101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2750

 

Introduced , by Rep. Thomas Morrison

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-101  from Ch. 108 1/2, par. 2-101
40 ILCS 5/2-105  from Ch. 108 1/2, par. 2-105
40 ILCS 5/2-107  from Ch. 108 1/2, par. 2-107
40 ILCS 5/7-137  from Ch. 108 1/2, par. 7-137
40 ILCS 5/8-113  from Ch. 108 1/2, par. 8-113
40 ILCS 5/8-243  from Ch. 108 1/2, par. 8-243
40 ILCS 5/9-108  from Ch. 108 1/2, par. 9-108

    Amends the Illinois Pension Code. In the General Assembly Article, restricts participation in the General Assembly Retirement System to persons who become participants before the effective date of the amendatory Act and provides that, beginning on that date, the System shall not accept any new participants. Makes related changes. In the Illinois Municipal Retirement Fund, Chicago Municipal, and Cook County Articles, provides that a person who holds part-time elective office is not an employee, contributor, or participant with respect to that office, unless he or she (i) was elected to that office before the effective date of the amendatory Act and (ii) has elected while in that office to become a contributor. Provides that an elective office shall be presumed to be part-time in the absence of an official job description or determination by the legal advisor of the applicable unit of local government, filed with the Board of the Fund, declaring the elective office to be full-time.


LRB101 09164 RPS 54258 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2750LRB101 09164 RPS 54258 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 2-101, 2-105, 2-107, 7-137, 8-113, 8-243, and 9-108 as
6follows:
 
7    (40 ILCS 5/2-101)  (from Ch. 108 1/2, par. 2-101)
8    Sec. 2-101. Creation of system. A retirement system is
9created to provide retirement annuities, survivor's annuities
10and other benefits for certain members of the General Assembly,
11certain elected state officials, and their beneficiaries.
12    The system shall be known as the "General Assembly
13Retirement System". All its funds and property shall be a trust
14separate from all other entities, maintained for the purpose of
15securing payment of annuities and benefits under this Article.
16    Participation in the retirement system created under this
17Article is restricted to persons who became participants before
18the effective date of this amendatory Act of the 101st General
19Assembly. Beginning on that date, the System shall not accept
20any new participants.
21(Source: P.A. 83-1440.)
 
22    (40 ILCS 5/2-105)  (from Ch. 108 1/2, par. 2-105)

 

 

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1    Sec. 2-105. Member. "Member": Members of the General
2Assembly of this State, including persons who enter military
3service while a member of the General Assembly, and any person
4serving as Governor, Lieutenant Governor, Secretary of State,
5Treasurer, Comptroller, or Attorney General for the period of
6service in such office.
7    Any person who has served for 10 or more years as Clerk or
8Assistant Clerk of the House of Representatives, Secretary or
9Assistant Secretary of the Senate, or any combination thereof,
10may elect to become a member of this system while thenceforth
11engaged in such service by filing a written election with the
12board. Any person so electing shall be deemed an active member
13of the General Assembly for the purpose of validating and
14transferring any service credits earned under any of the funds
15and systems established under Articles 3 through 18 of this
16Code.
17    However, notwithstanding any other provision of this
18Article, a person shall not be deemed a member for the purposes
19of this Article unless he or she became a participant of the
20System before the effective date of this amendatory Act of the
21101st General Assembly.
22(Source: P.A. 85-1008.)
 
23    (40 ILCS 5/2-107)  (from Ch. 108 1/2, par. 2-107)
24    Sec. 2-107. Participant. "Participant": Any member who
25elects to participate; and any former member who elects to

 

 

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1continue participation under Section 2-117.1, for the duration
2of such continued participation. However, notwithstanding any
3other provision of this Article, a person shall not be deemed a
4participant for the purposes of this Article unless he or she
5became a participant of the System before the effective date of
6this amendatory Act of the 101st General Assembly.
7(Source: P.A. 86-1488.)
 
8    (40 ILCS 5/7-137)  (from Ch. 108 1/2, par. 7-137)
9    Sec. 7-137. Participating and covered employees.
10    (a) The persons described in this paragraph (a) shall be
11included within and be subject to this Article and eligible to
12benefits from this fund, beginning upon the dates hereinafter
13specified:
14        1. Except as to the employees specifically excluded
15    under the provisions of this Article, all persons who are
16    employees of any municipality (or instrumentality thereof)
17    or participating instrumentality on the effective date of
18    participation of the municipality or participating
19    instrumentality beginning upon such effective date.
20        2. Except as to the employees specifically excluded
21    under the provisions of this Article, all persons, who
22    became employees of any participating municipality (or
23    instrumentality thereof) or participating instrumentality
24    after the effective date of participation of such
25    municipality or participating instrumentality, beginning

 

 

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1    upon the date such person becomes an employee.
2        3. All persons who file notice with the board as
3    provided in paragraph (b) 2 and 3 of this Section,
4    beginning upon the date of filing such notice.
5    (b) The following described persons shall not be considered
6participating employees eligible for benefits from this fund,
7but shall be included within and be subject to this Article
8(each of the descriptions is not exclusive but is cumulative):
9        1. Any person who occupies an office or is employed in
10    a position normally requiring performance of duty during
11    less than 600 hours a year for a municipality (including
12    all instrumentalities thereof) or a participating
13    instrumentality. If a school treasurer performs services
14    for more than one school district, the total number of
15    hours of service normally required for the several school
16    districts shall be considered to determine whether he
17    qualifies under this paragraph;
18        2. Except as provided in items 2.5, 2.6, and 2.7, and
19    2.8, any person who holds elective office, unless he or she
20    has elected while in that office in a written notice on
21    file with the board to become a participating employee;
22        2.5. Except as provided in item 2.6, any person who
23    holds elective office as a member of a county board,
24    unless:
25            (i) the person was first elected as a member of a
26        county board before the effective date of this

 

 

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1        amendatory Act of the 99th General Assembly;
2            (ii) the person has elected while in that office,
3        in a written notice on file with the board, to become a
4        participating employee;
5            (iii) the county board has filed the resolution
6        required by subsection (a) of Section 7-137.2 of this
7        Article; and
8            (iv) the person has submitted the required time
9        sheets evidencing that the person has met the hourly
10        standard as required by subsection (b) of Section
11        7-137.2 of this Article;
12        2.6. Any person who is an elected member of a county
13    board and is first so elected on or after the effective
14    date of this amendatory Act of the 99th General Assembly;
15        2.7. Any person who holds part-time office as a member
16    of a governing body, whether he or she is elected or
17    appointed, unless he or she (i) was elected or appointed to
18    that office before the effective date of this amendatory
19    Act of the 100th General Assembly and (ii) has elected
20    while in that office in a written notice on file with the
21    board to become a participating employee. An office as a
22    member of a governing body shall be deemed to be part-time
23    if it normally requires the performance of duty during less
24    than 1000 hours a year for the governing body of the
25    participating municipality or instrumentality;
26        2.8. Any person who holds part-time elective office,

 

 

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1    unless he or she (i) was elected to that office before the
2    effective date of this amendatory Act of the 101st General
3    Assembly and (ii) has elected while in that office in a
4    written notice on file with the board to become a
5    participating employee. An elective office shall be
6    presumed to be part-time in the absence of an official job
7    description or determination by the legal advisor of the
8    applicable participating municipality or participating
9    instrumentality, filed with the Board, declaring the
10    elective position to be full-time;
11        3. Any person working for a city hospital unless any
12    such person, while in active employment, has elected in a
13    written notice on file with the board to become a
14    participating employee and notification thereof is
15    received by the board;
16        4. Any person who becomes an employee after June 30,
17    1979 as a public service employment program participant
18    under the federal Comprehensive Employment and Training
19    Act and whose wages or fringe benefits are paid in whole or
20    in part by funds provided under such Act;
21        5. Any person who is actively employed by a
22    municipality on its effective date of participation in the
23    Fund if that municipality (i) has at least 35 employees on
24    its effective date of participation; (ii) is located in a
25    county with at least 2,000,000 inhabitants; and (iii)
26    maintains an independent defined benefit pension plan for

 

 

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1    the benefit of its eligible employees, unless the person
2    files with the board within 90 days after the
3    municipality's effective date of participation an
4    irrevocable election to participate.
5    (c) Any person electing to be a participating employee,
6pursuant to paragraph (b) of this Section may not change such
7election, except as provided in Section 7-137.1.
8    (d) Any employee who occupied the position of school nurse
9in any participating municipality on August 8, 1961 and
10continuously thereafter until the effective date of the
11exercise of the option authorized by this subparagraph, who on
12August 7, 1961 was a member of the Teachers' Retirement System
13of Illinois, by virtue of certification by the Department of
14Registration and Education as a public health nurse, may elect
15to terminate participation in this Fund in order to
16re-establish membership in such System. The election may be
17exercised by filing written notice thereof with the Board or
18with the Board of Trustees of said Teachers' Retirement System,
19not later than September 30, 1963, and shall be effective on
20the first day of the calendar month next following the month in
21which the notice was filed. If the written notice is filed with
22such Teachers' Retirement System, that System shall
23immediately notify this Fund, but neither failure nor delay in
24notification shall affect the validity of the employee's
25election. If the option is exercised, the Fund shall notify
26such Teachers' Retirement System of such fact and transfer to

 

 

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1that system the amounts contributed by the employee to this
2Fund, including interest at 3% per annum, but excluding
3contributions applicable to social security coverage during
4the period beginning August 8, 1961 to the effective date of
5the employee's election. Participation in this Fund as to any
6credits on or after August 8, 1961 and up to the effective date
7of the employee's election shall terminate on such effective
8date.
9    (e) Any participating municipality or participating
10instrumentality, other than a school district or special
11education joint agreement created under Section 10-22.31 of the
12School Code, may, by a resolution or ordinance duly adopted by
13its governing body, elect to exclude from participation and
14eligibility for benefits all persons who are employed after the
15effective date of such resolution or ordinance and who occupy
16an office or are employed in a position normally requiring
17performance of duty for less than 1000 hours per year for the
18participating municipality (including all instrumentalities
19thereof) or participating instrumentality except for persons
20employed in a position normally requiring performance of duty
21for 600 hours or more per year (i) by such participating
22municipality or participating instrumentality prior to the
23effective date of the resolution or ordinance and (ii) by a
24participating municipality or participating instrumentality,
25which had not adopted such a resolution when the person was
26employed, and the function served by the employee's position is

 

 

HB2750- 9 -LRB101 09164 RPS 54258 b

1assumed by another participating municipality or participating
2instrumentality. Notwithstanding the foregoing, a
3participating municipality or participating instrumentality
4which is formed solely to succeed to the functions of a
5participating municipality or participating instrumentality
6shall be considered to have adopted any such resolution or
7ordinance which may have been applicable to the employees
8performing such functions. The election made by the resolution
9or ordinance shall take effect at the time specified in the
10resolution or ordinance, and once effective shall be
11irrevocable.
12(Source: P.A. 99-900, eff. 8-26-16; 100-274, eff. 1-1-18.)
 
13    (40 ILCS 5/8-113)  (from Ch. 108 1/2, par. 8-113)
14    Sec. 8-113. Municipal employee, employee, contributor, or
15participant. "Municipal employee", "employee", "contributor",
16or "participant":
17    (a) Any employee of an employer employed in the classified
18civil service thereof other than by temporary appointment or in
19a position excluded or exempt from the classified service by
20the Civil Service Act, or in the case of a city operating under
21a personnel ordinance, any employee of an employer employed in
22the classified or career service under the provisions of a
23personnel ordinance, other than in a provisional or exempt
24position as specified in such ordinance or in rules and
25regulations formulated thereunder.

 

 

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1    (b) Any employee in the service of an employer before the
2Civil Service Act came in effect for the employer.
3    (c) Any person employed by the board.
4    (d) Any person employed after December 31, 1949, but prior
5to January 1, 1984, in the service of the employer by temporary
6appointment or in a position exempt from the classified service
7as set forth in the Civil Service Act, or in a provisional or
8exempt position as specified in the personnel ordinance, who
9meets the following qualifications:
10        (1) has rendered service during not less than 12
11    calendar months to an employer as an employee, officer, or
12    official, 4 months of which must have been consecutive full
13    normal working months of service rendered immediately
14    prior to filing application to be included; and
15        (2) files written application with the board, while in
16    the service, to be included hereunder.
17    (e) After December 31, 1949, any alderman or other officer
18or official of the employer, who files, while in office,
19written application with the board to be included hereunder.
20Notwithstanding any other provision of this Article, however, a
21person who holds part-time elective city office is not an
22employee, contributor, or participant with respect to that
23office, unless he or she (i) was so elected before the
24effective date of this amendatory Act of the 101st General
25Assembly and (ii) has elected while in that office to become a
26contributor. An elective city office shall be presumed to be

 

 

HB2750- 11 -LRB101 09164 RPS 54258 b

1part-time in the absence of an official job description or
2determination by the legal advisor of the city, filed with the
3board, declaring the elective city office to be full-time.
4    (f) Beginning January 1, 1984, any person employed by an
5employer other than the Chicago Housing Authority or the Public
6Building Commission of the city, whether or not such person is
7serving by temporary appointment or in a position exempt from
8the classified service as set forth in the Civil Service Act,
9or in a provisional or exempt position as specified in the
10personnel ordinance, provided that such person is neither (1)
11an alderman or other officer or official of the employer, nor
12(2) participating, on the basis of such employment, in any
13other pension fund or retirement system established under this
14Act.
15    (g) After December 31, 1959, any person employed in the law
16department of the city, or municipal court or Board of Election
17Commissioners of the city, who was a contributor and
18participant, on December 31, 1959, in the annuity and benefit
19fund in operation in the city on said date, by virtue of the
20Court and Law Department Employees' Annuity Act or the Board of
21Election Commissioners Employees' Annuity Act.
22    After December 31, 1959, the foregoing definition includes
23any other person employed or to be employed in the law
24department, or municipal court (other than as a judge), or
25Board of Election Commissioners (if his salary is provided by
26appropriation of the city council of the city and his salary

 

 

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1paid by the city) -- subject, however, in the case of such
2persons not participants on December 31, 1959, to compliance
3with the same qualifications and restrictions otherwise set
4forth in this Section and made generally applicable to
5employees or officers of the city concerning eligibility for
6participation or membership.
7    Notwithstanding any other provision in this Section, any
8person who first becomes employed in the law department of the
9city on or after the effective date of this amendatory Act of
10the 100th General Assembly shall be included within the
11foregoing definition, effective upon the date the person first
12becomes so employed, regardless of the nature of the
13appointment the person holds under the provisions of a
14personnel ordinance.
15    (h) After December 31, 1965, any person employed in the
16public library of the city -- and any other person -- who was a
17contributor and participant, on December 31, 1965, in the
18pension fund in operation in the city on said date, by virtue
19of the Public Library Employees' Pension Act.
20    (i) After December 31, 1968, any person employed in the
21house of correction of the city, who was a contributor and
22participant, on December 31, 1968, in the pension fund in
23operation in the city on said date, by virtue of the House of
24Correction Employees' Pension Act.
25    (j) Any person employed full-time on or after the effective
26date of this amendatory Act of the 92nd General Assembly by the

 

 

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1Chicago Housing Authority who has elected to participate in
2this Fund as provided in subsection (a) of Section 8-230.9.
3    (k) Any person employed full-time by the Public Building
4Commission of the city who has elected to participate in this
5Fund as provided in subsection (d) of Section 8-230.7.
6(Source: P.A. 100-23, eff. 7-6-17.)
 
7    (40 ILCS 5/8-243)  (from Ch. 108 1/2, par. 8-243)
8    Sec. 8-243. Service as alderman or member of city council.
9Whenever any person has served or hereafter serves as a duly
10elected alderman or member of the city council of any city of
11more than 500,000 inhabitants and is or hereafter becomes a
12contributing participant in any pension fund or any annuity and
13benefit fund in existence in such city by operation of law, the
14period of service as such alderman or member of the city
15council shall be counted as a period of service in computing
16any annuity or pension which such person may become entitled to
17receive from such fund upon separation from the service, except
18as ruled out for minimum annuity purposes in Section
198-232(a)(3), and except that service in a part-time elective
20office of the city shall not be counted unless the official was
21so elected before the effective date of this amendatory Act of
22the 101st General Assembly. An elective office shall be
23presumed to be part-time in the absence of an official job
24description or determination by the legal advisor of the city,
25filed with the Board, declaring the elective position to be

 

 

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1full-time.
2(Source: Laws 1963, p. 161.)
 
3    (40 ILCS 5/9-108)  (from Ch. 108 1/2, par. 9-108)
4    Sec. 9-108. "Employee", "contributor" or "participant".
5    (a) Any employee of the county employed in any position in
6the classified civil service of the county, or in any position
7under the County Police Merit Board as a deputy sheriff in the
8County Police Department.
9    Any such employee employed after January 1, 1968 and before
10January 1, 1984 shall be entitled only to the benefits provided
11in Sections 9-147 and 9-156, prior to the earlier of completion
12of 12 consecutive calendar months of service and January 1,
131984, and no contributions shall be made by him during this
14period. Upon the completion of said period contributions shall
15begin and the employee shall become entitled to the benefits of
16this Article.
17    Any such employee may elect to make contributions for such
18period and receive credit therefor under rules prescribed by
19the board.
20    Any such employee in service on or after January 1, 1984,
21regardless of when he became an employee, shall be deemed a
22participant and contributor to the fund created by this Article
23and the employee shall be entitled to the benefits of this
24Article.
25    (b) Any employee of the county employed in any position not

 

 

HB2750- 15 -LRB101 09164 RPS 54258 b

1included in the classified civil service of the county whose
2salary or wage is paid in whole or in part by the county. Any
3such employee employed after July 1, 1957, and before January
41, 1984, shall be entitled only to the benefits provided in
5Sections 9-147 and 9-156, prior to the earlier of completion of
612 consecutive calendar months of service and January 1, 1984,
7and no contributions shall be made by him during this period.
8Upon the completion of said period contributions shall begin
9and the employee shall become entitled to the benefits of this
10Article.
11    Any such employee may elect to make contributions for such
12period and receive credit therefor under rules prescribed by
13the board.
14    Any such employee in service on or after January 1, 1984,
15regardless of when he became an employee, shall be deemed a
16participant and contributor to the fund created by this Article
17and the employee shall be entitled to the benefits of this
18Article.
19    (c) Any full-time county officer elected by vote of the
20people, including a member of the county board, when such
21officer elects to become a contributor. A person who holds a
22part-time elective county office is not an employee,
23contributor, or participant with respect to that office, unless
24he or she (i) was elected to that office before the effective
25date of this amendatory Act of the 101st General Assembly and
26(ii) has elected while in that office to become a contributor.

 

 

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1An elective county office shall be presumed to be part-time in
2the absence of an official job description or determination by
3the legal advisor of the county, filed with the Board,
4declaring the elective county office to be full-time.
5    (d) Any person employed by the board.
6    (e) Employees of a County Department of Public Aid in
7counties of 3,000,000 or more population who are transferred to
8State employment by operation of law enacted by the 76th
9General Assembly and who elect not to become members of the
10Retirement System established under Article 14 of this Code as
11of the date they become State employees shall retain their
12membership in the fund established in this Article 9 until the
13first day of the calendar month next following the date on
14which they become State employees, at which time they shall
15become members of the System established under Article 14.
16    (f) If, by operation of law, a function of a "Governmental
17Unit", as such term is defined in the "Retirement Systems
18Reciprocal Act" in Article 20 of the Illinois Pension Code, is
19transferred in whole or in part to the county in which this
20Article is in force and effect, and employees are transferred
21as a group or class to such county service, such transferred
22employee shall, if on the day immediately prior to the date of
23such transfer he was a contributor and participant in the
24annuity and benefit fund or retirement system in operation in
25such other "Governmental Unit" for employees of such Unit,
26immediately upon such transfer be deemed a participant and

 

 

HB2750- 17 -LRB101 09164 RPS 54258 b

1contributor to the fund created by this Article.
2(Source: P.A. 90-655, eff. 7-30-98.)