Illinois General Assembly - Full Text of HB2811
Illinois General Assembly

Previous General Assemblies

Full Text of HB2811  93rd General Assembly

HB2811 93rd General Assembly


093_HB2811

 
                                     LRB093 08828 EFG 09060 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
 5    changing 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
17        this Article, every  county  shall  be  subject  to  this
18        Article,  and all cities, villages and incorporated towns
19        having a population in excess  of  5,000  inhabitants  as
20        determined  by the last preceding decennial or subsequent
21        federal  census,  shall  be  subject  to   this   Article
22        following  publication of the census by the Bureau of the
23        Census. Within 90 days after publication of  the  census,
24        the  Board  shall notify any municipality that has become
25        subject to this Article as a result of that  census,  and
26        shall provide information to the corporate authorities of
27        the  municipality  explaining the duties and consequences
28        of participation. The notification shall also  include  a
29        proposed   date   upon   which   participation   by   the
30        municipality will commence.
31             However,  for any city, village or incorporated town
 
                            -2-      LRB093 08828 EFG 09060 b
 1        that attains a population over  5,000  inhabitants  after
 2        having   provided   social   security  coverage  for  its
 3        employees  under  the  Social  Security   Enabling   Act,
 4        participation  under  this Article shall not be mandatory
 5        but may be elected in accordance with subparagraph (3) or
 6        (4) of this paragraph (a), whichever is applicable.
 7             (2)  School districts, other than those specifically
 8        excluded under this Article, shall  be  subject  to  this
 9        Article,  without election, with respect to all employees
10        thereof.
11             (3)  Towns  and  all  other   bodies   politic   and
12        corporate  which are formed by vote of, or are subject to
13        control by, the electors in  towns  and  are  located  in
14        towns  which  are not participating municipalities on the
15        effective date of this Act, may become  subject  to  this
16        Article by election pursuant to Section 7-132.1.
17             (4)  Any   other  municipality  (together  with  its
18        instrumentalities),   other   than   those   specifically
19        excluded  from  participation  and  those  described   in
20        paragraph  (3)  above, may elect to be included either by
21        referendum under Section 7-134 or by the  adoption  of  a
22        resolution or ordinance by its governing body.  A copy of
23        such  resolution  or  ordinance  duly  authenticated  and
24        certified  by  the  clerk  of  the  municipality or other
25        appropriate  official  of  its   governing   body   shall
26        constitute  the  required  notice  to  the  board of such
27        action.
28        (b)  A municipality that is about to begin  participation
29    shall submit to the Board an application to participate, in a
30    form acceptable to the Board, not later than 90 days prior to
31    the  proposed  effective  date  of  participation.  The Board
32    shall act upon the application within  90  days,  and  if  it
33    finds   that  the  application  is  in  conformity  with  its
34    requirements  and   the   requirements   of   this   Article,
 
                            -3-      LRB093 08828 EFG 09060 b
 1    participation  by  the  applicant  shall  commence  on a date
 2    acceptable to the municipality and specified  by  the  Board,
 3    but  in  no  event  more  than  one  year  from  the  date of
 4    application.
 5        (c)  A participating municipality which succeeds  to  the
 6    functions  of a participating municipality which is dissolved
 7    or terminates its existence shall assume and  be  transferred
 8    the  net accumulation balance in the municipality reserve and
 9    the municipality account receivable balance of the terminated
10    municipality.
11        (d)  In the case  of  a  Veterans  Assistance  Commission
12    whose  employees were being treated by the Fund on January 1,
13    1990 as employees of the county served by the Commission, the
14    Fund may continue to treat  the  employees  of  the  Veterans
15    Assistance Commission as county employees for the purposes of
16    this  Article,  unless the Commission becomes a participating
17    instrumentality in accordance with  subsection  (B)  of  this
18    Section.

19    (B)  Participating instrumentalities.
20        (a)  The  participating  instrumentalities  designated in
21    paragraph (b) of this subsection shall be included within and
22    be subject to this Article if:
23             (1)  an  application  to  participate,  in  a   form
24        acceptable  to the Board and adopted by a two-thirds vote
25        of the governing body, is  presented  to  the  Board  not
26        later  than 90 days prior to the proposed effective date;
27        and
28             (2)  the Board finds  that  the  application  is  in
29        conformity  with its requirements, that the applicant has
30        reasonable expectation to continue as a political  entity
31        for a period of at least 10 years and has the prospective
32        financial   capacity  to  meet  its  current  and  future
33        obligations to the Fund, and that the actuarial soundness
34        of the Fund may be reasonably expected to  be  unimpaired
 
                            -4-      LRB093 08828 EFG 09060 b
 1        by approval of participation by the applicant.
 2        The  Board  shall  notify  the  applicant of its findings
 3    within 90 days after receiving the application,  and  if  the
 4    Board   approves   the   application,  participation  by  the
 5    applicant shall commence on the effective date  specified  by
 6    the Board.
 7        (b)  The  following  participating  instrumentalities, so
 8    long as they meet the requirements of Section 7-108  and  the
 9    area  served  by  them  or  within  their jurisdiction is not
10    located entirely within a municipality having more  than  one
11    million inhabitants, may be included hereunder:
12             i.  Township School District Trustees.
13             ii.  Multiple   County   and   Consolidated   Health
14        Departments  created  under Division 5-25 of the Counties
15        Code or its predecessor law.
16             iii.  Public Building Commissions created under  the
17        Public  Building  Commission Act, and located in counties
18        of less than 1,000,000 inhabitants.
19             iv.  A  multitype,   consolidated   or   cooperative
20        library  system created under the Illinois Library System
21        Act.  Any  library  system  created  under  the  Illinois
22        Library System Act that has one or more predecessors that
23        participated in the Fund may participate in the Fund upon
24        application.   The  Board  shall establish procedures for
25        implementing the transfer of rights and obligations  from
26        the predecessor system to the successor system.
27             v.  Regional   Planning  Commissions  created  under
28        Division 5-14 of the Counties  Code  or  its  predecessor
29        law.
30             vi.  Local  Public Housing Authorities created under
31        the Housing Authorities Act, located in counties of  less
32        than 1,000,000 inhabitants.
33             vii.  Illinois Municipal League.
34             viii.  Northeastern   Illinois   Metropolitan   Area
 
                            -5-      LRB093 08828 EFG 09060 b
 1        Planning Commission.
 2             ix.  Southwestern    Illinois    Metropolitan   Area
 3        Planning Commission.
 4             x.  Illinois Association of Park Districts.
 5             xi.  Illinois Supervisors, County Commissioners  and
 6        Superintendents of Highways Association.
 7             xii.  Tri-City Regional Port District.
 8             xiii.  An     association,     or     not-for-profit
 9        corporation,  membership  in  which  is  authorized under
10        Section 85-15 of the Township Code.
11             xiv.  Drainage   Districts   operating   under   the
12        Illinois Drainage Code.
13             xv.  Local mass transit districts created under  the
14        Local Mass Transit District Act.
15             xvi.  Soil  and water conservation districts created
16        under the Soil and Water Conservation Districts Law.
17             xvii.  Commissions created to provide  water  supply
18        or  sewer services or both under Division 135 or Division
19        136 of Article 11 of the Illinois Municipal Code.
20             xviii.  Public water  districts  created  under  the
21        Public Water District Act.
22             xix.  Veterans  Assistance  Commissions  established
23        under  Section  9 of the Military Veterans Assistance Act
24        that serve  counties  with  a  population  of  less  than
25        1,000,000.
26             xx.  The  governing  body of an entity, other than a
27        vocational  education  cooperative,  created   under   an
28        intergovernmental   cooperative   agreement   established
29        between    participating    municipalities    under   the
30        Intergovernmental Cooperation Act, which by the terms  of
31        the  agreement  is the employer of the persons performing
32        services under the agreement under the usual  common  law
33        rules  determining  the  employer-employee  relationship.
34        The   governing   body   of   such  an  intergovernmental
 
                            -6-      LRB093 08828 EFG 09060 b
 1        cooperative entity established prior to July 1, 1988  may
 2        make  participation  retroactive to the effective date of
 3        the  agreement  and,  if  so,  the  effective   date   of
 4        participation  shall be the date the required application
 5        is filed with the fund.  If any such entity is unable  to
 6        pay the required employer contributions to the fund, then
 7        the  participating  municipalities  shall make payment of
 8        the required contributions  and  the  payments  shall  be
 9        allocated  as  provided  in  the  agreement or, if not so
10        provided, equally among them.
11             xxi.  The Illinois Municipal Electric Agency.
12             xxii.  The Waukegan Port District.
13             xxiii.  The Fox Waterway Agency  created  under  the
14        Fox Waterway Agency Act.
15             xxiv.  The Illinois Municipal Gas Agency.
16             xxv.  The Kaskaskia Regional Port District.
17             xxvi.  The    Southwestern    Illinois   Development
18        Authority.
19             xxvii.  The United Counties Council of Illinois.  If
20        the  United  Counties  Council  of  Illinois  becomes   a
21        participating instrumentality included within and subject
22        to  this  Article,  service  with  the  Council under its
23        previous name (the Urban Counties  Council  of  Illinois)
24        shall  be  deemed  service  with  the same employer.  The
25        employer may elect to make any employee contributions for
26        prior service on behalf of the employees.
27        (c)  The governing  boards  of  special  education  joint
28    agreements  created under Section 10-22.31 of the School Code
29    without designation of an administrative  district  shall  be
30    included   within   and   be   subject  to  this  Article  as
31    participating  instrumentalities  when  the  joint  agreement
32    becomes effective.  However, the governing board of any  such
33    special  education joint agreement in effect before September
34    5, 1975 shall not be subject to this Article unless the joint
 
                            -7-      LRB093 08828 EFG 09060 b
 1    agreement is modified by the school districts to provide that
 2    the governing board is subject to  this  Article,  except  as
 3    otherwise provided by this Section.
 4        The  governing board of the Special Education District of
 5    Lake County  shall  become  subject  to  this  Article  as  a
 6    participating    instrumentality    on    July    1,    1997.
 7    Notwithstanding  subdivision  (a)1  of  Section 7-139, on the
 8    effective date of participation, employees of  the  governing
 9    board  of the Special Education District of Lake County shall
10    receive creditable service for their prior service with  that
11    employer,  up  to  a maximum of 5 years, without any employee
12    contribution.  Employees may establish creditable service for
13    the remainder of their prior service with that  employer,  if
14    any,   by   applying   in  writing  and  paying  an  employee
15    contribution in an amount determined by the  Fund,  based  on
16    the  employee  contribution  rates  in  effect at the time of
17    application for the creditable  service  and  the  employee's
18    salary  rate  on the effective date of participation for that
19    employer, plus interest at the effective rate from  the  date
20    of the prior service to the date of payment.  Application for
21    this creditable service must be made before July 1, 1998; the
22    payment  may  be made at any time while the employee is still
23    in service.  The employer may  elect  to  make  the  required
24    contribution on behalf of the employee.
25        The   governing   board  of  a  special  education  joint
26    agreement created under Section 10-22.31 of the  School  Code
27    for  which an administrative district has been designated, if
28    there are employees of the cooperative educational entity who
29    are not employees of the administrative district,  may  elect
30    to  participate  in  the  Fund  and  be  included within this
31    Article as a participating instrumentality, subject  to  such
32    application procedures and rules as the Board may prescribe.
33        The Boards of Control of cooperative or joint educational
34    programs  or  projects created and administered under Section
 
                            -8-      LRB093 08828 EFG 09060 b
 1    3-15.14 of the School Code, whether or not the Boards  act as
 2    their own administrative district, shall be  included  within
 3    and   be   subject   to   this   Article   as   participating
 4    instrumentalities   when   the   agreement  establishing  the
 5    cooperative or joint educational program or  project  becomes
 6    effective.
 7        The   governing   board  of  a  special  education  joint
 8    agreement entered into after  June  30,  1984  and  prior  to
 9    September  17,  1985 which provides for representation on the
10    governing board by less than all the participating  districts
11    shall  be  included  within  and subject to this Article as a
12    participating instrumentality.  Such participation  shall  be
13    effective   as  of  the  date  the  joint  agreement  becomes
14    effective.
15        The  governing  boards  of  educational  service  centers
16    established under Section 2-3.62 of the School Code shall  be
17    included  within and subject to this Article as participating
18    instrumentalities.   The  governing  boards   of   vocational
19    education    cooperative   agreements   created   under   the
20    Intergovernmental Cooperation Act and approved by  the  State
21    Board of Education shall be included within and be subject to
22    this Article as participating instrumentalities.  If any such
23    governing  boards  or boards of control are unable to pay the
24    required employer contributions to the fund, then the  school
25    districts  served  by  such  boards  shall  make  payment  of
26    required  contributions  as  provided  in Section 7-172.  The
27    payments  shall  be  allocated  among  the   several   school
28    districts  in proportion to the number of students in average
29    daily attendance for the  last  full  school  year  for  each
30    district  in  relation  to  the  total  number of students in
31    average attendance for such period for all districts  served.
32    If  such  educational  service  centers, vocational education
33    cooperatives or cooperative or joint educational programs  or
34    projects  created  and  administered under Section 3-15.14 of
 
                            -9-      LRB093 08828 EFG 09060 b
 1    the School Code are dissolved,  the  assets  and  obligations
 2    shall   be  distributed  among  the  districts  in  the  same
 3    proportions unless otherwise provided.
 4        (d)  The governing boards  of  special  recreation  joint
 5    agreements  created  under Section 8-10b of the Park District
 6    Code, operating  without  designation  of  an  administrative
 7    district  or  an  administrative  municipality  appointed  to
 8    administer  the program operating under the authority of such
 9    joint agreement shall be included within and  be  subject  to
10    this  Article  as  participating  instrumentalities  when the
11    joint agreement becomes effective.   However,  the  governing
12    board  of  any  such  special  recreation  joint agreement in
13    effect before January 1, 1980 shall not be  subject  to  this
14    Article  unless  the  joint  agreement  is  modified,  by the
15    districts  and  municipalities  which  are  parties  to   the
16    agreement,  to provide that the governing board is subject to
17    this Article.
18        If  the  Board  returns   any   employer   and   employee
19    contributions  to  any  employer  which erroneously submitted
20    such contributions on behalf of a  special  recreation  joint
21    agreement, the Board shall include interest computed from the
22    end  of  each year to the date of payment, not compounded, at
23    the rate of 7% per annum.
24        (e)  Each multi-township assessment district,  the  board
25    of  trustees  of  which has adopted this Article by ordinance
26    prior  to  April  1,   1982,   shall   be   a   participating
27    instrumentality  included  within and subject to this Article
28    effective December 1, 1981. The contributions required  under
29    Section  7-172 shall be included in the budget prepared under
30    and allocated in accordance with Section 2-30 of the Property
31    Tax Code.
32        (f)  Beginning  January   1,   1992,   each   prospective
33    participating  municipality  or participating instrumentality
34    shall pay to the Fund the cost, as determined by  the  Board,
 
                            -10-     LRB093 08828 EFG 09060 b
 1    of a study prepared by the Fund or its actuary, detailing the
 2    prospective costs of participation in the Fund to be expected
 3    by the municipality or instrumentality.
 4    (Source: P.A. 92-424, eff. 8-17-01.)

 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.