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Public Act 100-0281
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| HB0418 Enrolled | LRB100 04239 RPS 14245 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing |
Sections 3-109.1, 3-124.1, and 7-109 and by adding Section |
3-109.4 as follows:
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(40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)
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Sec. 3-109.1. Chief of police.
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(a) Except as provided in subsection (a-5), beginning |
Beginning January 1, 1990, any person who is employed as the |
chief
of police of a "participating municipality" as defined in |
Section 7-106 of this
Code, may elect to participate in the |
Illinois Municipal Retirement Fund rather
than in a fund |
created under this Article 3. Except as provided in
subsection |
(b), this election shall be irrevocable, and shall be
filed in |
writing with the Board of the Illinois Municipal Retirement |
Fund.
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(a-5) On or after January 1, 2019, a person may not elect |
to participate in the Illinois Municipal Retirement Fund with |
respect to his or her employment as the chief of police of a |
participating municipality, unless that person became a |
participating employee in the Illinois Municipal Retirement |
Fund before January 1, 2019. |
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(b) Until January 1, 1999, a chief of police who has |
elected under this
Section to participate in IMRF rather than a |
fund created under this Article
may elect to rescind that |
election and transfer his or her participation
to the police |
pension fund established under this Article by the employing
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municipality. The chief must notify the boards of trustees of |
both funds in
writing of his or her decision to rescind the |
election and transfer
participation. A chief of police who |
transfers participation under this
subsection (b) shall not be |
deemed ineligible to participate in the police
pension fund by |
reason of having failed to apply within the 3-month period
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specified in Section 3-106.
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(Source: P.A. 90-460, eff. 8-17-97.)
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(40 ILCS 5/3-109.4 new) |
Sec. 3-109.4. Defined contribution plan for certain police |
officers. |
(a) Each municipality shall establish a defined |
contribution plan that aggregates police officer and employer |
contributions in individual accounts used for retirement. The |
defined contribution plan, including both police officer and |
employer contributions, established by the municipality must, |
at a minimum: meet the safe harbor provisions of the Internal |
Revenue Code of 1986, as amended; be a qualified plan under the |
Internal Revenue Code of 1986, as amended; and comply with all |
other applicable laws, rules, and regulations. Contributions |
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shall vest immediately upon deposit in the police officer's |
account. |
A police officer who participates in the defined |
contribution plan under this Section may not earn creditable |
service or otherwise participate in the defined benefit plan |
offered by his or her employing municipality, except as an |
annuitant in another fund or as a survivor, while he or she is |
a participant in the defined contribution plan. The defined |
contribution plan under this Section shall not be construed to |
be a pension, annuity, or other defined benefit under this |
Code. |
(b) If a police officer who has more than 10 years of |
creditable service in a fund enters active service with a |
different municipality, he or she may elect to participate in |
the defined contribution plan under this Section in lieu of the |
defined benefit plan. |
A police officer who has elected under this subsection to |
participate in the defined contribution plan may, in writing, |
rescind that election in accordance with the rules of the |
board. Any employer contributions, and the earnings thereon, |
shall remain vested in the police officer's account. A police |
officer who rescinds the election may begin participating in |
the defined benefit plan on the first day of the month |
following the rescission. |
(c) As used in this Section, "defined benefit plan" means |
the retirement plan available to police officers under this |
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Article who do not participate in the defined contribution plan |
under this Section.
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(40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)
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Sec. 3-124.1. Re-entry into active service. |
(a) If a police officer who is
receiving
pension payments |
other than as provided in Section 3-109.3 re-enters active
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service, pension payment shall be suspended
while he or she is |
in service. When he or she again retires, pension payments
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shall be resumed. If the police officer remains in service |
after re-entry
for a period of less than 5 years, the pension |
shall be the same as upon
first retirement. If the officer's |
service after re-entry is at least 5
years and the officer |
makes the required contributions during the period
of re-entry, |
his or her pension shall be recomputed by taking into account
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the additional period of service and salary. |
(b) If a police officer who first becomes a member on or |
after January 1, 2019 is receiving pension payments (other than |
as provided in Section 3-109.3) and re-enters active
service |
with any municipality that has established a pension fund under |
this Article, that police officer may continue to receive |
pension payments while he or she is in active service, but |
shall only participate in a defined contribution plan |
established by the municipality pursuant to Section 3-109.4 and |
may not establish creditable service in the pension fund |
established by that municipality or have his or her pension |
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recomputed.
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(Source: P.A. 91-939, eff. 2-1-01.)
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(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
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Sec. 7-109. Employee.
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(1) "Employee" means any person who:
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(a) 1. Receives earnings as payment for the performance |
of personal
services or official duties out of the general |
fund of a municipality,
or out of any special fund or funds |
controlled by a municipality, or by
an instrumentality |
thereof, or a participating instrumentality, including,
in |
counties, the fees or earnings of any county fee office; |
and
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2. Under the usual common law rules applicable in |
determining the
employer-employee relationship, has the |
status of an employee with a
municipality, or any |
instrumentality thereof, or a participating
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instrumentality, including aldermen, county supervisors |
and other
persons (excepting those employed as independent |
contractors) who are
paid compensation, fees, allowances |
or other emolument for official
duties, and, in counties, |
the several county fee offices.
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(b) Serves as a township treasurer appointed under the |
School
Code, as heretofore or hereafter amended, and
who |
receives for such services regular compensation as |
distinguished
from per diem compensation, and any regular |
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employee in the office of
any township treasurer whether or |
not his earnings are paid from the
income of the permanent |
township fund or from funds subject to
distribution to the |
several school districts and parts of school
districts as |
provided in the School Code, or from both such sources; or |
is the chief executive officer, chief educational officer, |
chief fiscal officer, or other employee of a Financial |
Oversight Panel established pursuant to Article 1H of the |
School Code, other than a superintendent or certified |
school business official, except that such person shall not |
be treated as an employee under this Section if that person |
has negotiated with the Financial Oversight Panel, in |
conjunction with the school district, a contractual |
agreement for exclusion from this Section.
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(c) Holds an elective office in a municipality, |
instrumentality
thereof or participating instrumentality.
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(2) "Employee" does not include persons who:
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(a) Are eligible for inclusion under any of the |
following laws:
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1. "An Act in relation to an Illinois State |
Teachers' Pension and
Retirement Fund", approved May |
27, 1915, as amended;
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2. Articles 15 and 16 of this Code.
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However, such persons shall be included as employees to |
the extent of
earnings that are not eligible for inclusion |
under the foregoing laws
for services not of an |
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instructional nature of any kind.
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However, any member of the armed forces who is employed |
as a teacher
of subjects in the Reserve Officers Training |
Corps of any school and who
is not certified under the law |
governing the certification of teachers
shall be included |
as an employee.
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(b) Are designated by the governing body of a |
municipality in which a
pension fund is required by law to |
be established for policemen or
firemen, respectively, as |
performing police or fire protection duties,
except that |
when such persons are the heads of the police or fire
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department and are not eligible to be included within any |
such pension
fund, they shall be included within this |
Article; provided, that such
persons shall not be excluded |
to the extent of concurrent service and
earnings not |
designated as being for police or fire protection duties.
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However, (i) any head of a police department who was a |
participant under this
Article immediately before October |
1, 1977 and did not elect, under Section
3-109 of this Act, |
to participate in a police pension fund shall be an
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"employee", and (ii) any chief of police who became a |
participating employee under this Article before January |
1, 2019 and who elects to participate in this
Fund under |
Section 3-109.1 of this Code, regardless of whether such |
person
continues to be employed as chief of police or is |
employed in some other
rank or capacity within the police |
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department, shall be an employee under
this Article for so |
long as such person is employed to perform police
duties by |
a participating municipality and has not lawfully |
rescinded that
election. |
(c) Are contributors to or eligible to contribute to a |
Taft-Hartley pension plan to which the participating |
municipality is required to contribute as the person's |
employer based on earnings from the municipality. Nothing |
in this paragraph shall affect service credit or creditable |
service for any period of service prior to the effective |
date of this amendatory Act of the 98th General Assembly, |
and this paragraph shall not apply to individuals who are |
participating in the Fund prior to the effective date of |
this amendatory Act of the 98th General Assembly.
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(d) Become an employee of any of the following |
participating instrumentalities on or after the effective |
date of this amendatory Act of the 99th General Assembly: |
the Illinois Municipal League; the Illinois Association of |
Park Districts; the Illinois Supervisors, County |
Commissioners and Superintendents of Highways Association; |
an association, or not-for-profit corporation, membership |
in which is authorized under Section 85-15 of the Township |
Code; the United Counties Council; or the Will County |
Governmental League. |
(3) All persons, including, without limitation, public |
defenders and
probation officers, who receive earnings from |
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general or special funds
of a county for performance of |
personal services or official duties
within the territorial |
limits of the county, are employees of the county
(unless |
excluded by subsection (2) of this Section) notwithstanding |
that
they may be appointed by and are subject to the direction |
of a person or
persons other than a county board or a county |
officer. It is hereby
established that an employer-employee |
relationship under the usual
common law rules exists between |
such employees and the county paying
their salaries by reason |
of the fact that the county boards fix their
rates of |
compensation, appropriate funds for payment of their earnings
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and otherwise exercise control over them. This finding and this
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amendatory Act shall apply to all such employees from the date |
of
appointment whether such date is prior to or after the |
effective date of
this amendatory Act and is intended to |
clarify existing law pertaining
to their status as |
participating employees in the Fund.
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(Source: P.A. 98-712, eff. 7-16-14; 99-830, eff. 1-1-17.)
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Section 90. The State Mandates Act is amended by adding |
Section 8.41 as follows:
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(30 ILCS 805/8.41 new) |
Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 |
of this Act, no reimbursement by the State is required for the |
implementation of any mandate created by this amendatory Act of |