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| | HB0418 Enrolled | | LRB100 04239 RPS 14245 b |
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| 1 | | AN ACT concerning public employee benefits.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Pension Code is amended by changing |
| 5 | | Sections 3-109.1, 3-124.1, and 7-109 and by adding Section |
| 6 | | 3-109.4 as follows:
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| 7 | | (40 ILCS 5/3-109.1) (from Ch. 108 1/2, par. 3-109.1)
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| 8 | | Sec. 3-109.1. Chief of police.
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| 9 | | (a) Except as provided in subsection (a-5), beginning |
| 10 | | Beginning January 1, 1990, any person who is employed as the |
| 11 | | chief
of police of a "participating municipality" as defined in |
| 12 | | Section 7-106 of this
Code, may elect to participate in the |
| 13 | | Illinois Municipal Retirement Fund rather
than in a fund |
| 14 | | created under this Article 3. Except as provided in
subsection |
| 15 | | (b), this election shall be irrevocable, and shall be
filed in |
| 16 | | writing with the Board of the Illinois Municipal Retirement |
| 17 | | Fund.
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| 18 | | (a-5) On or after January 1, 2019, a person may not elect |
| 19 | | to participate in the Illinois Municipal Retirement Fund with |
| 20 | | respect to his or her employment as the chief of police of a |
| 21 | | participating municipality, unless that person became a |
| 22 | | participating employee in the Illinois Municipal Retirement |
| 23 | | Fund before January 1, 2019. |
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| 1 | | (b) Until January 1, 1999, a chief of police who has |
| 2 | | elected under this
Section to participate in IMRF rather than a |
| 3 | | fund created under this Article
may elect to rescind that |
| 4 | | election and transfer his or her participation
to the police |
| 5 | | pension fund established under this Article by the employing
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| 6 | | municipality. The chief must notify the boards of trustees of |
| 7 | | both funds in
writing of his or her decision to rescind the |
| 8 | | election and transfer
participation. A chief of police who |
| 9 | | transfers participation under this
subsection (b) shall not be |
| 10 | | deemed ineligible to participate in the police
pension fund by |
| 11 | | reason of having failed to apply within the 3-month period
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| 12 | | specified in Section 3-106.
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| 13 | | (Source: P.A. 90-460, eff. 8-17-97.)
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| 14 | | (40 ILCS 5/3-109.4 new) |
| 15 | | Sec. 3-109.4. Defined contribution plan for certain police |
| 16 | | officers. |
| 17 | | (a) Each municipality shall establish a defined |
| 18 | | contribution plan that aggregates police officer and employer |
| 19 | | contributions in individual accounts used for retirement. The |
| 20 | | defined contribution plan, including both police officer and |
| 21 | | employer contributions, established by the municipality must, |
| 22 | | at a minimum: meet the safe harbor provisions of the Internal |
| 23 | | Revenue Code of 1986, as amended; be a qualified plan under the |
| 24 | | Internal Revenue Code of 1986, as amended; and comply with all |
| 25 | | other applicable laws, rules, and regulations. Contributions |
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| 1 | | shall vest immediately upon deposit in the police officer's |
| 2 | | account. |
| 3 | | A police officer who participates in the defined |
| 4 | | contribution plan under this Section may not earn creditable |
| 5 | | service or otherwise participate in the defined benefit plan |
| 6 | | offered by his or her employing municipality, except as an |
| 7 | | annuitant in another fund or as a survivor, while he or she is |
| 8 | | a participant in the defined contribution plan. The defined |
| 9 | | contribution plan under this Section shall not be construed to |
| 10 | | be a pension, annuity, or other defined benefit under this |
| 11 | | Code. |
| 12 | | (b) If a police officer who has more than 10 years of |
| 13 | | creditable service in a fund enters active service with a |
| 14 | | different municipality, he or she may elect to participate in |
| 15 | | the defined contribution plan under this Section in lieu of the |
| 16 | | defined benefit plan. |
| 17 | | A police officer who has elected under this subsection to |
| 18 | | participate in the defined contribution plan may, in writing, |
| 19 | | rescind that election in accordance with the rules of the |
| 20 | | board. Any employer contributions, and the earnings thereon, |
| 21 | | shall remain vested in the police officer's account. A police |
| 22 | | officer who rescinds the election may begin participating in |
| 23 | | the defined benefit plan on the first day of the month |
| 24 | | following the rescission. |
| 25 | | (c) As used in this Section, "defined benefit plan" means |
| 26 | | the retirement plan available to police officers under this |
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| 1 | | Article who do not participate in the defined contribution plan |
| 2 | | under this Section.
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| 3 | | (40 ILCS 5/3-124.1) (from Ch. 108 1/2, par. 3-124.1)
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| 4 | | Sec. 3-124.1. Re-entry into active service. |
| 5 | | (a) If a police officer who is
receiving
pension payments |
| 6 | | other than as provided in Section 3-109.3 re-enters active
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| 7 | | service, pension payment shall be suspended
while he or she is |
| 8 | | in service. When he or she again retires, pension payments
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| 9 | | shall be resumed. If the police officer remains in service |
| 10 | | after re-entry
for a period of less than 5 years, the pension |
| 11 | | shall be the same as upon
first retirement. If the officer's |
| 12 | | service after re-entry is at least 5
years and the officer |
| 13 | | makes the required contributions during the period
of re-entry, |
| 14 | | his or her pension shall be recomputed by taking into account
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| 15 | | the additional period of service and salary. |
| 16 | | (b) If a police officer who first becomes a member on or |
| 17 | | after January 1, 2019 is receiving pension payments (other than |
| 18 | | as provided in Section 3-109.3) and re-enters active
service |
| 19 | | with any municipality that has established a pension fund under |
| 20 | | this Article, that police officer may continue to receive |
| 21 | | pension payments while he or she is in active service, but |
| 22 | | shall only participate in a defined contribution plan |
| 23 | | established by the municipality pursuant to Section 3-109.4 and |
| 24 | | may not establish creditable service in the pension fund |
| 25 | | established by that municipality or have his or her pension |
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| 1 | | recomputed.
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| 2 | | (Source: P.A. 91-939, eff. 2-1-01.)
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| 3 | | (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
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| 4 | | Sec. 7-109. Employee.
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| 5 | | (1) "Employee" means any person who:
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| 6 | | (a) 1. Receives earnings as payment for the performance |
| 7 | | of personal
services or official duties out of the general |
| 8 | | fund of a municipality,
or out of any special fund or funds |
| 9 | | controlled by a municipality, or by
an instrumentality |
| 10 | | thereof, or a participating instrumentality, including,
in |
| 11 | | counties, the fees or earnings of any county fee office; |
| 12 | | and
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| 13 | | 2. Under the usual common law rules applicable in |
| 14 | | determining the
employer-employee relationship, has the |
| 15 | | status of an employee with a
municipality, or any |
| 16 | | instrumentality thereof, or a participating
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| 17 | | instrumentality, including aldermen, county supervisors |
| 18 | | and other
persons (excepting those employed as independent |
| 19 | | contractors) who are
paid compensation, fees, allowances |
| 20 | | or other emolument for official
duties, and, in counties, |
| 21 | | the several county fee offices.
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| 22 | | (b) Serves as a township treasurer appointed under the |
| 23 | | School
Code, as heretofore or hereafter amended, and
who |
| 24 | | receives for such services regular compensation as |
| 25 | | distinguished
from per diem compensation, and any regular |
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| 1 | | employee in the office of
any township treasurer whether or |
| 2 | | not his earnings are paid from the
income of the permanent |
| 3 | | township fund or from funds subject to
distribution to the |
| 4 | | several school districts and parts of school
districts as |
| 5 | | provided in the School Code, or from both such sources; or |
| 6 | | is the chief executive officer, chief educational officer, |
| 7 | | chief fiscal officer, or other employee of a Financial |
| 8 | | Oversight Panel established pursuant to Article 1H of the |
| 9 | | School Code, other than a superintendent or certified |
| 10 | | school business official, except that such person shall not |
| 11 | | be treated as an employee under this Section if that person |
| 12 | | has negotiated with the Financial Oversight Panel, in |
| 13 | | conjunction with the school district, a contractual |
| 14 | | agreement for exclusion from this Section.
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| 15 | | (c) Holds an elective office in a municipality, |
| 16 | | instrumentality
thereof or participating instrumentality.
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| 17 | | (2) "Employee" does not include persons who:
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| 18 | | (a) Are eligible for inclusion under any of the |
| 19 | | following laws:
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| 20 | | 1. "An Act in relation to an Illinois State |
| 21 | | Teachers' Pension and
Retirement Fund", approved May |
| 22 | | 27, 1915, as amended;
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| 23 | | 2. Articles 15 and 16 of this Code.
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| 24 | | However, such persons shall be included as employees to |
| 25 | | the extent of
earnings that are not eligible for inclusion |
| 26 | | under the foregoing laws
for services not of an |
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| 1 | | instructional nature of any kind.
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| 2 | | However, any member of the armed forces who is employed |
| 3 | | as a teacher
of subjects in the Reserve Officers Training |
| 4 | | Corps of any school and who
is not certified under the law |
| 5 | | governing the certification of teachers
shall be included |
| 6 | | as an employee.
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| 7 | | (b) Are designated by the governing body of a |
| 8 | | municipality in which a
pension fund is required by law to |
| 9 | | be established for policemen or
firemen, respectively, as |
| 10 | | performing police or fire protection duties,
except that |
| 11 | | when such persons are the heads of the police or fire
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| 12 | | department and are not eligible to be included within any |
| 13 | | such pension
fund, they shall be included within this |
| 14 | | Article; provided, that such
persons shall not be excluded |
| 15 | | to the extent of concurrent service and
earnings not |
| 16 | | designated as being for police or fire protection duties.
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| 17 | | However, (i) any head of a police department who was a |
| 18 | | participant under this
Article immediately before October |
| 19 | | 1, 1977 and did not elect, under Section
3-109 of this Act, |
| 20 | | to participate in a police pension fund shall be an
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| 21 | | "employee", and (ii) any chief of police who became a |
| 22 | | participating employee under this Article before January |
| 23 | | 1, 2019 and who elects to participate in this
Fund under |
| 24 | | Section 3-109.1 of this Code, regardless of whether such |
| 25 | | person
continues to be employed as chief of police or is |
| 26 | | employed in some other
rank or capacity within the police |
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| 1 | | department, shall be an employee under
this Article for so |
| 2 | | long as such person is employed to perform police
duties by |
| 3 | | a participating municipality and has not lawfully |
| 4 | | rescinded that
election. |
| 5 | | (c) Are contributors to or eligible to contribute to a |
| 6 | | Taft-Hartley pension plan to which the participating |
| 7 | | municipality is required to contribute as the person's |
| 8 | | employer based on earnings from the municipality. Nothing |
| 9 | | in this paragraph shall affect service credit or creditable |
| 10 | | service for any period of service prior to the effective |
| 11 | | date of this amendatory Act of the 98th General Assembly, |
| 12 | | and this paragraph shall not apply to individuals who are |
| 13 | | participating in the Fund prior to the effective date of |
| 14 | | this amendatory Act of the 98th General Assembly.
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| 15 | | (d) Become an employee of any of the following |
| 16 | | participating instrumentalities on or after the effective |
| 17 | | date of this amendatory Act of the 99th General Assembly: |
| 18 | | the Illinois Municipal League; the Illinois Association of |
| 19 | | Park Districts; the Illinois Supervisors, County |
| 20 | | Commissioners and Superintendents of Highways Association; |
| 21 | | an association, or not-for-profit corporation, membership |
| 22 | | in which is authorized under Section 85-15 of the Township |
| 23 | | Code; the United Counties Council; or the Will County |
| 24 | | Governmental League. |
| 25 | | (3) All persons, including, without limitation, public |
| 26 | | defenders and
probation officers, who receive earnings from |
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| 1 | | general or special funds
of a county for performance of |
| 2 | | personal services or official duties
within the territorial |
| 3 | | limits of the county, are employees of the county
(unless |
| 4 | | excluded by subsection (2) of this Section) notwithstanding |
| 5 | | that
they may be appointed by and are subject to the direction |
| 6 | | of a person or
persons other than a county board or a county |
| 7 | | officer. It is hereby
established that an employer-employee |
| 8 | | relationship under the usual
common law rules exists between |
| 9 | | such employees and the county paying
their salaries by reason |
| 10 | | of the fact that the county boards fix their
rates of |
| 11 | | compensation, appropriate funds for payment of their earnings
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| 12 | | and otherwise exercise control over them. This finding and this
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| 13 | | amendatory Act shall apply to all such employees from the date |
| 14 | | of
appointment whether such date is prior to or after the |
| 15 | | effective date of
this amendatory Act and is intended to |
| 16 | | clarify existing law pertaining
to their status as |
| 17 | | participating employees in the Fund.
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| 18 | | (Source: P.A. 98-712, eff. 7-16-14; 99-830, eff. 1-1-17.)
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| 19 | | Section 90. The State Mandates Act is amended by adding |
| 20 | | Section 8.41 as follows:
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| 21 | | (30 ILCS 805/8.41 new) |
| 22 | | Sec. 8.41. Exempt mandate. Notwithstanding Sections 6 and 8 |
| 23 | | of this Act, no reimbursement by the State is required for the |
| 24 | | implementation of any mandate created by this amendatory Act of |