(40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
Sec. 21-103.
Political subdivision - election of coverage.
(a) Any political subdivision other than a school district
and other than a political subdivision which is
participating in the Illinois Municipal Retirement Fund under Article 7 of this
Code may, by resolution of the governing body (in the case of a township,
at an annual town meeting or at a special town meeting called for that
purpose), or by referendum, elect to have its employees covered
by the Social Security Act.
Whenever a petition requesting Social Security coverage for
employees, signed by not less than 5% of the legal voters of the
political subdivision, is presented to the governing body, such governing
body shall cause such proposition to be certified to the proper election
officials who shall submit the proposition to the voters at the next
appropriate election in accordance with the general election law, or in the
case of a township at the next annual town meeting if the petition is received
more than 15 and less than 60 days before the annual town meeting, or else at a
special town meeting called for that purpose. In the territory of the
political subdivision every elector may vote upon the proposition stated in the
petition. Such proposition shall be in substantially the following form:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Shall....(political subdivision) enter into a coverage agreement with the Social Security Division of YES the State Employees' Retirement - - - - - - - - - - - - - - - - - - - - - - -
System for extension of Federal Social NO Security coverage to employees of....(political subdivision)? - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
If a majority of all of the votes cast upon the proposition is in favor
thereof, or if the governing body has adopted a resolution or ordinance
providing for coverage of its employees, the governing body shall execute the
coverage agreement provided by the State Agency and submit such coverage
agreement to the State Agency for approval. The coverage agreement shall be
approved by the State Agency if it meets the requirements of subsection (b).
(b) Each coverage agreement of a political subdivision and any
amendment thereof shall be approved by the State Agency if it finds that
such coverage agreement, or such coverage agreement as amended,
is in conformity with such requirements as are provided in the regulations
of the State Agency, except that no such coverage agreement shall be
approved unless:
(1) it is in conformity with the requirements of the |
| Social Security Act and with the Federal-State Agreement entered into under this Article;
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(2) it provides that all services which constitute
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| employment and are performed in the employ of the political subdivision by any employees thereof shall be covered by the coverage agreement, except that such agreement may, if the political subdivision so requests, exclude all services in one or more classes of elective positions, or positions the compensation for which is on a fee basis;
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(3) it provides for such methods of administration of
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| the coverage agreement by the political subdivision as are found by the State Agency to be necessary for the proper and efficient administration of the coverage agreement; and
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(4) it provides for an effective date of coverage not
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(c) In addition to the requirements in subsection (b), no coverage
agreement which provides for an effective date of coverage prior to January
1, 1987 shall be approved unless:
(1) it specifies the sources from which the funds
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(2) it contains a promise to deliver the proper funds
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(3) it specifies some officer to act as custodian of
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(4) it provides that the political subdivision shall
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| pay contributions on covered wages at such times as the State Agency may by regulations prescribe, in the amounts and at the rates provided by this Article; and
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(5) it provides that the political subdivision will
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| make such reports as the State Agency may from time to time require, and comply with such provisions as the State Agency or the Secretary may from time to time find necessary.
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(Source: P.A. 90-448, eff. 8-16-97 .)
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(40 ILCS 5/21-105) (from Ch. 108 1/2, par. 21-105)
Sec. 21-105.
Retirement systems - election of coverage.
A referendum
on the question
of coverage under the Social Security Act may be authorized by the Governor
with respect to any retirement system, or by the
board of trustees of such system, or by the governing body of any
political subdivision which has established a retirement system, except
for a retirement system established under Article
3, 4, 5 or 6 of this Code.
Such a referendum shall also be held upon petition
signed by at least 10% of the members of any retirement system except for
a retirement system established
under Article 3, 4, 5 or 6 of this Code. Such
petition shall be examined and checked by the governing body or board of
trustees of the retirement system, and such
board or body shall certify that each signer of the petition is an
eligible member qualified
to vote in such referendum, and that the names of all ineligible individuals
have been stricken.
Prior to a referendum on that question and to the notice of
the referendum required by either Section 218(d)(3) or 218(d)(7)
of the Social
Security Act, a plan of coverage shall be formulated by the governing
body of each retirement system or Board of Trustees, as the case may be,
whose members are to participate in the referendum for the coordination
of the retirement system with the social security insurance provisions
of Title II of the Social Security Act.
Where a retirement system is governed by an Act of the State of
Illinois, such plan of coverage shall be presented to the General
Assembly for enactment by amendment to such Act.
The ballot to be used in the
referendum shall contain a clear description of the plan of coverage,
which description may take the form of a summary statement setting forth
the changes or revisions, if any, to be made in the benefit and
contribution provisions of the retirement system, and the obligations to
be imposed upon the members of the system if the plan of coverage is
approved in the referendum and their positions are included under an
agreement pursuant to the provisions of this Article.
The referendum shall be subject to the following conditions:
(a) Only eligible employees as defined in Section 218(d)(3) of the Social
Security Act shall be permitted to vote.
(b) Should such referendum under Section 218(d)(3)
fail to obtain approval, any subsequent referendum among members
of the retirement
system in question shall not be held for a period of at least 3 years
from the date of the
referendum.
(c) Upon receipt of satisfactory proof that the conditions of the
referendum specified in either Section 218(d)(3) or Section 218(d)(7)
of the Social Security Act have been met, the Governor or an official of the
State designated by him shall so certify to the Secretary. Proper steps
to give effect to the results of the referendum
shall then be taken by the State Agency, and a modification to the
Federal-State Agreement shall be executed in accordance with
Section 21-108 within a period of 2 years from the date of the referendum.
(Source: P.A. 84-1028.)
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(40 ILCS 5/21-106) (from Ch. 108 1/2, par. 21-106)
Sec. 21-106.
Municipal police and firemen.
(1) If a municipality enters into a coverage agreement under this
Article prior to having established a pension plan under Article 3 or 4 of
this Code, all police positions and all firemen positions, including
members of a volunteer fire department organized pursuant to municipal
ordinance, shall become subject to social security and be included within
the absolute coverage group of the municipality in compliance with Section
218(b)(5) of the Social Security Act. If a municipality establishes a
pension plan under Article 3 or 4 of this Code subsequent to establishing
social security coverage under the conditions set forth in this subsection,
the police and firemen positions shall remain subject to social security as
part of the original absolute coverage group.
(2) If a municipality enters into a coverage agreement under
this Article subsequent to having established a pension plan under
Article 3, 4, 5 or 6 of this Code, or subsequent to becoming legally obligated
to establish such plan even though having not complied, all police and firemen
positions included under such pension plan shall be exempted from social
security coverage and excluded from the absolute coverage group of that
municipality pursuant to Section 218(d)(5)(A) of the Social Security Act.
(3) If the covered or non-covered social security status of the police
and firemen positions in a municipality has been determined under the
conditions set forth in either subsection (1) or (2) of this Section, such
covered or non-covered status shall remain in effect in the event the
municipality shall begin participation in the Illinois Municipal Retirement
Fund pursuant to Sections 7-132 and 7-134 of this Code.
(4) Police and firemen positions which have not acquired social security
coverage as part of an absolute coverage group under an agreement executed
by the municipality pursuant to Section 21-103 shall not acquire social
security coverage by virtue of the municipality's mandate to participate
in the Illinois Municipal Retirement Fund under Section 7-132, or the
municipality's election to participate under Section 7-134.
(5) Incumbents occupying police and firemen positions who because of
age, physical condition, length of service or other disqualifications are
ineligible to participate in local pension plans established under Articles
3 and 4 of this Code are also excluded from social security coverage if the
employing municipality has obtained social security coverage under the
conditions stated in subsections (2) and (4) of this Section, except that
beginning July 1, 1991, such persons are subject to mandatory Social Security
coverage.
(Source: P.A. 87-11.)
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(40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
Sec. 21-109.
Payment of Contributions.
(a) Absolute coverage group: Each political subdivision which has
established Social Security coverage for its employees under this Article
shall pay contributions on
covered wages paid prior to January 1, 1987 in the amounts and at the rates
prescribed by subchapters A and B of the Federal Insurance Contributions
Act at the times prescribed in the regulations of the State Agency.
Taxes due on wages covered under the Social Security Coverage Agreement
paid after December 31, 1986 shall be paid by each political subdivision to
the Internal Revenue Service in the amounts and at the rates specified in
the Federal Insurance Contributions Act and at the times prescribed in the
regulations of the Internal Revenue Service.
Every political subdivision required to make
payments is authorized in consideration of the employee's retention in,
or entry upon, employment to impose upon each of its employees, as to
services which are covered by the coverage agreement, a contribution with
respect to wages computed by applying the rates of contribution prescribed by
Subchapter A of the Federal Insurance Contributions Act, and to deduct the
amount of such contribution from such employee's wages when paid.
Failure to deduct such contribution shall not relieve the employee or
employer of liability therefor.
(b) Retirement system coverage group: As a condition of its coverage
agreement, the governing body or board of trustees of any retirement system
which has adopted Social Security coverage for its members under this Article
shall assume responsibility to the State Agency for the compiling of wage data,
the collection of related contributions prescribed by subchapters A and B of
the Federal Insurance Contributions Act, and the timely reporting and payment
of such items upon the wages of all covered employees paid prior to January 1,
1987 in the manner and at the times prescribed by the State Agency.
Coincident to the adoption of coverage, the governing body or board of
trustees of the retirement system shall promulgate rules and regulations
in conformity with federal regulations, applicable to the State or local
governmental entities or to the agencies and employees participating
therein, to insure the correct application of coverage and the timely and
accurate reporting of wages and collection of contributions.
In the event of failure by the retirement system or the governmental
entities or agencies participating therein to comply with the timely reporting
and payment requirements imposed by this Section, the retirement system
shall be assessed any federal interest or late filing penalties arising
therefrom.
The contributions collected under this Section by any retirement system which
elects to adopt coverage shall be remitted at such times as the State Agency
shall prescribe.
The employees comprising the executive and administrative staff of any
retirement system which elects to adopt the provisions of this
Article shall have the contributions made by the body employing them.
(c) If more or less than the correct amount of contributions is paid to
the State Agency, proper adjustment, or refund without interest if
adjustment is impractical, shall be made in such manner and at such times
as the State Agency shall prescribe.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/21-109.1) (from Ch. 108 1/2, par. 21-109.1)
Sec. 21-109.1.
(a) Notwithstanding any law to the contrary, State
agencies, as defined in the State Auditing Act, shall remit to the
Comptroller all contributions required under subchapters A, B and C
of the Federal Insurance Contributions Act, at the rates and at the times
specified in that Act, for wages paid on or after January 1, 1987 on a
warrant of the State Comptroller.
(b) The Comptroller shall establish a fund to be known as the Social
Security Administration Fund, with the State Treasurer as ex officio
custodian. Contributions and other monies received by the Comptroller for
the purposes of the Federal Insurance Contributions Act shall either be
directly remitted to the U.S. Secretary of the Treasury or be held in
trust in such fund, and shall be paid upon the order of the Comptroller for:
(1) payment of amounts required to be paid to the U. |
| S. Secretary of the Treasury in the amounts and at the times specified in the Federal Insurance Contributions Act; and
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(2) payment of refunds for overpayments which are not
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(c) The Comptroller may collect from a State agency the actual or
anticipated amount of any interest and late charges arising from the State
agency's failure to collect and remit to the Comptroller contributions as
required by the Federal Insurance Contributions Act. Such interest and
charges shall be due and payable upon receipt of notice thereof from the
Comptroller.
(d) The Comptroller shall pay to the U. S. Secretary of the Treasury
such amounts at such times as may be required under the Federal Insurance
Contributions Act.
(e) The Comptroller may direct and the State Treasurer shall transfer amounts from the Social Security Administration Fund into the Capital Facility and Technology Modernization Fund as the Comptroller deems necessary. The Comptroller may direct and the State Treasurer shall transfer any such amounts so transferred to the Capital Facility and Technology Modernization Fund back to the Social Security Administration Fund at any time.
(Source: P.A. 102-16, eff. 6-17-21.)
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