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 Such election, once made, 25 may not be rescinded. 26 (4) A person not eligible to participate in a fund 27 established under Article 3 of this Code who is employed 28 on a full-time basis by a participating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 -2- LRB093 06271 EFG 06384 b 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 Such approval, once given, may 3 not be rescinded. 4 (5) A person not eligible to participate in a fund 5 established under Article 3 of this Code who is employed 6 on a full-time basis by a participating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 -3- LRB093 06271 EFG 06384 b 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 -4- LRB093 06271 EFG 06384 b 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 -5- LRB093 06271 EFG 06384 b 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 -6- LRB093 06271 EFG 06384 b 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.