Illinois General Assembly - Full Text of Public Act 100-0281
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Public Act 100-0281


Public Act 0281 100TH GENERAL ASSEMBLY



Public Act 100-0281
HB0418 EnrolledLRB100 04239 RPS 14245 b

    AN ACT concerning public employee benefits.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Illinois Pension Code is amended by changing
Sections 3-109.1, 3-124.1, and 7-109 and by adding Section
3-109.4 as follows:
    (40 ILCS 5/3-109.1)  (from Ch. 108 1/2, par. 3-109.1)
    Sec. 3-109.1. Chief of police.
    (a) Except as provided in subsection (a-5), beginning
Beginning January 1, 1990, any person who is employed as the
chief of police of a "participating municipality" as defined in
Section 7-106 of this Code, may elect to participate in the
Illinois Municipal Retirement Fund rather than in a fund
created under this Article 3. Except as provided in subsection
(b), this election shall be irrevocable, and shall be filed in
writing with the Board of the Illinois Municipal Retirement
    (a-5) On or after January 1, 2019, a person may not elect
to participate in the Illinois Municipal Retirement Fund with
respect to his or her employment as the chief of police of a
participating municipality, unless that person became a
participating employee in the Illinois Municipal Retirement
Fund before January 1, 2019.
    (b) Until January 1, 1999, a chief of police who has
elected under this Section to participate in IMRF rather than a
fund created under this Article may elect to rescind that
election and transfer his or her participation to the police
pension fund established under this Article by the employing
municipality. The chief must notify the boards of trustees of
both funds in writing of his or her decision to rescind the
election and transfer participation. A chief of police who
transfers participation under this subsection (b) shall not be
deemed ineligible to participate in the police pension fund by
reason of having failed to apply within the 3-month period
specified in Section 3-106.
(Source: P.A. 90-460, eff. 8-17-97.)
    (40 ILCS 5/3-109.4 new)
    Sec. 3-109.4. Defined contribution plan for certain police
    (a) Each municipality shall establish a defined
contribution plan that aggregates police officer and employer
contributions in individual accounts used for retirement. The
defined contribution plan, including both police officer and
employer contributions, established by the municipality must,
at a minimum: meet the safe harbor provisions of the Internal
Revenue Code of 1986, as amended; be a qualified plan under the
Internal Revenue Code of 1986, as amended; and comply with all
other applicable laws, rules, and regulations. Contributions
shall vest immediately upon deposit in the police officer's
    A police officer who participates in the defined
contribution plan under this Section may not earn creditable
service or otherwise participate in the defined benefit plan
offered by his or her employing municipality, except as an
annuitant in another fund or as a survivor, while he or she is
a participant in the defined contribution plan. The defined
contribution plan under this Section shall not be construed to
be a pension, annuity, or other defined benefit under this
    (b) If a police officer who has more than 10 years of
creditable service in a fund enters active service with a
different municipality, he or she may elect to participate in
the defined contribution plan under this Section in lieu of the
defined benefit plan.
    A police officer who has elected under this subsection to
participate in the defined contribution plan may, in writing,
rescind that election in accordance with the rules of the
board. Any employer contributions, and the earnings thereon,
shall remain vested in the police officer's account. A police
officer who rescinds the election may begin participating in
the defined benefit plan on the first day of the month
following the rescission.
    (c) As used in this Section, "defined benefit plan" means
the retirement plan available to police officers under this
Article who do not participate in the defined contribution plan
under this Section.
    (40 ILCS 5/3-124.1)  (from Ch. 108 1/2, par. 3-124.1)
    Sec. 3-124.1. Re-entry into active service.
    (a) If a police officer who is receiving pension payments
other than as provided in Section 3-109.3 re-enters active
service, pension payment shall be suspended while he or she is
in service. When he or she again retires, pension payments
shall be resumed. If the police officer remains in service
after re-entry for a period of less than 5 years, the pension
shall be the same as upon first retirement. If the officer's
service after re-entry is at least 5 years and the officer
makes the required contributions during the period of re-entry,
his or her pension shall be recomputed by taking into account
the additional period of service and salary.
    (b) If a police officer who first becomes a member on or
after January 1, 2019 is receiving pension payments (other than
as provided in Section 3-109.3) and re-enters active service
with any municipality that has established a pension fund under
this Article, that police officer may continue to receive
pension payments while he or she is in active service, but
shall only participate in a defined contribution plan
established by the municipality pursuant to Section 3-109.4 and
may not establish creditable service in the pension fund
established by that municipality or have his or her pension
(Source: P.A. 91-939, eff. 2-1-01.)
    (40 ILCS 5/7-109)  (from Ch. 108 1/2, par. 7-109)
    Sec. 7-109. Employee.
    (1) "Employee" means any person who:
        (a) 1. Receives earnings as payment for the performance
    of personal services or official duties out of the general
    fund of a municipality, or out of any special fund or funds
    controlled by a municipality, or by an instrumentality
    thereof, or a participating instrumentality, including, in
    counties, the fees or earnings of any county fee office;
        2. Under the usual common law rules applicable in
    determining the employer-employee relationship, has the
    status of an employee with a municipality, or any
    instrumentality thereof, or a participating
    instrumentality, including aldermen, county supervisors
    and other persons (excepting those employed as independent
    contractors) who are paid compensation, fees, allowances
    or other emolument for official duties, and, in counties,
    the several county fee offices.
        (b) Serves as a township treasurer appointed under the
    School Code, as heretofore or hereafter amended, and who
    receives for such services regular compensation as
    distinguished from per diem compensation, and any regular
    employee in the office of any township treasurer whether or
    not his earnings are paid from the income of the permanent
    township fund or from funds subject to distribution to the
    several school districts and parts of school districts as
    provided in the School Code, or from both such sources; or
    is the chief executive officer, chief educational officer,
    chief fiscal officer, or other employee of a Financial
    Oversight Panel established pursuant to Article 1H of the
    School Code, other than a superintendent or certified
    school business official, except that such person shall not
    be treated as an employee under this Section if that person
    has negotiated with the Financial Oversight Panel, in
    conjunction with the school district, a contractual
    agreement for exclusion from this Section.
        (c) Holds an elective office in a municipality,
    instrumentality thereof or participating instrumentality.
    (2) "Employee" does not include persons who:
        (a) Are eligible for inclusion under any of the
    following laws:
            1. "An Act in relation to an Illinois State
        Teachers' Pension and Retirement Fund", approved May
        27, 1915, as amended;
            2. Articles 15 and 16 of this Code.
        However, such persons shall be included as employees to
    the extent of earnings that are not eligible for inclusion
    under the foregoing laws for services not of an
    instructional nature of any kind.
        However, any member of the armed forces who is employed
    as a teacher of subjects in the Reserve Officers Training
    Corps of any school and who is not certified under the law
    governing the certification of teachers shall be included
    as an employee.
        (b) Are designated by the governing body of a
    municipality in which a pension fund is required by law to
    be established for policemen or firemen, respectively, as
    performing police or fire protection duties, except that
    when such persons are the heads of the police or fire
    department and are not eligible to be included within any
    such pension fund, they shall be included within this
    Article; provided, that such persons shall not be excluded
    to the extent of concurrent service and earnings not
    designated as being for police or fire protection duties.
    However, (i) any head of a police department who was a
    participant under this Article immediately before October
    1, 1977 and did not elect, under Section 3-109 of this Act,
    to participate in a police pension fund shall be an
    "employee", and (ii) any chief of police who became a
    participating employee under this Article before January
    1, 2019 and who elects to participate in this Fund under
    Section 3-109.1 of this Code, regardless of whether such
    person continues to be employed as chief of police or is
    employed in some other rank or capacity within the police
    department, shall be an employee under this Article for so
    long as such person is employed to perform police duties by
    a participating municipality and has not lawfully
    rescinded that election.
        (c) Are contributors to or eligible to contribute to a
    Taft-Hartley pension plan to which the participating
    municipality is required to contribute as the person's
    employer based on earnings from the municipality. Nothing
    in this paragraph shall affect service credit or creditable
    service for any period of service prior to the effective
    date of this amendatory Act of the 98th General Assembly,
    and this paragraph shall not apply to individuals who are
    participating in the Fund prior to the effective date of
    this amendatory Act of the 98th General Assembly.
        (d) Become an employee of any of the following
    participating instrumentalities on or after the effective
    date of this amendatory Act of the 99th General Assembly:
    the Illinois Municipal League; the Illinois Association of
    Park Districts; the Illinois Supervisors, County
    Commissioners and Superintendents of Highways Association;
    an association, or not-for-profit corporation, membership
    in which is authorized under Section 85-15 of the Township
    Code; the United Counties Council; or the Will County
    Governmental League.
    (3) All persons, including, without limitation, public
defenders and probation officers, who receive earnings from
general or special funds of a county for performance of
personal services or official duties within the territorial
limits of the county, are employees of the county (unless
excluded by subsection (2) of this Section) notwithstanding
that they may be appointed by and are subject to the direction
of a person or persons other than a county board or a county
officer. It is hereby established that an employer-employee
relationship under the usual common law rules exists between
such employees and the county paying their salaries by reason
of the fact that the county boards fix their rates of
compensation, appropriate funds for payment of their earnings
and otherwise exercise control over them. This finding and this
amendatory Act shall apply to all such employees from the date
of appointment whether such date is prior to or after the
effective date of this amendatory Act and is intended to
clarify existing law pertaining to their status as
participating employees in the Fund.
(Source: P.A. 98-712, eff. 7-16-14; 99-830, eff. 1-1-17.)
    Section 90. The State Mandates Act is amended by adding
Section 8.41 as follows:
    (30 ILCS 805/8.41 new)
    Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 100th General Assembly.
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 08/24/2017