SB1249 Enrolled

LRB095 10038 JAM 30252 b






1
    AN ACT concerning employment benefits. 

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


 
4
    Section 1. Short title. This Act may be cited as the 
5
Illinois Fringe Benefit Portability and Continuity Act.
 
6
    Section 5. Public policy.  It is the purpose of this

Act 
7
that temporary or short-term employees employed by the State

of 
8
Illinois and its political subdivisions or other public


9
employers shall have continuity of health and welfare 
10
insurance,

pension, and other fringe benefits for work 
11
performed for the State of Illinois, its political 
12
subdivisions, and other

public employers, and that the State of 
13
Illinois and its

political subdivisions and other public 
14
employers shall have

the contractual authority to execute 
15
written agreements with

employee benefit plans and labor 
16
organizations to ensure that

temporary and short-term 
17
employees have continuity of health and

welfare insurance, 
18
pension, and other fringe benefits for work

performed for the 
19
State of Illinois and its political subdivisions or

other 
20
public employers.



 
21
    Section 10. Application.  This Act applies to the

State of 
22
Illinois and its political subdivisions and other

public 
 


 






SB1249 Enrolled
- 2 -
LRB095 10038 JAM 30252 b




1
employers that employ temporary or short-term employees

who are 
2
not covered by an employment contract or collective

bargaining 
3
agreement but who are referred from labor

organizations and are 
4
receiving a fringe benefit allowance

directly and in the form 
5
of wages from the State of Illinois and

its political 
6
subdivisions and other public employers.



 
7
    Section 15. Definitions.  As used in this Act, unless

the 
8
context otherwise requires:
9
    "Employee benefit plan" shall mean an employee benefit

plan 
10
as defined under the Employee Retirement Income Security

Act, 
11
29 U.S.C. 1001, et seq.
12
    "Temporary or short-term employee" shall mean an employee


13
who is not covered by a collective bargaining agreement or an


14
employment contract.

      
15
    "Written agreement" shall mean a participation agreement


16
or other agreement prescribed by the employee benefit plan or


17
labor organization but shall not be construed as a collective


18
bargaining agreement, except as permitted under the Illinois


19
Public Labor Relations Act.



 
20
    Section 20. Fringe benefit portability and continuity. 
21
    (a) If the  State of Illinois, its political subdivisions,

or 
22
other public employers procure short-term or temporary 
23
employees from a labor organization, then the State of 
24
Illinois, its political subdivisions, or other public 
 


 






SB1249 Enrolled
- 3 -
LRB095 10038 JAM 30252 b




1
employers shall enter into written agreements

with employee 
2
benefit plans and labor organizations providing

that the State 
3
of Illinois, its political subdivisions, or

other public 
4
employers shall make an employer contribution of the benefit 
5
allowance

of the applicable wage package to the applicable


6
employee benefit plans for the

temporary or short-term 
7
employees who are referred from labor

organizations, provided 
8
that:
9
        (1) The employee benefit plans are employee pension


10
    benefit plans or employee welfare benefit plans

under the 
11
    Employee Retirement Income Security Act.
12
        (2) The referred employee, as a condition of referral 
13
    to

the State of Illinois and its political subdivisions

or 
14
    other public employers as a temporary or short-term


15
    employee, has entered into an agreement or

authorization 
16
    with a labor organization to have the

fringe benefit 
17
    allowance of the applicable wage rate

remitted directly to 
18
    an employee benefit plan.
19
        (3) The fringe benefit allowance of the applicable wage


20
    package shall be an employer contribution and not an


21
    employee wage deduction.
22
        (4) The State of Illinois and its political 
23
    subdivisions

and other public employers agree, in writing, 
24
    to make

contributions subject to the same rules and 
25
    policies

generally applicable to private employers who are


26
    making contributions to that employee benefit plan.
 


 






SB1249 Enrolled
- 4 -
LRB095 10038 JAM 30252 b




1
    (b) The written agreement specified in subsection (a) shall 
2
not be construed as a collective bargaining

agreement, contract 
3
for employment, or an agreement that

otherwise guarantees the 
4
employment of the temporary or short-term

employees used by the 
5
State of Illinois and its

political subdivisions and other 
6
public employers. Nothing in

this Act shall be construed to 
7
afford temporary or short-term

employees the right to organize 
8
or collectively bargain

pursuant to the Illinois Public Labor 
9
Relations Act, except as

specifically provided by the 
10
provisions of that Act. Nothing in

this Act shall be construed 
11
to afford temporary or short-term

employees any benefit or the 
12
right to participate in any

retirement system of the State of 
13
Illinois, except as

specifically provided by the provisions of 
14
the Illinois Pension Code.



 
15
    Section 25. Construction of Act.  This Act shall be


16
liberally construed to effect the purposes of the Act. By 
17
virtue

of this Act, the State of Illinois and its political 
18
subdivisions

or other public employers shall not be considered 
19
to be

maintaining or administering an employee benefit plan.



 
20
    Section 97. Severability. The provisions of this Act are 
21
severable under Section 1.31 of the Statute on Statutes.
 
22
    Section 99. Effective date. This Act takes effect upon 
23
becoming law.