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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB2107 Introduced 2/26/2021, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/7-108 | from Ch. 108 1/2, par. 7-108 | 40 ILCS 5/7-109 | from Ch. 108 1/2, par. 7-109 | 40 ILCS 5/22C-118 | | 30 ILCS 805/8.45 new | |
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Amends the Illinois Municipal Retirement Fund (IMRF) and the Firefighters' Pension Investment Fund Articles of the Illinois Pension Code. Adds the Firefighters' Pension Investment Fund to the definition of "participating instrumentality". In the definition of "employee", adds an employee of the Firefighters' Pension Investment Fund if he or she elects to participate and excludes members of the Board of Trustees of the Firefighters' Pension Investment Fund in their capacity as members of the Board of Trustees of the Firefighters' Pension Investment Fund. Provides that the Firefighters' Pension Investment Fund shall pay the required employer contributions for personnel who participate in IMRF. Amends the State Mandates Act to require implementation without reimbursement.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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| | SB2107 | | LRB102 16153 RPS 21529 b |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Pension Code is amended by |
5 | | changing Sections 7-108, 7-109, and 22C-118 as follows:
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6 | | (40 ILCS 5/7-108) (from Ch. 108 1/2, par. 7-108)
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7 | | Sec. 7-108. "Participating Instrumentality": (a) A |
8 | | political entity created
under the laws of the State of |
9 | | Illinois, without general continuous power
to levy taxes, and |
10 | | which is legally separate and distinct from the State of
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11 | | Illinois and any municipality and whose employees by reason of |
12 | | their
relation to such political entity are not employees of |
13 | | the State of
Illinois or a municipality.
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14 | | (b) A not-for-profit organization, which is incorporated |
15 | | under the laws
of the State of Illinois, or an association, |
16 | | membership in which is limited
to municipalities or limited to |
17 | | townships and authorized by statute. |
18 | | (c) The Firefighters' Pension Investment Fund under |
19 | | Article 22C.
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20 | | (Source: P.A. 77-1615.)
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21 | | (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
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22 | | Sec. 7-109. Employee.
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| | SB2107 | - 2 - | LRB102 16153 RPS 21529 b |
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1 | | (1) "Employee" means any person who:
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2 | | (a) 1. Receives earnings as payment for the |
3 | | performance of personal
services or official duties out of |
4 | | the general fund of a municipality,
or out of any special |
5 | | fund or funds controlled by a municipality, or by
an |
6 | | instrumentality thereof, or a participating |
7 | | instrumentality, including,
in counties, the fees or |
8 | | earnings of any county fee office; and
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9 | | 2. Under the usual common law rules applicable in |
10 | | determining the
employer-employee relationship, has the |
11 | | status of an employee with a
municipality, or any |
12 | | instrumentality thereof, or a participating
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13 | | instrumentality, including aldermen, county supervisors |
14 | | and other
persons (excepting those employed as independent |
15 | | contractors) who are
paid compensation, fees, allowances |
16 | | or other emolument for official
duties, and, in counties, |
17 | | the several county fee offices.
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18 | | (b) Serves as a township treasurer appointed under the |
19 | | School
Code, as heretofore or hereafter amended, and
who |
20 | | receives for such services regular compensation as |
21 | | distinguished
from per diem compensation, and any regular |
22 | | employee in the office of
any township treasurer whether |
23 | | or not his earnings are paid from the
income of the |
24 | | permanent township fund or from funds subject to
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25 | | distribution to the several school districts and parts of |
26 | | school
districts as provided in the School Code, or from |
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| | SB2107 | - 3 - | LRB102 16153 RPS 21529 b |
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1 | | both such sources; or is the chief executive officer, |
2 | | chief educational officer, chief fiscal officer, or other |
3 | | employee of a Financial Oversight Panel established |
4 | | pursuant to Article 1H of the School Code, other than a |
5 | | superintendent or certified school business official, |
6 | | except that such person shall not be treated as an |
7 | | employee under this Section if that person has negotiated |
8 | | with the Financial Oversight Panel, in conjunction with |
9 | | the school district, a contractual agreement for exclusion |
10 | | from this Section.
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11 | | (c) Holds an elective office in a municipality, |
12 | | instrumentality
thereof or participating instrumentality.
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13 | | (d) Is an employee of the Firefighters' Pension |
14 | | Investment Fund under Article 22C if he or she elects to |
15 | | participate under this Article. |
16 | | (2) "Employee" does not include persons who:
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17 | | (a) Are eligible for inclusion under any of the |
18 | | following laws:
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19 | | 1. "An Act in relation to an Illinois State |
20 | | Teachers' Pension and
Retirement Fund", approved May |
21 | | 27, 1915, as amended;
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22 | | 2. Articles 15 and 16 of this Code.
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23 | | However, such persons shall be included as employees |
24 | | to the extent of
earnings that are not eligible for |
25 | | inclusion under the foregoing laws
for services not of an |
26 | | instructional nature of any kind.
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| | SB2107 | - 4 - | LRB102 16153 RPS 21529 b |
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1 | | However, any member of the armed forces who is |
2 | | employed as a teacher
of subjects in the Reserve Officers |
3 | | Training Corps of any school and who
is not certified |
4 | | under the law governing the certification of teachers
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5 | | shall be included as an employee.
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6 | | (b) Are designated by the governing body of a |
7 | | municipality in which a
pension fund is required by law to |
8 | | be established for policemen or
firemen, respectively, as |
9 | | performing police or fire protection duties,
except that |
10 | | when such persons are the heads of the police or fire
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11 | | department and are not eligible to be included within any |
12 | | such pension
fund, they shall be included within this |
13 | | Article; provided, that such
persons shall not be excluded |
14 | | to the extent of concurrent service and
earnings not |
15 | | designated as being for police or fire protection duties.
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16 | | However, (i) any head of a police department who was a |
17 | | participant under this
Article immediately before October |
18 | | 1, 1977 and did not elect, under Section
3-109 of this Act, |
19 | | to participate in a police pension fund shall be an
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20 | | "employee", and (ii) any chief of police who became a |
21 | | participating employee under this Article before January |
22 | | 1, 2019 and who elects to participate in this
Fund under |
23 | | Section 3-109.1 of this Code, regardless of whether such |
24 | | person
continues to be employed as chief of police or is |
25 | | employed in some other
rank or capacity within the police |
26 | | department, shall be an employee under
this Article for so |
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| | SB2107 | - 5 - | LRB102 16153 RPS 21529 b |
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1 | | long as such person is employed to perform police
duties |
2 | | by a participating municipality and has not lawfully |
3 | | rescinded that
election. |
4 | | (b-5) Were not participating employees under this |
5 | | Article before the effective date of this amendatory Act |
6 | | of the 100th General Assembly and participated as a chief |
7 | | of police in a fund under Article 3 and return to work in |
8 | | any capacity with the police department, with any |
9 | | oversight of the police department, or in an advisory |
10 | | capacity for the police department with the same |
11 | | municipality with which that pension was earned, |
12 | | regardless of whether they are considered an employee of |
13 | | the police department or are eligible for inclusion in the |
14 | | municipality's Article 3 fund. |
15 | | (c) Are contributors to or eligible to contribute to a |
16 | | Taft-Hartley pension plan to which the participating |
17 | | municipality is required to contribute as the person's |
18 | | employer based on earnings from the municipality. Nothing |
19 | | in this paragraph shall affect service credit or |
20 | | creditable service for any period of service prior to the |
21 | | effective date of this amendatory Act of the 98th General |
22 | | Assembly, and this paragraph shall not apply to |
23 | | individuals who are participating in the Fund prior to the |
24 | | effective date of this amendatory Act of the 98th General |
25 | | Assembly.
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26 | | (d) Become an employee of any of the following |
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| | SB2107 | - 6 - | LRB102 16153 RPS 21529 b |
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1 | | participating instrumentalities on or after the effective |
2 | | date of this amendatory Act of the 99th General Assembly: |
3 | | the Illinois Municipal League; the Illinois Association of |
4 | | Park Districts; the Illinois Supervisors, County |
5 | | Commissioners and Superintendents of Highways Association; |
6 | | an association, or not-for-profit corporation, membership |
7 | | in which is authorized under Section 85-15 of the Township |
8 | | Code; the United Counties Council; or the Will County |
9 | | Governmental League. |
10 | | (e) Are members of the Board of Trustees of the |
11 | | Firefighters' Pension Investment Fund under Article 22C in |
12 | | their capacity as members of the Board of Trustees of the |
13 | | Firefighters' Pension Investment Fund. |
14 | | (3) All persons, including, without limitation, public |
15 | | defenders and
probation officers, who receive earnings from |
16 | | general or special funds
of a county for performance of |
17 | | personal services or official duties
within the territorial |
18 | | limits of the county, are employees of the county
(unless |
19 | | excluded by subsection (2) of this Section) notwithstanding |
20 | | that
they may be appointed by and are subject to the direction |
21 | | of a person or
persons other than a county board or a county |
22 | | officer. It is hereby
established that an employer-employee |
23 | | relationship under the usual
common law rules exists between |
24 | | such employees and the county paying
their salaries by reason |
25 | | of the fact that the county boards fix their
rates of |
26 | | compensation, appropriate funds for payment of their earnings
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| | SB2107 | - 7 - | LRB102 16153 RPS 21529 b |
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1 | | and otherwise exercise control over them. This finding and |
2 | | this
amendatory Act shall apply to all such employees from the |
3 | | date of
appointment whether such date is prior to or after the |
4 | | effective date of
this amendatory Act and is intended to |
5 | | clarify existing law pertaining
to their status as |
6 | | participating employees in the Fund.
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7 | | (Source: P.A. 99-830, eff. 1-1-17; 100-281, eff. 8-24-17; |
8 | | 100-1097, eff. 8-26-18.)
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9 | | (40 ILCS 5/22C-118) |
10 | | Sec. 22C-118. Operation and administration of the Fund. |
11 | | (a) The operation and administration of the Fund shall be |
12 | | managed by an executive director. No later than 2 months after |
13 | | the transition board is appointed or as soon thereafter as may |
14 | | be practicable, the transition board shall appoint an interim |
15 | | executive director who shall serve until a permanent executive |
16 | | director is appointed by the board, with such appointment to |
17 | | be made no later than 6 months after the end of the transition |
18 | | period. The executive director shall act subject to and under |
19 | | the supervision of the board and the board shall fix the |
20 | | compensation of the executive director. |
21 | | (b) The board may appoint one or more custodians to |
22 | | facilitate the transfer of pension fund assets during the |
23 | | transition period, and subsequently to provide custodial and |
24 | | related fiduciary services on behalf of the board, and enter |
25 | | into contracts for such services. The board may also appoint |
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| | SB2107 | - 8 - | LRB102 16153 RPS 21529 b |
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1 | | external legal counsel and an independent auditing firm and |
2 | | may appoint investment advisors and other consultants as it |
3 | | determines to be appropriate and enter into contracts for such |
4 | | services. With approval of the board, the executive director |
5 | | may retain such other consultants, advisors, fiduciaries, and |
6 | | service providers as may be desirable and enter into contracts |
7 | | for such services. |
8 | | (c) The board shall separately calculate account balances |
9 | | for each participating pension fund. The operations and |
10 | | financial condition of each participating pension fund account |
11 | | shall not affect the account balance of any other |
12 | | participating pension fund. Further, investment returns earned |
13 | | by the Fund shall be allocated and distributed pro rata among |
14 | | each participating pension fund account in accordance with the |
15 | | value of the pension fund assets attributable to each fund. |
16 | | (d) With approval of the board, the executive director may |
17 | | employ such personnel, professional or clerical, as may be |
18 | | desirable and fix their compensation. The appointment and |
19 | | compensation of the personnel, including the executive |
20 | | director, shall not be subject to the Personnel Code. The |
21 | | required employer contributions for personnel who participate |
22 | | in the Illinois Municipal Retirement Fund under Article 7 |
23 | | shall be paid for by the Firefighters' Pension Investment |
24 | | Fund. |
25 | | (e) The board shall annually adopt a budget to support its |
26 | | operations and administration. The board shall apply moneys |
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| | SB2107 | - 9 - | LRB102 16153 RPS 21529 b |
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1 | | derived from the pension fund assets transferred and under its |
2 | | control to pay the costs and expenses incurred in the |
3 | | operation and administration of the Fund. The board shall from |
4 | | time to time transfer moneys and other assets to the |
5 | | participating pension funds as required for the participating |
6 | | pension funds to pay expenses, benefits, and other required |
7 | | payments to beneficiaries in the amounts and at the times |
8 | | prescribed in this Code. |
9 | | (f) The board may exercise any of the powers granted to |
10 | | boards of trustees of pension funds under Sections 1-107 and |
11 | | 1-108 of this Code and may by resolution provide for the |
12 | | indemnification of its members and any of its officers, |
13 | | advisors, or employees in a manner consistent with those |
14 | | Sections. |
15 | | (g) An office for meetings of the board and for its |
16 | | administrative personnel shall be established at any suitable |
17 | | place within the State as may be selected by the board. All |
18 | | books and records of the board shall be kept in such office. |
19 | | (h) The board shall contract for a blanket fidelity bond |
20 | | in the penal sum of not less than $1,000,000 to cover members |
21 | | of the board of trustees, the executive director, and all |
22 | | other employees of the board, conditioned for the faithful |
23 | | performance of the duties of their respective offices, the |
24 | | premium on which shall be paid by the board.
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25 | | (Source: P.A. 101-610, eff. 1-1-20.)
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