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


Rep. Grant Wehrli

Filed: 4/25/2017





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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 aggregates police officer and employer



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1contributions in individual accounts used for retirement. The
2defined contribution plan, including both police officer and
3employer contributions, established by the municipality must,
4at a minimum: meet the safe harbor provisions of the Internal
5Revenue Code of 1986, as amended; be a qualified plan under the
6Internal Revenue Code of 1986, as amended; and comply with all
7other applicable laws, rules, and regulations. Contributions
8shall vest immediately upon deposit in the police officer's
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
13offered by his or her employing municipality, except as an
14annuitant in another fund or as a survivor, while he or she is
15a participant in the defined contribution plan. The defined
16contribution plan under this Section shall not be construed to
17be a pension, annuity, or other defined benefit under this
19    (b) If a police officer who has more than 10 years of
20creditable service in a fund enters active service with a
21different municipality, he or she may elect to participate in
22the defined contribution plan under this Section in lieu of the
23defined benefit plan.
24    A police officer who has elected under this subsection to
25participate in the defined contribution plan may, in writing,
26rescind that election in accordance with the rules of the



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



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1with any municipality that has established a pension fund under
2this Article, that police officer may continue to receive
3pension payments while he or she is in active service, but
4shall only participate in a defined contribution plan
5established by the municipality pursuant to Section 3-109.4 and
6may not establish creditable service in the pension fund
7established by that municipality or have his or her pension
9(Source: P.A. 91-939, eff. 2-1-01.)
10    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
11    Sec. 7-109. Employee.
12    (1) "Employee" means any person who:
13        (a) 1. Receives earnings as payment for the performance
14    of personal services or official duties out of the general
15    fund of a municipality, or out of any special fund or funds
16    controlled by a municipality, or by an instrumentality
17    thereof, or a participating instrumentality, including, in
18    counties, the fees or earnings of any county fee office;
19    and
20        2. Under the usual common law rules applicable in
21    determining the employer-employee relationship, has the
22    status of an employee with a municipality, or any
23    instrumentality thereof, or a participating
24    instrumentality, including aldermen, county supervisors
25    and other persons (excepting those employed as independent



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



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



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



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1    Commissioners and Superintendents of Highways Association;
2    an association, or not-for-profit corporation, membership
3    in which is authorized under Section 85-15 of the Township
4    Code; the United Counties Council; or the Will County
5    Governmental League.
6    (3) All persons, including, without limitation, public
7defenders and probation officers, who receive earnings from
8general or special funds of a county for performance of
9personal services or official duties within the territorial
10limits of the county, are employees of the county (unless
11excluded by subsection (2) of this Section) notwithstanding
12that they may be appointed by and are subject to the direction
13of a person or persons other than a county board or a county
14officer. It is hereby established that an employer-employee
15relationship under the usual common law rules exists between
16such employees and the county paying their salaries by reason
17of the fact that the county boards fix their rates of
18compensation, appropriate funds for payment of their earnings
19and otherwise exercise control over them. This finding and this
20amendatory Act shall apply to all such employees from the date
21of appointment whether such date is prior to or after the
22effective date of this amendatory Act and is intended to
23clarify existing law pertaining to their status as
24participating employees in the Fund.
25(Source: P.A. 98-712, eff. 7-16-14; 99-830, eff. 1-1-17.)



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1    Section 90. The State Mandates Act is amended by adding
2Section 8.41 as follows:
3    (30 ILCS 805/8.41 new)
4    Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
5of this Act, no reimbursement by the State is required for the
6implementation of any mandate created by this amendatory Act of
7the 100th General Assembly.
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".