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Public Act 102-0637


 

Public Act 0637 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0637
 
SB2107 EnrolledLRB102 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