Public Act 094-1046
Public Act 1046 94TH GENERAL ASSEMBLY
|Public Act 094-1046
||LRB094 04426 AMC 34455 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
The Illinois Pension Code is amended by changing
Section 7-132 as follows:
(40 ILCS 5/7-132)
(from Ch. 108 1/2, par. 7-132)
Municipalities, instrumentalities and
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
shall be included within and be
subject to this Article beginning upon the
specified by the Board:
(1) Except as to the municipalities and
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
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
municipality that has become subject to this Article as a
that census, and shall provide information to the
corporate authorities of
the municipality explaining the
duties and consequences of participation.
shall also include a proposed date upon which
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,
under this Article shall not be mandatory but may be
in accordance with subparagraph (3) or (4) of this
paragraph (a), whichever
(2) School districts, other than those specifically
excluded under this Article, shall be subject to this
election, with respect to all employees
(3) Towns and all other bodies politic and corporate
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
pursuant to Section 7-132.1.
(4) Any other municipality (together with its
other than those specifically excluded
from participation and those
described in paragraph (3)
above, may elect to be included either by
Section 7-134 or by the adoption of a resolution or
ordinance by its governing body. A copy of such resolution
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
requirements of this Article, participation by the applicant
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
of a participating municipality which is dissolved or
existence shall assume and be transferred the
net accumulation balance
in the municipality reserve and the
municipality account receivable
balance of the terminated
(d) In the case of a Veterans Assistance Commission whose
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
(B) Participating instrumentalities.
(a) The participating instrumentalities designated in
paragraph (b) of this subsection shall be included within
be subject to this Article if:
(1) an application to participate, in a form acceptable
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
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
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
after receiving the application, and if the
approves the application, participation by the applicant shall
commence on the effective date specified by the Board.
(b) The following participating instrumentalities, so long
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
under Division 5-25 of the Counties
Code or its predecessor law.
iii. Public Building Commissions created under the
Commission Act, and located in counties of
than 1,000,000 inhabitants.
iv. A multitype, consolidated or cooperative
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
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
Authorities Act, located in counties of less than
vii. Illinois Municipal League.
viii. Northeastern Illinois Metropolitan Area Planning
ix. Southwestern Illinois Metropolitan Area Planning
x. Illinois Association of Park Districts.
xi. Illinois Supervisors, County Commissioners and
of Highways Association.
xii. Tri-City Regional Port District.
xiii. An association, or not-for-profit corporation,
which is authorized under Section 85-15 of
the Township Code.
xiv. Drainage Districts operating under the Illinois
xv. Local mass transit districts created under the
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
or both under Division 135 or Division 136
of Article 11 of the Illinois
xviii. Public water districts created under the Public
xix. Veterans Assistance Commissions established under
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
cooperative, created under an
intergovernmental cooperative agreement
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.
governing body of such an intergovernmental cooperative
established prior to July 1, 1988 may make
participation retroactive to the
effective date of the
agreement and, if so, the effective date of
shall be the date the required application is filed with
fund. If any such entity is unable to pay the required
contributions to the fund, then the participating
municipalities shall make
payment of the required
contributions and the payments shall be allocated
provided in the agreement or, if not so provided, equally
xxi. The Illinois Municipal Electric Agency.
xxii. The Waukegan Port District.
xxiii. The Fox Waterway Agency created under the Fox
xxiv. The Illinois Municipal Gas Agency.
xxv. The Kaskaskia Regional Port District.
xxvi. The Southwestern Illinois Development Authority.
xxvii. The Cairo Public Utility Company.
(c) The governing boards of special education joint
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
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
The governing board of the Special Education District of
Lake County shall
become subject to this Article as a
participating instrumentality on July 1,
subdivision (a)1 of Section 7-139, on the effective date
participation, employees of the governing board of the Special
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
Employees may establish creditable service for the remainder
their prior service with that employer, if any, by applying in
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
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
the required contribution on behalf of the employee.
The governing board of a special education joint agreement
under Section 10-22.31 of the School Code for which an
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
rules as the Board may prescribe.
The Boards of Control of cooperative or joint educational
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
when the agreement establishing the cooperative or joint
educational program or project becomes effective.
The governing board of a special education joint agreement
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
instrumentality. Such participation shall be effective as of
the date the joint agreement becomes effective.
The governing boards of educational service centers
Section 2-3.62 of the School Code shall be
included within and subject to
this Article as participating
instrumentalities. The governing boards of
education cooperative agreements created under the
Intergovernmental Cooperation Act and approved by the State
Education shall be included within and be subject to
Article as participating instrumentalities. If any such
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
be allocated among the several school districts in
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
under Section 3-15.14 of the School Code are dissolved, the
assets and obligations shall be distributed among the districts
same proportions unless otherwise provided.
(d) The governing boards of special recreation joint
created under Section 8-10b of the Park District
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
agreement becomes effective. However, the governing board of
such special recreation joint agreement in effect before
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,
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
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
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
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
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
by the municipality or instrumentality.
(Source: P.A. 92-424, eff. 8-17-01; 93-777, eff. 7-21-04.)
This Act takes effect upon
Effective Date: 7/24/2006