093_HB1550

 
                                     LRB093 06271 EFG 06384 b

 1        AN ACT in relation to public employee benefits.

 2        Be  it   enacted   by   the   People   of  the  State  of
 3    Illinois, represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Sections 7-109.3 and 7-132 as follows:

 6        (40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
 7        Sec. 7-109.3.  "Sheriff's Law Enforcement Employees".
 8        (a)  "Sheriff's   law  enforcement  employee"  or  "SLEP"
 9    means:
10             (1)  A county sheriff and all deputies,  other  than
11        special  deputies,  employed  on a full time basis in the
12        office of the sheriff.
13             (2)  A person who has elected to participate in this
14        Fund under Section 3-109.1  of  this  Code,  and  who  is
15        employed  by  a  participating  municipality  to  perform
16        police duties.
17             (3)  A  law  enforcement  officer employed on a full
18        time basis by a Forest Preserve District,  provided  that
19        such officer shall be deemed a "sheriff's law enforcement
20        employee"  for  the purposes of this Article, and service
21        in that capacity shall be  deemed  to  be  service  as  a
22        sheriff's  law enforcement employee, only if the board of
23        commissioners of the District have so elected by adoption
24        of an affirmative resolution.  Such election, once  made,
25        may not be rescinded.
26             (4)  A  person not eligible to participate in a fund
27        established under Article 3 of this Code who is  employed
28        on  a  full-time basis by a participating municipality or
29        participating instrumentality to perform police duties at
30        an airport, but only if the governing  authority  of  the
31        employer  has approved sheriff's law enforcement employee
 
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 1        status for its airport police employees by adoption of an
 2        affirmative resolution.  Such approval, once  given,  may
 3        not be rescinded.
 4             (5)  A  person not eligible to participate in a fund
 5        established under Article 3 of this Code who is  employed
 6        on a full-time basis by a participating city, village, or
 7        incorporated town to perform police duties.
 8        (b)  An  employee  who  is  a  sheriff's  law enforcement
 9    employee and is granted military leave or authorized leave of
10    absence  shall  receive  service  credit  in  that  capacity.
11    Sheriff's law enforcement employees shall not be entitled  to
12    out-of-State service credit under Section 7-139.
13    (Source: P.A. 92-16, eff. 6-28-01.)

14        (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
15        Sec.    7-132.  Municipalities,   instrumentalities   and
16    participating instrumentalities included and effective dates.

17    (A)  Municipalities and their instrumentalities.
18        (a)  The  following  described  municipalities,  but  not
19    including any with more than 1,000,000 inhabitants,  and  the
20    instrumentalities  thereof,  shall  be included within and be
21    subject to this Article beginning upon  the  effective  dates
22    specified by the Board:
23             (1)  Except    as    to   the   municipalities   and
24        instrumentalities  thereof  specifically  excluded  under
25        this Article, every  county  shall  be  subject  to  this
26        Article,  and all cities, villages and incorporated towns
27        having a population in excess  of  5,000  inhabitants  as
28        determined  by the last preceding decennial or subsequent
29        federal  census,  shall  be  subject  to   this   Article
30        following  publication of the census by the Bureau of the
31        Census. Within 90 days after publication of  the  census,
32        the  Board  shall notify any municipality that has become
33        subject to this Article as a result of that  census,  and
 
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 1        shall provide information to the corporate authorities of
 2        the  municipality  explaining the duties and consequences
 3        of participation. The notification shall also  include  a
 4        proposed   date   upon   which   participation   by   the
 5        municipality will commence.
 6             However,  for any city, village or incorporated town
 7        that attains a population over  5,000  inhabitants  after
 8        having   provided   social   security  coverage  for  its
 9        employees  under  the  Social  Security   Enabling   Act,
10        participation  under  this Article shall not be mandatory
11        (except as  provided  in  subdivision  (A)(a-5)  of  this
12        Section)   but   may   be   elected  in  accordance  with
13        subparagraph (3) or (4) of this paragraph (a),  whichever
14        is applicable.
15             (2)  School districts, other than those specifically
16        excluded  under  this  Article,  shall be subject to this
17        Article, without election, with respect to all  employees
18        thereof.
19             (3)  Towns   and   all   other  bodies  politic  and
20        corporate which are formed by vote of, or are subject  to
21        control  by,  the  electors  in  towns and are located in
22        towns which are not participating municipalities  on  the
23        effective  date  of  this Act, may become subject to this
24        Article by election pursuant to Section 7-132.1.
25             (4)  Any  other  municipality  (together  with   its
26        instrumentalities),   other   than   those   specifically
27        excluded   from  participation  and  those  described  in
28        paragraph (3) above, may elect to be included  either  by
29        referendum  under  Section  7-134 or by the adoption of a
30        resolution or ordinance by its governing body.  A copy of
31        such  resolution  or  ordinance  duly  authenticated  and
32        certified by the  clerk  of  the  municipality  or  other
33        appropriate   official   of   its  governing  body  shall
34        constitute the required  notice  to  the  board  of  such
 
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 1        action.
 2        (a-5)  Notwithstanding   the  other  provisions  of  this
 3    Section,  a  city,  village,  or  incorporated  town  with  a
 4    population of less than 1,000,000 that (i) does not otherwise
 5    participate  in  the  Fund  and  (ii)  employs  one  or  more
 6    full-time police  officers  who  do  not  participate  in  an
 7    Article  3  police pension fund shall begin to participate in
 8    this Fund with respect to those police officers no later than
 9    6 months after the effective date of this amendatory  Act  of
10    the  93rd General Assembly.  A city, village, or incorporated
11    town required to participate in the Fund with respect to  its
12    full-time  police  officers under this subdivision (a-5) need
13    not participate  in  the  Fund  with  respect  to  its  other
14    officers  and  employees.   Participation  in  this Fund by a
15    city, village, or incorporated town with a population of less
16    than 1,000,000 with respect to its full-time police  officers
17    who do not participate in an Article 3 police pension fund is
18    a  matter of exclusive State power; this subdivision (a-5) is
19    a denial and limitation of home rule power  under  subsection
20    (h) of Section 6 of Article VII of the Illinois Constitution.
21        (b)  A  municipality that is about to begin participation
22    shall submit to the Board an application to participate, in a
23    form acceptable to the Board, not later than 90 days prior to
24    the proposed effective  date  of  participation.   The  Board
25    shall  act  upon  the  application  within 90 days, and if it
26    finds  that  the  application  is  in  conformity  with   its
27    requirements   and   the   requirements   of   this  Article,
28    participation by the  applicant  shall  commence  on  a  date
29    acceptable  to  the  municipality and specified by the Board,
30    but in  no  event  more  than  one  year  from  the  date  of
31    application.
32        (c)  A  participating  municipality which succeeds to the
33    functions of a participating municipality which is  dissolved
34    or  terminates  its existence shall assume and be transferred
 
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 1    the net accumulation balance in the municipality reserve  and
 2    the municipality account receivable balance of the terminated
 3    municipality.
 4        (d)  In  the  case  of  a  Veterans Assistance Commission
 5    whose employees were being treated by the Fund on January  1,
 6    1990 as employees of the county served by the Commission, the
 7    Fund  may  continue  to  treat  the employees of the Veterans
 8    Assistance Commission as county employees for the purposes of
 9    this Article, unless the Commission becomes  a  participating
10    instrumentality  in  accordance  with  subsection (B) of this
11    Section.

12    (B)  Participating instrumentalities.
13        (a)  The participating  instrumentalities  designated  in
14    paragraph (b) of this subsection shall be included within and
15    be subject to this Article if:
16             (1)  an   application  to  participate,  in  a  form
17        acceptable to the Board and adopted by a two-thirds  vote
18        of  the  governing  body,  is  presented to the Board not
19        later than 90 days prior to the proposed effective  date;
20        and
21             (2)  the  Board  finds  that  the  application is in
22        conformity with its requirements, that the applicant  has
23        reasonable  expectation to continue as a political entity
24        for a period of at least 10 years and has the prospective
25        financial  capacity  to  meet  its  current  and   future
26        obligations to the Fund, and that the actuarial soundness
27        of  the  Fund may be reasonably expected to be unimpaired
28        by approval of participation by the applicant.
29        The Board shall notify  the  applicant  of  its  findings
30    within  90  days  after receiving the application, and if the
31    Board  approves  the  application,   participation   by   the
32    applicant  shall  commence on the effective date specified by
33    the Board.
34        (b)  The following  participating  instrumentalities,  so
 
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 1    long  as  they meet the requirements of Section 7-108 and the
 2    area served by them  or  within  their  jurisdiction  is  not
 3    located  entirely  within a municipality having more than one
 4    million inhabitants, may be included hereunder:
 5             i.  Township School District Trustees.
 6             ii.  Multiple   County   and   Consolidated   Health
 7        Departments created under Division 5-25 of  the  Counties
 8        Code or its predecessor law.
 9             iii.  Public  Building Commissions created under the
10        Public Building Commission Act, and located  in  counties
11        of less than 1,000,000 inhabitants.
12             iv.  A   multitype,   consolidated   or  cooperative
13        library system created under the Illinois Library  System
14        Act.   Any  library  system  created  under  the Illinois
15        Library System Act that has one or more predecessors that
16        participated in the Fund may participate in the Fund upon
17        application.  The Board shall  establish  procedures  for
18        implementing  the transfer of rights and obligations from
19        the predecessor system to the successor system.
20             v.  Regional  Planning  Commissions  created   under
21        Division  5-14  of  the  Counties Code or its predecessor
22        law.
23             vi.  Local Public Housing Authorities created  under
24        the  Housing Authorities Act, located in counties of less
25        than 1,000,000 inhabitants.
26             vii.  Illinois Municipal League.
27             viii.  Northeastern   Illinois   Metropolitan   Area
28        Planning Commission.
29             ix.  Southwestern   Illinois    Metropolitan    Area
30        Planning Commission.
31             x.  Illinois Association of Park Districts.
32             xi.  Illinois  Supervisors, County Commissioners and
33        Superintendents of Highways Association.
34             xii.  Tri-City Regional Port District.
 
                            -7-      LRB093 06271 EFG 06384 b
 1             xiii.  An     association,     or     not-for-profit
 2        corporation, membership  in  which  is  authorized  under
 3        Section 85-15 of the Township Code.
 4             xiv.  Drainage   Districts   operating   under   the
 5        Illinois Drainage Code.
 6             xv.  Local  mass transit districts created under the
 7        Local Mass Transit District Act.
 8             xvi.  Soil and water conservation districts  created
 9        under the Soil and Water Conservation Districts Law.
10             xvii.  Commissions  created  to provide water supply
11        or sewer services or both under Division 135 or  Division
12        136 of Article 11 of the Illinois Municipal Code.
13             xviii.  Public  water  districts  created  under the
14        Public Water District Act.
15             xix.  Veterans  Assistance  Commissions  established
16        under Section 9 of the Military Veterans  Assistance  Act
17        that  serve  counties  with  a  population  of  less than
18        1,000,000.
19             xx.  The governing body of an entity, other  than  a
20        vocational   education   cooperative,  created  under  an
21        intergovernmental   cooperative   agreement   established
22        between   participating    municipalities    under    the
23        Intergovernmental  Cooperation Act, which by the terms of
24        the agreement is the employer of the  persons  performing
25        services  under  the agreement under the usual common law
26        rules determining the employer-employee relationship. The
27        governing body of such an  intergovernmental  cooperative
28        entity  established  prior  to  July  1,  1988  may  make
29        participation  retroactive  to  the effective date of the
30        agreement and, if so, the effective date of participation
31        shall be the date the required application is filed  with
32        the  fund.   If  any  such  entity  is  unable to pay the
33        required employer contributions to  the  fund,  then  the
34        participating  municipalities  shall  make payment of the
 
                            -8-      LRB093 06271 EFG 06384 b
 1        required  contributions  and  the   payments   shall   be
 2        allocated  as  provided  in  the  agreement or, if not so
 3        provided, equally among them.
 4             xxi.  The Illinois Municipal Electric Agency.
 5             xxii.  The Waukegan Port District.
 6             xxiii.  The Fox Waterway Agency  created  under  the
 7        Fox Waterway Agency Act.
 8             xxiv.  The Illinois Municipal Gas Agency.
 9             xxv.  The Kaskaskia Regional Port District.
10             xxvi.  The    Southwestern    Illinois   Development
11        Authority.
12        (c)  The governing  boards  of  special  education  joint
13    agreements  created under Section 10-22.31 of the School Code
14    without designation of an administrative  district  shall  be
15    included   within   and   be   subject  to  this  Article  as
16    participating  instrumentalities  when  the  joint  agreement
17    becomes effective.  However, the governing board of any  such
18    special  education joint agreement in effect before September
19    5, 1975 shall not be subject to this Article unless the joint
20    agreement is modified by the school districts to provide that
21    the governing board is subject to  this  Article,  except  as
22    otherwise provided by this Section.
23        The  governing board of the Special Education District of
24    Lake County  shall  become  subject  to  this  Article  as  a
25    participating    instrumentality    on    July    1,    1997.
26    Notwithstanding  subdivision  (a)1  of  Section 7-139, on the
27    effective date of participation, employees of  the  governing
28    board  of the Special Education District of Lake County shall
29    receive creditable service for their prior service with  that
30    employer,  up  to  a maximum of 5 years, without any employee
31    contribution.  Employees may establish creditable service for
32    the remainder of their prior service with that  employer,  if
33    any,   by   applying   in  writing  and  paying  an  employee
34    contribution in an amount determined by the  Fund,  based  on
 
                            -9-      LRB093 06271 EFG 06384 b
 1    the  employee  contribution  rates  in  effect at the time of
 2    application for the creditable  service  and  the  employee's
 3    salary  rate  on the effective date of participation for that
 4    employer, plus interest at the effective rate from  the  date
 5    of the prior service to the date of payment.  Application for
 6    this creditable service must be made before July 1, 1998; the
 7    payment  may  be made at any time while the employee is still
 8    in service.  The employer may  elect  to  make  the  required
 9    contribution on behalf of the employee.
10        The   governing   board  of  a  special  education  joint
11    agreement created under Section 10-22.31 of the  School  Code
12    for  which an administrative district has been designated, if
13    there are employees of the cooperative educational entity who
14    are not employees of the administrative district,  may  elect
15    to  participate  in  the  Fund  and  be  included within this
16    Article as a participating instrumentality, subject  to  such
17    application procedures and rules as the Board may prescribe.
18        The Boards of Control of cooperative or joint educational
19    programs  or  projects created and administered under Section
20    3-15.14 of the School Code, whether or not the Boards  act as
21    their own administrative district, shall be  included  within
22    and   be   subject   to   this   Article   as   participating
23    instrumentalities   when   the   agreement  establishing  the
24    cooperative or joint educational program or  project  becomes
25    effective.
26        The   governing   board  of  a  special  education  joint
27    agreement entered into after  June  30,  1984  and  prior  to
28    September  17,  1985 which provides for representation on the
29    governing board by less than all the participating  districts
30    shall  be  included  within  and subject to this Article as a
31    participating instrumentality.  Such participation  shall  be
32    effective   as  of  the  date  the  joint  agreement  becomes
33    effective.
34        The  governing  boards  of  educational  service  centers
 
                            -10-     LRB093 06271 EFG 06384 b
 1    established under Section 2-3.62 of the School Code shall  be
 2    included  within and subject to this Article as participating
 3    instrumentalities.   The  governing  boards   of   vocational
 4    education    cooperative   agreements   created   under   the
 5    Intergovernmental Cooperation Act and approved by  the  State
 6    Board of Education shall be included within and be subject to
 7    this Article as participating instrumentalities.  If any such
 8    governing  boards  or boards of control are unable to pay the
 9    required employer contributions to the fund, then the  school
10    districts  served  by  such  boards  shall  make  payment  of
11    required  contributions  as  provided  in Section 7-172.  The
12    payments  shall  be  allocated  among  the   several   school
13    districts  in proportion to the number of students in average
14    daily attendance for the  last  full  school  year  for  each
15    district  in  relation  to  the  total  number of students in
16    average attendance for such period for all districts  served.
17    If  such  educational  service  centers, vocational education
18    cooperatives or cooperative or joint educational programs  or
19    projects  created  and  administered under Section 3-15.14 of
20    the School Code are dissolved,  the  assets  and  obligations
21    shall   be  distributed  among  the  districts  in  the  same
22    proportions unless otherwise provided.
23        (d)  The governing boards  of  special  recreation  joint
24    agreements  created  under Section 8-10b of the Park District
25    Code, operating  without  designation  of  an  administrative
26    district  or  an  administrative  municipality  appointed  to
27    administer  the program operating under the authority of such
28    joint agreement shall be included within and  be  subject  to
29    this  Article  as  participating  instrumentalities  when the
30    joint agreement becomes effective.   However,  the  governing
31    board  of  any  such  special  recreation  joint agreement in
32    effect before January 1, 1980 shall not be  subject  to  this
33    Article  unless  the  joint  agreement  is  modified,  by the
34    districts  and  municipalities  which  are  parties  to   the
 
                            -11-     LRB093 06271 EFG 06384 b
 1    agreement,  to provide that the governing board is subject to
 2    this Article.
 3        If  the  Board  returns   any   employer   and   employee
 4    contributions  to  any  employer  which erroneously submitted
 5    such contributions on behalf of a  special  recreation  joint
 6    agreement, the Board shall include interest computed from the
 7    end  of  each year to the date of payment, not compounded, at
 8    the rate of 7% per annum.
 9        (e)  Each multi-township assessment district,  the  board
10    of  trustees  of  which has adopted this Article by ordinance
11    prior  to  April  1,   1982,   shall   be   a   participating
12    instrumentality  included  within and subject to this Article
13    effective December 1, 1981. The contributions required  under
14    Section  7-172 shall be included in the budget prepared under
15    and allocated in accordance with Section 2-30 of the Property
16    Tax Code.
17        (f)  Beginning  January   1,   1992,   each   prospective
18    participating  municipality  or participating instrumentality
19    shall pay to the Fund the cost, as determined by  the  Board,
20    of a study prepared by the Fund or its actuary, detailing the
21    prospective costs of participation in the Fund to be expected
22    by the municipality or instrumentality.
23    (Source: P.A. 92-424, eff. 8-17-01.)

24        Section  90.  The State Mandates Act is amended by adding
25    Section 8.27 as follows:

26        (30 ILCS 805/8.27 new)
27        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
28    and  8 of this Act, no reimbursement by the State is required
29    for  the  implementation  of  any  mandate  created  by  this
30    amendatory Act of the 93rd General Assembly.

31        Section 99. Effective date.  This Act takes  effect  upon
 
                            -12-     LRB093 06271 EFG 06384 b
 1    becoming law.