(40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
    Sec. 21-103. Political subdivision - election of coverage.
    (a) Any political subdivision other than a school district and other than a political subdivision which is participating in the Illinois Municipal Retirement Fund under Article 7 of this Code may, by resolution of the governing body (in the case of a township, at an annual town meeting or at a special town meeting called for that purpose), or by referendum, elect to have its employees covered by the Social Security Act.
    Whenever a petition requesting Social Security coverage for employees, signed by not less than 5% of the legal voters of the political subdivision, is presented to the governing body, such governing body shall cause such proposition to be certified to the proper election officials who shall submit the proposition to the voters at the next appropriate election in accordance with the general election law, or in the case of a township at the next annual town meeting if the petition is received more than 15 and less than 60 days before the annual town meeting, or else at a special town meeting called for that purpose. In the territory of the political subdivision every elector may vote upon the proposition stated in the petition. Such proposition shall be in substantially the following form:
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    Shall....(political subdivision)
enter into a coverage agreement with
the Social Security Division of                 YES
the State Employees' Retirement        -----------------------
System for extension of Federal Social          NO
Security coverage to employees
of....(political subdivision)?
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    If a majority of all of the votes cast upon the proposition is in favor thereof, or if the governing body has adopted a resolution or ordinance providing for coverage of its employees, the governing body shall execute the coverage agreement provided by the State Agency and submit such coverage agreement to the State Agency for approval. The coverage agreement shall be approved by the State Agency if it meets the requirements of subsection (b).
    (b) Each coverage agreement of a political subdivision and any amendment thereof shall be approved by the State Agency if it finds that such coverage agreement, or such coverage agreement as amended, is in conformity with such requirements as are provided in the regulations of the State Agency, except that no such coverage agreement shall be approved unless:
        (1) it is in conformity with the requirements of the
    
Social Security Act and with the Federal-State Agreement entered into under this Article;
        (2) it provides that all services which constitute
    
employment and are performed in the employ of the political subdivision by any employees thereof shall be covered by the coverage agreement, except that such agreement may, if the political subdivision so requests, exclude all services in one or more classes of elective positions, or positions the compensation for which is on a fee basis;
        (3) it provides for such methods of administration of
    
the coverage agreement by the political subdivision as are found by the State Agency to be necessary for the proper and efficient administration of the coverage agreement; and
        (4) it provides for an effective date of coverage not
    
earlier than the first day of the fifth calendar year preceding the year in which the resulting modification of the Federal-State Agreement is agreed to by the Secretary and the State.
    (c) In addition to the requirements in subsection (b), no coverage agreement which provides for an effective date of coverage prior to January 1, 1987 shall be approved unless:
        (1) it specifies the sources from which the funds
    
required of it by this Article are expected to be derived, and contains reasonable assurance that such sources will be adequate for such purpose;
        (2) it contains a promise to deliver the proper funds
    
to the State Agency on or before the date requested by the State Agency;
        (3) it specifies some officer to act as custodian of
    
all funds collected and to be responsible to the State Agency for the delivery of such funds;
        (4) it provides that the political subdivision shall
    
pay contributions on covered wages at such times as the State Agency may by regulations prescribe, in the amounts and at the rates provided by this Article; and
        (5) it provides that the political subdivision will
    
make such reports as the State Agency may from time to time require, and comply with such provisions as the State Agency or the Secretary may from time to time find necessary.
(Source: P.A. 90-448, eff. 8-16-97.)