Public Act 102-0637 Public Act 0637 102ND GENERAL ASSEMBLY |
Public Act 102-0637 | SB2107 Enrolled | LRB102 16153 RPS 21529 b |
|
| AN ACT concerning public employee benefits.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Illinois Pension Code is amended by | changing Sections 7-108, 7-109, and 7-132 as follows:
| (40 ILCS 5/7-108) (from Ch. 108 1/2, par. 7-108)
| Sec. 7-108. "Participating Instrumentality" . : | (a) A political entity created
under the laws of the State | of Illinois, without general continuous power
to levy taxes, | and which is legally separate and distinct from the State of
| Illinois and any municipality and whose employees by reason of | their
relation to such political entity are not employees of | the State of
Illinois or a municipality ; for the purposes of | providing annuities and benefits to its employees, the Police | Officers' Pension Investment Fund, as created under Article | 22B of this Code; and for the purposes of providing annuities | and benefits to its employees, the Firefighters' Pension | Investment Fund, as created under Article 22C of this Code .
| (b) A not-for-profit organization, which is incorporated | under the laws
of the State of Illinois, or an association, | membership in which is limited
to municipalities or limited to | townships and authorized by statute.
| (Source: P.A. 77-1615.)
|
| (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
| Sec. 7-109. Employee.
| (1) "Employee" means any person who:
| (a) 1. Receives earnings as payment for the | performance of personal
services or official duties out of | the general fund of a municipality,
or out of any special | fund or funds controlled by a municipality, or by
an | instrumentality thereof, or a participating | instrumentality, including,
in counties, the fees or | earnings of any county fee office; and
| 2. Under the usual common law rules applicable in | determining the
employer-employee relationship, has the | status of an employee with a
municipality, or any | instrumentality thereof, or a participating
| instrumentality, including aldermen, county supervisors | and other
persons (excepting those employed as independent | contractors) who are
paid compensation, fees, allowances | or other emolument for official
duties, and, in counties, | the several county fee offices.
| (b) Serves as a township treasurer appointed under the | School
Code, as heretofore or hereafter amended, and
who | receives for such services regular compensation as | distinguished
from per diem compensation, and any regular | employee in the office of
any township treasurer whether | or not his earnings are paid from the
income of the |
| permanent township fund or from funds subject to
| distribution to the several school districts and parts of | school
districts as provided in the School Code, or from | both such sources; or is the chief executive officer, | chief educational officer, chief fiscal officer, or other | employee of a Financial Oversight Panel established | pursuant to Article 1H of the School Code, other than a | superintendent or certified school business official, | except that such person shall not be treated as an | employee under this Section if that person has negotiated | with the Financial Oversight Panel, in conjunction with | the school district, a contractual agreement for exclusion | from this Section.
| (c) Holds an elective office in a municipality, | instrumentality
thereof or participating instrumentality.
| (2) "Employee" does not include persons who:
| (a) Are eligible for inclusion under any of the | following laws:
| 1. "An Act in relation to an Illinois State | Teachers' Pension and
Retirement Fund", approved May | 27, 1915, as amended;
| 2. Articles 15 and 16 of this Code.
| However, such persons shall be included as employees | to the extent of
earnings that are not eligible for | inclusion under the foregoing laws
for services not of an | instructional nature of any kind.
|
| However, any member of the armed forces who is | employed as a teacher
of subjects in the Reserve Officers | Training Corps of any school and who
is not certified | under the law governing the certification of teachers
| shall be included as an employee.
| (b) Are designated by the governing body of a | municipality in which a
pension fund is required by law to | be established for policemen or
firemen, respectively, as | performing police or fire protection duties,
except that | when such persons are the heads of the police or fire
| department and are not eligible to be included within any | such pension
fund, they shall be included within this | Article; provided, that such
persons shall not be excluded | to the extent of concurrent service and
earnings not | designated as being for police or fire protection duties.
| However, (i) any head of a police department who was a | participant under this
Article immediately before October | 1, 1977 and did not elect, under Section
3-109 of this Act, | to participate in a police pension fund shall be an
| "employee", and (ii) any chief of police who became a | participating employee under this Article before January | 1, 2019 and who elects to participate in this
Fund under | Section 3-109.1 of this Code, regardless of whether such | person
continues to be employed as chief of police or is | employed in some other
rank or capacity within the police | department, shall be an employee under
this Article for so |
| long as such person is employed to perform police
duties | by a participating municipality and has not lawfully | rescinded that
election. | (b-5) Were not participating employees under this | Article before the effective date of this amendatory Act | of the 100th General Assembly and participated as a chief | of police in a fund under Article 3 and return to work in | any capacity with the police department, with any | oversight of the police department, or in an advisory | capacity for the police department with the same | municipality with which that pension was earned, | regardless of whether they are considered an employee of | the police department or are eligible for inclusion in the | municipality's Article 3 fund. | (c) Are contributors to or eligible to contribute to a | Taft-Hartley pension plan to which the participating | municipality is required to contribute as the person's | employer based on earnings from the municipality. Nothing | in this paragraph shall affect service credit or | creditable service for any period of service prior to the | effective date of this amendatory Act of the 98th General | Assembly, and this paragraph shall not apply to | individuals who are participating in the Fund prior to the | effective date of this amendatory Act of the 98th General | Assembly.
| (d) Become an employee of any of the following |
| participating instrumentalities on or after the effective | date of this amendatory Act of the 99th General Assembly: | the Illinois Municipal League; the Illinois Association of | Park Districts; the Illinois Supervisors, County | Commissioners and Superintendents of Highways Association; | an association, or not-for-profit corporation, membership | in which is authorized under Section 85-15 of the Township | Code; the United Counties Council; or the Will County | Governmental League. | (e) Are members of the Board of Trustees of the | Firefighters' Pension Investment Fund, as created under | Article 22C of this Code, in their capacity as members of | the Board of Trustees of the Firefighters' Pension | Investment Fund. | (f) Are members of the Board of Trustees of the Police | Officers' Pension Investment Fund, as created under | Article 22B of this Code, in their capacity as members of | the Board of Trustees of the Police Officers' Pension | Investment Fund. | (3) All persons, including, without limitation, public | defenders and
probation officers, who receive earnings from | general or special funds
of a county for performance of | personal services or official duties
within the territorial | limits of the county, are employees of the county
(unless | excluded by subsection (2) of this Section) notwithstanding | that
they may be appointed by and are subject to the direction |
| of a person or
persons other than a county board or a county | officer. It is hereby
established that an employer-employee | relationship under the usual
common law rules exists between | such employees and the county paying
their salaries by reason | of the fact that the county boards fix their
rates of | compensation, appropriate funds for payment of their earnings
| and otherwise exercise control over them. This finding and | this
amendatory Act shall apply to all such employees from the | date of
appointment whether such date is prior to or after the | effective date of
this amendatory Act and is intended to | clarify existing law pertaining
to their status as | participating employees in the Fund.
| (Source: P.A. 99-830, eff. 1-1-17; 100-281, eff. 8-24-17; | 100-1097, eff. 8-26-18.)
| (40 ILCS 5/7-132)
(from Ch. 108 1/2, par. 7-132)
| Sec. 7-132. Municipalities, instrumentalities and | participating
instrumentalities included and effective dates.
| (A) Municipalities and their instrumentalities.
| (a) The following described municipalities, but not | including any with
more than 1,000,000 inhabitants, and the | instrumentalities thereof,
shall be included within and be | subject to this Article beginning upon the
effective dates | specified by the Board:
| (1) Except as to the municipalities and |
| instrumentalities thereof
specifically excluded under this | Article, every county shall be subject to
this Article, | and all cities, villages and incorporated towns having a
| population in excess of 5,000 inhabitants as determined by | the last
preceding decennial or subsequent federal census, | shall be subject to this
Article following publication of | the census by the Bureau of the Census.
Within 90 days | after publication of the census, the Board shall notify
| any municipality that has become subject to this Article | as a result of
that census, and shall provide information | to the corporate authorities of
the municipality | explaining the duties and consequences of participation.
| The notification shall also include a proposed date upon | which
participation by the municipality will commence.
| However, for any city, village or incorporated town | that attains a
population over 5,000 inhabitants after | having provided social security
coverage for its employees | under the Social Security Enabling Act,
participation | under this Article shall not be mandatory but may be | elected
in accordance with subparagraph (3) or (4) of this | paragraph (a), whichever
is applicable.
| (2) School districts, other than those specifically
| excluded under this Article, shall be subject to this | Article, without
election, with respect to all employees | thereof.
| (3) Towns and all other bodies politic and corporate |
| which
are formed by vote of, or are subject to control by, | the electors in towns
and are located in towns which are | not participating municipalities on the
effective date of | this Act, may become subject to this Article by
election | pursuant to Section 7-132.1.
| (4) Any other municipality (together with its | instrumentalities),
other than those specifically excluded | from participation and those
described in paragraph (3) | above, may elect to be included either by
referendum under | Section 7-134 or by the adoption of a resolution or
| ordinance by its governing body. A copy of such resolution | or ordinance
duly authenticated and certified by the clerk | of the municipality or other
appropriate official of its | governing body shall constitute the required
notice to the | board of such action.
| (b) A municipality that is about to begin participation | shall submit to
the Board an application to participate, in a | form acceptable to the Board,
not later than 90 days prior to | the proposed effective date of
participation. The Board shall | act upon the application within 90 days,
and if it finds that | the application is in conformity with its requirements
and the | requirements of this Article, participation by the applicant | shall
commence on a date acceptable to the municipality and | specified by the
Board, but in no event more than one year from | the date of application.
| (c) A participating municipality which succeeds to the |
| functions
of a participating municipality which is dissolved | or terminates its
existence shall assume and be transferred | the net accumulation balance
in the municipality reserve and | the municipality account receivable
balance of the terminated | municipality.
| (d) In the case of a Veterans Assistance Commission whose | employees
were being treated by the Fund on January 1, 1990 as | employees of the
county served by the Commission, the Fund may | continue to treat the
employees of the Veterans Assistance | Commission as county employees for
the purposes of this | Article, unless the Commission becomes a participating
| instrumentality in accordance with subsection (B) of this | Section.
| (B) Participating instrumentalities.
| (a) The participating instrumentalities designated in
| paragraph (b) of this subsection shall be included within
and | be subject to this Article if:
| (1) an application to participate, in a form | acceptable to
the Board and adopted by a two-thirds vote | of the governing body, is
presented to the Board not later | than 90 days prior to the proposed
effective date; and
| (2) the Board finds that the application is in
| conformity with its requirements, that the applicant has | reasonable
expectation to continue as a political entity | for a period of at least
10 years and has the prospective |
| financial capacity to meet its
current and future | obligations to the Fund, and that the actuarial
soundness | of the Fund may be reasonably expected to be unimpaired by
| approval of participation by the applicant.
| The Board shall notify the applicant of its findings | within 90 days
after receiving the application, and if the
| Board approves the application, participation by the applicant | shall
commence on the effective date specified by the Board.
| (b) The following participating instrumentalities, so long | as
they meet the requirements of Section 7-108 and the area | served by them
or within their jurisdiction is not located | entirely within a municipality
having more than one million | inhabitants, may be included hereunder:
| i. Township School District Trustees.
| ii. Multiple County and Consolidated Health | Departments created
under Division 5-25 of the Counties | Code or its predecessor law.
| iii. Public Building Commissions created under the | Public Building
Commission Act, and located in counties of | less
than 1,000,000 inhabitants.
| iv. A multitype, consolidated or cooperative
library | system created under the Illinois Library System Act. Any
| library system created under the Illinois Library System | Act that has one
or more predecessors that participated in | the Fund may participate in the
Fund upon application. The | Board shall establish procedures for
implementing the |
| transfer of rights and obligations from the predecessor
| system to the successor system.
| v. Regional Planning Commissions created under | Division 5-14 of the
Counties Code or its predecessor law.
| vi. Local Public Housing Authorities created under the | Housing
Authorities Act, located in counties of less than | 1,000,000 inhabitants.
| vii. Illinois Municipal League.
| viii. Northeastern Illinois Metropolitan Area Planning | Commission.
| ix. Southwestern Illinois Metropolitan Area Planning | Commission.
| x. Illinois Association of Park Districts.
| xi. Illinois Supervisors, County Commissioners and | Superintendents
of Highways Association.
| xii. Tri-City Regional Port District.
| xiii. An association, or not-for-profit corporation, | membership in
which is authorized under Section 85-15 of | the Township Code.
| xiv. Drainage Districts operating under the Illinois | Drainage
Code.
| xv. Local mass transit districts created under the | Local Mass
Transit District Act.
| xvi. Soil and water conservation districts created | under the Soil
and Water Conservation Districts Law.
| xvii. Commissions created to provide water supply or |
| sewer services
or both under Division 135 or Division 136 | of Article 11 of the Illinois
Municipal Code.
| xviii. Public water districts created under the Public | Water
District Act.
| xix. Veterans Assistance Commissions established under | Section
9 of the Military Veterans Assistance Act that
| serve counties with a population of less than 1,000,000.
| xx. The governing body of an entity, other than a | vocational education
cooperative, created under an | intergovernmental cooperative agreement
established | between participating municipalities under the
| Intergovernmental Cooperation Act, which by the terms of | the agreement is
the employer of the persons performing | services under the agreement under
the usual common law | rules determining the employer-employee relationship.
The | governing body of such an intergovernmental cooperative | entity
established prior to July 1, 1988 may make | participation retroactive to the
effective date of the | agreement and, if so, the effective date of
participation | shall be the date the required application is filed with | the
fund. If any such entity is unable to pay the required | employer
contributions to the fund, then the participating | municipalities shall make
payment of the required | contributions and the payments shall be allocated
as | provided in the agreement or, if not so provided, equally | among them.
|
| xxi. The Illinois Municipal Electric Agency.
| xxii. The Waukegan Port District.
| xxiii. The Fox Waterway Agency created under the Fox | Waterway Agency
Act.
| xxiv. The Illinois Municipal Gas Agency.
| xxv. The Kaskaskia Regional Port District.
| xxvi. The Southwestern Illinois Development Authority.
| xxvii. The Cairo Public Utility Company.
| xxviii. Except with respect to employees who elect to | participate in the State Employees' Retirement System of | Illinois under Section 14-104.13 of this Code, the Chicago | Metropolitan Agency for Planning created under the | Regional Planning Act, provided that, with respect to the | benefits payable pursuant to Sections 7-146, 7-150, and | 7-164 and the requirement that eligibility for such | benefits is conditional upon satisfying a minimum period | of service or a minimum contribution, any employee of the | Chicago Metropolitan Agency for Planning that was | immediately prior to such employment an employee of the | Chicago Area Transportation Study or the Northeastern | Illinois Planning Commission, such employee's service at | the Chicago Area Transportation Study or the Northeastern | Illinois Planning Commission and contributions to the | State Employees' Retirement System of Illinois established | under Article 14 and the Illinois Municipal Retirement | Fund shall count towards the satisfaction of such |
| requirements.
| xxix. United Counties Council (formerly the Urban | Counties Council), but only if the Council has a ruling | from the United States Internal Revenue Service that it is | a governmental entity.
| xxx. The Will County Governmental League, but only if | the League has a ruling from the United States Internal | Revenue Service that it is a governmental entity. | xxxi. The Firefighters' Pension Investment Fund. | xxxii. The Police Officers' Pension Investment Fund. | (c) The governing boards of special education joint | agreements
created under Section 10-22.31 of the School Code | without designation of an
administrative district shall be | included within and be subject to this
Article as | participating instrumentalities when the joint agreement | becomes
effective. However, the governing board of any such | special education
joint agreement in effect before September | 5, 1975 shall not be subject to this
Article unless the joint | agreement is modified by the school districts to
provide that | the governing board is subject to this Article, except as
| otherwise provided by this Section.
| The governing board of the Special Education District of | Lake County shall
become subject to this Article as a | participating instrumentality on July 1,
1997. Notwithstanding | subdivision (a)1 of Section 7-139, on the effective date
of | participation, employees of the governing board of the Special |
| Education
District of Lake County shall receive creditable | service for their prior
service with that employer, up to a | maximum of 5 years, without any employee
contribution. | Employees may establish creditable service for the remainder
| of their prior service with that employer, if any, by applying | in writing and
paying an employee contribution in an amount | determined by the Fund, based on
the employee contribution | rates in effect at the time of application for the
creditable | service and the employee's salary rate on the effective date | of
participation for that employer, plus interest at the | effective rate from the
date of the prior service to the date | of payment. Application for this
creditable service must be | made before July 1, 1998; the payment may be made
at any time | while the employee is still in service. The employer may elect | to
make the required contribution on behalf of the employee.
| The governing board of a special education joint agreement | created
under Section 10-22.31 of the School Code for which an | administrative
district has been designated, if there are | employees of the cooperative
educational entity who are not | employees of the administrative district,
may elect to | participate in the Fund and be included within this Article as
| a participating instrumentality, subject to such application | procedures and
rules as the Board may prescribe.
| The Boards of Control of cooperative or joint educational | programs or
projects created and administered under Section | 3-15.14 of the School
Code, whether or not the Boards act as |
| their own administrative district,
shall be included within | and be subject to this Article as participating
| instrumentalities when the agreement establishing the | cooperative or joint
educational program or project becomes | effective.
| The governing board of a special education joint agreement | entered into
after June 30, 1984 and prior to September 17, | 1985 which provides for
representation on the governing board | by less than all the participating
districts shall be included | within and subject to this Article as a
participating | instrumentality. Such participation shall be effective as of
| the date the joint agreement becomes effective.
| The governing boards of educational service centers | established under
Section 2-3.62 of the School Code shall be | included within and subject to
this Article as participating | instrumentalities. The governing boards of
vocational | education cooperative agreements created under the
| Intergovernmental Cooperation Act and approved by the State | Board of
Education shall be included within and be subject to | this
Article as participating instrumentalities. If any such | governing boards
or boards of control are unable to pay the | required employer contributions
to the fund, then the school | districts served by such boards shall make
payment of required | contributions as provided in Section 7-172. The
payments shall | be allocated among the several school districts in
proportion | to the number of students in average daily attendance for the
|
| last full school year for each district in relation to the | total number of
students in average attendance for such period | for all districts served.
If such educational service centers, | vocational education cooperatives or
cooperative or joint | educational programs or projects created and
administered | under Section 3-15.14 of the School Code are dissolved, the
| assets and obligations shall be distributed among the | districts in the
same proportions unless otherwise provided.
| The governing board of Paris Cooperative High School shall | be included within and be subject to this
Article as a | participating instrumentality on the effective date of this | amendatory Act of the 96th General Assembly. If the governing | board of Paris Cooperative High School is unable to pay the | required employer contributions
to the fund, then the school | districts served shall make
payment of required contributions | as provided in Section 7-172. The
payments shall be allocated | among the several school districts in
proportion to the number | of students in average daily attendance for the
last full | school year for each district in relation to the total number | of
students in average attendance for such period for all | districts served.
If Paris Cooperative High School is | dissolved, then the
assets and obligations shall be | distributed among the districts in the
same proportions unless | otherwise provided. | The Philip J. Rock Center and School shall be included | within and be subject to this Article as a participating |
| instrumentality on the effective date of this amendatory Act | of the 97th General Assembly. The Philip J. Rock Center and | School shall certify to the Fund the dates of service of all | employees within 90 days of the effective date of this | amendatory Act of the 97th General Assembly. The Fund shall | transfer to the IMRF account of the Philip J. Rock Center and | School all creditable service and all employer contributions | made on behalf of the employees for service at the Philip J. | Rock Center and School that were reported and paid to IMRF by | another employer prior to this date. If the Philip J. Rock | Center and School is unable to pay the required employer | contributions to the Fund, then the amount due will be paid by | all employers as defined in item (2) of paragraph (a) of | subsection (A) of this Section. The payments shall be | allocated among these employers in proportion to the number of | students in average daily attendance for the last full school | year for each district in relation to the total number of | students in average attendance for such period for all | districts. If the Philip J. Rock Center and School is | dissolved, then its IMRF assets and obligations shall be | distributed in the same proportions unless otherwise provided. | Financial Oversight Panels established under Article 1H of | the School Code shall be included within and be subject to this | Article as a participating instrumentality on the effective | date of this amendatory Act of the 97th General Assembly. If | the Financial Oversight Panel is unable to pay the required |
| employer contributions to the fund, then the school districts | served shall make payment of required contributions as | provided in Section 7-172. If the Financial Oversight Panel is | dissolved, then the assets and obligations shall be | distributed to the district served. | (d) The governing boards of special recreation joint | agreements
created under Section 8-10b of the Park District | Code, operating
without
designation of an administrative | district or an administrative
municipality appointed to | administer the program operating under the
authority of such | joint agreement shall be included within and be
subject to | this Article as participating instrumentalities when the
joint | agreement becomes effective. However, the governing board of | any
such special recreation joint agreement in effect before | January 1,
1980 shall not be subject to this Article unless the | joint agreement is
modified, by the districts and | municipalities which are parties to the
agreement, to provide | that the governing board is subject to this Article.
| If the Board returns any employer and employee | contributions to any
employer which erroneously submitted such | contributions on behalf of a
special recreation joint | agreement, the Board shall include interest
computed from the | end of each year to the date of payment, not compounded,
at the | rate of 7% per annum.
| (e) Each multi-township assessment district, the board of
| trustees of which has adopted this Article by ordinance prior |
| to April 1,
1982, shall be a participating instrumentality | included within and subject
to this Article effective December | 1, 1981. The contributions required
under Section 7-172 shall | be included in the budget prepared under and
allocated in | accordance with Section 2-30 of the Property Tax Code.
| (f) The Illinois Medical District Commission created under | the Illinois Medical District Act may be included within and | subject to
this Article as a participating instrumentality, | notwithstanding that the location of the District is entirely | within the City of Chicago. To become a participating | instrumentality, the Commission must apply to the Board in the | manner set forth in paragraph (a) of this subsection (B). If | the
Board approves the application, under the criteria and | procedures set forth in paragraph (a) and any other applicable | rules, criteria, and procedures of the Board, participation by | the Commission shall
commence on the effective date specified | by the Board.
| (C) Prospective participants. | Beginning January 1, 1992, each prospective participating
| municipality or participating instrumentality shall pay to the | Fund the
cost, as determined by the Board, of a study prepared | by the Fund or its
actuary, detailing the prospective costs of | participation in the Fund to be
expected by the municipality | or instrumentality.
| (Source: P.A. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09; |
| 96-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff. | 8-16-11; 97-854, eff. 7-26-12.)
| Section 99. Effective date. This Act takes effect upon | becoming law. |
Effective Date: 8/27/2021
|