Illinois General Assembly - Full Text of HB0418
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Full Text of HB0418  100th General Assembly


Rep. Grant Wehrli

Filed: 4/20/2017





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2    AMENDMENT NO. ______. Amend House Bill 418 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 3-109.1, 3-124.1, and 7-109 and by adding
6Section 3-109.4 as follows:
7    (40 ILCS 5/3-109.1)  (from Ch. 108 1/2, par. 3-109.1)
8    Sec. 3-109.1. Chief of police.
9    (a) Except as provided in subsection (a-5), beginning
10Beginning January 1, 1990, any person who is employed as the
11chief of police of a "participating municipality" as defined in
12Section 7-106 of this Code, may elect to participate in the
13Illinois Municipal Retirement Fund rather than in a fund
14created under this Article 3. Except as provided in subsection
15(b), this election shall be irrevocable, and shall be filed in
16writing with the Board of the Illinois Municipal Retirement



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2    (a-5) On or after January 1, 2019, a person may not elect
3to participate in the Illinois Municipal Retirement Fund with
4respect to his or her employment as the chief of police of a
5participating municipality, unless that person became a
6participating employee in the Illinois Municipal Retirement
7Fund before January 1, 2019.
8    (b) Until January 1, 1999, a chief of police who has
9elected under this Section to participate in IMRF rather than a
10fund created under this Article may elect to rescind that
11election and transfer his or her participation to the police
12pension fund established under this Article by the employing
13municipality. The chief must notify the boards of trustees of
14both funds in writing of his or her decision to rescind the
15election and transfer participation. A chief of police who
16transfers participation under this subsection (b) shall not be
17deemed ineligible to participate in the police pension fund by
18reason of having failed to apply within the 3-month period
19specified in Section 3-106.
20(Source: P.A. 90-460, eff. 8-17-97.)
21    (40 ILCS 5/3-109.4 new)
22    Sec. 3-109.4. Defined contribution plan for certain police
24    (a) Each municipality shall establish a defined
25contribution plan that is a savings plan that aggregates police



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1officer and employer contributions in individual accounts that
2are used for payouts after retirement. The defined contribution
3plan established by the municipality must, at a minimum: meet
4the safe harbor provisions of the Internal Revenue Code of
51986, as amended; be a qualified plan under the Internal
6Revenue Code of 1986, as amended; and comply with all other
7applicable laws, rules, and regulations. Employer
8contributions shall vest immediately upon deposit in the police
9officer's account.
10    A police officer who participates in the defined
11contribution plan under this Section may not earn creditable
12service or otherwise participate in the defined benefit plan,
13except as an annuitant in another fund or as a survivor, while
14he or she is a participant in the defined contribution plan.
15The defined contribution plan under this Section shall not be
16construed to be a pension, annuity, or other defined benefit
17under this Code.
18    (b) If a police officer who has more than 10 years of
19creditable service in a fund enters active service with a
20different municipality, he or she may elect to participate in
21the defined contribution plan under this Section in lieu of the
22defined benefit plan.
23    A police officer who has elected under this subsection to
24participate in the defined contribution plan may, in writing,
25rescind that election in accordance with the rules of the
26board. Any employer contributions, and the earnings thereon,



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1shall remain vested in the police officer's account. A police
2officer who rescinds the election may begin participating in
3the defined benefit plan on the first day of the month
4following the rescission.
5    (c) As used in this Section, "defined benefit plan" means
6the retirement plan available to police officers under this
7Article who do not participate in the defined contribution plan
8under this Section.
9    (40 ILCS 5/3-124.1)  (from Ch. 108 1/2, par. 3-124.1)
10    Sec. 3-124.1. Re-entry into active service.
11    (a) If a police officer who is receiving pension payments
12other than as provided in Section 3-109.3 re-enters active
13service, pension payment shall be suspended while he or she is
14in service. When he or she again retires, pension payments
15shall be resumed. If the police officer remains in service
16after re-entry for a period of less than 5 years, the pension
17shall be the same as upon first retirement. If the officer's
18service after re-entry is at least 5 years and the officer
19makes the required contributions during the period of re-entry,
20his or her pension shall be recomputed by taking into account
21the additional period of service and salary.
22    (b) If a police officer who first becomes a member on or
23after January 1, 2019 is receiving pension payments (other than
24as provided in Section 3-109.3) and re-enters active service
25with any municipality, that police officer shall continue to



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1receive pension payments while he or she is in active service,
2but shall only participate in a defined contribution plan
3established by the municipality pursuant to Section 3-109.4 and
4may not establish creditable service in the pension fund
5established by that municipality or have his or her pension
7(Source: P.A. 91-939, eff. 2-1-01.)
8    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
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 general
13    fund of a municipality, or out of any special fund or funds
14    controlled by a municipality, or by an instrumentality
15    thereof, or a participating instrumentality, including, in
16    counties, the fees or earnings of any county fee office;
17    and
18        2. Under the usual common law rules applicable in
19    determining the employer-employee relationship, has the
20    status of an employee with a municipality, or any
21    instrumentality thereof, or a participating
22    instrumentality, including aldermen, county supervisors
23    and other persons (excepting those employed as independent
24    contractors) who are paid compensation, fees, allowances
25    or other emolument for official duties, and, in counties,



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1    the several county fee offices.
2        (b) Serves as a township treasurer appointed under the
3    School Code, as heretofore or hereafter amended, and who
4    receives for such services regular compensation as
5    distinguished from per diem compensation, and any regular
6    employee in the office of any township treasurer whether or
7    not his earnings are paid from the income of the permanent
8    township fund or from funds subject to distribution to the
9    several school districts and parts of school districts as
10    provided in the School Code, or from both such sources; or
11    is the chief executive officer, chief educational officer,
12    chief fiscal officer, or other employee of a Financial
13    Oversight Panel established pursuant to Article 1H of the
14    School Code, other than a superintendent or certified
15    school business official, except that such person shall not
16    be treated as an employee under this Section if that person
17    has negotiated with the Financial Oversight Panel, in
18    conjunction with the school district, a contractual
19    agreement for exclusion from this Section.
20        (c) Holds an elective office in a municipality,
21    instrumentality thereof or participating instrumentality.
22    (2) "Employee" does not include persons who:
23        (a) Are eligible for inclusion under any of the
24    following laws:
25            1. "An Act in relation to an Illinois State
26        Teachers' Pension and Retirement Fund", approved May



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1        27, 1915, as amended;
2            2. Articles 15 and 16 of this Code.
3        However, such persons shall be included as employees to
4    the extent of earnings that are not eligible for inclusion
5    under the foregoing laws for services not of an
6    instructional nature of any kind.
7        However, any member of the armed forces who is employed
8    as a teacher of subjects in the Reserve Officers Training
9    Corps of any school and who is not certified under the law
10    governing the certification of teachers shall be included
11    as an employee.
12        (b) Are designated by the governing body of a
13    municipality in which a pension fund is required by law to
14    be established for policemen or firemen, respectively, as
15    performing police or fire protection duties, except that
16    when such persons are the heads of the police or fire
17    department and are not eligible to be included within any
18    such pension fund, they shall be included within this
19    Article; provided, that such persons shall not be excluded
20    to the extent of concurrent service and earnings not
21    designated as being for police or fire protection duties.
22    However, (i) any head of a police department who was a
23    participant under this Article immediately before October
24    1, 1977 and did not elect, under Section 3-109 of this Act,
25    to participate in a police pension fund shall be an
26    "employee", and (ii) any chief of police who became a



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1    participating employee under this Article before January
2    1, 2019 and who elects to participate in this Fund under
3    Section 3-109.1 of this Code, regardless of whether such
4    person continues to be employed as chief of police or is
5    employed in some other rank or capacity within the police
6    department, shall be an employee under this Article for so
7    long as such person is employed to perform police duties by
8    a participating municipality and has not lawfully
9    rescinded that election.
10        (c) Are contributors to or eligible to contribute to a
11    Taft-Hartley pension plan to which the participating
12    municipality is required to contribute as the person's
13    employer based on earnings from the municipality. Nothing
14    in this paragraph shall affect service credit or creditable
15    service for any period of service prior to the effective
16    date of this amendatory Act of the 98th General Assembly,
17    and this paragraph shall not apply to individuals who are
18    participating in the Fund prior to the effective date of
19    this amendatory Act of the 98th General Assembly.
20        (d) Become an employee of any of the following
21    participating instrumentalities on or after the effective
22    date of this amendatory Act of the 99th General Assembly:
23    the Illinois Municipal League; the Illinois Association of
24    Park Districts; the Illinois Supervisors, County
25    Commissioners and Superintendents of Highways Association;
26    an association, or not-for-profit corporation, membership



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1    in which is authorized under Section 85-15 of the Township
2    Code; the United Counties Council; or the Will County
3    Governmental League.
4    (3) All persons, including, without limitation, public
5defenders and probation officers, who receive earnings from
6general or special funds of a county for performance of
7personal services or official duties within the territorial
8limits of the county, are employees of the county (unless
9excluded by subsection (2) of this Section) notwithstanding
10that they may be appointed by and are subject to the direction
11of a person or persons other than a county board or a county
12officer. It is hereby established that an employer-employee
13relationship under the usual common law rules exists between
14such employees and the county paying their salaries by reason
15of the fact that the county boards fix their rates of
16compensation, appropriate funds for payment of their earnings
17and otherwise exercise control over them. This finding and this
18amendatory Act shall apply to all such employees from the date
19of appointment whether such date is prior to or after the
20effective date of this amendatory Act and is intended to
21clarify existing law pertaining to their status as
22participating employees in the Fund.
23(Source: P.A. 98-712, eff. 7-16-14; 99-830, eff. 1-1-17.)
24    Section 90. The State Mandates Act is amended by adding
25Section 8.41 as follows:



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1    (30 ILCS 805/8.41 new)
2    Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 100th General Assembly.
6    Section 99. Effective date. This Act takes effect upon
7becoming law.".