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| Public Act 095-0455 |
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AN ACT concerning employment benefits.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the | ||||
Illinois Fringe Benefit Portability and Continuity Act. | ||||
Section 5. Public policy. It is the purpose of this
Act | ||||
that temporary or short-term employees employed by the State
of | ||||
Illinois and its political subdivisions or other public
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employers shall have continuity of health and welfare | ||||
insurance,
pension, and other fringe benefits for work | ||||
performed for the State of Illinois, its political | ||||
subdivisions, and other
public employers, and that the State of | ||||
Illinois and its
political subdivisions and other public | ||||
employers shall have
the contractual authority to execute | ||||
written agreements with
employee benefit plans and labor | ||||
organizations to ensure that
temporary and short-term | ||||
employees have continuity of health and
welfare insurance, | ||||
pension, and other fringe benefits for work
performed for the | ||||
State of Illinois and its political subdivisions or
other | ||||
public employers.
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Section 10. Application. This Act applies to the
State of | ||||
Illinois and its political subdivisions and other
public | ||||
employers that employ temporary or short-term employees
who are | ||
not covered by an employment contract or collective
bargaining | ||
agreement but who are referred from labor
organizations and are | ||
receiving a fringe benefit allowance
directly and in the form | ||
of wages from the State of Illinois and
its political | ||
subdivisions and other public employers.
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Section 15. Definitions. As used in this Act, unless
the | ||
context otherwise requires: | ||
"Employee benefit plan" shall mean an employee benefit
plan | ||
as defined under the Employee Retirement Income Security
Act, | ||
29 U.S.C. 1001, et seq. | ||
"Temporary or short-term employee" shall mean an employee
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who is not covered by a collective bargaining agreement or an
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employment contract.
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"Written agreement" shall mean a participation agreement
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or other agreement prescribed by the employee benefit plan or
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labor organization but shall not be construed as a collective
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bargaining agreement, except as permitted under the Illinois
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Public Labor Relations Act.
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Section 20. Fringe benefit portability and continuity. | ||
(a) If the State of Illinois, its political subdivisions,
or | ||
other public employers procure short-term or temporary | ||
employees from a labor organization, then the State of | ||
Illinois, its political subdivisions, or other public | ||
employers shall enter into written agreements
with employee | ||
benefit plans and labor organizations providing
that the State | ||
of Illinois, its political subdivisions, or
other public | ||
employers shall make an employer contribution of the benefit | ||
allowance
of the applicable wage package to the applicable
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employee benefit plans for the
temporary or short-term | ||
employees who are referred from labor
organizations, provided | ||
that: | ||
(1) The employee benefit plans are employee pension
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benefit plans or employee welfare benefit plans
under the | ||
Employee Retirement Income Security Act. | ||
(2) The referred employee, as a condition of referral | ||
to
the State of Illinois and its political subdivisions
or | ||
other public employers as a temporary or short-term
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employee, has entered into an agreement or
authorization | ||
with a labor organization to have the
fringe benefit | ||
allowance of the applicable wage rate
remitted directly to | ||
an employee benefit plan. | ||
(3) The fringe benefit allowance of the applicable wage
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package shall be an employer contribution and not an
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employee wage deduction. | ||
(4) The State of Illinois and its political | ||
subdivisions
and other public employers agree, in writing, | ||
to make
contributions subject to the same rules and | ||
policies
generally applicable to private employers who are
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making contributions to that employee benefit plan. | ||
(b) The written agreement specified in subsection (a) shall | ||
not be construed as a collective bargaining
agreement, contract | ||
for employment, or an agreement that
otherwise guarantees the | ||
employment of the temporary or short-term
employees used by the | ||
State of Illinois and its
political subdivisions and other | ||
public employers. Nothing in
this Act shall be construed to | ||
afford temporary or short-term
employees the right to organize | ||
or collectively bargain
pursuant to the Illinois Public Labor | ||
Relations Act, except as
specifically provided by the | ||
provisions of that Act. Nothing in
this Act shall be construed | ||
to afford temporary or short-term
employees any benefit or the | ||
right to participate in any
retirement system of the State of | ||
Illinois, except as
specifically provided by the provisions of | ||
the Illinois Pension Code.
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Section 25. Construction of Act. This Act shall be
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liberally construed to effect the purposes of the Act. By | ||
virtue
of this Act, the State of Illinois and its political | ||
subdivisions
or other public employers shall not be considered | ||
to be
maintaining or administering an employee benefit plan.
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Section 97. Severability. The provisions of this Act are | ||
severable under Section 1.31 of the Statute on Statutes. | ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||