State of Illinois
90th General Assembly
Legislation

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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.

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