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90_SB1920 40 ILCS 5/7-137 from Ch. 108 1/2, par. 7-137 Amends the IMRF Article of the Illinois Pension Code. Allows an employee who is receiving a pension from the federal government as a retired member of the U.S. armed forces to elect not to participate in the Fund. Effective immediately. LRB9011684EGfg LRB9011684EGfg 1 AN ACT to amend the Illinois Pension Code by changing 2 Section 7-137. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Section 7-137 as follows: 7 (40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137) 8 Sec. 7-137. Participating and covered employees. 9 (a) The persons described in this paragraph (a) shall be 10 included within and be subject to this Article and eligible 11 to benefits from this fund, beginning upon the dates 12 hereinafter specified: 13 1. Except as to the employees specifically excluded 14 under the provisions of this Article, all persons who are 15 employees of any municipality (or instrumentality 16 thereof) or participating instrumentality on the 17 effective date of participation of the municipality or 18 participating instrumentality beginning upon such 19 effective date. 20 2. Except as to the employees specifically excluded 21 under the provisions of this Article, all persons, who 22 became employees of any participating municipality (or 23 instrumentality thereof) or participating instrumentality 24 after the effective date of participation of such 25 municipality or participating instrumentality, beginning 26 upon the date such person becomes an employee. 27 3. All persons who file notice with the board as 28 provided in paragraph (b) 2 and 3 of this Section, 29 beginning upon the date of filing such notice. 30 (b) The following described persons shall not be 31 considered participating employees eligible for benefits from -2- LRB9011684EGfg 1 this fund, but shall be included within and be subject to 2 this Article (each of the descriptions is not exclusive but 3 is cumulative): 4 1. Any person who occupies an office or is employed 5 in a position normally requiring performance of duty 6 during less than 600 hours a year for a municipality 7 (including all instrumentalities thereof) or a 8 participating instrumentality. If a school treasurer 9 performs services for more than one school district, the 10 total number of hours of service normally required for 11 the several school districts shall be considered to 12 determine whether he qualifies under this paragraph; 13 2. Any person who holds elective office unless he 14 has elected while in that office in a written notice on 15 file with the board to become a participating employee; 16 3. Any person working for a city hospital unless 17 any such person, while in active employment, has elected 18 in a written notice on file with the board to become a 19 participating employee and notification thereof is 20 received by the board; 21 4. Any person who becomes an employee after June 22 30, 1979 as a public service employment program 23 participant under the federal Comprehensive Employment 24 and Training Act and whose wages or fringe benefits are 25 paid in whole or in part by funds provided under such 26 Act. 27 (c) Any person electing to be a participating employee, 28 pursuant to paragraph (b) of this Section may not change such 29 election, except as provided in Section 7-137.1. 30 (d) Any employee who occupied the position of school 31 nurse in any participating municipality on August 8, 1961 and 32 continuously thereafter until the effective date of the 33 exercise of the option authorized by this subparagraph, who 34 on August 7, 1961 was a member of the Teachers' Retirement -3- LRB9011684EGfg 1 System of Illinois, by virtue of certification by the 2 Department of Registration and Education as a public health 3 nurse, may elect to terminate participation in this Fund in 4 order to re-establish membership in such System. The 5 election may be exercised by filing written notice thereof 6 with the Board or with the Board of Trustees of said 7 Teachers' Retirement System, not later than September 30, 8 1963, and shall be effective on the first day of the calendar 9 month next following the month in which the notice was filed. 10 If the written notice is filed with such Teachers' Retirement 11 System, that System shall immediately notify this Fund, but 12 neither failure nor delay in notification shall affect the 13 validity of the employee's election. If the option is 14 exercised, the Fund shall notify such Teachers' Retirement 15 System of such fact and transfer to that system the amounts 16 contributed by the employee to this Fund, including interest 17 at 3% per annum, but excluding contributions applicable to 18 social security coverage during the period beginning August 19 8, 1961 to the effective date of the employee's election. 20 Participation in this Fund as to any credits on or after 21 August 8, 1961 and up to the effective date of the employee's 22 election shall terminate on such effective date. 23 (e) Any participating municipality or participating 24 instrumentality, other than a school district or special 25 education joint agreement created under Section 10-22.31 of 26 the School Code, may, by a resolution or ordinance duly 27 adopted by its governing body, elect to exclude from 28 participation and eligibility for benefits all persons who 29 are employed after the effective date of such resolution or 30 ordinance and who occupy an office or are employed in a 31 position normally requiring performance of duty for less than 32 1000 hours per year for the participating municipality 33 (including all instrumentalities thereof) or participating 34 instrumentality except for persons employed in a position -4- LRB9011684EGfg 1 normally requiring performance of duty for 600 hours or more 2 per year (i) by such participating municipality or 3 participating instrumentality prior to the effective date of 4 the resolution or ordinance, (ii) by any participating 5 municipality or participating instrumentality prior to 6 January 1, 1982 and (iii) by a participating municipality or 7 participating instrumentality, which had not adopted such a 8 resolution when the person was employed, and the function 9 served by the employee's position is assumed by another 10 participating municipality or participating instrumentality. 11 A participating municipality or participating instrumentality 12 included in and subject to this Article after January 1, 1982 13 may adopt such resolution or ordinance only prior to the date 14 it becomes included in and subject to this Article. 15 Notwithstanding the foregoing, a participating municipality 16 or participating instrumentality which is formed solely to 17 succeed to the functions of a participating municipality or 18 participating instrumentality shall be considered to have 19 adopted any such resolution or ordinance which may have been 20 applicable to the employees performing such functions. The 21 election made by the resolution or ordinance shall take 22 effect at the time specified in the resolution or ordinance, 23 and once effective shall be irrevocable. 24 (f) An employee who is receiving a pension from the 25 federal government as a retired member of the U.S. armed 26 forces may elect not to participate in the Fund, by so 27 notifying the Fund in writing. This election, once made, is 28 irrevocable. 29 If an election under this subsection is made by a person 30 who is already participating in the Fund, the person shall 31 forfeit all creditable service earned as a member, and the 32 Board shall refund to the person, without interest, all 33 employee contributions paid for the forfeited creditable 34 service. The Board shall also refund or credit to the -5- LRB9011684EGfg 1 employer, without interest, the employer contributions 2 relating to the forfeited service, except those for death and 3 disability. 4 (Source: P.A. 86-272; 87-740; 87-850.) 5 Section 99. Effective date. This Act takes effect upon 6 becoming law.