Public Act 100-0281

HB0418 Enrolled LRB100 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

Fund.

(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

officers.

(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

account.

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

Code.

(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

recomputed.

(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;

and

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.