HB2954 100TH GENERAL ASSEMBLY

LRB100 10621 EFG 20843 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2954

Introduced , by Rep. John Cavaletto

SYNOPSIS AS INTRODUCED:

40 ILCS 5/4-102	from Ch. 108 1/2, par. 4-102
40 ILCS 5/4-106	from Ch. 108 1/2, par. 4-106
40 ILCS 5/4-106.5 new
40 ILCS 5/4-107	from Ch. 108 1/2, par. 4-107
40 ILCS 5/4-108.3	from Ch. 108 1/2, par. 4-108.3
40 ILCS 5/4-142	from Ch. 108 1/2, par. 4-142
40 ILCS 5/7-109	from Ch. 108 1/2, par. 7-109

Amends the Illinois Pension Code. Requires a person who becomes employed as a downstate fire chief on or after July 1, 2018 by a municipality that participates in the Illinois Municipal Retirement Fund (IMRF) to participate in IMRF rather than the relevant downstate firefighter pension fund. Until July 1, 2018, allows downstate fire chiefs to terminate their participation in a downstate firefighter pension fund and allows them to transfer their participation and pension credits from the downstate firefighter pension fund to IMRF. Provides that a municipality may provide an alternative retirement plan for a fire chief who terminates participation in its downstate firefighter pension fund and does not participate in IMRF. Also makes technical corrections. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 4-102, 4-106, 4-107, 4-108.3, 4-142, and 7-109 and by adding Section 4-106.5 as follows:

(40 ILCS 5/4-102) (from Ch. 108 1/2, par. 4-102)

Sec. 4-102. Terms defined. The terms used in this Article have the meanings ascribed to them in the Sections following this Section and preceding Section 4-106.1 4-103 through 4-106, except when the context otherwise requires.

(Source: P.A. 83-1440.)

(40 ILCS 5/4-106) (from Ch. 108 1/2, par. 4-106)

Sec. 4-106. Firefighter, firefighters. "Firefighter, firefighters":

(a) In municipalities which have adopted Division 1 of Article 10 of the Illinois Municipal Code, any person employed in the municipality's fire service as a firefighter, fire engineer, marine engineer, fire pilot, bomb technician or scuba diver; and in any of these positions where such person's duties also include those of a firefighter as classified by the Civil Service Commission of that city, and whose duty is to participate in the work of controlling and extinguishing fires at the location of any such fires.

(b) In municipalities which are subject to Division 2.1 of Article 10 of the Illinois Municipal Code, any person employed by a city in its fire service as a firefighter, fire engineer, marine engineer, fire pilot, bomb technician, or scuba diver; and, in any of these positions whose duties also include those of a firefighter and are certified in the same manner as a firefighter in that city.

(c) In municipalities which are subject to neither Division 1 nor Division 2.1 of Article 10 of the Illinois Municipal Code, any person who would have been included as a firefighter under sub-paragraph (a) or (b) above except that he served as a de facto and not as a de jure firefighter.

(d) Notwithstanding the other provisions of this Section, "firefighter" does not include any person who is actively participating in the State Universities Retirement System under subsection (h) of Section 15-107 with respect to the employment for which he or she is a participating employee in that System.

(d-5) Notwithstanding the other provisions of this Section, "firefighter" does not include a person who is employed as the chief of a fire department with respect to that employment as chief, if that person, in accordance with Section 4-106.5: (i) is ineligible to participate in the pension fund established under this Article for that fire department with respect to that employment as chief; (ii) has elected to terminate participation in the pension fund established under this Article for that fire department, with respect to that employment as chief; or (iii) is actively participating in the Illinois Municipal Retirement Fund with respect to that employment as chief.

(e) Public Act 80-1024 This amendatory Act of 1977 does not affect persons covered by this Article prior to September 22, 1977.

(Source: P.A. 90-576, eff. 3-31-98.)

(40 ILCS 5/4-106.5 new)

Sec. 4-106.5. Participation by fire chief; IMRF; termination; alternative retirement plan.

(a) A person who, on or after July 1, 2018, becomes employed as the chief of the fire department of a "participating municipality", as defined in Section 7-106 of this Code, shall participate in the Illinois Municipal Retirement Fund (IMRF) with respect to that employment as chief, rather than in a fund created under this Article 4.

(b) Until July 1, 2018, a person who is employed as the chief of the fire department of a municipality subject to this Article and participates with respect to that employment in the pension fund established under this Article for that fire department may elect to terminate participation in that pension fund. The election to terminate participation must be filed in writing with the board of the pension fund and is irrevocable.

(c) Until July 1, 2018, a person making the election provided in subsection (b) may, at the same time, also elect to begin participating in IMRF with respect to that employment as chief, beginning on the effective date of the election; but only if the employing municipality is a "participating municipality", as defined in Section 7-106 of this Code. The election must be filed in writing with both the board of the IMRF and the board of the Article 4 fund. Upon beginning participation in IMRF as a fire chief, the election to do so becomes irrevocable.

(d) When a person who is employed by a municipality as the chief of a fire department has, in accordance with subsection (b), terminated participation in the pension fund established under this Article for that municipality but has not elected, in accordance with subsection (c), to participate in IMRF instead, the municipality may provide an alternative retirement plan for that fire chief for that service as chief.

(40 ILCS 5/4-107) (from Ch. 108 1/2, par. 4-107)

Sec. 4-107. Qualifications.

(a) A firefighter who has not contributed to the fund during the entire period of service, to be entitled to the benefits of this Article, must contribute to the fund the amount he or she would have paid had deductions been made from his or her salary during the entire period of his or her creditable service.

(b) Any person appointed as a firefighter in a municipality shall, within 3 months after receiving his or her first appointment and within 3 months after any reappointment make written application to the board to come under the provisions of this Article.

(c) A person otherwise qualified to participate who was excluded from participation by reason of the age or fitness requirements removed by this amendatory Act of 1995 may elect to participate by making a written application to the Board before July 1, 1996. Persons so electing shall begin participation on the first day of the month following the month in which the application is received by the Board. These persons may also elect to establish creditable service for periods of employment as a firefighter during which they did not participate by paying into the pension fund, before January 1, 1997, the amount that the person would have contributed had deductions from salary been made for this purpose at the time the service was rendered, together with interest thereon at 6% per annum, compounded annually, from the time the service was rendered until the date of payment.

(d) A person described in subsection (h) of Section 15-107 shall not participate in any pension fund established under this Article with respect to employment for which he or she is a participating employee in the State Universities Retirement System.

(e) Notwithstanding the other provisions of this Section, a person who is or was employed as the chief of a fire department shall not participate in any pension fund established under this Article with respect to any period of that employment as chief that: (i) begins on or after July 1, 2018; (ii) follows the effective date of his or her election under Section 4-106.5 to terminate participation in the pension fund established under this Article for that fire department, with respect to that employment as chief; or (iii) during which he or she actively participates in the Illinois Municipal Retirement Fund with respect to that employment as chief.

(Source: P.A. 89-52, eff. 6-30-95; 90-576, eff. 3-31-98.)

(40 ILCS 5/4-108.3) (from Ch. 108 1/2, par. 4-108.3)

Sec. 4-108.3. Transfer of credits to IMRF; county sheriff; fire chief.

(a) Until July 1, 1989, any active member of the Illinois Municipal Retirement Fund who is a county sheriff may apply for transfer of up to 80 months of creditable service accumulated in any pension fund established under this Article to the Illinois Municipal Retirement Fund. Such creditable service shall be transferred only upon payment by such pension fund to the Illinois Municipal Retirement Fund of an amount equal to:

(1) the amounts accumulated to the credit of the applicant on the books of the fund on the date of transfer; and

(2) employer contributions in an amount equal to the amount determined under subparagraph (1); and

(3) any interest paid by the applicant in order to reinstate service.

Participation in such pension fund as to any credits transferred under this Section shall terminate on the date of transfer.

(b) Until July 1, 1989, any such sheriff may reinstate creditable service terminated upon receipt of a refund, by payment to the firefighters' pension fund of the amount of the refund, with interest thereon at the rate of 6% per year, compounded annually from the date of refund to the date of payment.

(c) Until July 1, 2018, any active member of the Illinois Municipal Retirement Fund who participates in that Fund for service as the fire chief of a municipality may apply for transfer of his or her creditable service accumulated in a pension fund established under this Article for service in that position and municipality to the Illinois Municipal Retirement Fund. Such creditable service shall be transferred only upon payment by the Article 4 pension fund to the Illinois Municipal Retirement Fund of an amount equal to:

(1) the amounts accumulated to the credit of the applicant for that service on the books of the fund on the date of transfer; and

(2) employer contributions in an amount equal to the amount determined under item (1); and

(3) any interest paid by the applicant in order to reinstate that service.

Participation in the pension fund as to any credits transferred under this Section shall terminate on the date of transfer.

(d) Until July 1, 2018, any fire chief transferring credits under subsection (c) may reinstate credits for service in that position that were terminated upon receipt of a refund, by payment to the firefighters' pension fund of the amount of the refund, with interest thereon at the rate of 6% per year, compounded annually from the date of refund to the date of payment.

(Source: P.A. 85-941.)

(40 ILCS 5/4-142) (from Ch. 108 1/2, par. 4-142)

Sec. 4-142. Applicability of home rule powers. A home rule unit, as defined in Article VII of the 1970 Illinois Constitution or any amendment thereto, shall have no power to change, alter, or amend in any way the provisions of this Article. A home rule unit which is a municipality, as defined in Section 4-103, shall not provide for, singly or as a part of any plan or program, by any means whatsoever, any type of retirement or annuity benefit to a firefighter other than through establishment of a fund as provided in this Article as now or hereafter amended. This Section does not prohibit a municipality from providing an alternative retirement plan for its fire chief for his or her service as chief in accordance with subsection (d) of Section 4-106.5.

(Source: P.A. 83-1440.)

(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 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; and (iii) any person employed as the fire chief of a participating municipality who is subject to subsection (a) of Section 4-106.5 or who elects under subsection (c) of that Section to participate in this Fund rather than the pension fund established for that municipality under Article 4 of this Code shall be an employee under this Article with respect to that employment as chief.

(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.

(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. 98-712, eff. 7-16-14; 99-830, eff. 1-1-17.)

Section 99. Effective date. This Act takes effect upon becoming law.