94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0789

 

Introduced 2/2/2005, by Rep. Michael K. Smith

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-132  from Ch. 108 1/2, par. 7-132

    Amends the Illinois Municipal Retirement Fund Article of the Illinois Pension Code to authorize participation by employees of the United Counties Council of Illinois. Effective immediately.


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PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0789 LRB094 08621 AMC 38829 b

1     AN ACT in relation to public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 7-132 as follows:
 
6     (40 ILCS 5/7-132)   (from Ch. 108 1/2, par. 7-132)
7     Sec. 7-132. Municipalities, instrumentalities and
8 participating instrumentalities included and effective dates.
 
9 (A) Municipalities and their instrumentalities.
10     (a) The following described municipalities, but not
11 including any with more than 1,000,000 inhabitants, and the
12 instrumentalities thereof, shall be included within and be
13 subject to this Article beginning upon the effective dates
14 specified by the Board:
15         (1) Except as to the municipalities and
16     instrumentalities thereof specifically excluded under this
17     Article, every county shall be subject to this Article, and
18     all cities, villages and incorporated towns having a
19     population in excess of 5,000 inhabitants as determined by
20     the last preceding decennial or subsequent federal census,
21     shall be subject to this Article following publication of
22     the census by the Bureau of the Census. Within 90 days
23     after publication of the census, the Board shall notify any
24     municipality that has become subject to this Article as a
25     result of that census, and shall provide information to the
26     corporate authorities of the municipality explaining the
27     duties and consequences of participation. The notification
28     shall also include a proposed date upon which participation
29     by the municipality will commence.
30         However, for any city, village or incorporated town
31     that attains a population over 5,000 inhabitants after

 

 

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1     having provided social security coverage for its employees
2     under the Social Security Enabling Act, participation
3     under this Article shall not be mandatory but may be
4     elected in accordance with subparagraph (3) or (4) of this
5     paragraph (a), whichever is applicable.
6         (2) School districts, other than those specifically
7     excluded under this Article, shall be subject to this
8     Article, without election, with respect to all employees
9     thereof.
10         (3) Towns and all other bodies politic and corporate
11     which are formed by vote of, or are subject to control by,
12     the electors in towns and are located in towns which are
13     not participating municipalities on the effective date of
14     this Act, may become subject to this Article by election
15     pursuant to Section 7-132.1.
16         (4) Any other municipality (together with its
17     instrumentalities), other than those specifically excluded
18     from participation and those described in paragraph (3)
19     above, may elect to be included either by referendum under
20     Section 7-134 or by the adoption of a resolution or
21     ordinance by its governing body. A copy of such resolution
22     or ordinance duly authenticated and certified by the clerk
23     of the municipality or other appropriate official of its
24     governing body shall constitute the required notice to the
25     board of such action.
26     (b) A municipality that is about to begin participation
27 shall submit to the Board an application to participate, in a
28 form acceptable to the Board, not later than 90 days prior to
29 the proposed effective date of participation. The Board shall
30 act upon the application within 90 days, and if it finds that
31 the application is in conformity with its requirements and the
32 requirements of this Article, participation by the applicant
33 shall commence on a date acceptable to the municipality and
34 specified by the Board, but in no event more than one year from
35 the date of application.
36     (c) A participating municipality which succeeds to the

 

 

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1 functions of a participating municipality which is dissolved or
2 terminates its existence shall assume and be transferred the
3 net accumulation balance in the municipality reserve and the
4 municipality account receivable balance of the terminated
5 municipality.
6     (d) In the case of a Veterans Assistance Commission whose
7 employees were being treated by the Fund on January 1, 1990 as
8 employees of the county served by the Commission, the Fund may
9 continue to treat the employees of the Veterans Assistance
10 Commission as county employees for the purposes of this
11 Article, unless the Commission becomes a participating
12 instrumentality in accordance with subsection (B) of this
13 Section.
 
14 (B) Participating instrumentalities.
15     (a) The participating instrumentalities designated in
16 paragraph (b) of this subsection shall be included within and
17 be subject to this Article if:
18         (1) an application to participate, in a form acceptable
19     to the Board and adopted by a two-thirds vote of the
20     governing body, is presented to the Board not later than 90
21     days prior to the proposed effective date; and
22         (2) the Board finds that the application is in
23     conformity with its requirements, that the applicant has
24     reasonable expectation to continue as a political entity
25     for a period of at least 10 years and has the prospective
26     financial capacity to meet its current and future
27     obligations to the Fund, and that the actuarial soundness
28     of the Fund may be reasonably expected to be unimpaired by
29     approval of participation by the applicant.
30     The Board shall notify the applicant of its findings within
31 90 days after receiving the application, and if the Board
32 approves the application, participation by the applicant shall
33 commence on the effective date specified by the Board.
34     (b) The following participating instrumentalities, so long
35 as they meet the requirements of Section 7-108 and the area

 

 

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1 served by them or within their jurisdiction is not located
2 entirely within a municipality having more than one million
3 inhabitants, may be included hereunder:
4         i. Township School District Trustees.
5         ii. Multiple County and Consolidated Health
6     Departments created under Division 5-25 of the Counties
7     Code or its predecessor law.
8         iii. Public Building Commissions created under the
9     Public Building Commission Act, and located in counties of
10     less than 1,000,000 inhabitants.
11         iv. A multitype, consolidated or cooperative library
12     system created under the Illinois Library System Act. Any
13     library system created under the Illinois Library System
14     Act that has one or more predecessors that participated in
15     the Fund may participate in the Fund upon application. The
16     Board shall establish procedures for implementing the
17     transfer of rights and obligations from the predecessor
18     system to the successor system.
19         v. Regional Planning Commissions created under
20     Division 5-14 of the Counties Code or its predecessor law.
21         vi. Local Public Housing Authorities created under the
22     Housing Authorities Act, located in counties of less than
23     1,000,000 inhabitants.
24         vii. Illinois Municipal League.
25         viii. Northeastern Illinois Metropolitan Area Planning
26     Commission.
27         ix. Southwestern Illinois Metropolitan Area Planning
28     Commission.
29         x. Illinois Association of Park Districts.
30         xi. Illinois Supervisors, County Commissioners and
31     Superintendents of Highways Association.
32         xii. Tri-City Regional Port District.
33         xiii. An association, or not-for-profit corporation,
34     membership in which is authorized under Section 85-15 of
35     the Township Code.
36         xiv. Drainage Districts operating under the Illinois

 

 

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1     Drainage Code.
2         xv. Local mass transit districts created under the
3     Local Mass Transit District Act.
4         xvi. Soil and water conservation districts created
5     under the Soil and Water Conservation Districts Law.
6         xvii. Commissions created to provide water supply or
7     sewer services or both under Division 135 or Division 136
8     of Article 11 of the Illinois Municipal Code.
9         xviii. Public water districts created under the Public
10     Water District Act.
11         xix. Veterans Assistance Commissions established under
12     Section 9 of the Military Veterans Assistance Act that
13     serve counties with a population of less than 1,000,000.
14         xx. The governing body of an entity, other than a
15     vocational education cooperative, created under an
16     intergovernmental cooperative agreement established
17     between participating municipalities under the
18     Intergovernmental Cooperation Act, which by the terms of
19     the agreement is the employer of the persons performing
20     services under the agreement under the usual common law
21     rules determining the employer-employee relationship. The
22     governing body of such an intergovernmental cooperative
23     entity established prior to July 1, 1988 may make
24     participation retroactive to the effective date of the
25     agreement and, if so, the effective date of participation
26     shall be the date the required application is filed with
27     the fund. If any such entity is unable to pay the required
28     employer contributions to the fund, then the participating
29     municipalities shall make payment of the required
30     contributions and the payments shall be allocated as
31     provided in the agreement or, if not so provided, equally
32     among them.
33         xxi. The Illinois Municipal Electric Agency.
34         xxii. The Waukegan Port District.
35         xxiii. The Fox Waterway Agency created under the Fox
36     Waterway Agency Act.

 

 

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1         xxiv. The Illinois Municipal Gas Agency.
2         xxv. The Kaskaskia Regional Port District.
3         xxvi. The Southwestern Illinois Development Authority.
4         xxvii. The Cairo Public Utility Company.
5         xxviii. The United Counties Council of Illinois. If the
6     United Counties Council of Illinois becomes a
7     participating instrumentality included within and subject
8     to this Article, service with the Council under its
9     previous name (the Urban Counties Council of Illinois)
10     shall be deemed service with the same employer. The
11     employer may elect to make any employee contributions for
12     prior service on behalf of the employees.
13     (c) The governing boards of special education joint
14 agreements created under Section 10-22.31 of the School Code
15 without designation of an administrative district shall be
16 included within and be subject to this Article as participating
17 instrumentalities when the joint agreement becomes effective.
18 However, the governing board of any such special education
19 joint agreement in effect before September 5, 1975 shall not be
20 subject to this Article unless the joint agreement is modified
21 by the school districts to provide that the governing board is
22 subject to this Article, except as otherwise provided by this
23 Section.
24     The governing board of the Special Education District of
25 Lake County shall become subject to this Article as a
26 participating instrumentality on July 1, 1997. Notwithstanding
27 subdivision (a)1 of Section 7-139, on the effective date of
28 participation, employees of the governing board of the Special
29 Education District of Lake County shall receive creditable
30 service for their prior service with that employer, up to a
31 maximum of 5 years, without any employee contribution.
32 Employees may establish creditable service for the remainder of
33 their prior service with that employer, if any, by applying in
34 writing and paying an employee contribution in an amount
35 determined by the Fund, based on the employee contribution
36 rates in effect at the time of application for the creditable

 

 

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1 service and the employee's salary rate on the effective date of
2 participation for that employer, plus interest at the effective
3 rate from the date of the prior service to the date of payment.
4 Application for this creditable service must be made before
5 July 1, 1998; the payment may be made at any time while the
6 employee is still in service. The employer may elect to make
7 the required contribution on behalf of the employee.
8     The governing board of a special education joint agreement
9 created under Section 10-22.31 of the School Code for which an
10 administrative district has been designated, if there are
11 employees of the cooperative educational entity who are not
12 employees of the administrative district, may elect to
13 participate in the Fund and be included within this Article as
14 a participating instrumentality, subject to such application
15 procedures and rules as the Board may prescribe.
16     The Boards of Control of cooperative or joint educational
17 programs or projects created and administered under Section
18 3-15.14 of the School Code, whether or not the Boards act as
19 their own administrative district, shall be included within and
20 be subject to this Article as participating instrumentalities
21 when the agreement establishing the cooperative or joint
22 educational program or project becomes effective.
23     The governing board of a special education joint agreement
24 entered into after June 30, 1984 and prior to September 17,
25 1985 which provides for representation on the governing board
26 by less than all the participating districts shall be included
27 within and subject to this Article as a participating
28 instrumentality. Such participation shall be effective as of
29 the date the joint agreement becomes effective.
30     The governing boards of educational service centers
31 established under Section 2-3.62 of the School Code shall be
32 included within and subject to this Article as participating
33 instrumentalities. The governing boards of vocational
34 education cooperative agreements created under the
35 Intergovernmental Cooperation Act and approved by the State
36 Board of Education shall be included within and be subject to

 

 

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1 this Article as participating instrumentalities. If any such
2 governing boards or boards of control are unable to pay the
3 required employer contributions to the fund, then the school
4 districts served by such boards shall make payment of required
5 contributions as provided in Section 7-172. The payments shall
6 be allocated among the several school districts in proportion
7 to the number of students in average daily attendance for the
8 last full school year for each district in relation to the
9 total number of students in average attendance for such period
10 for all districts served. If such educational service centers,
11 vocational education cooperatives or cooperative or joint
12 educational programs or projects created and administered
13 under Section 3-15.14 of the School Code are dissolved, the
14 assets and obligations shall be distributed among the districts
15 in the same proportions unless otherwise provided.
16     (d) The governing boards of special recreation joint
17 agreements created under Section 8-10b of the Park District
18 Code, operating without designation of an administrative
19 district or an administrative municipality appointed to
20 administer the program operating under the authority of such
21 joint agreement shall be included within and be subject to this
22 Article as participating instrumentalities when the joint
23 agreement becomes effective. However, the governing board of
24 any such special recreation joint agreement in effect before
25 January 1, 1980 shall not be subject to this Article unless the
26 joint agreement is modified, by the districts and
27 municipalities which are parties to the agreement, to provide
28 that the governing board is subject to this Article.
29     If the Board returns any employer and employee
30 contributions to any employer which erroneously submitted such
31 contributions on behalf of a special recreation joint
32 agreement, the Board shall include interest computed from the
33 end of each year to the date of payment, not compounded, at the
34 rate of 7% per annum.
35     (e) Each multi-township assessment district, the board of
36 trustees of which has adopted this Article by ordinance prior

 

 

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1 to April 1, 1982, shall be a participating instrumentality
2 included within and subject to this Article effective December
3 1, 1981. The contributions required under Section 7-172 shall
4 be included in the budget prepared under and allocated in
5 accordance with Section 2-30 of the Property Tax Code.
6     (f) Beginning January 1, 1992, each prospective
7 participating municipality or participating instrumentality
8 shall pay to the Fund the cost, as determined by the Board, of
9 a study prepared by the Fund or its actuary, detailing the
10 prospective costs of participation in the Fund to be expected
11 by the municipality or instrumentality.
12 (Source: P.A. 92-424, eff. 8-17-01; 93-777, eff. 7-21-04.)
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.