Full Text of SB0799 94th General Assembly
SB0799eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section
7-132 as follows:
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| (40 ILCS 5/7-132)
(from Ch. 108 1/2, par. 7-132)
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| Sec. 7-132. Municipalities, instrumentalities and | 8 |
| participating
instrumentalities included and effective dates.
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| (A) Municipalities and their instrumentalities.
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| (a) The following described municipalities, but not | 11 |
| including any with
more than 1,000,000 inhabitants, and the | 12 |
| instrumentalities thereof,
shall be included within and be | 13 |
| subject to this Article beginning upon the
effective dates | 14 |
| specified by the Board:
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| (1) Except as to the municipalities and | 16 |
| instrumentalities thereof
specifically excluded under this | 17 |
| Article, every county shall be subject to
this Article, and | 18 |
| all cities, villages and incorporated towns having a
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| population in excess of 5,000 inhabitants as determined by | 20 |
| the last
preceding decennial or subsequent federal census, | 21 |
| shall be subject to this
Article following publication of | 22 |
| the census by the Bureau of the Census.
Within 90 days | 23 |
| after publication of the census, the Board shall notify
any | 24 |
| municipality that has become subject to this Article as a | 25 |
| result of
that census, and shall provide information to the | 26 |
| corporate authorities of
the municipality explaining the | 27 |
| duties and consequences of participation.
The notification | 28 |
| shall also include a proposed date upon which
participation | 29 |
| by the municipality will commence.
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| However, for any city, village or incorporated town | 31 |
| that attains a
population over 5,000 inhabitants after |
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| having provided social security
coverage for its employees | 2 |
| under the Social Security Enabling Act,
participation | 3 |
| under this Article shall not be mandatory but may be | 4 |
| elected
in accordance with subparagraph (3) or (4) of this | 5 |
| paragraph (a), whichever
is applicable.
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| (2) School districts, other than those specifically
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| excluded under this Article, shall be subject to this | 8 |
| Article, without
election, with respect to all employees | 9 |
| thereof.
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| (3) Towns and all other bodies politic and corporate | 11 |
| which
are formed by vote of, or are subject to control by, | 12 |
| the electors in towns
and are located in towns which are | 13 |
| not participating municipalities on the
effective date of | 14 |
| this Act, may become subject to this Article by
election | 15 |
| pursuant to Section 7-132.1.
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| (4) Any other municipality (together with its | 17 |
| instrumentalities),
other than those specifically excluded | 18 |
| from participation and those
described in paragraph (3) | 19 |
| above, may elect to be included either by
referendum under | 20 |
| Section 7-134 or by the adoption of a resolution or
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| ordinance by its governing body. A copy of such resolution | 22 |
| or ordinance
duly authenticated and certified by the clerk | 23 |
| of the municipality or other
appropriate official of its | 24 |
| governing body shall constitute the required
notice to the | 25 |
| board of such action.
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| (b) A municipality that is about to begin participation | 27 |
| shall submit to
the Board an application to participate, in a | 28 |
| form acceptable to the Board,
not later than 90 days prior to | 29 |
| the proposed effective date of
participation. The Board shall | 30 |
| act upon the application within 90 days,
and if it finds that | 31 |
| the application is in conformity with its requirements
and the | 32 |
| requirements of this Article, participation by the applicant | 33 |
| shall
commence on a date acceptable to the municipality and | 34 |
| specified by the
Board, but in no event more than one year from | 35 |
| the date of application.
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| (c) A participating municipality which succeeds to the |
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| functions
of a participating municipality which is dissolved or | 2 |
| terminates its
existence shall assume and be transferred the | 3 |
| net accumulation balance
in the municipality reserve and the | 4 |
| municipality account receivable
balance of the terminated | 5 |
| municipality.
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| (d) In the case of a Veterans Assistance Commission whose | 7 |
| employees
were being treated by the Fund on January 1, 1990 as | 8 |
| employees of the
county served by the Commission, the Fund may | 9 |
| continue to treat the
employees of the Veterans Assistance | 10 |
| Commission as county employees for
the purposes of this | 11 |
| Article, unless the Commission becomes a participating
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| instrumentality in accordance with subsection (B) of this | 13 |
| Section.
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| (B) Participating instrumentalities.
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| (a) The participating instrumentalities designated in
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| paragraph (b) of this subsection shall be included within
and | 17 |
| be subject to this Article if:
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| (1) an application to participate, in a form acceptable | 19 |
| to
the Board and adopted by a two-thirds vote of the | 20 |
| governing body, is
presented to the Board not later than 90 | 21 |
| days prior to the proposed
effective date; and
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| (2) the Board finds that the application is in
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| conformity with its requirements, that the applicant has | 24 |
| reasonable
expectation to continue as a political entity | 25 |
| for a period of at least
10 years and has the prospective | 26 |
| financial capacity to meet its
current and future | 27 |
| obligations to the Fund, and that the actuarial
soundness | 28 |
| of the Fund may be reasonably expected to be unimpaired by
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| approval of participation by the applicant.
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| The Board shall notify the applicant of its findings within | 31 |
| 90 days
after receiving the application, and if the
Board | 32 |
| approves the application, participation by the applicant shall
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| commence on the effective date specified by the Board.
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| (b) The following participating instrumentalities, so long | 35 |
| as
they meet the requirements of Section 7-108 and the area |
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| served by them
or within their jurisdiction is not located | 2 |
| entirely within a municipality
having more than one million | 3 |
| inhabitants, may be included hereunder:
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| i. Township School District Trustees.
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| ii. Multiple County and Consolidated Health | 6 |
| Departments created
under Division 5-25 of the Counties | 7 |
| Code or its predecessor law.
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| iii. Public Building Commissions created under the | 9 |
| Public Building
Commission Act, and located in counties of | 10 |
| less
than 1,000,000 inhabitants.
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| iv. A multitype, consolidated or cooperative
library | 12 |
| system created under the Illinois Library System Act. Any
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| library system created under the Illinois Library System | 14 |
| Act that has one
or more predecessors that participated in | 15 |
| the Fund may participate in the
Fund upon application. The | 16 |
| Board shall establish procedures for
implementing the | 17 |
| transfer of rights and obligations from the predecessor
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| system to the successor system.
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| v. Regional Planning Commissions created under | 20 |
| Division 5-14 of the
Counties Code or its predecessor law.
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| vi. Local Public Housing Authorities created under the | 22 |
| Housing
Authorities Act, located in counties of less than | 23 |
| 1,000,000 inhabitants.
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| vii. Illinois Municipal League.
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| viii. Northeastern Illinois Metropolitan Area Planning | 26 |
| Commission.
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| ix. Southwestern Illinois Metropolitan Area Planning | 28 |
| Commission.
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| x. Illinois Association of Park Districts.
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| xi. Illinois Supervisors, County Commissioners and | 31 |
| Superintendents
of Highways Association.
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| xii. Tri-City Regional Port District.
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| xiii. An association, or not-for-profit corporation, | 34 |
| membership in
which is authorized under Section 85-15 of | 35 |
| the Township Code.
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| xiv. Drainage Districts operating under the Illinois |
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| Drainage
Code.
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| xv. Local mass transit districts created under the | 3 |
| Local Mass
Transit District Act.
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| xvi. Soil and water conservation districts created | 5 |
| under the Soil
and Water Conservation Districts Law.
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| xvii. Commissions created to provide water supply or | 7 |
| sewer services
or both under Division 135 or Division 136 | 8 |
| of Article 11 of the Illinois
Municipal Code.
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| xviii. Public water districts created under the Public | 10 |
| Water
District Act.
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| xix. Veterans Assistance Commissions established under | 12 |
| Section
9 of the Military Veterans Assistance Act that
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| serve counties with a population of less than 1,000,000.
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| xx. The governing body of an entity, other than a | 15 |
| vocational education
cooperative, created under an | 16 |
| intergovernmental cooperative agreement
established | 17 |
| between participating municipalities under the
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| Intergovernmental Cooperation Act, which by the terms of | 19 |
| the agreement is
the employer of the persons performing | 20 |
| services under the agreement under
the usual common law | 21 |
| rules determining the employer-employee relationship.
The | 22 |
| governing body of such an intergovernmental cooperative | 23 |
| entity
established prior to July 1, 1988 may make | 24 |
| participation retroactive to the
effective date of the | 25 |
| agreement and, if so, the effective date of
participation | 26 |
| shall be the date the required application is filed with | 27 |
| the
fund. If any such entity is unable to pay the required | 28 |
| employer
contributions to the fund, then the participating | 29 |
| municipalities shall make
payment of the required | 30 |
| contributions and the payments shall be allocated
as | 31 |
| provided in the agreement or, if not so provided, equally | 32 |
| among them.
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| xxi. The Illinois Municipal Electric Agency.
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| xxii. The Waukegan Port District.
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| xxiii. The Fox Waterway Agency created under the Fox | 36 |
| Waterway Agency
Act.
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| xxiv. The Illinois Municipal Gas Agency.
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| xxv. The Kaskaskia Regional Port District.
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| xxvi. The Southwestern Illinois Development Authority.
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| xxvii. The Cairo Public Utility Company.
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| xxviii. The United Counties Council of Illinois. If the | 6 |
| United Counties
Council of Illinois becomes a | 7 |
| participating instrumentality included within and
subject | 8 |
| to this Article, service with the Council under its | 9 |
| previous name (the
Urban Counties Council of Illinois) | 10 |
| shall be deemed service with the same
employer. The | 11 |
| employer may elect to make any employee contributions for | 12 |
| prior
service on behalf of the employees.
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| (c) The governing boards of special education joint | 14 |
| agreements
created under Section 10-22.31 of the School Code | 15 |
| without designation of an
administrative district shall be | 16 |
| included within and be subject to this
Article as participating | 17 |
| instrumentalities when the joint agreement becomes
effective. | 18 |
| However, the governing board of any such special education
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| joint agreement in effect before September 5, 1975 shall not be | 20 |
| subject to this
Article unless the joint agreement is modified | 21 |
| by the school districts to
provide that the governing board is | 22 |
| subject to this Article, except as
otherwise provided by this | 23 |
| Section.
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| The governing board of the Special Education District of | 25 |
| Lake County shall
become subject to this Article as a | 26 |
| participating instrumentality on July 1,
1997. Notwithstanding | 27 |
| subdivision (a)1 of Section 7-139, on the effective date
of | 28 |
| participation, employees of the governing board of the Special | 29 |
| Education
District of Lake County shall receive creditable | 30 |
| service for their prior
service with that employer, up to a | 31 |
| maximum of 5 years, without any employee
contribution. | 32 |
| Employees may establish creditable service for the remainder
of | 33 |
| their prior service with that employer, if any, by applying in | 34 |
| writing and
paying an employee contribution in an amount | 35 |
| determined by the Fund, based on
the employee contribution | 36 |
| rates in effect at the time of application for the
creditable |
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| service and the employee's salary rate on the effective date of
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| participation for that employer, plus interest at the effective | 3 |
| rate from the
date of the prior service to the date of payment. | 4 |
| Application for this
creditable service must be made before | 5 |
| July 1, 1998; the payment may be made
at any time while the | 6 |
| employee is still in service. The employer may elect to
make | 7 |
| the required contribution on behalf of the employee.
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| The governing board of a special education joint agreement | 9 |
| created
under Section 10-22.31 of the School Code for which an | 10 |
| administrative
district has been designated, if there are | 11 |
| employees of the cooperative
educational entity who are not | 12 |
| employees of the administrative district,
may elect to | 13 |
| participate in the Fund and be included within this Article as
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| a participating instrumentality, subject to such application | 15 |
| procedures and
rules as the Board may prescribe.
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| The Boards of Control of cooperative or joint educational | 17 |
| programs or
projects created and administered under Section | 18 |
| 3-15.14 of the School
Code, whether or not the Boards act as | 19 |
| their own administrative district,
shall be included within and | 20 |
| be subject to this Article as participating
instrumentalities | 21 |
| when the agreement establishing the cooperative or joint
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| educational program or project becomes effective.
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| The governing board of a special education joint agreement | 24 |
| entered into
after June 30, 1984 and prior to September 17, | 25 |
| 1985 which provides for
representation on the governing board | 26 |
| by less than all the participating
districts shall be included | 27 |
| within and subject to this Article as a
participating | 28 |
| instrumentality. Such participation shall be effective as of
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| the date the joint agreement becomes effective.
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| The governing boards of educational service centers | 31 |
| established under
Section 2-3.62 of the School Code shall be | 32 |
| included within and subject to
this Article as participating | 33 |
| instrumentalities. The governing boards of
vocational | 34 |
| education cooperative agreements created under the
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| Intergovernmental Cooperation Act and approved by the State | 36 |
| Board of
Education shall be included within and be subject to |
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| this
Article as participating instrumentalities. If any such | 2 |
| governing boards
or boards of control are unable to pay the | 3 |
| required employer contributions
to the fund, then the school | 4 |
| districts served by such boards shall make
payment of required | 5 |
| contributions as provided in Section 7-172. The
payments shall | 6 |
| be allocated among the several school districts in
proportion | 7 |
| to the number of students in average daily attendance for the
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| last full school year for each district in relation to the | 9 |
| total number of
students in average attendance for such period | 10 |
| for all districts served.
If such educational service centers, | 11 |
| vocational education cooperatives or
cooperative or joint | 12 |
| educational programs or projects created and
administered | 13 |
| under Section 3-15.14 of the School Code are dissolved, the
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| assets and obligations shall be distributed among the districts | 15 |
| in the
same proportions unless otherwise provided.
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| (d) The governing boards of special recreation joint | 17 |
| agreements
created under Section 8-10b of the Park District | 18 |
| Code, operating
without
designation of an administrative | 19 |
| district or an administrative
municipality appointed to | 20 |
| administer the program operating under the
authority of such | 21 |
| joint agreement shall be included within and be
subject to this | 22 |
| Article as participating instrumentalities when the
joint | 23 |
| agreement becomes effective. However, the governing board of | 24 |
| any
such special recreation joint agreement in effect before | 25 |
| January 1,
1980 shall not be subject to this Article unless the | 26 |
| joint agreement is
modified, by the districts and | 27 |
| municipalities which are parties to the
agreement, to provide | 28 |
| that the governing board is subject to this Article.
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| If the Board returns any employer and employee | 30 |
| contributions to any
employer which erroneously submitted such | 31 |
| contributions on behalf of a
special recreation joint | 32 |
| agreement, the Board shall include interest
computed from the | 33 |
| end of each year to the date of payment, not compounded,
at the | 34 |
| rate of 7% per annum.
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| (e) Each multi-township assessment district, the board of
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| trustees of which has adopted this Article by ordinance prior |
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| to April 1,
1982, shall be a participating instrumentality | 2 |
| included within and subject
to this Article effective December | 3 |
| 1, 1981. The contributions required
under Section 7-172 shall | 4 |
| be included in the budget prepared under and
allocated in | 5 |
| accordance with Section 2-30 of the Property Tax Code.
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| (f) Beginning January 1, 1992, each prospective | 7 |
| participating
municipality or participating instrumentality | 8 |
| shall pay to the Fund the
cost, as determined by the Board, of | 9 |
| a study prepared by the Fund or its
actuary, detailing the | 10 |
| prospective costs of participation in the Fund to be
expected | 11 |
| by the municipality or instrumentality.
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| (Source: P.A. 92-424, eff. 8-17-01; 93-777, eff. 7-21-04.)
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law. |
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