 96 consecutive months (or 8 consecutive
years) of service within the last 120 months (or 10 years) of
service in which the total salary or earnings calculated under
the applicable Article was the highest by the number of months
(or years) of service in that period. For the purposes of a
person who first becomes a member or participant of any
retirement system or pension fund to which this Section
applies on or after January 1, 2011, in this Code, "final
average salary" shall be substituted for the following:
(1) (Blank).
(2) In Articles 8, 9, 10, 11, and 12, "highest average
annual salary for any 4 consecutive years within the last
10 years of service immediately preceding the date of
withdrawal".
(3) In Article 13, "average final salary".
(4) In Article 14, "final average compensation".
(5) In Article 17, "average salary".
(6) In Section 22-207, "wages or salary received by
him at the date of retirement or discharge".
A member of the Teachers' Retirement System of the State
of Illinois who retires on or after June 1, 2021 and for whom
the 2020-2021 school year is used in the calculation of the
member's final average salary shall use the higher of the
following for the purpose of determining the member's final
average salary:
(A) the amount otherwise calculated under the first

HB3765 Engrossed - 33 - LRB103 31021 RPS 57638 b
paragraph of this subsection; or
(B) an amount calculated by the Teachers' Retirement
System of the State of Illinois using the average of the
monthly (or annual) salary obtained by dividing the total
salary or earnings calculated under Article 16 applicable
to the member or participant during the 96 months (or 8
years) of service within the last 120 months (or 10 years)
of service in which the total salary or earnings
calculated under the Article was the highest by the number
of months (or years) of service in that period.
(b-5) Beginning on January 1, 2011, for all purposes under
this Code (including without limitation the calculation of
benefits and employee contributions), the annual earnings,
salary, or wages (based on the plan year) of a member or
participant to whom this Section applies shall not exceed
$106,800; however, that amount shall annually thereafter be
increased by the lesser of (i) 3% of that amount, including all
previous adjustments, or (ii) one-half the annual unadjusted
percentage increase (but not less than zero) in the consumer
price index-u for the 12 months ending with the September
preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,

HB3765 Engrossed - 34 - LRB103 31021 RPS 57638 b
1982-84 = 100. The new amount resulting from each annual
adjustment shall be determined by the Public Pension Division
of the Department of Insurance and made available to the
boards of the retirement systems and pension funds by November
1 of each year.
(b-10) Beginning on January 1, 2024, for all purposes
under this Code (including, without limitation, the
calculation of benefits and employee contributions), the
annual earnings, salary, or wages (based on the plan year) of a
member or participant under Article 9 to whom this Section
applies shall include an annual earnings, salary, or wage cap
that tracks the Social Security wage base. Maximum annual
earnings, wages, or salary shall be the annual contribution
and benefit base established for the applicable year by the
Commissioner of the Social Security Administration under the
federal Social Security Act.
However, in no event shall the annual earnings, salary, or
wages for the purposes of this Article and Article 9 exceed any
limitation imposed on annual earnings, salary, or wages under
Section 1-117. Under no circumstances shall the maximum amount
of annual earnings, salary, or wages be greater than the
amount set forth in this subsection (b-10) as a result of
reciprocal service or any provisions regarding reciprocal
services, nor shall the Fund under Article 9 be required to pay
any refund as a result of the application of this maximum
annual earnings, salary, and wage cap.

HB3765 Engrossed - 35 - LRB103 31021 RPS 57638 b
Nothing in this subsection (b-10) shall cause or otherwise
result in any retroactive adjustment of any employee
contributions. Nothing in this subsection (b-10) shall cause
or otherwise result in any retroactive adjustment of
disability or other payments made between January 1, 2011 and
January 1, 2024.
(c) A member or participant is entitled to a retirement
annuity upon written application if he or she has attained age
67 (age 65, with respect to service under Article 12 that is
subject to this Section, for a member or participant under
Article 12 who first becomes a member or participant under
Article 12 on or after January 1, 2022 or who makes the
election under item (i) of subsection (d-15) of this Section)
and has at least 10 years of service credit and is otherwise
eligible under the requirements of the applicable Article.
A member or participant who has attained age 62 (age 60,
with respect to service under Article 12 that is subject to
this Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15) of this Section) and has at least 10 years
of service credit and is otherwise eligible under the
requirements of the applicable Article may elect to receive
the lower retirement annuity provided in subsection (d) of
this Section.
(c-5) A person who first becomes a member or a participant

HB3765 Engrossed - 36 - LRB103 31021 RPS 57638 b
subject to this Section on or after July 6, 2017 (the effective
date of Public Act 100-23), notwithstanding any other
provision of this Code to the contrary, is entitled to a
retirement annuity under Article 8 or Article 11 upon written
application if he or she has attained age 65 and has at least
10 years of service credit and is otherwise eligible under the
requirements of Article 8 or Article 11 of this Code,
whichever is applicable.
(d) The retirement annuity of a member or participant who
is retiring after attaining age 62 (age 60, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section) with at least 10 years of service
credit shall be reduced by one-half of 1% for each full month
that the member's age is under age 67 (age 65, with respect to
service under Article 12 that is subject to this Section, for a
member or participant under Article 12 who first becomes a
member or participant under Article 12 on or after January 1,
2022 or who makes the election under item (i) of subsection
(d-15) of this Section).
(d-5) The retirement annuity payable under Article 8 or
Article 11 to an eligible person subject to subsection (c-5)
of this Section who is retiring at age 60 with at least 10
years of service credit shall be reduced by one-half of 1% for

HB3765 Engrossed - 37 - LRB103 31021 RPS 57638 b
each full month that the member's age is under age 65.
(d-10) Each person who first became a member or
participant under Article 8 or Article 11 of this Code on or
after January 1, 2011 and prior to July 6, 2017 (the effective
date of Public Act 100-23) shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
provided in subsections (c-5) and (d-5) of this Section,
the eligibility for which is conditioned upon the member
or participant agreeing to the increases in employee
contributions for age and service annuities provided in
subsection (a-5) of Section 8-174 of this Code (for
service under Article 8) or subsection (a-5) of Section
11-170 of this Code (for service under Article 11); or
(ii) to not agree to item (i) of this subsection
(d-10), in which case the member or participant shall
continue to be subject to the retirement age provisions in
subsections (c) and (d) of this Section and the employee
contributions for age and service annuity as provided in
subsection (a) of Section 8-174 of this Code (for service
under Article 8) or subsection (a) of Section 11-170 of
this Code (for service under Article 11).
The election provided for in this subsection shall be made
between October 1, 2017 and November 15, 2017. A person
subject to this subsection who makes the required election
shall remain bound by that election. A person subject to this

HB3765 Engrossed - 38 - LRB103 31021 RPS 57638 b
subsection who fails for any reason to make the required
election within the time specified in this subsection shall be
deemed to have made the election under item (ii).
(d-15) Each person who first becomes a member or
participant under Article 12 on or after January 1, 2011 and
prior to January 1, 2022 shall make an irrevocable election
either:
(i) to be eligible for the reduced retirement age
specified in subsections (c) and (d) of this Section, the
eligibility for which is conditioned upon the member or
participant agreeing to the increase in employee
contributions for service annuities specified in
subsection (b) of Section 12-150; or
(ii) to not agree to item (i) of this subsection
(d-15), in which case the member or participant shall not
be eligible for the reduced retirement age specified in
subsections (c) and (d) of this Section and shall not be
subject to the increase in employee contributions for
service annuities specified in subsection (b) of Section
12-150.
The election provided for in this subsection shall be made
between January 1, 2022 and April 1, 2022. A person subject to
this subsection who makes the required election shall remain
bound by that election. A person subject to this subsection
who fails for any reason to make the required election within
the time specified in this subsection shall be deemed to have

HB3765 Engrossed - 39 - LRB103 31021 RPS 57638 b
made the election under item (ii).
(e) Any retirement annuity or supplemental annuity shall
be subject to annual increases on the January 1 occurring
either on or after the attainment of age 67 (age 65, with
respect to service under Article 12 that is subject to this
Section, for a member or participant under Article 12 who
first becomes a member or participant under Article 12 on or
after January 1, 2022 or who makes the election under item (i)
of subsection (d-15); and beginning on July 6, 2017 (the
effective date of Public Act 100-23), age 65 with respect to
service under Article 8 or Article 11 for eligible persons
who: (i) are subject to subsection (c-5) of this Section; or
(ii) made the election under item (i) of subsection (d-10) of
this Section) or the first anniversary of the annuity start
date, whichever is later. Each annual increase shall be
calculated at 3% or one-half the annual unadjusted percentage
increase (but not less than zero) in the consumer price
index-u for the 12 months ending with the September preceding
each November 1, whichever is less, of the originally granted
retirement annuity. If the annual unadjusted percentage change
in the consumer price index-u for the 12 months ending with the
September preceding each November 1 is zero or there is a
decrease, then the annuity shall not be increased.
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 102-263 are
applicable without regard to whether the employee was in

HB3765 Engrossed - 40 - LRB103 31021 RPS 57638 b
active service on or after August 6, 2021 (the effective date
of Public Act 102-263).
For the purposes of Section 1-103.1 of this Code, the
changes made to this Section by Public Act 100-23 are
applicable without regard to whether the employee was in
active service on or after July 6, 2017 (the effective date of
Public Act 100-23).
(f) The initial survivor's or widow's annuity of an
otherwise eligible survivor or widow of a retired member or
participant who first became a member or participant on or
after January 1, 2011 shall be in the amount of 66 2/3% of the
retired member's or participant's retirement annuity at the
date of death. In the case of the death of a member or
participant who has not retired and who first became a member
or participant on or after January 1, 2011, eligibility for a
survivor's or widow's annuity shall be determined by the
applicable Article of this Code. The initial benefit shall be
66 2/3% of the earned annuity without a reduction due to age. A
child's annuity of an otherwise eligible child shall be in the
amount prescribed under each Article if applicable. Any
survivor's or widow's annuity shall be increased (1) on each
January 1 occurring on or after the commencement of the
annuity if the deceased member died while receiving a
retirement annuity or (2) in other cases, on each January 1
occurring after the first anniversary of the commencement of
the annuity. Each annual increase shall be calculated at 3% or

HB3765 Engrossed - 41 - LRB103 31021 RPS 57638 b
one-half the annual unadjusted percentage increase (but not
less than zero) in the consumer price index-u for the 12 months
ending with the September preceding each November 1, whichever
is less, of the originally granted survivor's annuity. If the
annual unadjusted percentage change in the consumer price
index-u for the 12 months ending with the September preceding
each November 1 is zero or there is a decrease, then the
annuity shall not be increased.
(g) The benefits in Section 14-110 apply only if the
person is a State policeman, a fire fighter in the fire
protection service of a department, a conservation police
officer, an investigator for the Secretary of State, an
investigator for the Office of the Attorney General, an arson
investigator, a Commerce Commission police officer,
investigator for the Department of Revenue or the Illinois
Gaming Board, a security employee of the Department of
Corrections or the Department of Juvenile Justice, or a
security employee of the Department of Innovation and
Technology, as those terms are defined in subsection (b) and
subsection (c) of Section 14-110. A person who meets the
requirements of this Section is entitled to an annuity
calculated under the provisions of Section 14-110, in lieu of
the regular or minimum retirement annuity, only if the person
has withdrawn from service with not less than 20 years of
eligible creditable service and has attained age 60,
regardless of whether the attainment of age 60 occurs while

HB3765 Engrossed - 42 - LRB103 31021 RPS 57638 b
the person is still in service.
(g-1) The benefits in Section 14-110 apply if the person
is an investigator for the Department of the Lottery, as that
term is defined in subsection (b) and subsection (c) of
Section 14-110. A person who meets the requirements of this
Section is entitled to an annuity calculated under the
provisions of Section 14-110, in lieu of the regular or
minimum retirement annuity, only if the person has withdrawn
from service with not less than 20 years of eligible
creditable service and has attained age 55, regardless of
whether the attainment of age 55 occurs while the person is
still in service.
(h) If a person who first becomes a member or a participant
of a retirement system or pension fund subject to this Section
on or after January 1, 2011 is receiving a retirement annuity
or retirement pension under that system or fund and becomes a
member or participant under any other system or fund created
by this Code and is employed on a full-time basis, except for
those members or participants exempted from the provisions of
this Section under subsection (a) of this Section, then the
person's retirement annuity or retirement pension under that
system or fund shall be suspended during that employment. Upon
termination of that employment, the person's retirement
annuity or retirement pension payments shall resume and be
recalculated if recalculation is provided for under the
applicable Article of this Code.

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If a person who first becomes a member of a retirement
system or pension fund subject to this Section on or after
January 1, 2012 and is receiving a retirement annuity or
retirement pension under that system or fund and accepts on a
contractual basis a position to provide services to a
governmental entity from which he or she has retired, then
that person's annuity or retirement pension earned as an
active employee of the employer shall be suspended during that
contractual service. A person receiving an annuity or
retirement pension under this Code shall notify the pension
fund or retirement system from which he or she is receiving an
annuity or retirement pension, as well as his or her
contractual employer, of his or her retirement status before
accepting contractual employment. A person who fails to submit
such notification shall be guilty of a Class A misdemeanor and
required to pay a fine of $1,000. Upon termination of that
contractual employment, the person's retirement annuity or
retirement pension payments shall resume and, if appropriate,
be recalculated under the applicable provisions of this Code.
(i) (Blank).
(j) In the case of a conflict between the provisions of
this Section and any other provision of this Code, the
provisions of this Section shall control.
(Source: P.A. 102-16, eff. 6-17-21; 102-210, eff. 1-1-22;
102-263, eff. 8-6-21; 102-956, eff. 5-27-22; 103-529, eff.
8-11-23.)

HB3765 Engrossed - 44 - LRB103 31021 RPS 57638 b
(40 ILCS 5/1-168 new)
Sec. 1-168. Deferred retirement option plan.
(a) In this Section:
"Applicable pension fund or retirement system" means the
pension fund or retirement system established under Article 3,
4, 5, 6, 7, 9, 14, or 15 under which the eligible member or
DROP member participates.
"Deferred retirement option plan" or "DROP" means the plan
created under this Section that provides an alternative method
of benefit accrual in the pension fund or retirement system.
"DROP member" means an eligible member who makes an
election to participate in the DROP no later than January 1,
2029.
"Eligible member" means a participating member under a
pension fund or retirement system established under Article 3,
4, 5, 6, 7, 9, 14, or 15 who, at the time of the member's
election to participate in the DROP:
(1) is otherwise eligible to retire under the
applicable Article with a pension or annuity, as
determined by the retirement system or pension fund of
which the member is an active member at the time of the
election to participate in the DROP, under any of the
following provisions:
(A) Section 1-160 for service as a deputy sheriff
in the Cook County Police Department;

HB3765 Engrossed - 45 - LRB103 31021 RPS 57638 b
(B) Section 3-111;
(C) Section 4-109;
(D) Section 5-132;
(E) Section 5-238;
(F) Section 6-128;
(G) Section 6-229;
(H) Section 7-142.1;
(I) Section 9-128.1;
(J) Section 14-110 for eligible creditable service
as a State policeman or a fire fighter in the fire
protection service of a department; or
(K) Rule 4 of Section 15-136 for service as a
police officer;
(2) is not in receipt of a disability benefit or
retirement annuity from the applicable retirement system
or pension fund at the time of his or her election to
participate in the DROP;
(3) is actively employed as a police officer,
firefighter, policeman, fireman, sheriff's law enforcement
employee, deputy sheriff in the Cook County Police
Department, State policeman, or fire fighter in the fire
protection service of a department, as described or
defined under the applicable Article; and
(4) is not subject to mandatory retirement under the
law and will not become subject to mandatory retirement
under the law during participation in the DROP.

HB3765 Engrossed - 46 - LRB103 31021 RPS 57638 b
(b) The DROP shall be made available to eligible members
no later than January 1, 2026.
(c) Eligible members must make their election to
participate in the DROP in writing with the applicable pension
fund or retirement system in a form acceptable to the
applicable pension fund or retirement system. The applicable
pension fund or retirement system must process the election
and begin crediting an account on behalf of the DROP member as
soon as is practicable after the election has been received.
At the time of or prior to electing to participate in the
DROP, a member must, unless otherwise provided by law, make
all other elections required to be made at or before the date
of retirement, including, but not limited to, purchase of
optional service, election of an accelerated pension benefit
payment, or any other election identified by the retirement
system or pension fund.
(d) An eligible member may participate in the DROP for a
period not to exceed 5 years from the date of the eligible
member's election.
(e) During the period of the DROP member's participation
in the DROP, the applicable pension fund or retirement system
shall transfer and credit into a notional account on behalf of
the DROP member an amount equal to the monthly amount of
retirement annuity the DROP member would otherwise be eligible
to receive if the DROP member had retired on the date of the
election under this Section. A DROP member who is entitled to a

HB3765 Engrossed - 47 - LRB103 31021 RPS 57638 b
benefit from a participating system under the Retirement
Systems Reciprocal Act shall be eligible to have the benefit
the DROP member would have otherwise been eligible to receive
if the DROP member retired on the date of the election under
this Section deposited with the applicable pension fund or
retirement system in the DROP member's DROP account and
administered in a manner consistent with the requirements of
this Section. The applicable pension fund or retirement system
shall deduct any amounts required to be deducted under State
or federal law, including, but not limited to, payments
required under a Qualified Illinois Domestic Relations Order
under Section 1-119. Any automatic annual increases that would
have otherwise been applied to the DROP member's benefit if
the DROP member had elected to retire instead of participate
in the DROP shall accrue to the DROP member's monthly payment
placed into the account prior to the expiration of the DROP and
shall otherwise apply to the DROP member's annuity upon
expiration of the DROP. The account shall be held on behalf of
the DROP member.
(f) DROP members shall make contributions to the
applicable pension fund or retirement system during their
participation in the DROP in an amount equal to the employee
contributions under the applicable Article that would
otherwise be required if the DROP member were an active
participant of the applicable pension fund or retirement
system. Those amounts shall be credited to the member's DROP

HB3765 Engrossed - 48 - LRB103 31021 RPS 57638 b
account, minus any administrative costs determined by the
pension fund or retirement system to be attributable to the
administration of the DROP benefits experienced by the
applicable pension fund or retirement system.
(g) The amounts credited to the DROP account shall be held
in notional accounts by the applicable pension fund or
retirement system. The amounts in the DROP account shall
accrue interest based on the actual rate of return on
investment experienced by the applicable pension fund or
retirement system, as determined annually by the applicable
pension fund or retirement system. If, in any year, the actual
rate of return on investment experienced by the applicable
pension fund or retirement system is less than zero, the
interest accrual for that year shall be zero. The applicable
pension fund or retirement system shall reduce the amounts in
the DROP account on a schedule set by the applicable pension
fund or retirement system to cover all of the administrative
costs of the applicable pension fund or retirement system that
are deemed to be attributable to the administration of the
DROP account and any duties required under this Section.
(h) Upon expiration or termination of the DROP member's
participation in the DROP, the account balance shall be paid
to the DROP member as a lump sum. The applicable pension fund
or retirement system shall provide options for the transfer of
the account consistent with its fiduciary duty and any
applicable State or federal law. The expiration or termination

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of a DROP member's participation in the DROP may not occur
after January 1, 2034.
(i) The DROP election is irrevocable, and the DROP member
may not, except as otherwise provided in this Section, access
the account prior to the date established as the last day of
the DROP when the DROP member made the initial election to
participate in the DROP. The DROP member must terminate
employment with the employer upon expiration of his or her
participation in the DROP. The DROP member's participation in
the DROP shall terminate prior to the expiration date:
(1) if the DROP member terminates employment with the
employer prior to the expiration of the designated DROP
period;
(2) if the DROP member becomes eligible for and begins
collecting a disability benefit from the pension fund or
retirement system; or
(3) upon the death of the DROP member.
Upon termination from the DROP, the member shall commence
his or her retirement annuity from the pension fund or
retirement system. After termination or expiration of a
member's participation in the DROP, the member may not
participate in employment in any way that would require the
member to become an active contributing member of the
retirement system or pension fund.
The applicable pension fund or retirement system may allow
for the payment of the balance of the DROP account prior to the

HB3765 Engrossed - 50 - LRB103 31021 RPS 57638 b
last date of participation in the DROP established by the DROP
member when the DROP member made the initial election to
participate in the DROP if (i) the member's participation in
the DROP terminated and (ii) the applicable pension fund or
retirement system determines the DROP member should have
access to the DROP account balance due to hardship or
necessity as determined by the applicable pension fund or
retirement system.
(j) A DROP member shall be considered in active service
for purposes of eligibility for death and disability benefits
and access to any health care benefits provided for by the
employer and shall retain all rights of employment as
established under the DROP member's collective bargaining
agreement.
The DROP member shall not accrue additional service credit
in the pension fund or retirement system while participating
in the DROP, regardless of any service accruals, future pay
increases, active cost of living adjustments, or promotions.
Additionally, the DROP member shall not be eligible to
purchase any optional service credit or to repay any refunds.
Eligibility for a surviving spouse benefit shall be
determined at the time of the DROP election.
Any amounts due to an alternate payee under a Qualified
Illinois Domestic Relations Order under Section 1-119 shall be
calculated at the time of the DROP election and such amounts
shall be payable at the time of election.

HB3765 Engrossed - 51 - LRB103 31021 RPS 57638 b
If the DROP member's designated beneficiary predeceases
the DROP member and the DROP member dies before designating a
new beneficiary, the DROP member's DROP account shall be paid
to the DROP member's estate.
When determining if a member is owed a refund of
contributions due to the member's death prior to collecting an
amount equal to or greater than the member's contributions,
the proceeds of the DROP account shall be considered part of
the total payment made to the member or the member's estate.
(k) It is intended that the DROP shall not jeopardize the
tax qualified status of the pension fund or retirement system.
The pension fund or retirement system shall have the authority
to adopt rules necessary or appropriate for the DROP to
maintain compliance with applicable federal laws and
regulations. Notwithstanding any other provision of this Code,
all benefits provided under the DROP shall be subject to the
requirements and limits of the Internal Revenue Code of 1986,
as amended.
(l) Each applicable pension fund or retirement system
shall be the administrator of the DROP plan created in this
Section. The administration shall be subject to any applicable
laws, and the pension fund or retirement system shall
administer the program in the best interest of the DROP
members in a way that a prudent person in a similar
circumstance would.

HB3765 Engrossed - 52 - LRB103 31021 RPS 57638 b
(40 ILCS 5/3-144.3 new)
Sec. 3-144.3. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/4-138.15 new)
Sec. 4-138.15. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/5-240 new)
Sec. 5-240. Retirement Systems Reciprocal Act. The

HB3765 Engrossed - 53 - LRB103 31021 RPS 57638 b
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/6-232 new)
Sec. 6-232. Retirement Systems Reciprocal Act. The
Retirement Systems Reciprocal Act, Article 20 of this Code, is
adopted and made a part of this Article, but only with respect
to a person who, on or after the effective date of this
amendatory Act of the 103rd General Assembly, is entitled
under this Article or through a participating system under the
Retirement Systems Reciprocal Act, as defined in Section
20-108, to begin receiving a retirement annuity or survivor's
annuity (as those terms are defined in Article 20) and who
elects to proceed under the Retirement Systems Reciprocal Act.
(40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
(Text of Section from P.A. 102-813 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not

HB3765 Engrossed - 54 - LRB103 31021 RPS 57638 b
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; 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% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
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.

HB3765 Engrossed - 55 - LRB103 31021 RPS 57638 b
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of

HB3765 Engrossed - 56 - LRB103 31021 RPS 57638 b
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
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
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible

HB3765 Engrossed - 57 - LRB103 31021 RPS 57638 b
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(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

HB3765 Engrossed - 58 - LRB103 31021 RPS 57638 b
Internal Investigation, the Division of Operations, the
Division of Patrol, or any other Division or
organizational entity in the Illinois 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. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative 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.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(6) The term "Conservation Police Officer" means any
person employed by the Division of Law Enforcement of the

HB3765 Engrossed - 59 - LRB103 31021 RPS 57638 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. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative 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.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person 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,

HB3765 Engrossed - 60 - LRB103 31021 RPS 57638 b
(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
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
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. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police
officer" means any person employed by the Department of
Central Management Services who is vested with such law

HB3765 Engrossed - 61 - LRB103 31021 RPS 57638 b
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.
(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. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human

HB3765 Engrossed - 62 - LRB103 31021 RPS 57638 b
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois 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.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative 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. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is 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. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program

HB3765 Engrossed - 63 - LRB103 31021 RPS 57638 b
Executive of Enforcement.
(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.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
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.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person 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. 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

HB3765 Engrossed - 64 - LRB103 31021 RPS 57638 b
to persons with the same social security status earning
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular

HB3765 Engrossed - 65 - LRB103 31021 RPS 57638 b
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
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.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her 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. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department

HB3765 Engrossed - 66 - LRB103 31021 RPS 57638 b
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology 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:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.

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Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
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; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(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
service for the purposes of the retirement annuity prescribed
in 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

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such service as a noncovered employee, and the amount of
employee contributions actually paid, plus (2) if payment is
made after July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
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
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his 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 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 State

HB3765 Engrossed - 69 - LRB103 31021 RPS 57638 b
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 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.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, 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 5-236, and the amounts that would
have been contributed had such contributions been made at the

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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 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

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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
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), 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
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.

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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
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 State
policeman, arson investigator, or Commerce Commission police
officer 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 under
Article 7, a county corrections officer, a court services

HB3765 Engrossed - 73 - LRB103 31021 RPS 57638 b
officer under Article 9, or a firefighter under Article 4 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 4-108.8, 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
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

HB3765 Engrossed - 74 - LRB103 31021 RPS 57638 b
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
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.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o) of this Section shall not exceed 12
years.
(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

HB3765 Engrossed - 75 - LRB103 31021 RPS 57638 b
establish eligible creditable service for up to 10 years of
his service as a policeman under Article 3 or a sheriff's law
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.
(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
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. 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

HB3765 Engrossed - 76 - LRB103 31021 RPS 57638 b
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 (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.
(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
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.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement officer employed by the federal government or

HB3765 Engrossed - 77 - LRB103 31021 RPS 57638 b
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. 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
(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.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by

HB3765 Engrossed - 78 - LRB103 31021 RPS 57638 b
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university 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.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay to the
System the difference between the employee contributions

HB3765 Engrossed - 79 - LRB103 31021 RPS 57638 b
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 eligible creditable service on the date of
application.
(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
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or

HB3765 Engrossed - 80 - LRB103 31021 RPS 57638 b
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-813, eff. 5-13-22; 103-34, eff. 1-1-24.)
(Text of Section from P.A. 102-856 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,

HB3765 Engrossed - 81 - LRB103 31021 RPS 57638 b
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; 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% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
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.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee

HB3765 Engrossed - 82 - LRB103 31021 RPS 57638 b
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's

HB3765 Engrossed - 83 - LRB103 31021 RPS 57638 b
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
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
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an

HB3765 Engrossed - 84 - LRB103 31021 RPS 57638 b
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(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
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. The term "special agent" includes any title or

HB3765 Engrossed - 85 - LRB103 31021 RPS 57638 b
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative 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.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.
(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
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.

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(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative 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.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person 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 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. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and

HB3765 Engrossed - 87 - LRB103 31021 RPS 57638 b
developmental disabilities functions who is vested with
such law enforcement duties as render the person
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. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(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
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(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

HB3765 Engrossed - 88 - LRB103 31021 RPS 57638 b
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. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.
(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois 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),

HB3765 Engrossed - 89 - LRB103 31021 RPS 57638 b
218(d)(8)(D) and 218(l)(1) of that Act.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative 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. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is 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. The term
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(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.
(16) "Commerce Commission police officer" means any

HB3765 Engrossed - 90 - LRB103 31021 RPS 57638 b
person employed by the Illinois Commerce Commission who is
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.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person 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. 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
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead

HB3765 Engrossed - 91 - LRB103 31021 RPS 57638 b
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
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

HB3765 Engrossed - 92 - LRB103 31021 RPS 57638 b
job functions under that Department.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her 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. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology shall not be eligible for the
alternative retirement annuity provided by this Section unless

HB3765 Engrossed - 93 - LRB103 31021 RPS 57638 b
he or she meets the following minimum age and service
requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
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; but such service may be used only for

HB3765 Engrossed - 94 - LRB103 31021 RPS 57638 b
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(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
service for the purposes of the retirement annuity prescribed
in 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 July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
For purposes of calculating retirement annuities under
this Section, periods of service rendered after December 31,

HB3765 Engrossed - 95 - LRB103 31021 RPS 57638 b
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
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his 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 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 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 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

HB3765 Engrossed - 96 - LRB103 31021 RPS 57638 b
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.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, 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 5-236, 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 10 years of service as a sheriff's

HB3765 Engrossed - 97 - LRB103 31021 RPS 57638 b
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
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

HB3765 Engrossed - 98 - LRB103 31021 RPS 57638 b
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
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

HB3765 Engrossed - 99 - LRB103 31021 RPS 57638 b
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
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 State
policeman, arson investigator, or Commerce Commission police
officer 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 under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 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 4-108.8, 7-139.8, and 9-121.10 and the amounts that

HB3765 Engrossed - 100 - LRB103 31021 RPS 57638 b
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
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.
Subject to the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for
the Illinois Gaming Board, investigator for the Secretary of
State, or arson investigator may elect to establish eligible
creditable service for up to 5 years of service as a person

HB3765 Engrossed - 101 - LRB103 31021 RPS 57638 b
employed by a participating municipality to perform police
duties under Article 7, a county corrections officer, a court
services officer under Article 9, or a firefighter under
Article 4 by filing a written election with the Board within 6
months after the effective date of this amendatory Act of the
102nd 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 4-108.8, 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

HB3765 Engrossed - 102 - LRB103 31021 RPS 57638 b
conversion authorized by Public Act 102-210 and the employer's
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.
Notwithstanding the limitation in subsection (i), an
investigator for the Department of Revenue, investigator for
the Illinois Gaming Board, investigator for the Secretary of
State, or arson investigator 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 the effective
date of this amendatory Act of the 102nd 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
contributions originally paid for that service and the amounts
that would have been contributed had such contributions been
made at the rates applicable to investigators for the
Department of Revenue, investigators for the Illinois Gaming
Board, investigators for the Secretary of State, or arson
investigators, plus (ii) the difference between the employer's
normal cost of the credit prior to the conversion authorized
by this amendatory Act of the 102nd General Assembly and the
employer's normal cost of the credit converted in accordance
with this amendatory Act of the 102nd General Assembly, plus
(iii) interest thereon at the actuarially assumed rate for

HB3765 Engrossed - 103 - LRB103 31021 RPS 57638 b
each year, compounded annually, from the date of service to
the date of payment.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), and (o) of this Section shall not exceed 12
years.
(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
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.
(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
full-time law enforcement officer or full-time corrections
officer employed by the federal government or by a state or

HB3765 Engrossed - 104 - LRB103 31021 RPS 57638 b
local government located outside of Illinois, for which credit
is not held in any other public employee pension fund or
retirement system. 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 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.
(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
employee and employer contributions transferred to the System
under Section 3-110.5, and the amounts that would have been

HB3765 Engrossed - 105 - LRB103 31021 RPS 57638 b
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.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible
creditable service for up to 5 years of service as a full-time
law enforcement 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. 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
(1) and (2) from the first day as an alternative formula
employee after the employment for which credit is being

HB3765 Engrossed - 106 - LRB103 31021 RPS 57638 b
established to the date of payment.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the
Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university 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.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the

HB3765 Engrossed - 107 - LRB103 31021 RPS 57638 b
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to
eligible creditable service, the employee must pay 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 eligible creditable service on the date of
application.
(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
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a

HB3765 Engrossed - 108 - LRB103 31021 RPS 57638 b
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)
(Text of Section from P.A. 102-956 and 103-34)

HB3765 Engrossed - 109 - LRB103 31021 RPS 57638 b
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not
less than 20 years of eligible creditable service and has
attained age 55, and any member who has withdrawn from service
with not less than 25 years of eligible creditable service and
has attained age 50, regardless of whether the attainment of
either of the specified ages occurs while the member is still
in service, shall be entitled to receive at the option of the
member, in lieu of the regular or minimum retirement annuity,
a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
if retirement occurs on or after January 1, 2001, 3% of
final average compensation for each year of creditable
service; 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% for each year of creditable service above 20
years; and
(ii) for periods of eligible creditable service as a
covered employee: if retirement occurs on or after January
1, 2001, 2.5% of final average compensation for each year
of creditable service; if retirement occurs before January
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

HB3765 Engrossed - 110 - LRB103 31021 RPS 57638 b
service in excess of 20 but not exceeding 30, and 2.30% for
each year in excess of 30.
Such annuity shall be subject to a maximum of 75% of final
average compensation if retirement occurs before January 1,
2001 or to a maximum of 80% of final average compensation if
retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service
performed by a member as a covered employee which is not
eligible creditable service. Service as a covered employee
which is not eligible creditable service shall be subject to
the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable
service" means creditable service resulting from service in
one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
department;
(3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
Illinois Gaming Board;
(8) security employee of the Department of Human
Services;
(9) Central Management Services security police

HB3765 Engrossed - 111 - LRB103 31021 RPS 57638 b
officer;
(10) security employee of the Department of
Corrections or the Department of Juvenile Justice;
(11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
General;
(14) controlled substance inspector;
(15) investigator for the Office of the State's
Attorneys Appellate Prosecutor;
(16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of Innovation
and Technology; or
(20) transferred employee; or .
(21) investigator for the Department of the Lottery.
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
training is required of persons serving in that position. For
the purposes of this Code, service during the required basic
police training course shall be deemed performance of the
duties of the specified position, even though the person is

HB3765 Engrossed - 112 - LRB103 31021 RPS 57638 b
not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible
creditable service for service credit earned under this
Article on and after his or her transfer by Executive Order No.
2003-10, Executive Order No. 2004-2, or Executive Order No.
2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(2) The term "fire fighter in the fire protection
service of a department" includes all officers in such
fire protection service including fire chiefs and
assistant fire chiefs.
(3) The term "air pilot" includes any employee whose
official job description on file in the Department of
Central Management Services, or in the department by which
he is employed if that department is not covered by the
Personnel Code, states that his principal duty is the
operation of aircraft, and who possesses a pilot's
license; however, the change in this definition made by
Public Act 83-842 shall not operate to exclude any
noncovered employee who was an "air pilot" for the
purposes of this Section on January 1, 1984.
(4) The term "special agent" means any person who by
reason of employment by the Division of Narcotic Control,

HB3765 Engrossed - 113 - LRB103 31021 RPS 57638 b
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
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. The term "special agent" includes any title or
position in the Illinois State Police that is held by an
individual employed under the Illinois State Police Act.
(5) The term "investigator for the Secretary of State"
means any person employed by the Office of the Secretary
of State and vested with such investigative 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.
A person who became employed as an investigator for
the Secretary of State between January 1, 1967 and
December 31, 1975, and who has served as such until
attainment of age 60, either continuously or with a single
break in service of not more than 3 years duration, which
break terminated before January 1, 1976, shall be entitled
to have his retirement annuity calculated in accordance
with subsection (a), notwithstanding that he has less than
20 years of credit for such service.

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(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
218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
term "Conservation Police Officer" includes the positions
of Chief Conservation Police Administrator and Assistant
Conservation Police Administrator.
(7) The term "investigator for the Department of
Revenue" means any person employed by the Department of
Revenue and vested with such investigative 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.
The term "investigator for the Illinois Gaming Board"
means any person employed as such by the Illinois Gaming
Board and vested with such peace officer duties as render
the person 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

HB3765 Engrossed - 115 - LRB103 31021 RPS 57638 b
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
that security unit, or (iv) is a mental health police
officer. "Mental health police officer" means any person
employed by the Department of Human Services in a position
pertaining to the Department's mental health and
developmental disabilities functions who is vested with
such law enforcement duties as render the person
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. "Security unit" means that portion
of a facility that is devoted to the care, containment,
and treatment of persons committed to the Department of
Human Services as sexually violent persons, persons unfit
to stand trial, or persons not guilty by reason of
insanity. With respect to past employment, references to
the Department of Human Services include its predecessor,
the Department of Mental Health and Developmental
Disabilities.
The changes made to this subdivision (c)(8) by Public
Act 92-14 apply to persons who retire on or after January
1, 2001, notwithstanding Section 1-103.1.
(9) "Central Management Services security police

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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
under the Social Security Act by reason of Sections
218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
(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. For a
member who first becomes an employee under this Article on
or after July 1, 2005, the term means an employee of the
Department of Corrections or the Department of Juvenile
Justice who is any of the following: (i) officially
headquartered at a correctional facility or Juvenile
facility operated by the Department of Juvenile Justice,
(ii) a parole officer, (iii) a member of the apprehension
unit, (iv) a member of the intelligence unit, (v) a member
of the sort team, or (vi) an investigator.

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(11) The term "dangerous drugs investigator" means any
person who is employed as such by the Department of Human
Services.
(12) The term "investigator for the Illinois State
Police" means a person employed by the Illinois 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.
(13) "Investigator for the Office of the Attorney
General" means any person who is employed as such by the
Office of the Attorney General and is vested with such
investigative 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. For
the period before January 1, 1989, the term includes all
persons who were employed as investigators by the Office
of the Attorney General, without regard to social security
status.
(14) "Controlled substance inspector" means any person
who is employed as such by the Department of Professional
Regulation and is 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. The term

HB3765 Engrossed - 118 - LRB103 31021 RPS 57638 b
"controlled substance inspector" includes the Program
Executive of Enforcement and the Assistant Program
Executive of Enforcement.
(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.
(16) "Commerce Commission police officer" means any
person employed by the Illinois Commerce Commission who is
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.
(17) "Arson investigator" means any person who is
employed as such by the Office of the State Fire Marshal
and is vested with such law enforcement duties as render
the person 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. 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

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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
eligible creditable service on the date of application.
(18) The term "State highway maintenance worker" means
a person who is either of the following:
(i) A person employed on a full-time basis by the
Illinois Department of Transportation in the position
of highway maintainer, highway maintenance lead
worker, highway maintenance lead/lead worker, heavy
construction equipment operator, power shovel
operator, or bridge mechanic; and whose principal
responsibility is to perform, on the roadway, the
actual maintenance necessary to keep the highways that
form a part of the State highway system in serviceable
condition for vehicular traffic.
(ii) A person employed on a full-time basis by the
Illinois State Toll Highway Authority in the position
of equipment operator/laborer H-4, equipment
operator/laborer H-6, welder H-4, welder H-6,
mechanical/electrical H-4, mechanical/electrical H-6,
water/sewer H-4, water/sewer H-6, sign maker/hanger
H-4, sign maker/hanger H-6, roadway lighting H-4,
roadway lighting H-6, structural H-4, structural H-6,
painter H-4, or painter H-6; and whose principal
responsibility is to perform, on the roadway, the

HB3765 Engrossed - 120 - LRB103 31021 RPS 57638 b
actual maintenance necessary to keep the Authority's
tollways in serviceable condition for vehicular
traffic.
(19) The term "security employee of the Department of
Innovation and Technology" means a person who was a
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.
(20) "Transferred employee" means an employee who was
transferred to the Department of Central Management
Services by Executive Order No. 2003-10 or Executive Order
No. 2004-2 or transferred to the Department of Innovation
and Technology by Executive Order No. 2016-1, or both, and
was entitled to eligible creditable service for services
immediately preceding the transfer.
(21) "Investigator for the Department of the Lottery"
means any person who is employed by the Department of the
Lottery and is vested with such investigative duties which
render him or her 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. An investigator
for the Department of the Lottery who qualifies under this
Section shall earn eligible creditable service and be
required to make contributions at the rate specified in

HB3765 Engrossed - 121 - LRB103 31021 RPS 57638 b
paragraph (3) of subsection (a) of Section 14-133 for all
periods of service as an investigator for the Department
of the Lottery.
(d) A security employee of the Department of Corrections
or the Department of Juvenile Justice, a security employee of
the Department of Human Services who is not a mental health
police officer, and a security employee of the Department of
Innovation and Technology 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:
(i) 25 years of eligible creditable service and age
55; or
(ii) beginning January 1, 1987, 25 years of eligible
creditable service and age 54, or 24 years of eligible
creditable service and age 55; or
(iii) beginning January 1, 1988, 25 years of eligible
creditable service and age 53, or 23 years of eligible
creditable service and age 55; or
(iv) beginning January 1, 1989, 25 years of eligible
creditable service and age 52, or 22 years of eligible
creditable service and age 55; or
(v) beginning January 1, 1990, 25 years of eligible
creditable service and age 51, or 21 years of eligible
creditable service and age 55; or
(vi) beginning January 1, 1991, 25 years of eligible

HB3765 Engrossed - 122 - LRB103 31021 RPS 57638 b
creditable service and age 50, or 20 years of eligible
creditable service and age 55.
Persons who have service credit under Article 16 of this
Code for service as a security employee of the Department of
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; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(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
service for the purposes of the retirement annuity prescribed
in 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

HB3765 Engrossed - 123 - LRB103 31021 RPS 57638 b
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 July 31, 1987, regular interest on the amount
specified in item (1) from the date of service to the date of
payment.
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
January 1, 1990, regular interest on the amount specified in
item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1,
1990, to establish eligible creditable service for up to 10
years of his 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 employee and employer
contributions transferred to the System under Section 3-110.5,

HB3765 Engrossed - 124 - LRB103 31021 RPS 57638 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 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.
(h) Subject to the limitation in subsection (i), a State
policeman or investigator for the Secretary of State may elect
to establish eligible creditable service for up to 12 years of
his service as a policeman under Article 5, by filing a written
election with the Board on or before January 31, 1992, 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

HB3765 Engrossed - 125 - LRB103 31021 RPS 57638 b
to the System under Section 5-236, 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 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

HB3765 Engrossed - 126 - LRB103 31021 RPS 57638 b
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
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), 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
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

HB3765 Engrossed - 127 - LRB103 31021 RPS 57638 b
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
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 State
policeman, arson investigator, or Commerce Commission police
officer may elect to establish eligible creditable service for
up to 5 years of service as a person employed by a

HB3765 Engrossed - 128 - LRB103 31021 RPS 57638 b
participating municipality to perform police duties under
Article 7, a county corrections officer, a court services
officer under Article 9, or a firefighter under Article 4 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 4-108.8, 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
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

HB3765 Engrossed - 129 - LRB103 31021 RPS 57638 b
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
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.
(i) The total amount of eligible creditable service
established by any person under subsections (g), (h), (j),
(k), (l), (l-5), (o), and (p) of this Section shall not exceed
12 years.
(j) Subject to the limitation in subsection (i), an

HB3765 Engrossed - 130 - LRB103 31021 RPS 57638 b
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
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.
(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
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. 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

HB3765 Engrossed - 131 - LRB103 31021 RPS 57638 b
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 (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.
(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
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.
(l-5) Subject to the limitation in subsection (i) of this
Section, a State policeman may elect to establish eligible

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creditable service for up to 5 years of service as a full-time
law enforcement 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. 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
(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.
(m) The amendatory changes to this Section made by Public
Act 94-696 apply only to: (1) security employees of the
Department of Juvenile Justice employed by the Department of
Corrections before June 1, 2006 (the effective date of Public
Act 94-696) and transferred to the Department of Juvenile
Justice by Public Act 94-696; and (2) persons employed by the

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Department of Juvenile Justice on or after June 1, 2006 (the
effective date of Public Act 94-696) who are required by
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections to have any bachelor's or advanced degree from an
accredited college or university 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.
Beginning with the pay period that immediately follows the
effective date of this amendatory Act of the 103rd General
Assembly, the bachelor's or advanced degree requirement of
subsection (b) of Section 3-2.5-15 of the Unified Code of
Corrections shall no longer determine the eligibility to earn
eligible creditable service for a person employed by the
Department of Juvenile Justice.
An employee may elect to convert into eligible creditable
service his or her creditable service earned with the
Department of Juvenile Justice while employed in a position
that required the employee to do any one or more of the
following: (1) participate or assist in the rehabilitative and
vocational training of delinquent youths; (2) supervise the
daily activities and assume direct and continuing
responsibility for the youth's security, welfare, and
development; or (3) participate in the personal rehabilitation
of delinquent youth by training, supervising, and assisting
lower-level personnel. To convert that creditable service to

HB3765 Engrossed - 134 - LRB103 31021 RPS 57638 b
eligible creditable service, the employee must pay 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 eligible creditable service on the date of
application.
(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
the actuarially assumed rate from the date of the service to
the date of payment.
(o) Subject to the limitation in subsection (i), a
conservation police officer, investigator for the Secretary of
State, Commerce Commission police officer, investigator for
the Department of Revenue or the Illinois Gaming Board, or
arson investigator subject to subsection (g) of Section 1-160
may elect to convert up to 8 years of service credit
established before January 1, 2020 (the effective date of
Public Act 101-610) as a conservation police officer,

HB3765 Engrossed - 135 - LRB103 31021 RPS 57638 b
investigator for the Secretary of State, Commerce Commission
police officer, investigator for the Department of Revenue or
the Illinois Gaming Board, or arson investigator under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after January 1,
2020 (the effective date of Public Act 101-610), accompanied
by payment of an amount to be determined by the Board equal to
(i) the difference between the amount of the employee
contributions actually paid for that service and the amount of
the employee contributions that would have been paid had the
employee contributions been made as a noncovered employee
serving in a position in which eligible creditable service, as
defined in this Section, may be earned, plus (ii) interest
thereon at the effective rate for each year, compounded
annually, from the date of service to the date of payment.
(p) Subject to the limitation in subsection (i), an
investigator for the Office of the Attorney General subject to
subsection (g) of Section 1-160 may elect to convert up to 8
years of service credit established before the effective date
of this amendatory Act of the 102nd General Assembly as an
investigator for the Office of the Attorney General under this
Article into eligible creditable service by filing a written
election with the Board no later than one year after the
effective date of this amendatory Act of the 102nd General
Assembly, accompanied by payment of an amount to be determined
by the Board equal to (i) the difference between the amount of

HB3765 Engrossed - 136 - LRB103 31021 RPS 57638 b
the employee contributions actually paid for that service and
the amount of the employee contributions that would have been
paid had the employee contributions been made as a noncovered
employee serving in a position in which eligible creditable
service, as defined in this Section, may be earned, plus (ii)
interest thereon at the effective rate for each year,
compounded annually, from the date of service to the date of
payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21;
102-956, eff. 5-27-22; 103-34, eff. 1-1-24.)
(40 ILCS 5/14-152.1)
Sec. 14-152.1. Application and expiration of new benefit
increases.
(a) As used in this Section, "new benefit increase" means
an increase in the amount of any benefit provided under this
Article, or an expansion of the conditions of eligibility for
any benefit under this Article, that results from an amendment
to this Code that takes effect after June 1, 2005 (the
effective date of Public Act 94-4). "New benefit increase",
however, does not include any benefit increase resulting from
the changes made to Article 1 or this Article by Public Act
96-37, Public Act 100-23, Public Act 100-587, Public Act
100-611, Public Act 101-10, Public Act 101-610, Public Act
102-210, Public Act 102-856, Public Act 102-956, or this
amendatory Act of the 103rd General Assembly this amendatory

HB3765 Engrossed - 137 - LRB103 31021 RPS 57638 b
Act of the 102nd General Assembly.
(b) Notwithstanding any other provision of this Code or
any subsequent amendment to this Code, every new benefit
increase is subject to this Section and shall be deemed to be
granted only in conformance with and contingent upon
compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must
identify and provide for payment to the System of additional
funding at least sufficient to fund the resulting annual
increase in cost to the System as it accrues.
Every new benefit increase is contingent upon the General
Assembly providing the additional funding required under this
subsection. The Commission on Government Forecasting and
Accountability shall analyze whether adequate additional
funding has been provided for the new benefit increase and
shall report its analysis to the Public Pension Division of
the Department of Insurance. A new benefit increase created by
a Public Act that does not include the additional funding
required under this subsection is null and void. If the Public
Pension Division determines that the additional funding
provided for a new benefit increase under this subsection is
or has become inadequate, it may so certify to the Governor and
the State Comptroller and, in the absence of corrective action
by the General Assembly, the new benefit increase shall expire
at the end of the fiscal year in which the certification is
made.

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(d) Every new benefit increase shall expire 5 years after
its effective date or on such earlier date as may be specified
in the language enacting the new benefit increase or provided
under subsection (c). This does not prevent the General
Assembly from extending or re-creating a new benefit increase
by law.
(e) Except as otherwise provided in the language creating
the new benefit increase, a new benefit increase that expires
under this Section continues to apply to persons who applied
and qualified for the affected benefit while the new benefit
increase was in effect and to the affected beneficiaries and
alternate payees of such persons, but does not apply to any
other person, including, without limitation, a person who
continues in service after the expiration date and did not
apply and qualify for the affected benefit while the new
benefit increase was in effect.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff.
1-1-23; 102-956, eff. 5-27-22.)
(40 ILCS 5/17-114) (from Ch. 108 1/2, par. 17-114)
Sec. 17-114. Computation of service.
(a) When computing days of validated service, contributors
shall receive the greater of: (1) one day of service credit for
each day for which they are paid salary representing a partial
or a full day of employment rendered to an Employer or the

HB3765 Engrossed - 139 - LRB103 31021 RPS 57638 b
Board; or (2) 10 days of service credit for each 10-day period
of employment in which the contributor worked 50% or more of
the regularly scheduled hours.
(b) When computing months of validated service, 17 or more
days of service rendered to an Employer or the Board in a
calendar month shall entitle a contributor to one month of
service credit for purposes of this Article.
(c) When computing years of validated service rendered,
170 or more days of service in a fiscal year or 10 or more
months of service in a fiscal year shall constitute one year of
service credit.
(d) Notwithstanding subsections (b) and (c) of this
Section, validated service in any fiscal year shall be that
fraction of a year equal to the ratio of the number of days of
service to 170 days.
(e) For purposes of this Section, no contributor shall
earn (i) more than one year of service credit per fiscal year,
(ii) more than one day of service credit per calendar day, or
(iii) more than 10 days of service credit in a 2 calendar week
period as determined by the Fund.
(Source: P.A. 99-176, eff. 7-29-15.)
Section 90. The State Mandates Act is amended by adding
Section 8.48 as follows:
(30 ILCS 805/8.48 new)

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