093_HB2586

 
                                     LRB093 08834 EFG 09066 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 Sections 7-132 and 7-132.2 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
 
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 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,
 
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 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
 
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 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
 
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 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. The
34        governing body of such an  intergovernmental  cooperative
 
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 1        entity  established  prior  to  July  1,  1988  may  make
 2        participation  retroactive  to  the effective date of the
 3        agreement and, if so, the effective date of participation
 4        shall be the date the required application is filed  with
 5        the  fund.   If  any  such  entity  is  unable to pay the
 6        required employer contributions to  the  fund,  then  the
 7        participating  municipalities  shall  make payment of the
 8        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        (c)  The governing  boards  of  special  education  joint
20    agreements  created under Section 10-22.31 of the School Code
21    without designation of an administrative  district  shall  be
22    included   within   and   be   subject  to  this  Article  as
23    participating  instrumentalities  when  the  joint  agreement
24    becomes effective.  However, the governing board of any  such
25    special  education joint agreement in effect before September
26    5, 1975 shall not be subject to this Article unless the joint
27    agreement is modified by the school districts to provide that
28    the governing board is subject to  this  Article,  except  as
29    otherwise provided by this Section.
30        The  governing board of the Special Education District of
31    Lake County  shall  become  subject  to  this  Article  as  a
32    participating    instrumentality    on    July    1,    1997.
33    Notwithstanding  subdivision  (a)1  of  Section 7-139, on the
34    effective date of participation, employees of  the  governing
 
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 1    board  of the Special Education District of Lake County shall
 2    receive creditable service for their prior service with  that
 3    employer,  up  to  a maximum of 5 years, without any employee
 4    contribution.  Employees may establish creditable service for
 5    the remainder of their prior service with that  employer,  if
 6    any,   by   applying   in  writing  and  paying  an  employee
 7    contribution in an amount determined by the  Fund,  based  on
 8    the  employee  contribution  rates  in  effect at the time of
 9    application for the creditable  service  and  the  employee's
10    salary  rate  on the effective date of participation for that
11    employer, plus interest at the effective rate from  the  date
12    of the prior service to the date of payment.  Application for
13    this creditable service must be made before July 1, 1998; the
14    payment  may  be made at any time while the employee is still
15    in service.  The employer may  elect  to  make  the  required
16    contribution on behalf of the employee.
17        The regional office of education serving the part of Cook
18    County  outside  the  City of Chicago shall become subject to
19    this Article as a participating instrumentality  on  July  1,
20    2004.   Notwithstanding subdivision (a)1 of Section 7-139, on
21    the  effective  date  of  participation,  employees  of  that
22    regional office of education shall receive creditable service
23    for their prior service with that employer, up to  a  maximum
24    of 5 years, without any employee contribution.  Employees may
25    establish creditable service for the remainder of their prior
26    service  with  that  employer, if any, by applying in writing
27    and paying an employee contribution in an  amount  determined
28    by  the  Fund,  based  on  the employee contribution rates in
29    effect at the time of application for the creditable  service
30    and  the  employee's  salary  rate  on  the effective date of
31    participation  for  that  employer,  plus  interest  at   the
32    effective rate from the date of the prior service to the date
33    of  payment.  Application for this creditable service must be
34    made before July 1, 2005; the payment may be made at any time
 
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 1    while the employee is still in  service.   The  employer  may
 2    elect  to  make  the  required  contribution on behalf of the
 3    employee.
 4        The  governing  board  of  a  special   education   joint
 5    agreement  created  under Section 10-22.31 of the School Code
 6    for which an administrative district has been designated,  if
 7    there are employees of the cooperative educational entity who
 8    are  not  employees of the administrative district, may elect
 9    to participate in  the  Fund  and  be  included  within  this
10    Article  as  a participating instrumentality, subject to such
11    application procedures and rules as the Board may prescribe.
12        The Boards of Control of cooperative or joint educational
13    programs or projects created and administered  under  Section
14    3-15.14  of the School Code, whether or not the Boards act as
15    their own administrative district, shall be  included  within
16    and   be   subject   to   this   Article   as   participating
17    instrumentalities   when   the   agreement  establishing  the
18    cooperative or joint educational program or  project  becomes
19    effective.
20        The   governing   board  of  a  special  education  joint
21    agreement entered into after  June  30,  1984  and  prior  to
22    September  17,  1985 which provides for representation on the
23    governing board by less than all the participating  districts
24    shall  be  included  within  and subject to this Article as a
25    participating instrumentality.  Such participation  shall  be
26    effective   as  of  the  date  the  joint  agreement  becomes
27    effective.
28        The  governing  boards  of  educational  service  centers
29    established under Section 2-3.62 of the School Code shall  be
30    included  within and subject to this Article as participating
31    instrumentalities.
32        The governing boards of vocational education  cooperative
33    agreements  created  under  the Intergovernmental Cooperation
34    Act and approved by the State Board  of  Education  shall  be
 
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 1    included   within   and   be   subject  to  this  Article  as
 2    participating instrumentalities.
 3        If any  such  regional  office  of  education,  governing
 4    board,  or board boards or boards of control is are unable to
 5    pay the required employer contributions to the Fund, then the
 6    school districts served by that office or board  such  boards
 7    shall  make payment of the required contributions as provided
 8    in Section 7-172.  The payments shall be allocated among  the
 9    several  school  districts  in  proportion  to  the number of
10    students in average daily attendance for the last full school
11    year for each district in relation to  the  total  number  of
12    students  in  average  attendance  for  such  period  for all
13    districts served.  If any such regional office of  education,
14    educational  service  center  centers,  vocational  education
15    cooperative, cooperatives or cooperative or joint educational
16    program   or   project   programs  or  projects  created  and
17    administered under Section  3-15.14 of the School Code is are
18    dissolved, the assets and obligations  shall  be  distributed
19    among  the districts in the same proportions unless otherwise
20    provided by law.
21        (d)  The governing boards  of  special  recreation  joint
22    agreements  created  under Section 8-10b of the Park District
23    Code, operating  without  designation  of  an  administrative
24    district  or  an  administrative  municipality  appointed  to
25    administer  the program operating under the authority of such
26    joint agreement, shall be included within and be  subject  to
27    this  Article  as  participating  instrumentalities  when the
28    joint agreement becomes effective.   However,  the  governing
29    board  of  any  such  special  recreation  joint agreement in
30    effect before January 1, 1980 shall not be  subject  to  this
31    Article  unless  the  joint  agreement  is  modified,  by the
32    districts  and  municipalities  which  are  parties  to   the
33    agreement,  to provide that the governing board is subject to
34    this Article.
 
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 1        If  the  Board  returns   any   employer   and   employee
 2    contributions  to  any  employer  which erroneously submitted
 3    such contributions on behalf of a  special  recreation  joint
 4    agreement, the Board shall include interest computed from the
 5    end  of  each year to the date of payment, not compounded, at
 6    the rate of 7% per annum.
 7        (e)  Each multi-township assessment district,  the  board
 8    of  trustees  of  which has adopted this Article by ordinance
 9    prior  to  April  1,   1982,   shall   be   a   participating
10    instrumentality  included  within and subject to this Article
11    effective December 1, 1981. The contributions required  under
12    Section  7-172 shall be included in the budget prepared under
13    and allocated in accordance with Section 2-30 of the Property
14    Tax Code.
15        (f)  Beginning  January   1,   1992,   each   prospective
16    participating  municipality  or participating instrumentality
17    shall pay to the Fund the cost, as determined by  the  Board,
18    of a study prepared by the Fund or its actuary, detailing the
19    prospective costs of participation in the Fund to be expected
20    by the municipality or instrumentality.
21    (Source: P.A. 92-424, eff. 8-17-01.)

22        (40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
23        Sec. 7-132.2.  Regional office of education.
24        (a)  A  regional  office  of  education serving 2 or more
25    counties,  except  those  serving  a  county   of   2,000,000
26    1,000,000  inhabitants or more, formed pursuant to Article 3A
27    of the School Code shall be included within and be subject to
28    this  Article,  effective  as  of  the  effective   date   of
29    consolidation.   For  the purpose of this Article, a regional
30    office of education serving  2  or  more  counties  shall  be
31    considered    a   participating   instrumentality   but   the
32    requirements of Sections 7-106 and 7-132 shall not  apply  to
33    it.   Each  county  served  by a regional office of education
 
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 1    that serves 2 or more counties  shall  pay  its  proportional
 2    cost  of  the office's municipality contributions.  This cost
 3    shall  be  included  in  the  budget   prepared   under   and
 4    apportioned  in  the  manner  provided by Section 3A-7 of the
 5    School Code.  Each county may include the cost for its  share
 6    of  the  municipality contributions required for the regional
 7    office of education in its appropriation and tax  levy  under
 8    Section 7-171 of this Article.
 9        (b)  For  the  purposes of this Article, employees (other
10    than persons excluded under  subdivision  (2)(a)  of  Section
11    7-109)  of  a participating regional office of education that
12    serves a single county  (other  than  a  regional  office  of
13    education serving all or a portion of a county with 2,000,000
14    or  more  inhabitants)  shall  be treated as employees of the
15    county served by that office.  At the request of  the  county
16    served,  however, the Board may designate a any participating
17    regional office of  education  to  be  a  separate  reporting
18    entity distinct from the county.
19        (c)  The regional office of education serving the part of
20    Cook  County  outside  the City of Chicago, when it becomes a
21    participating instrumentality, shall be treated as a separate
22    reporting entity and not as a part of any county.
23    (Source: P.A. 90-448, eff. 8-16-97.)

24        Section 90.  The State Mandates Act is amended by  adding
25    Section 8.27 as follows:

26        (30 ILCS 805/8.27 new)
27        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
28    and 8 of this Act, no reimbursement by the State is  required
29    for  the  implementation  of  any  mandate  created  by  this
30    amendatory Act of the 93rd General Assembly.

31        Section  99.  Effective date.  This Act takes effect upon
 
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 1    becoming law.