99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4582

 

Introduced , by Rep. Jeanne M Ives

 

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.


LRB099 16526 RPS 40862 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4582LRB099 16526 RPS 40862 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 99th 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)

 

 

HB4582- 2 -LRB099 16526 RPS 40862 b

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
2199th 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

 

 

HB4582- 3 -LRB099 16526 RPS 40862 b

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 99th 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

 

 

HB4582- 4 -LRB099 16526 RPS 40862 b

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. Any person who holds full-time elective office,
19    unless he or she has elected while in that office in a
20    written notice on file with the board to become a
21    participating employee;
22        2a. Any person who holds part-time elective office,
23    unless he or she (i) was elected to that office before the
24    effective date of this amendatory Act of the 99th General
25    Assembly and (ii) has elected while in that office in a
26    written notice on file with the board to become a

 

 

HB4582- 5 -LRB099 16526 RPS 40862 b

1    participating employee. An elective office shall be
2    presumed to be part-time in the absence of an official job
3    description or determination by the legal advisor of the
4    applicable participating municipality or participating
5    instrumentality, filed with the Board, declaring the
6    elective position to be full-time;
7        3. Any person working for a city hospital unless any
8    such person, while in active employment, has elected in a
9    written notice on file with the board to become a
10    participating employee and notification thereof is
11    received by the board;
12        4. Any person who becomes an employee after June 30,
13    1979 as a public service employment program participant
14    under the federal Comprehensive Employment and Training
15    Act and whose wages or fringe benefits are paid in whole or
16    in part by funds provided under such Act;
17        5. Any person who is actively employed by a
18    municipality on its effective date of participation in the
19    Fund if that municipality (i) has at least 35 employees on
20    its effective date of participation; (ii) is located in a
21    county with at least 2,000,000 inhabitants; and (iii)
22    maintains an independent defined benefit pension plan for
23    the benefit of its eligible employees, unless the person
24    files with the board within 90 days after the
25    municipality's effective date of participation an
26    irrevocable election to participate.

 

 

HB4582- 6 -LRB099 16526 RPS 40862 b

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

 

 

HB4582- 7 -LRB099 16526 RPS 40862 b

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

 

 

HB4582- 8 -LRB099 16526 RPS 40862 b

1participating municipality or participating instrumentality
2shall be considered to have adopted any such resolution or
3ordinance which may have been applicable to the employees
4performing such functions. The election made by the resolution
5or ordinance shall take effect at the time specified in the
6resolution or ordinance, and once effective shall be
7irrevocable.
8(Source: P.A. 96-1140, eff. 7-21-10; 97-328, eff. 8-12-11;
997-609, eff. 1-1-12.)
 
10    (40 ILCS 5/8-113)  (from Ch. 108 1/2, par. 8-113)
11    Sec. 8-113. Municipal employee, employee, contributor, or
12participant. "Municipal employee", "employee", "contributor",
13or "participant":
14    (a) Any employee of an employer employed in the classified
15civil service thereof other than by temporary appointment or in
16a position excluded or exempt from the classified service by
17the Civil Service Act, or in the case of a city operating under
18a personnel ordinance, any employee of an employer employed in
19the classified or career service under the provisions of a
20personnel ordinance, other than in a provisional or exempt
21position as specified in such ordinance or in rules and
22regulations formulated thereunder.
23    (b) Any employee in the service of an employer before the
24Civil Service Act came in effect for the employer.
25    (c) Any person employed by the board.

 

 

HB4582- 9 -LRB099 16526 RPS 40862 b

1    (d) Any person employed after December 31, 1949, but prior
2to January 1, 1984, in the service of the employer by temporary
3appointment or in a position exempt from the classified service
4as set forth in the Civil Service Act, or in a provisional or
5exempt position as specified in the personnel ordinance, who
6meets the following qualifications:
7        (1) has rendered service during not less than 12
8    calendar months to an employer as an employee, officer, or
9    official, 4 months of which must have been consecutive full
10    normal working months of service rendered immediately
11    prior to filing application to be included; and
12        (2) files written application with the board, while in
13    the service, to be included hereunder.
14    (e) After December 31, 1949, any alderman or other officer
15or official of the employer, who files, while in office,
16written application with the board to be included hereunder.
17Notwithstanding any other provision of this Article, however, a
18person who holds part-time elective city office is not an
19employee, contributor, or participant with respect to that
20office, unless he or she (i) was so elected before the
21effective date of this amendatory Act of the 99th General
22Assembly and (ii) has elected while in that office to become a
23contributor. An elective city office shall be presumed to be
24part-time in the absence of an official job description or
25determination by the legal advisor of the city, filed with the
26board, declaring the elective city office to be full-time.

 

 

HB4582- 10 -LRB099 16526 RPS 40862 b

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

 

 

HB4582- 11 -LRB099 16526 RPS 40862 b

1forth in this Section and made generally applicable to
2employees or officers of the city concerning eligibility for
3participation or membership.
4    (h) After December 31, 1965, any person employed in the
5public library of the city -- and any other person -- who was a
6contributor and participant, on December 31, 1965, in the
7pension fund in operation in the city on said date, by virtue
8of the Public Library Employees' Pension Act.
9    (i) After December 31, 1968, any person employed in the
10house of correction of the city, who was a contributor and
11participant, on December 31, 1968, in the pension fund in
12operation in the city on said date, by virtue of the House of
13Correction Employees' Pension Act.
14    (j) Any person employed full-time on or after the effective
15date of this amendatory Act of the 92nd General Assembly by the
16Chicago Housing Authority who has elected to participate in
17this Fund as provided in subsection (a) of Section 8-230.9.
18    (k) Any person employed full-time by the Public Building
19Commission of the city who has elected to participate in this
20Fund as provided in subsection (d) of Section 8-230.7.
21(Source: P.A. 92-599, eff. 6-28-02.)
 
22    (40 ILCS 5/8-243)  (from Ch. 108 1/2, par. 8-243)
23    Sec. 8-243. Service as alderman or member of city council.
24Whenever any person has served or hereafter serves as a duly
25elected alderman or member of the city council of any city of

 

 

HB4582- 12 -LRB099 16526 RPS 40862 b

1more than 500,000 inhabitants and is or hereafter becomes a
2contributing participant in any pension fund or any annuity and
3benefit fund in existence in such city by operation of law, the
4period of service as such alderman or member of the city
5council shall be counted as a period of service in computing
6any annuity or pension which such person may become entitled to
7receive from such fund upon separation from the service, except
8as ruled out for minimum annuity purposes in Section
98-232(a)(3), and except that service in a part-time elective
10office of the city shall not be counted unless the official was
11so elected before the effective date of this amendatory Act of
12the 99th General Assembly. An elective office shall be presumed
13to be part-time in the absence of an official job description
14or determination by the legal advisor of the city, filed with
15the Board, declaring the elective position to be full-time.
16(Source: Laws 1963, p. 161.)
 
17    (40 ILCS 5/9-108)  (from Ch. 108 1/2, par. 9-108)
18    Sec. 9-108. "Employee", "contributor" or "participant".
19    (a) Any employee of the county employed in any position in
20the classified civil service of the county, or in any position
21under the County Police Merit Board as a deputy sheriff in the
22County Police Department.
23    Any such employee employed after January 1, 1968 and before
24January 1, 1984 shall be entitled only to the benefits provided
25in Sections 9-147 and 9-156, prior to the earlier of completion

 

 

HB4582- 13 -LRB099 16526 RPS 40862 b

1of 12 consecutive calendar months of service and January 1,
21984, and no contributions shall be made by him during this
3period. Upon the completion of said period contributions shall
4begin and the employee shall become entitled to the benefits of
5this Article.
6    Any such employee may elect to make contributions for such
7period and receive credit therefor under rules prescribed by
8the board.
9    Any such employee in service on or after January 1, 1984,
10regardless of when he became an employee, shall be deemed a
11participant and contributor to the fund created by this Article
12and the employee shall be entitled to the benefits of this
13Article.
14    (b) Any employee of the county employed in any position not
15included in the classified civil service of the county whose
16salary or wage is paid in whole or in part by the county. Any
17such employee employed after July 1, 1957, and before January
181, 1984, shall be entitled only to the benefits provided in
19Sections 9-147 and 9-156, prior to the earlier of completion of
2012 consecutive calendar months of service and January 1, 1984,
21and no contributions shall be made by him during this period.
22Upon the completion of said period contributions shall begin
23and the employee shall become entitled to the benefits of this
24Article.
25    Any such employee may elect to make contributions for such
26period and receive credit therefor under rules prescribed by

 

 

HB4582- 14 -LRB099 16526 RPS 40862 b

1the board.
2    Any such employee in service on or after January 1, 1984,
3regardless of when he became an employee, shall be deemed a
4participant and contributor to the fund created by this Article
5and the employee shall be entitled to the benefits of this
6Article.
7    (c) Any full-time county officer elected by vote of the
8people, including a member of the county board, when such
9officer elects to become a contributor. A person who holds a
10part-time elective county office is not an employee,
11contributor, or participant with respect to that office, unless
12he or she (i) was elected to that office before the effective
13date of this amendatory Act of the 99th General Assembly and
14(ii) has elected while in that office to become a contributor.
15An elective county office shall be presumed to be part-time in
16the absence of an official job description or determination by
17the legal advisor of the county, filed with the Board,
18declaring the elective county office to be full-time.
19    (d) Any person employed by the board.
20    (e) Employees of a County Department of Public Aid in
21counties of 3,000,000 or more population who are transferred to
22State employment by operation of law enacted by the 76th
23General Assembly and who elect not to become members of the
24Retirement System established under Article 14 of this Code as
25of the date they become State employees shall retain their
26membership in the fund established in this Article 9 until the

 

 

HB4582- 15 -LRB099 16526 RPS 40862 b

1first day of the calendar month next following the date on
2which they become State employees, at which time they shall
3become members of the System established under Article 14.
4    (f) If, by operation of law, a function of a "Governmental
5Unit", as such term is defined in the "Retirement Systems
6Reciprocal Act" in Article 20 of the Illinois Pension Code, is
7transferred in whole or in part to the county in which this
8Article is in force and effect, and employees are transferred
9as a group or class to such county service, such transferred
10employee shall, if on the day immediately prior to the date of
11such transfer he was a contributor and participant in the
12annuity and benefit fund or retirement system in operation in
13such other "Governmental Unit" for employees of such Unit,
14immediately upon such transfer be deemed a participant and
15contributor to the fund created by this Article.
16(Source: P.A. 90-655, eff. 7-30-98.)