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    AN ACT concerning employment benefits. 

 
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    Be it enacted by the People of the State of Illinois, 
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represented in the General Assembly: 


 
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    Section 1. Short title. This Act may be cited as the 
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Illinois Fringe Benefit Portability and Continuity Act.
 
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    Section 5. Public policy.  It is the purpose of this

Act 
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that temporary or short-term employees employed by the State

of 
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Illinois and its political subdivisions or other public


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employers shall have continuity of health and welfare 
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insurance,

pension, and other fringe benefits for work 
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performed for the State of Illinois, its political 
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subdivisions, and other

public employers, and that the State of 
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Illinois and its

political subdivisions and other public 
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employers shall have

the contractual authority to execute 
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written agreements with

employee benefit plans and labor 
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organizations to ensure that

temporary and short-term 
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employees have continuity of health and

welfare insurance, 
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pension, and other fringe benefits for work

performed for the 
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State of Illinois and its political subdivisions or

other 
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public employers.



 
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    Section 10. Application.  This Act applies to the

State of 
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Illinois and its political subdivisions and other

public 
 


 






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employers that employ temporary or short-term employees

who are 
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not covered by an employment contract or collective

bargaining 
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agreement but who are referred from labor

organizations and are 
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receiving a fringe benefit allowance

directly and in the form 
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of wages from the State of Illinois and

its political 
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subdivisions and other public employers.



 
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    Section 15. Definitions.  As used in this Act, unless

the 
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context otherwise requires:
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    "Employee benefit plan" shall mean an employee benefit

plan 
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as defined under the Employee Retirement Income Security

Act, 
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29 U.S.C. 1001, et seq.
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    "Temporary or short-term employee" shall mean an employee


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who is not covered by a collective bargaining agreement or an


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employment contract.

      
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    "Written agreement" shall mean a participation agreement


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or other agreement prescribed by the employee benefit plan or


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labor organization but shall not be construed as a collective


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bargaining agreement, except as permitted under the Illinois


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Public Labor Relations Act.



 
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    Section 20. Fringe benefit portability and continuity. 
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    (a) If the  State of Illinois, its political subdivisions,

or 
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other public employers procure short-term or temporary 
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employees from a labor organization, then the State of 
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Illinois, its political subdivisions, or other public 
 


 






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employers shall enter into written agreements

with employee 
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benefit plans and labor organizations providing

that the State 
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of Illinois, its political subdivisions, or

other public 
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employers shall make an employer contribution of the benefit 
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allowance

of the applicable wage package to the applicable


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employee benefit plans for the

temporary or short-term 
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employees who are referred from labor

organizations, provided 
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that:
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        (1) The employee benefit plans are employee pension


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    benefit plans or employee welfare benefit plans

under the 
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    Employee Retirement Income Security Act.
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        (2) The referred employee, as a condition of referral 
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    to

the State of Illinois and its political subdivisions

or 
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    other public employers as a temporary or short-term


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    employee, has entered into an agreement or

authorization 
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    with a labor organization to have the

fringe benefit 
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    allowance of the applicable wage rate

remitted directly to 
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    an employee benefit plan.
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        (3) The fringe benefit allowance of the applicable wage


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    package shall be an employer contribution and not an


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    employee wage deduction.
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        (4) The State of Illinois and its political 
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    subdivisions

and other public employers agree, in writing, 
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    to make

contributions subject to the same rules and 
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    policies

generally applicable to private employers who are


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    making contributions to that employee benefit plan.
 


 






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    (b) The written agreement specified in subsection (a) shall 
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not be construed as a collective bargaining

agreement, contract 
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for employment, or an agreement that

otherwise guarantees the 
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employment of the temporary or short-term

employees used by the 
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State of Illinois and its

political subdivisions and other 
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public employers. Nothing in

this Act shall be construed to 
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afford temporary or short-term

employees the right to organize 
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or collectively bargain

pursuant to the Illinois Public Labor 
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Relations Act, except as

specifically provided by the 
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provisions of that Act. Nothing in

this Act shall be construed 
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to afford temporary or short-term

employees any benefit or the 
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right to participate in any

retirement system of the State of 
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Illinois, except as

specifically provided by the provisions of 
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the Illinois Pension Code.



 
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    Section 25. Construction of Act.  This Act shall be


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liberally construed to effect the purposes of the Act. By 
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virtue

of this Act, the State of Illinois and its political 
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subdivisions

or other public employers shall not be considered 
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to be

maintaining or administering an employee benefit plan.



 
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    Section 97. Severability. The provisions of this Act are 
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severable under Section 1.31 of the Statute on Statutes.
 
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    Section 99. Effective date. This Act takes effect upon 
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becoming law.