Illinois General Assembly - Full Text of HB4259
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Full Text of HB4259  99th General Assembly

HB4259ham001 99TH GENERAL ASSEMBLY

Rep. Martin J. Moylan

Filed: 4/4/2016

 

 


 

 


 
09900HB4259ham001LRB099 13021 RPS 46863 a

1
AMENDMENT TO HOUSE BILL 4259

2    AMENDMENT NO. ______. Amend House Bill 4259 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 7-109, 15-106, 15-107, and 16-106 as follows:
 
6    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
7    (Text of Section WITHOUT the changes made by P.A. 98-599,
8which has been held unconstitutional)
9    Sec. 7-109. Employee.
10    (1) "Employee" means any person who:
11        (a) 1. Receives earnings as payment for the performance
12        of personal services or official duties out of the
13        general fund of a municipality, or out of any special
14        fund or funds controlled by a municipality, or by an
15        instrumentality thereof, or a participating
16        instrumentality, including, in counties, the fees or

 

 

09900HB4259ham001- 2 -LRB099 13021 RPS 46863 a

1        earnings of any county fee office; and
2            2. Under the usual common law rules applicable in
3        determining the employer-employee relationship, has
4        the status of an employee with a municipality, or any
5        instrumentality thereof, or a participating
6        instrumentality, including aldermen, county
7        supervisors and other persons (excepting those
8        employed as independent contractors) who are paid
9        compensation, fees, allowances or other emolument for
10        official duties, and, in counties, the several county
11        fee offices.
12        (b) Serves as a township treasurer appointed under the
13    School Code, as heretofore or hereafter amended, and who
14    receives for such services regular compensation as
15    distinguished from per diem compensation, and any regular
16    employee in the office of any township treasurer whether or
17    not his earnings are paid from the income of the permanent
18    township fund or from funds subject to distribution to the
19    several school districts and parts of school districts as
20    provided in the School Code, or from both such sources; or
21    is the chief executive officer, chief educational officer,
22    chief fiscal officer, or other employee of a Financial
23    Oversight Panel established pursuant to Article 1H of the
24    School Code, other than a superintendent or certified
25    school business official, except that such person shall not
26    be treated as an employee under this Section if that person

 

 

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1    has negotiated with the Financial Oversight Panel, in
2    conjunction with the school district, a contractual
3    agreement for exclusion from this Section.
4        (c) Holds an elective office in a municipality,
5    instrumentality thereof or participating instrumentality.
6    (2) "Employee" does not include persons who:
7        (a) Are eligible for inclusion under any of the
8    following laws:
9            1. "An Act in relation to an Illinois State
10        Teachers' Pension and Retirement Fund", approved May
11        27, 1915, as amended;
12            2. Articles 15 and 16 of this Code.
13        However, such persons shall be included as employees to
14    the extent of earnings that are not eligible for inclusion
15    under the foregoing laws for services not of an
16    instructional nature of any kind.
17        However, any member of the armed forces who is employed
18    as a teacher of subjects in the Reserve Officers Training
19    Corps of any school and who is not certified under the law
20    governing the certification of teachers shall be included
21    as an employee.
22        (b) Are designated by the governing body of a
23    municipality in which a pension fund is required by law to
24    be established for policemen or firemen, respectively, as
25    performing police or fire protection duties, except that
26    when such persons are the heads of the police or fire

 

 

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1    department and are not eligible to be included within any
2    such pension fund, they shall be included within this
3    Article; provided, that such persons shall not be excluded
4    to the extent of concurrent service and earnings not
5    designated as being for police or fire protection duties.
6    However, (i) any head of a police department who was a
7    participant under this Article immediately before October
8    1, 1977 and did not elect, under Section 3-109 of this Act,
9    to participate in a police pension fund shall be an
10    "employee", and (ii) any chief of police who elects to
11    participate in this Fund under Section 3-109.1 of this
12    Code, regardless of whether such person continues to be
13    employed as chief of police or is employed in some other
14    rank or capacity within the police department, shall be an
15    employee under this Article for so long as such person is
16    employed to perform police duties by a participating
17    municipality and has not lawfully rescinded that election.
18        (c) Are contributors to or eligible to contribute to a
19    Taft-Hartley pension plan to which the participating
20    municipality is required to contribute as the person's
21    employer based on earnings from the municipality. Nothing
22    in this paragraph shall affect service credit or creditable
23    service for any period of service prior to the effective
24    date of this amendatory Act of the 98th General Assembly,
25    and this paragraph shall not apply to individuals who are
26    participating in the Fund prior to the effective date of

 

 

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1    this amendatory Act of the 98th General Assembly.
2        (d) Become an employee of any of the following
3    participating instrumentalities on or after the effective
4    date of this amendatory Act of the 99th General Assembly:
5    the Illinois Municipal League; the Illinois Association of
6    Park Districts; the Illinois Supervisors, County
7    Commissioners and Superintendents of Highways Association;
8    an association, or not-for-profit corporation, membership
9    in which is authorized under Section 85-15 of the Township
10    Code; the United Counties Council; or the Will County
11    Governmental League.
12    (3) All persons, including, without limitation, public
13defenders and probation officers, who receive earnings from
14general or special funds of a county for performance of
15personal services or official duties within the territorial
16limits of the county, are employees of the county (unless
17excluded by subsection (2) of this Section) notwithstanding
18that they may be appointed by and are subject to the direction
19of a person or persons other than a county board or a county
20officer. It is hereby established that an employer-employee
21relationship under the usual common law rules exists between
22such employees and the county paying their salaries by reason
23of the fact that the county boards fix their rates of
24compensation, appropriate funds for payment of their earnings
25and otherwise exercise control over them. This finding and this
26amendatory Act shall apply to all such employees from the date

 

 

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1of appointment whether such date is prior to or after the
2effective date of this amendatory Act and is intended to
3clarify existing law pertaining to their status as
4participating employees in the Fund.
5(Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;
697-813, eff. 7-13-12; 98-712, eff. 7-16-14.)
 
7    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)
8    (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10    Sec. 15-106. Employer. "Employer": The University of
11Illinois, Southern Illinois University, Chicago State
12University, Eastern Illinois University, Governors State
13University, Illinois State University, Northeastern Illinois
14University, Northern Illinois University, Western Illinois
15University, the State Board of Higher Education, the Illinois
16Mathematics and Science Academy, the University Civil Service
17Merit Board, the Board of Trustees of the State Universities
18Retirement System, the Illinois Community College Board,
19community college boards, any association of community college
20boards organized under Section 3-55 of the Public Community
21College Act, the Board of Examiners established under the
22Illinois Public Accounting Act, and, only during the period for
23which employer contributions required under Section 15-155 are
24paid, the following organizations: the alumni associations,
25the foundations and the athletic associations which are

 

 

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1affiliated with the universities and colleges included in this
2Section as employers. An individual who begins employment on or
3after the effective date of this amendatory Act of the 99th
4General Assembly with any association of community college
5boards organized under Section 3-55 of the Public Community
6College Act, the Association of Illinois Middle-Grade Schools,
7the Illinois Association of School Administrators, the
8Illinois Association for Supervision and Curriculum
9Development, the Illinois Principals Association, the Illinois
10Association of School Business Officials, the Illinois Special
11Olympics, or an entity not defined as an employer in this
12Section shall not be deemed an employee for the purposes of
13this Article with respect to that employment and shall not be
14eligible to participate in the System with respect to that
15employment; provided, however, that those individuals who are
16both employed by such an entity and are participating in the
17System with respect to that employment on the effective date of
18this amendatory Act of the 99th General Assembly shall be
19allowed to continue as participants in the System for the
20duration of that employment.
21    A department as defined in Section 14-103.04 is an employer
22for any person appointed by the Governor under the Civil
23Administrative Code of Illinois who is a participating employee
24as defined in Section 15-109. The Department of Central
25Management Services is an employer with respect to persons
26employed by the State Board of Higher Education in positions

 

 

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1with the Illinois Century Network as of June 30, 2004 who
2remain continuously employed after that date by the Department
3of Central Management Services in positions with the Illinois
4Century Network, the Bureau of Communication and Computer
5Services, or, if applicable, any successor bureau.
6    The cities of Champaign and Urbana shall be considered
7employers, but only during the period for which contributions
8are required to be made under subsection (b-1) of Section
915-155 and only with respect to individuals described in
10subsection (h) of Section 15-107.
11(Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See
12Sec. 999.)
 
13    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
14    (Text of Section WITHOUT the changes made by P.A. 98-599,
15which has been held unconstitutional)
16    Sec. 15-107. Employee.
17    (a) "Employee" means any member of the educational,
18administrative, secretarial, clerical, mechanical, labor or
19other staff of an employer whose employment is permanent and
20continuous or who is employed in a position in which services
21are expected to be rendered on a continuous basis for at least
224 months or one academic term, whichever is less, who (A)
23receives payment for personal services on a warrant issued
24pursuant to a payroll voucher certified by an employer and
25drawn by the State Comptroller upon the State Treasurer or by

 

 

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1an employer upon trust, federal or other funds, or (B) is on a
2leave of absence without pay. Employment which is irregular,
3intermittent or temporary shall not be considered continuous
4for purposes of this paragraph.
5    However, a person is not an "employee" if he or she:
6        (1) is a student enrolled in and regularly attending
7    classes in a college or university which is an employer,
8    and is employed on a temporary basis at less than full
9    time;
10        (2) is currently receiving a retirement annuity or a
11    disability retirement annuity under Section 15-153.2 from
12    this System;
13        (3) is on a military leave of absence;
14        (4) is eligible to participate in the Federal Civil
15    Service Retirement System and is currently making
16    contributions to that system based upon earnings paid by an
17    employer;
18        (5) is on leave of absence without pay for more than 60
19    days immediately following termination of disability
20    benefits under this Article;
21        (6) is hired after June 30, 1979 as a public service
22    employment program participant under the Federal
23    Comprehensive Employment and Training Act and receives
24    earnings in whole or in part from funds provided under that
25    Act; or
26        (7) is employed on or after July 1, 1991 to perform

 

 

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1    services that are excluded by subdivision (a)(7)(f) or
2    (a)(19) of Section 210 of the federal Social Security Act
3    from the definition of employment given in that Section (42
4    U.S.C. 410).
5    (b) Any employer may, by filing a written notice with the
6board, exclude from the definition of "employee" all persons
7employed pursuant to a federally funded contract entered into
8after July 1, 1982 with a federal military department in a
9program providing training in military courses to federal
10military personnel on a military site owned by the United
11States Government, if this exclusion is not prohibited by the
12federally funded contract or federal laws or rules governing
13the administration of the contract.
14    (c) Any person appointed by the Governor under the Civil
15Administrative Code of the State is an employee, if he or she
16is a participant in this system on the effective date of the
17appointment.
18    (d) A participant on lay-off status under civil service
19rules is considered an employee for not more than 120 days from
20the date of the lay-off.
21    (e) A participant is considered an employee during (1) the
22first 60 days of disability leave, (2) the period, not to
23exceed one year, in which his or her eligibility for disability
24benefits is being considered by the board or reviewed by the
25courts, and (3) the period he or she receives disability
26benefits under the provisions of Section 15-152, workers'

 

 

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1compensation or occupational disease benefits, or disability
2income under an insurance contract financed wholly or partially
3by the employer.
4    (f) Absences without pay, other than formal leaves of
5absence, of less than 30 calendar days, are not considered as
6an interruption of a person's status as an employee. If such
7absences during any period of 12 months exceed 30 work days,
8the employee status of the person is considered as interrupted
9as of the 31st work day.
10    (g) A staff member whose employment contract requires
11services during an academic term is to be considered an
12employee during the summer and other vacation periods, unless
13he or she declines an employment contract for the succeeding
14academic term or his or her employment status is otherwise
15terminated, and he or she receives no earnings during these
16periods.
17    (h) An individual who was a participating employee employed
18in the fire department of the University of Illinois's
19Champaign-Urbana campus immediately prior to the elimination
20of that fire department and who immediately after the
21elimination of that fire department became employed by the fire
22department of the City of Urbana or the City of Champaign shall
23continue to be considered as an employee for purposes of this
24Article for so long as the individual remains employed as a
25firefighter by the City of Urbana or the City of Champaign. The
26individual shall cease to be considered an employee under this

 

 

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1subsection (h) upon the first termination of the individual's
2employment as a firefighter by the City of Urbana or the City
3of Champaign.
4    (i) An individual who is employed on a full-time basis as
5an officer or employee of a statewide teacher organization that
6serves System participants or an officer of a national teacher
7organization that serves System participants may participate
8in the System and shall be deemed an employee, provided that
9(1) the individual has previously earned creditable service
10under this Article, (2) the individual files with the System an
11irrevocable election to become a participant before the
12effective date of this amendatory Act of the 97th General
13Assembly, (3) the individual does not receive credit for that
14employment under any other Article of this Code, and (4) the
15individual first became a full-time employee of the teacher
16organization and becomes a participant before the effective
17date of this amendatory Act of the 97th General Assembly. An
18employee under this subsection (i) is responsible for paying to
19the System both (A) employee contributions based on the actual
20compensation received for service with the teacher
21organization and (B) employer contributions equal to the normal
22costs (as defined in Section 15-155) resulting from that
23service; all or any part of these contributions may be paid on
24the employee's behalf or picked up for tax purposes (if
25authorized under federal law) by the teacher organization.
26    A person who is an employee as defined in this subsection

 

 

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1(i) may establish service credit for similar employment prior
2to becoming an employee under this subsection by paying to the
3System for that employment the contributions specified in this
4subsection, plus interest at the effective rate from the date
5of service to the date of payment. However, credit shall not be
6granted under this subsection for any such prior employment for
7which the applicant received credit under any other provision
8of this Code, or during which the applicant was on a leave of
9absence under Section 15-113.2.
10    (j) A person employed by the State Board of Higher
11Education in a position with the Illinois Century Network as of
12June 30, 2004 shall be considered to be an employee for so long
13as he or she remains continuously employed after that date by
14the Department of Central Management Services in a position
15with the Illinois Century Network, the Bureau of Communication
16and Computer Services, or, if applicable, any successor bureau
17and meets the requirements of subsection (a).
18    (k) In the case of doubt as to whether any person is an
19employee within the meaning of this Section or any rule adopted
20by the Board, the decision of the Board shall be final.
21(Source: P.A. 97-651, eff. 1-5-12.)
 
22    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
23    (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25    Sec. 16-106. Teacher. "Teacher": The following

 

 

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1individuals, provided that, for employment prior to July 1,
21990, they are employed on a full-time basis, or if not
3full-time, on a permanent and continuous basis in a position in
4which services are expected to be rendered for at least one
5school term:
6        (1) Any educational, administrative, professional or
7    other staff employed in the public common schools included
8    within this system in a position requiring certification
9    under the law governing the certification of teachers;
10        (2) Any educational, administrative, professional or
11    other staff employed in any facility of the Department of
12    Children and Family Services or the Department of Human
13    Services, in a position requiring certification under the
14    law governing the certification of teachers, and any person
15    who (i) works in such a position for the Department of
16    Corrections, (ii) was a member of this System on May 31,
17    1987, and (iii) did not elect to become a member of the
18    State Employees' Retirement System pursuant to Section
19    14-108.2 of this Code; except that "teacher" does not
20    include any person who (A) becomes a security employee of
21    the Department of Human Services, as defined in Section
22    14-110, after June 28, 2001 (the effective date of Public
23    Act 92-14), or (B) becomes a member of the State Employees'
24    Retirement System pursuant to Section 14-108.2c of this
25    Code;
26        (3) Any regional superintendent of schools, assistant

 

 

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1    regional superintendent of schools, State Superintendent
2    of Education; any person employed by the State Board of
3    Education as an executive; any executive of the boards
4    engaged in the service of public common school education in
5    school districts covered under this system of which the
6    State Superintendent of Education is an ex-officio member;
7        (4) Any employee of a school board association
8    operating in compliance with Article 23 of the School Code
9    who is certificated under the law governing the
10    certification of teachers, provided that he or she becomes
11    such an employee before the effective date of this
12    amendatory Act of the 99th General Assembly;
13        (5) Any person employed by the retirement system who:
14            (i) was an employee of and a participant in the
15        system on August 17, 2001 (the effective date of Public
16        Act 92-416), or
17            (ii) becomes an employee of the system on or after
18        August 17, 2001;
19        (6) Any educational, administrative, professional or
20    other staff employed by and under the supervision and
21    control of a regional superintendent of schools, provided
22    such employment position requires the person to be
23    certificated under the law governing the certification of
24    teachers and is in an educational program serving 2 or more
25    districts in accordance with a joint agreement authorized
26    by the School Code or by federal legislation;

 

 

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1        (7) Any educational, administrative, professional or
2    other staff employed in an educational program serving 2 or
3    more school districts in accordance with a joint agreement
4    authorized by the School Code or by federal legislation and
5    in a position requiring certification under the laws
6    governing the certification of teachers;
7        (8) Any officer or employee of a statewide teacher
8    organization or officer of a national teacher organization
9    who is certified under the law governing certification of
10    teachers, provided: (i) the individual had previously
11    established creditable service under this Article, (ii)
12    the individual files with the system an irrevocable
13    election to become a member before the effective date of
14    this amendatory Act of the 97th General Assembly, (iii) the
15    individual does not receive credit for such service under
16    any other Article of this Code, and (iv) the individual
17    first became an officer or employee of the teacher
18    organization and becomes a member before the effective date
19    of this amendatory Act of the 97th General Assembly;
20        (9) Any educational, administrative, professional, or
21    other staff employed in a charter school operating in
22    compliance with the Charter Schools Law who is certificated
23    under the law governing the certification of teachers;
24        (10) Any person employed, on the effective date of this
25    amendatory Act of the 94th General Assembly, by the
26    Macon-Piatt Regional Office of Education in a

 

 

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1    birth-through-age-three pilot program receiving funds
2    under Section 2-389 of the School Code who is required by
3    the Macon-Piatt Regional Office of Education to hold a
4    teaching certificate, provided that the Macon-Piatt
5    Regional Office of Education makes an election, within 6
6    months after the effective date of this amendatory Act of
7    the 94th General Assembly, to have the person participate
8    in the system. Any service established prior to the
9    effective date of this amendatory Act of the 94th General
10    Assembly for service as an employee of the Macon-Piatt
11    Regional Office of Education in a birth-through-age-three
12    pilot program receiving funds under Section 2-389 of the
13    School Code shall be considered service as a teacher if
14    employee and employer contributions have been received by
15    the system and the system has not refunded those
16    contributions.
17    An annuitant receiving a retirement annuity under this
18Article or under Article 17 of this Code who is employed by a
19board of education or other employer as permitted under Section
2016-118 or 16-150.1 is not a "teacher" for purposes of this
21Article. A person who has received a single-sum retirement
22benefit under Section 16-136.4 of this Article is not a
23"teacher" for purposes of this Article.
24(Source: P.A. 97-651, eff. 1-5-12; 98-463, eff. 8-16-13.)".