State of Illinois
2011 and 2012


Introduced , by Rep. Sandy Cole


40 ILCS 5/7-109  from Ch. 108 1/2, par. 7-109

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code, Amends the definition of "employee" to exclude persons whose employment does not benefit the public. Also includes technical changes. Effective immediately.

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HB4607LRB097 18128 EFG 63352 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
5Section 7-109 as follows:
6    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
7    Sec. 7-109. Employee.
8    (1) "Employee" means any person who:
9        (a) 1. Receives earnings as payment for the performance
10        of personal services or official duties out of the
11        general fund of a municipality, or out of any special
12        fund or funds controlled by a municipality, or by an
13        instrumentality thereof, or a participating
14        instrumentality, including, in counties, the fees or
15        earnings of any county fee office; and
16            2. Under the usual common law rules applicable in
17        determining the employer-employee relationship, has
18        the status of an employee with a municipality, or any
19        instrumentality thereof, or a participating
20        instrumentality, including aldermen, county
21        supervisors and other persons (excepting those
22        employed as independent contractors) who are paid
23        compensation, fees, allowances or other emolument for



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1        official duties, and, in counties, the several county
2        fee offices.
3        (b) Serves as a township treasurer appointed under the
4    School Code, as heretofore or hereafter amended, and who
5    receives for such services regular compensation as
6    distinguished from per diem compensation, and any regular
7    employee in the office of any township treasurer whether or
8    not his earnings are paid from the income of the permanent
9    township fund or from funds subject to distribution to the
10    several school districts and parts of school districts as
11    provided in the School Code, or from both such sources; or
12    is the chief executive officer, chief educational officer,
13    chief fiscal officer, or other employee of a Financial
14    Oversight Panel established pursuant to Article 1H of the
15    School Code, other than a superintendent or certified
16    school business official, except that such person shall not
17    be treated as an employee under this Section if that person
18    has negotiated with the Financial Oversight Panel, in
19    conjunction with the school district, a contractual
20    agreement for exclusion from this Section.
21        (c) Holds an elective office in a municipality,
22    instrumentality thereof or participating instrumentality.
23    (2) "Employee" does not include persons who:
24        (a) Are eligible for inclusion under any of the
25    following laws:
26            1. "An Act in relation to an Illinois State



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1        Teachers' Pension and Retirement Fund", approved May
2        27, 1915, as amended;
3            2. Articles 15 and 16 of this Code.
4        However, such persons shall be included as employees to
5    the extent of earnings that are not eligible for inclusion
6    under the foregoing laws for services not of an
7    instructional nature of any kind.
8        However, any member of the armed forces who is employed
9    as a teacher of subjects in the Reserve Officers Training
10    Corps of any school and who is not certified under the law
11    governing the certification of teachers shall be included
12    as an employee.
13        (b) Are designated by the governing body of a
14    municipality in which a pension fund is required by law to
15    be established for policemen or firemen, respectively, as
16    performing police or fire protection duties, except that
17    when such persons are the heads of the police or fire
18    department and are not eligible to be included within any
19    such pension fund, they shall be included within this
20    Article; provided, that such persons shall not be excluded
21    to the extent of concurrent service and earnings not
22    designated as being for police or fire protection duties.
23    However, (i) any head of a police department who was a
24    participant under this Article immediately before October
25    1, 1977 and did not elect, under Section 3-109 of this Act,
26    to participate in a police pension fund shall be an



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1    "employee", and (ii) any chief of police who elects to
2    participate in this Fund under Section 3-109.1 of this
3    Code, regardless of whether such person continues to be
4    employed as chief of police or is employed in some other
5    rank or capacity within the police department, shall be an
6    employee under this Article for so long as such person is
7    employed to perform police duties by a participating
8    municipality and has not lawfully rescinded that election.
9        (c) After August 26, 2011 (the effective date of Public
10    Act 97-609) this amendatory Act of the 97th General
11    Assembly, are contributors to or eligible to contribute to
12    a Taft-Hartley pension plan established on or before June
13    1, 2011 and are employees of a theatre, arena, or
14    convention center that is located in a municipality located
15    in a county with a population greater than 5,000,000, and
16    to which the participating municipality is required to
17    contribute as the person's employer based on earnings from
18    the municipality. Nothing in this paragraph shall affect
19    service credit or creditable service for any period of
20    service prior to August 26, 2011 the effective date of this
21    amendatory Act of the 97th General Assembly, and this
22    paragraph shall not apply to individuals who are
23    participating in the Fund prior to August 26, 2011 the
24    effective date of this amendatory Act of the 97th General
25    Assembly.
26    (3) All persons, including, without limitation, public



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1defenders and probation officers, who receive earnings from
2general or special funds of a county for performance of
3personal services or official duties within the territorial
4limits of the county, are employees of the county (unless
5excluded by subsection (2) of this Section) notwithstanding
6that they may be appointed by and are subject to the direction
7of a person or persons other than a county board or a county
8officer. It is hereby established that an employer-employee
9relationship under the usual common law rules exists between
10such employees and the county paying their salaries by reason
11of the fact that the county boards fix their rates of
12compensation, appropriate funds for payment of their earnings
13and otherwise exercise control over them. This finding and this
14amendatory Act shall apply to all such employees from the date
15of appointment whether such date is prior to or after the
16effective date of this amendatory Act and is intended to
17clarify existing law pertaining to their status as
18participating employees in the Fund.
19    (4) Notwithstanding any other provision of this Section,
20beginning on the effective date of this amendatory Act of the
2197th General Assembly, "employee" does not include any person
22whose employment does not benefit the public.
23(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
24revised 9-28-11.)
25    Section 99. Effective date. This Act takes effect upon
26becoming law.