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90_HB1519
40 ILCS 5/7-132 from Ch. 108 1/2, par. 7-132
40 ILCS 5/7-171 from Ch. 108 1/2, par. 7-171
30 ILCS 805/8.21 new
Amends the Illinois Municipal Retirement Fund Article of
the Pension Code to provide that employees of the governing
board of the Special Education District of Lake County must
begin participating in the Fund as of July 1, 1997. Provides
that current employees shall receive free credit for 20% of
their prior service with that employer (up to a maximum of 5
years), but employee contributions must be paid in order to
receive credit for the remainder of that prior service.
Provides that the school districts participating in a special
education joint agreement created under Section 10-22.31 of
the School Code that is a participating instrumentality may
pay their proportionate share of the employer contribution
for current service out of the districts' IMRF tax levy.
Amends the State Mandates Act to require implementation
without reimbursement. Effective immediately.
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LRB9004064EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 7-132 and 7-171 and to amend the State Mandates Act.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 7-132 and 7-171 as follows:
7 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
8 Sec. 7-132. Municipalities, instrumentalities and
9 participating instrumentalities included and effective dates.
10 (A) Municipalities and their instrumentalities.
11 (a) The following described municipalities, but not
12 including any with more than 1,000,000 inhabitants, and the
13 instrumentalities thereof, shall be included within and be
14 subject to this Article beginning upon the effective dates
15 specified by the Board:
16 (1) Except as to the municipalities and
17 instrumentalities thereof specifically excluded under
18 this Article, every county shall be subject to this
19 Article, and all cities, villages and incorporated towns
20 having a population in excess of 5,000 inhabitants as
21 determined by the last preceding decennial or subsequent
22 federal census, shall be subject to this Article
23 following publication of the census by the Bureau of the
24 Census. Within 90 days after publication of the census,
25 the Board shall notify any municipality that has become
26 subject to this Article as a result of that census, and
27 shall provide information to the corporate authorities of
28 the municipality explaining the duties and consequences
29 of participation. The notification shall also include a
30 proposed date upon which participation by the
31 municipality will commence.
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1 However, for any city, village or incorporated town
2 that attains a population over 5,000 inhabitants after
3 having provided social security coverage for its
4 employees under the Social Security Enabling Act,
5 participation under this Article shall not be mandatory
6 but may be elected in accordance with subparagraph (3) or
7 (4) of this paragraph (a), whichever is applicable.
8 (2) School districts, other than those specifically
9 excluded under this Article, shall be subject to this
10 Article, without election, with respect to all employees
11 thereof.
12 (3) Towns and all other bodies politic and
13 corporate which are formed by vote of, or are subject to
14 control by, the electors in towns and are located in
15 towns which are not participating municipalities on the
16 effective date of this Act, may become subject to this
17 Article by election pursuant to Section 7-132.1.
18 (4) Any other municipality (together with its
19 instrumentalities), other than those specifically
20 excluded from participation and those described in
21 paragraph (3) above, may elect to be included either by
22 referendum under Section 7-134 or by the adoption of a
23 resolution or ordinance by its governing body. A copy of
24 such resolution or ordinance duly authenticated and
25 certified by the clerk of the municipality or other
26 appropriate official of its governing body shall
27 constitute the required notice to the board of such
28 action.
29 (b) A municipality that is about to begin participation
30 shall submit to the Board an application to participate, in a
31 form acceptable to the Board, not later than 90 days prior to
32 the proposed effective date of participation. The Board
33 shall act upon the application within 90 days, and if it
34 finds that the application is in conformity with its
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1 requirements and the requirements of this Article,
2 participation by the applicant shall commence on a date
3 acceptable to the municipality and specified by the Board,
4 but in no event more than one year from the date of
5 application.
6 (c) A participating municipality which succeeds to the
7 functions of a participating municipality which is dissolved
8 or terminates its existence shall assume and be transferred
9 the net accumulation balance in the municipality reserve and
10 the municipality account receivable balance of the terminated
11 municipality.
12 (d) In the case of a Veterans Assistance Commission
13 whose employees were being treated by the Fund on January 1,
14 1990 as employees of the county served by the Commission, the
15 Fund may continue to treat the employees of the Veterans
16 Assistance Commission as county employees for the purposes of
17 this Article, unless the Commission becomes a participating
18 instrumentality in accordance with subsection (B) of this
19 Section.
20 (B) Participating instrumentalities.
21 (a) The participating instrumentalities designated in
22 paragraph (b) of this subsection shall be included within and
23 be subject to this Article if:
24 (1) an application to participate, in a form
25 acceptable to the Board and adopted by a two-thirds vote
26 of the governing body, is presented to the Board not
27 later than 90 days prior to the proposed effective date;
28 and
29 (2) the Board finds that the application is in
30 conformity with its requirements, that the applicant has
31 reasonable expectation to continue as a political entity
32 for a period of at least 10 years and has the prospective
33 financial capacity to meet its current and future
34 obligations to the Fund, and that the actuarial soundness
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1 of the Fund may be reasonably expected to be unimpaired
2 by approval of participation by the applicant.
3 The Board shall notify the applicant of its findings
4 within 90 days after receiving the application, and if the
5 Board approves the application, participation by the
6 applicant shall commence on the effective date specified by
7 the Board.
8 (b) The following participating instrumentalities, so
9 long as they meet the requirements of Section 7-108 and the
10 area served by them or within their jurisdiction is not
11 located entirely within a municipality having more than one
12 million inhabitants, may be included hereunder:
13 i. Township School District Trustees.
14 ii. Multiple County and Consolidated Health
15 Departments created under Division 5-25 of the Counties
16 Code or its predecessor law.
17 iii. Public Building Commissions created under the
18 Public Building Commission Act, and located in counties
19 of less than 1,000,000 inhabitants.
20 iv. A multitype, consolidated or cooperative
21 library system created under the Illinois Library System
22 Act. Any library system created under the Illinois
23 Library System Act that has one or more predecessors that
24 participated in the Fund may participate in the Fund upon
25 application. The Board shall establish procedures for
26 implementing the transfer of rights and obligations from
27 the predecessor system to the successor system.
28 v. Regional Planning Commissions created under
29 Division 5-14 of the Counties Code or its predecessor
30 law.
31 vi. Local Public Housing Authorities created under
32 the Housing Authorities Act, located in counties of less
33 than 1,000,000 inhabitants.
34 vii. Illinois Municipal League.
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1 viii. Northeastern Illinois Metropolitan Area
2 Planning Commission.
3 ix. Southwestern Illinois Metropolitan Area
4 Planning Commission.
5 x. Illinois Association of Park Districts.
6 xi. Illinois Supervisors, County Commissioners and
7 Superintendents of Highways Association.
8 xii. Tri-City Regional Port District.
9 xiii. An association, or not-for-profit
10 corporation, membership in which is authorized under
11 Section 85-15 of the Township Code.
12 xiv. Drainage Districts operating under the
13 Illinois Drainage Code.
14 xv. Local mass transit districts created under the
15 Local Mass Transit District Act.
16 xvi. Soil and water conservation districts created
17 under the Soil and Water Conservation Districts Law.
18 xvii. Commissions created to provide water supply
19 or sewer services or both under Division 135 or Division
20 136 of Article 11 of the Illinois Municipal Code.
21 xviii. Public water districts created under the
22 Public Water District Act.
23 xix. Veterans Assistance Commissions established
24 under Section 9 of the Military Veterans Assistance Act
25 that serve counties with a population of less than
26 1,000,000.
27 xx. The governing body of an entity, other than a
28 vocational education cooperative, created under an
29 intergovernmental cooperative agreement established
30 between participating municipalities under the
31 Intergovernmental Cooperation Act, which by the terms of
32 the agreement is the employer of the persons performing
33 services under the agreement under the usual common law
34 rules determining the employer-employee relationship.
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1 The governing body of such an intergovernmental
2 cooperative entity established prior to July 1, 1988 may
3 make participation retroactive to the effective date of
4 the agreement and, if so, the effective date of
5 participation shall be the date the required application
6 is filed with the fund. If any such entity is unable to
7 pay the required employer contributions to the fund, then
8 the participating municipalities shall make payment of
9 the required contributions and the payments shall be
10 allocated as provided in the agreement or, if not so
11 provided, equally among them.
12 xxi. The Illinois Municipal Electric Agency.
13 xxii. The Waukegan Port District.
14 xxiii. The Fox Waterway Agency created under the
15 Fox Waterway Agency Act.
16 (c) The governing boards of special education joint
17 agreements created under Section 10-22.31 of the School Code
18 without designation of an administrative district, shall be
19 included within and be subject to this Article as
20 participating instrumentalities when the joint agreement
21 becomes effective. However, the governing board of any such
22 special education joint agreement in effect before September
23 5, 1975 shall not be subject to this Article unless the joint
24 agreement is modified by the school districts to provide that
25 the governing board is subject to this Article, except as
26 otherwise provided by this Section.
27 The governing board of the Special Education District of
28 Lake County shall become subject to this Article as a
29 participating instrumentality on July 1, 1997.
30 Notwithstanding subdivision (a)1 of Section 7-139, on the
31 effective date of participation, employees of the governing
32 board of the Special Education District of Lake County shall
33 receive creditable service for the last 20% of the period of
34 prior service with that employer, but no more than 5 years,
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1 without any employee contribution. The employees may
2 establish creditable service for the remainder of the period
3 of prior service with that employer by making an application
4 in writing, accompanied by payment of an employee
5 contribution in an amount determined by the Fund, based on
6 the employee contribution rates in effect at the time of
7 application for the creditable service and the employee's
8 salary rate on the effective date of participation for that
9 employer, plus interest at the effective rate from the date
10 of the prior service to the date of payment. Application for
11 this creditable service may be made at any time while the
12 employee is still in service, and the employer may elect to
13 make the required contribution on behalf of the employee.
14 The governing board of a special education joint
15 agreement created under Section 10-22.31 of the School Code
16 for which an administrative district has been designated, if
17 there are employees of the cooperative educational entity who
18 are not employees of the administrative district, may elect
19 to participate in the Fund and be included within this
20 Article as a participating instrumentality, subject to such
21 application procedures and rules as the Board may prescribe.
22 The Boards of Control of cooperative or joint educational
23 programs or projects created and administered under Section
24 3-15.14 of the School Code, whether or not the Boards act as
25 their own administrative district, shall be included within
26 and be subject to this Article as participating
27 instrumentalities when the agreement establishing the
28 cooperative or joint educational program or project becomes
29 effective.
30 The governing board of a special education joint
31 agreement entered into after June 30, 1984 and prior to
32 September 17, 1985 which provides for representation on the
33 governing board by less than all the participating districts
34 shall be included within and subject to this Article as a
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1 participating instrumentality. Such participation shall be
2 effective as of the date the joint agreement becomes
3 effective.
4 The governing boards of educational service centers
5 established under Section 2-3.62 of the School Code shall be
6 included within and subject to this Article as participating
7 instrumentalities. The governing boards of vocational
8 education cooperative agreements created under the
9 Intergovernmental Cooperation Act and approved by the State
10 Board of Education shall be included within and be subject to
11 this Article as participating instrumentalities. If any such
12 governing boards or boards of control are unable to pay the
13 required employer contributions to the fund, then the school
14 districts served by such boards shall make payment of
15 required contributions as provided in Section 7-172. The
16 payments shall be allocated among the several school
17 districts in proportion to the number of students in average
18 daily attendance for the last full school year for each
19 district in relation to the total number of students in
20 average attendance for such period for all districts served.
21 If such educational service centers, vocational education
22 cooperatives or cooperative or joint educational programs or
23 projects created and administered under Section 3-15.14 of
24 the School Code are dissolved, the assets and obligations
25 shall be distributed among the districts in the same
26 proportions unless otherwise provided.
27 (d) The governing boards of special recreation joint
28 agreements created under Section 8-10b of the Park District
29 Code, operating without designation of an administrative
30 district or an administrative municipality appointed to
31 administer the program operating under the authority of such
32 joint agreement shall be included within and be subject to
33 this Article as participating instrumentalities when the
34 joint agreement becomes effective. However, the governing
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1 board of any such special recreation joint agreement in
2 effect before January 1, 1980 shall not be subject to this
3 Article unless the joint agreement is modified, by the
4 districts and municipalities which are parties to the
5 agreement, to provide that the governing board is subject to
6 this Article.
7 If the Board returns any employer and employee
8 contributions to any employer which erroneously submitted
9 such contributions on behalf of a special recreation joint
10 agreement, the Board shall include interest computed from the
11 end of each year to the date of payment, not compounded, at
12 the rate of 7% per annum.
13 (e) Each multi-township assessment district, the board
14 of trustees of which has adopted this Article by ordinance
15 prior to April 1, 1982, shall be a participating
16 instrumentality included within and subject to this Article
17 effective December 1, 1981. The contributions required under
18 Section 7-172 shall be included in the budget prepared under
19 and allocated in accordance with Section 2-30 of the Property
20 Tax Code.
21 (f) Beginning January 1, 1992, each prospective
22 participating municipality or participating instrumentality
23 shall pay to the Fund the cost, as determined by the Board,
24 of a study prepared by the Fund or its actuary, detailing the
25 prospective costs of participation in the Fund to be expected
26 by the municipality or instrumentality.
27 (Source: P.A. 88-670, eff. 12-2-94, 89-162, eff. 7-19-95.)
28 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
29 Sec. 7-171. Finance; taxes.
30 (a) Each municipality other than a school district shall
31 appropriate an amount sufficient to provide for the current
32 municipality contributions required by Section 7-172 of this
33 Article, for the fiscal year for which the appropriation is
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1 made and all amounts due for municipal contributions for
2 previous years. Those municipalities which have been assessed
3 an annual amount to amortize its unfunded obligation, as
4 provided in subparagraph 5 of paragraph (a) of Section 7-172
5 of this Article, shall include in the appropriation an amount
6 sufficient to pay the amount assessed. The appropriation
7 shall be based upon an estimate of assets available for
8 municipality contributions and liabilities therefor for the
9 fiscal year for which appropriations are to be made,
10 including funds available from levies for this purpose in
11 prior years.
12 (b) For the purpose of providing monies for municipality
13 contributions, beginning for the year in which a municipality
14 is included in this fund:
15 (1) A municipality other than a school district may
16 levy a tax which shall not exceed the amount appropriated
17 for municipality contributions.
18 (2) A school district may levy a tax in an amount
19 reasonably calculated at the time of the levy to provide
20 for the municipality contributions required under Section
21 7-172 of this Article for the fiscal years for which
22 revenues from the levy will be received and all amounts
23 due for municipal contributions for previous years. Any
24 levy adopted before the effective date of this amendatory
25 Act of 1995 by a school district shall be considered
26 valid and authorized to the extent that the amount was
27 reasonably calculated at the time of the levy to provide
28 for the municipality contributions required under Section
29 7-172 for the fiscal years for which revenues from the
30 levy will be received and all amounts due for municipal
31 contributions for previous years. In no event shall a
32 budget adopted by a school district limit a levy of that
33 school district adopted under this Section.
34 (c) Any county which is a part of an educational service
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1 region comprised of two or more counties formed under Section
2 3A of The School Code may include in its appropriation an
3 amount sufficient to provide its proportionate share of the
4 municipality contributions of the region. The tax levy
5 authorized by this Section may include an amount necessary to
6 provide monies for this contribution.
7 (d) Any county that is a part of a multiple-county
8 health department or consolidated health department which is
9 formed under "An Act in relation to the establishment and
10 maintenance of county and multiple-county public health
11 departments", approved July 9, 1943, as amended, and which is
12 a participating instrumentality may include in the county's
13 appropriation an amount sufficient to provide its
14 proportionate share of municipality contributions of the
15 department. The tax levy authorized by this Section may
16 include the amount necessary to provide monies for this
17 contribution.
18 (d-5) A school district participating in a special
19 education joint agreement created under Section 10-22.31 of
20 the School Code that is a participating instrumentality may
21 include in the school district's appropriation under
22 subsection (a) an amount sufficient to provide its
23 proportionate share of the municipality contributions for
24 current service by employees of the participating
25 instrumentality created under the joint agreement. The tax
26 levy authorized by this Section may include the amount
27 necessary to provide moneys for this contribution.
28 (e) Such tax shall be levied and collected in like
29 manner, with the general taxes of the municipality and shall
30 be in addition to all other taxes which the municipality is
31 now or may hereafter be authorized to levy upon all taxable
32 property therein, and shall be exclusive of and in addition
33 to the amount of tax levied for general purposes under
34 Section 8-3-1 of the "Illinois Municipal Code", approved May
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1 29, 1961, as amended, or under any other law or laws which
2 may limit the amount of tax which the municipality may levy
3 for general purposes. The tax may be levied by the governing
4 body of the municipality without being authorized as being
5 additional to all other taxes by a vote of the people of the
6 municipality.
7 (f) The county clerk of the county in which any such
8 municipality is located, in reducing tax levies shall not
9 consider any such tax as a part of the general tax levy for
10 municipality purposes, and shall not include the same in the
11 limitation of any other tax rate which may be extended.
12 (g) The amount of the tax to be levied in any year
13 shall, within the limits herein prescribed, be determined by
14 the governing body of the respective municipality.
15 (h) The revenue derived from any such tax levy shall be
16 used only for the purposes specified in this Article, and, as
17 collected, shall be paid to the treasurer of the municipality
18 levying the tax. Monies received by a county treasurer for
19 use in making contributions to a consolidated educational
20 service region for its municipality contributions shall be
21 held by him for that purpose and paid to the region in the
22 same manner as other monies appropriated for the expense of
23 the region.
24 (Source: P.A. 89-329, eff. 8-17-95.)
25 Section 90. The State Mandates Act is amended by adding
26 Section 8.21 as follows:
27 (30 ILCS 805/8.21 new)
28 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
29 and 8 of this Act, no reimbursement by the State is required
30 for the implementation of any mandate created by this
31 amendatory Act of 1997.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.