Illinois General Assembly - Full Text of HB1956
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Full Text of HB1956  97th General Assembly




HB1956 EnrolledLRB097 10454 JDS 50686 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 7-135, 7-137, 7-141, and 7-144 as follows:
6    (40 ILCS 5/7-135)  (from Ch. 108 1/2, par. 7-135)
7    Sec. 7-135. Authorized agents.
8    (a) Each participating municipality and participating
9instrumentality shall appoint an authorized agent who shall
10have the powers and duties set forth in this section. In
11absence of such appointment, the duties of the authorized agent
12shall devolve upon the clerk or secretary of the municipality
13or instrumentality and in the case of township school trustees
14upon the township school treasurer. In townships the Authorized
15Agent shall be the township supervisor.
16    (b) The authorized agent shall have the following powers
17and duties:
18        1. To certify to the fund whether or not a given person
19    is authorized to participate in the fund;
20        2. To certify to the fund when a participating employee
21    is on a leave of absence authorized by the municipality;
22        3. To request the proper officer to cause employee
23    contributions to be withheld from earnings and transmitted



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1    to the fund;
2        4. To request the proper officer to cause municipality
3    contributions to be forwarded to the fund promptly;
4        5. To forward promptly to all participating employees
5    any communications from the fund for such employees;
6        6. To forward promptly to the fund all applications,
7    claims, reports and other communications delivered to him
8    by participating employees;
9        7. To perform all duties related to the administration
10    of this retirement system as requested by the fund and the
11    governing body of his municipality.
12    (c) The governing body of each participating municipality
13and participating instrumentality may delegate any or all of
14the following powers and duties to its authorized agent, but
15only if the agent is a member of the fund:
16        1. To file a petition for nomination of an executive
17    trustee of the fund.
18        2. To cast the ballot for election of an executive
19    trustee of the fund.
20    If a governing body does not authorize its agent to perform
21the powers and duties set forth in this paragraph (c), they
22shall be performed by the governing body itself, unless the
23governing body by resolution duly certified to the fund
24delegates them to some other officer or employee.
25    (d) The delivery of any communication or document by an
26employee or a participating municipality or participating



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1instrumentality to its authorized agent shall not constitute
2delivery to the fund.
3(Source: P.A. 87-740.)
4    (40 ILCS 5/7-137)  (from Ch. 108 1/2, par. 7-137)
5    Sec. 7-137. Participating and covered employees.
6    (a) The persons described in this paragraph (a) shall be
7included within and be subject to this Article and eligible to
8benefits from this fund, beginning upon the dates hereinafter
10        1. Except as to the employees specifically excluded
11    under the provisions of this Article, all persons who are
12    employees of any municipality (or instrumentality thereof)
13    or participating instrumentality on the effective date of
14    participation of the municipality or participating
15    instrumentality beginning upon such effective date.
16        2. Except as to the employees specifically excluded
17    under the provisions of this Article, all persons, who
18    became employees of any participating municipality (or
19    instrumentality thereof) or participating instrumentality
20    after the effective date of participation of such
21    municipality or participating instrumentality, beginning
22    upon the date such person becomes an employee.
23        3. All persons who file notice with the board as
24    provided in paragraph (b) 2 and 3 of this Section,
25    beginning upon the date of filing such notice.



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1    (b) The following described persons shall not be considered
2participating employees eligible for benefits from this fund,
3but shall be included within and be subject to this Article
4(each of the descriptions is not exclusive but is cumulative):
5        1. Any person who occupies an office or is employed in
6    a position normally requiring performance of duty during
7    less than 600 hours a year for a municipality (including
8    all instrumentalities thereof) or a participating
9    instrumentality. If a school treasurer performs services
10    for more than one school district, the total number of
11    hours of service normally required for the several school
12    districts shall be considered to determine whether he
13    qualifies under this paragraph;
14        2. Any person who holds elective office unless he has
15    elected while in that office in a written notice on file
16    with the board to become a participating employee;
17        3. Any person working for a city hospital unless any
18    such person, while in active employment, has elected in a
19    written notice on file with the board to become a
20    participating employee and notification thereof is
21    received by the board;
22        4. Any person who becomes an employee after June 30,
23    1979 as a public service employment program participant
24    under the federal Comprehensive Employment and Training
25    Act and whose wages or fringe benefits are paid in whole or
26    in part by funds provided under such Act;



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1        5. Any person who is actively employed by a
2    municipality on its effective date of participation in the
3    Fund if that municipality (i) has at least 35 employees on
4    its effective date of participation; (ii) is located in a
5    county with at least 2,000,000 inhabitants; and (iii)
6    maintains an independent defined benefit pension plan for
7    the benefit of its eligible employees, unless the person
8    files with the board within 90 days after the
9    municipality's effective date of participation an
10    irrevocable election to participate.
11    (c) Any person electing to be a participating employee,
12pursuant to paragraph (b) of this Section may not change such
13election, except as provided in Section 7-137.1.
14    (d) Any employee who occupied the position of school nurse
15in any participating municipality on August 8, 1961 and
16continuously thereafter until the effective date of the
17exercise of the option authorized by this subparagraph, who on
18August 7, 1961 was a member of the Teachers' Retirement System
19of Illinois, by virtue of certification by the Department of
20Registration and Education as a public health nurse, may elect
21to terminate participation in this Fund in order to
22re-establish membership in such System. The election may be
23exercised by filing written notice thereof with the Board or
24with the Board of Trustees of said Teachers' Retirement System,
25not later than September 30, 1963, and shall be effective on
26the first day of the calendar month next following the month in



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1which the notice was filed. If the written notice is filed with
2such Teachers' Retirement System, that System shall
3immediately notify this Fund, but neither failure nor delay in
4notification shall affect the validity of the employee's
5election. If the option is exercised, the Fund shall notify
6such Teachers' Retirement System of such fact and transfer to
7that system the amounts contributed by the employee to this
8Fund, including interest at 3% per annum, but excluding
9contributions applicable to social security coverage during
10the period beginning August 8, 1961 to the effective date of
11the employee's election. Participation in this Fund as to any
12credits on or after August 8, 1961 and up to the effective date
13of the employee's election shall terminate on such effective
15    (e) Any participating municipality or participating
16instrumentality, other than a school district or special
17education joint agreement created under Section 10-22.31 of the
18School Code, may, by a resolution or ordinance duly adopted by
19its governing body, elect to exclude from participation and
20eligibility for benefits all persons who are employed after the
21effective date of such resolution or ordinance and who occupy
22an office or are employed in a position normally requiring
23performance of duty for less than 1000 hours per year for the
24participating municipality (including all instrumentalities
25thereof) or participating instrumentality except for persons
26employed in a position normally requiring performance of duty



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1for 600 hours or more per year (i) by such participating
2municipality or participating instrumentality prior to the
3effective date of the resolution or ordinance and (ii) by a
4participating municipality or participating instrumentality,
5which had not adopted such a resolution when the person was
6employed, and the function served by the employee's position is
7assumed by another participating municipality or participating
8instrumentality. A participating municipality or participating
9instrumentality included in and subject to this Article after
10January 1, 1982 may adopt such resolution or ordinance only
11prior to the date it becomes included in and subject to this
12Article. Notwithstanding the foregoing, a participating
13municipality or participating instrumentality which is formed
14solely to succeed to the functions of a participating
15municipality or participating instrumentality shall be
16considered to have adopted any such resolution or ordinance
17which may have been applicable to the employees performing such
18functions. The election made by the resolution or ordinance
19shall take effect at the time specified in the resolution or
20ordinance, and once effective shall be irrevocable.
21(Source: P.A. 96-1140, eff. 7-21-10.)
22    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
23    Sec. 7-141. Retirement annuities - Conditions. Retirement
24annuities shall be payable as hereinafter set forth:
25    (a) A participating employee who, regardless of cause, is



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1separated from the service of all participating municipalities
2and instrumentalities thereof and participating
3instrumentalities shall be entitled to a retirement annuity
5        1. He is at least age 55, or in the case of a person who
6    is eligible to have his annuity calculated under Section
7    7-142.1, he is at least age 50;
8        2. He is (i) an employee who was employed by any
9    participating municipality or participating
10    instrumentality which had not elected to exclude persons
11    employed in positions normally requiring performance of
12    duty for less than 1000 hours per year or was employed in a
13    position normally requiring performance of duty for 600
14    hours or more per year prior to such election by any
15    participating municipality or participating
16    instrumentality included in and subject to this Article on
17    or before the effective date of this amendatory Act of 1981
18    which made such election and is not entitled to receive
19    earnings for employment in a position normally requiring
20    performance of duty for 600 hours or more per year for any
21    participating municipality and instrumentalities thereof
22    and participating instrumentality; or (ii) an employee who
23    was employed only by a participating municipality or
24    participating instrumentality, or participating
25    municipalities or participating instrumentalities, which
26    have elected to exclude persons in positions normally



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1    requiring performance of duty for less than 1000 hours per
2    year after the effective date of such exclusion or which
3    are included under and subject to the Article after the
4    effective date of this amendatory Act of 1981 and elects to
5    exclude persons in such positions, and is not entitled to
6    receive earnings for employment in a position requiring
7    him, or entitling him to elect, to be a participating
8    employee normally requiring performance of duty for 1000
9    hours or more per year by such a participating municipality
10    or participating instrumentality;
11        3. The amount of his annuity, before the application of
12    paragraph (b) of Section 7-142 is at least $10 per month;
13        4. If he first became a participating employee after
14    December 31, 1961, he has at least 8 years of service. This
15    service requirement shall not apply to any participating
16    employee, regardless of participation date, if the General
17    Assembly terminates the Fund.
18    (b) Retirement annuities shall be payable:
19        1. As provided in Section 7-119;
20        2. Except as provided in item 3, upon receipt by the
21    fund of a written application. The effective date may be
22    not more than one year prior to the date of the receipt by
23    the fund of the application;
24        3. Upon attainment of age 70 1/2 if the member (i) is
25    no longer in service, and (ii) is otherwise entitled to an
26    annuity under this Article;



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1        4. To the beneficiary of the deceased annuitant for the
2    unpaid amount accrued to date of death, if any.
3(Source: P.A. 91-887, eff. 7-6-00.)
4    (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
5    Sec. 7-144. Retirement annuities-Suspended during
7    (a) (1) If any person described in clause (i) of subsection
8(a) 2 of Section 7-141 receiving any annuity again becomes an
9employee and receives earnings from employment in a position
10normally requiring performance of duty during 600 hours or more
11per year for any participating municipality and
12instrumentalities thereof or participating instrumentality; or
13(2) if any person described in clause (ii) of subsection (a) 2
14of Section 7-141 receiving any annuity returns to employment in
15a position requiring him, or entitling him to elect, to become
16a participating employee, ; then the annuity payable to such
17employee shall be suspended as of the 1st day of the month
18coincidental with or next following the date upon which such
19person becomes such an employee. Upon proper qualification of
20the participating employee payment of such annuity may be
21resumed on the 1st day of the month following such
22qualification and upon proper application therefor. The
23participating employee in such case shall be entitled to a
24supplemental annuity arising from service and credits earned
25subsequent to such re-entry as a participating employee.



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1    (b) Supplemental annuities to persons who return to service
2for less than 48 months shall be computed under the provisions
3of Sections 7-141, 7-142 and 7-143. In determining whether an
4employee is eligible for an annuity which requires a minimum
5period of service, his entire period of service shall be taken
6into consideration but the supplemental annuity shall be based
7on earnings and service in the supplemental period only. The
8effective date of the suspended and supplemental annuity for
9the purpose of increases after retirement shall be considered
10to be the effective date of the suspended annuity.
11    (c) Supplemental annuities to persons who return to service
12for 48 months or more shall be a monthly amount determined as
14        (1) An amount shall be computed under subparagraph b of
15    paragraph (1) of subsection (a) of Section 7-142,
16    considering all of the service credits of the employee;
17        (2) The actuarial value in monthly payments for life of
18    the annuity payments made before suspension shall be
19    determined and subtracted from the amount determined in (1)
20    above;
21        (3) The monthly amount of the suspended annuity, with
22    any applicable increases after retirement computed from
23    the effective date to the date of reinstatement, shall be
24    subtracted from the amount determined in (2) above and the
25    remainder shall be the amount of the supplemental annuity
26    provided that this amount shall not be less than the amount



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1    computed under subsection (b) of this Section.
2        (4) The suspended annuity shall be reinstated at an
3    amount including any increases after retirement from the
4    effective date to date of reinstatement.
5        (5) The effective date of the combined suspended and
6    supplemental annuities for the purposes of increases after
7    retirement shall be considered to be the effective date of
8    the supplemental annuity.
9(Source: P.A. 82-459.)
10    Section 90. The State Mandates Act is amended by adding
11Section 8.35 as follows:
12    (30 ILCS 805/8.35 new)
13    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 97th General Assembly.
17    Section 99. Effective date. This Act takes effect upon
18becoming law.