Bill Text: IL SB0065 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Downstate Police, Downstate Firefighter, and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that a municipality with a population that has fallen below 5,000 inhabitants as determined by both of the preceding 2 federal decennial censuses, or that has a population of less than 5,000 inhabitants that approved a referendum creating a pension fund, may terminate its participation in a pension fund created under the Downstate Police or Downstate Firefighter Article with regard to persons who first become police officers or firefighters after a specified proposition is adopted and enroll in IMRF police officers or firefighters hired after the adoption of that proposition. Provides the required notice and form of the proposition. Provides that a municipality may elect to terminate its participation under the Article and dissolve the fund if certain conditions are met. Makes conforming and other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB0065 Detail]

Download: Illinois-2023-SB0065-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0065 Introduced 1/20/2023, by Sen. Laura Fine SYNOPSIS AS INTRODUCED:
40 ILCS 5/3-103 from Ch. 108 1/2, par. 3-103
40 ILCS 5/3-146 new
40 ILCS 5/4-103 from Ch. 108 1/2, par. 4-103
40 ILCS 5/4-141.5 new
40 ILCS 5/7-109 from Ch. 108 1/2, par. 7-109
40 ILCS 5/7-132 from Ch. 108 1/2, par. 7-132
Amends the Downstate Police, Downstate Firefighter, and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Provides that a municipality with a population that has fallen below 5,000 inhabitants as determined by both of the preceding 2 federal decennial censuses, or that has a population of less than 5,000 inhabitants that approved a referendum creating a pension fund, may terminate its participation in a pension fund created under the Downstate Police or Downstate Firefighter Article with regard to persons who first become police officers or firefighters after a specified proposition is adopted and enroll in IMRF police officers or firefighters hired after the adoption of that proposition. Provides the required notice and form of the proposition. Provides that a municipality may elect to terminate its participation under the Article and dissolve the fund if certain conditions are met. Makes conforming and other changes. Effective immediately.
LRB103 00029 RPS 45029 b
A BILL FOR
SB0065 LRB103 00029 RPS 45029 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 3-103, 4-103, 7-109, and 7-132 and by adding
Sections 3-146 and 4-141.5 as follows:
(40 ILCS 5/3-103) (from Ch. 108 1/2, par. 3-103)
Sec. 3-103. Municipality. "Municipality": (1) Any city,
village, or incorporated town of 5,000 or more but less than
500,000 inhabitants, as determined from the United States
Government statistics or a census taken at any time by the
city, village, or incorporated town and (2) any city, village,
or incorporated town of less than 5,000 inhabitants that
which, by referendum held under Section 3-145, adopts this
Article.
"Municipality" does not include a city, village, or
incorporated town with a population of less than 5,000
inhabitants that has adopted a referendum under Section 3-146.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-146 new)
Sec. 3-146. Termination of participation by referendum.
Any municipality, as defined in Section 3-103, with a

SB0065 - 2 - LRB103 00029 RPS 45029 b
population of less than 5,000 inhabitants as determined by
both of the preceding 2 federal decennial censuses, or that
has a population of less than 5,000 inhabitants and approved a
referendum creating a pension fund under Section 3-145, may,
in accordance with this Section, terminate its participation
in a pension fund created under this Article with regard to
persons who first become police officers after the adoption of
the proposition under this Section and enroll in the Illinois
Municipal Retirement Fund persons who first become police
officers after the adoption of the proposition under this
Section.
The corporate authorities of the municipality shall, by
resolution, provide for submission of the proposition to the
voters. The municipality shall certify the resolution and the
proposition to the proper election officials who shall submit
the proposition in accordance with the general election law at
a regular election in the municipality if notice of the
referendum has been given in accordance with the provisions of
Section 12-5 of the Election Code in effect at the time of the
referendum and notice has been published at least 10 and not
more than 45 days before the date of the election,
notwithstanding the time for publication otherwise imposed by
Section 12-5. Notices required in connection with the
submission of public questions shall be as set forth in
Section 12-5 of the Election Code. If the proposition is not
adopted at that election, it may be submitted in like manner at

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any regular election thereafter. The proposition shall be
substantially in the following form:
Shall the city (or village or incorporated town as the
case may be) of . . . . enroll police officers hired after
the adoption of this proposition into the Illinois
Municipal Retirement Fund and terminate its participation
in the Article 3 pension fund once all participants and
current beneficiaries have received their entitled
benefits?
The votes shall be recorded as "Yes" or "No". If a majority
of the electors voting on the referendum are in favor of the
referendum, the municipality shall notify the Illinois
Municipal Retirement Fund in the form and manner specified by
the Board of the Illinois Municipal Retirement Fund and all
police officers who first become police officers after the
adoption of the proposition shall be enrolled in the Illinois
Municipal Retirement Fund instead of the fund under this
Article. Police officers who first became participants prior
to the adoption of the proposition shall continue as
participants in the fund under this Article.
A municipality that has adopted the proposition may elect
to terminate its participation under this Article and dissolve
the fund if all of the following conditions are met:
(1) An independent auditor certifies that the fund
created under this Article has no liabilities and there
are no members or participants in the fund and no

SB0065 - 4 - LRB103 00029 RPS 45029 b
beneficiaries entitled to benefits under the fund.
(2) The corporate authorities of the municipality, by
ordinance, approve the closing of the fund.
The Department of Insurance shall adopt rules to implement
this Section.
(40 ILCS 5/4-103) (from Ch. 108 1/2, par. 4-103)
Sec. 4-103. Municipality. "Municipality": (1) Any city,
township, village, or incorporated town of 5,000 or more but
less than 500,000 inhabitants, and any fire protection
district having any full-time paid firefighters, and (2) any
city, village, incorporated town or township of less than
5,000 inhabitants having a full-time paid fire department
which adopts the provisions of this article pursuant to the
provisions of Section 4-141. The term "city council" or "board
of trustees" includes the board of trustees of a fire
protection district and the board of town trustees or other
persons empowered to draft the tentative budget and
appropriation ordinance and the electors of such a township
acting at the annual or special meeting of town electors.
"Municipality" does not include a city, village,
incorporated town, or township of less than 5,000 inhabitants
that has adopted a referendum under Section 4-141.5.
(Source: P.A. 83-1440.)
(40 ILCS 5/4-141.5 new)

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Sec. 4-141.5. Termination of participation by referendum.
Any municipality, as defined in Section 4-103, with a
population of less than 5,000 inhabitants as determined by
both of the preceding 2 federal decennial censuses, or that
has a population of less than 5,000 inhabitants and approved a
referendum creating a pension fund under Section 4-141, may,
in accordance with this Section, terminate its participation
in a pension fund created under this Article with regard to
persons who first become firefighters after the adoption of
the proposition under this Section and enroll in the Illinois
Municipal Retirement Fund persons who first become
firefighters after the adoption of the proposition under this
Section.
The corporate authorities of the municipality shall, by
resolution, provide for submission of the proposition to the
voters. The municipality shall certify the resolution and the
proposition to the proper election officials who shall submit
the proposition in accordance with the general election law at
a regular election in the municipality if notice of the
referendum has been given in accordance with the provisions of
Section 12-5 of the Election Code in effect at the time of the
referendum and notice has been published at least 10 and not
more than 45 days before the date of the election,
notwithstanding the time for publication otherwise imposed by
Section 12-5. Notices required in connection with the
submission of public questions shall be as set forth in

SB0065 - 6 - LRB103 00029 RPS 45029 b
Section 12-5 of the Election Code. If the proposition is not
adopted at that election, it may be submitted in like manner at
any regular election thereafter. The proposition shall be
substantially in the following form:
Shall the city (or village, township, or incorporated
town as the case may be) of . . . . enroll firefighters
hired after the adoption of this proposition into the
Illinois Municipal Retirement Fund and terminate its
participation in the Article 4 pension fund once all
current participants and beneficiaries have received their
entitled benefits?
The votes shall be recorded as "Yes" or "No". If a majority
of the electors voting on the referendum are in favor of the
referendum, the municipality shall notify the Illinois
Municipal Retirement Fund in the form and manner specified by
the Board of the Illinois Municipal Retirement Fund and all
firefighters who first become firefighters after the adoption
of the proposition shall be enrolled in the Illinois Municipal
Retirement Fund instead of the fund under this Article.
Firefighters who first became participants prior to the
adoption of the proposition shall continue as participants in
the fund under this Article.
A municipality that has adopted the proposition may elect
to terminate its participation under this Article and dissolve
the fund if all of the following conditions are met:
(1) An independent auditor certifies that the fund

SB0065 - 7 - LRB103 00029 RPS 45029 b
created under this Article has no liabilities and there
are no members or participants in the fund and no
beneficiaries entitled to benefits under the fund.
(2) The corporate authorities of the municipality, by
ordinance, approve the closing of the fund.
The Department of Insurance shall adopt rules to implement
this Section.
(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 alderpersons, 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

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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

SB0065 - 9 - LRB103 00029 RPS 45029 b
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.
This paragraph (b) does not apply to a person performing
police duties for a municipality that has adopted a
referendum under Section 3-146 or a person performing fire
protection duties for a municipality that has adopted a

SB0065 - 10 - LRB103 00029 RPS 45029 b
referendum under Section 4-141.5. 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.
(b-5) Were not participating employees under this
Article before August 26, 2018 (the effective date of
Public Act 100-1097) and participated as a chief of police
in a fund under Article 3 and return to work in any
capacity with the police department, with any oversight of
the police department, or in an advisory capacity for the
police department with the same municipality with which
that pension was earned, regardless of whether they are
considered an employee of the police department or are
eligible for inclusion in the municipality's Article 3
fund.
(c) Are contributors to or eligible to contribute to a

SB0065 - 11 - LRB103 00029 RPS 45029 b
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 July
16, 2014 (the effective date of Public Act 98-712), and
this paragraph shall not apply to individuals who are
participating in the Fund prior to July 16, 2014 (the
effective date of Public Act 98-712).
(d) Become an employee of any of the following
participating instrumentalities on or after January 1,
2017 (the effective date of Public Act 99-830): 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.
(e) Are members of the Board of Trustees of the
Firefighters' Pension Investment Fund, as created under
Article 22C of this Code, in their capacity as members of
the Board of Trustees of the Firefighters' Pension
Investment Fund.
(f) Are members of the Board of Trustees of the Police
Officers' Pension Investment Fund, as created under

SB0065 - 12 - LRB103 00029 RPS 45029 b
Article 22B of this Code, in their capacity as members of
the Board of Trustees of the Police Officers' Pension
Investment Fund.
(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. 102-15, eff. 6-17-21; 102-637, eff. 8-27-21;
102-813, eff. 5-13-22.)
(40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)

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Sec. 7-132. Municipalities, instrumentalities and
participating instrumentalities included and effective dates.
(A) Municipalities and their instrumentalities.
(a) The following described municipalities, but not
including any with more than 1,000,000 inhabitants, and the
instrumentalities thereof, shall be included within and be
subject to this Article beginning upon the effective dates
specified by the Board:
(1) Except as to the municipalities and
instrumentalities thereof specifically excluded under this
Article, every county shall be subject to this Article,
and all cities, villages and incorporated towns having a
population in excess of 5,000 inhabitants as determined by
the last preceding decennial or subsequent federal census,
shall be subject to this Article following publication of
the census by the Bureau of the Census. Within 90 days
after publication of the census, the Board shall notify
any municipality that has become subject to this Article
as a result of that census, and shall provide information
to the corporate authorities of the municipality
explaining the duties and consequences of participation.
The notification shall also include a proposed date upon
which participation by the municipality will commence.
However, for any city, village or incorporated town
that attains a population over 5,000 inhabitants after

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having provided social security coverage for its employees
under the Social Security Enabling Act, participation
under this Article shall not be mandatory but may be
elected in accordance with subparagraph (3) or (4) of this
paragraph (a), whichever is applicable.
(2) School districts, other than those specifically
excluded under this Article, shall be subject to this
Article, without election, with respect to all employees
thereof.
(3) Towns and all other bodies politic and corporate
which are formed by vote of, or are subject to control by,
the electors in towns and are located in towns which are
not participating municipalities on the effective date of
this Act, may become subject to this Article by election
pursuant to Section 7-132.1.
(4) Any other municipality (together with its
instrumentalities), other than those specifically excluded
from participation and those described in paragraph (3)
above, may elect to be included either by referendum under
Section 3-146, 4-141.5, or 7-134 or by the adoption of a
resolution or ordinance by its governing body. A copy of
such resolution or ordinance duly authenticated and
certified by the clerk of the municipality or other
appropriate official of its governing body shall
constitute the required notice to the board of such
action.

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(b) A municipality that is about to begin participation
shall submit to the Board an application to participate, in a
form acceptable to the Board, not later than 90 days prior to
the proposed effective date of participation. The Board shall
act upon the application within 90 days, and if it finds that
the application is in conformity with its requirements and the
requirements of this Article, participation by the applicant
shall commence on a date acceptable to the municipality and
specified by the Board, but in no event more than one year from
the date of application.
(c) A participating municipality which succeeds to the
functions of a participating municipality which is dissolved
or terminates its existence shall assume and be transferred
the net accumulation balance in the municipality reserve and
the municipality account receivable balance of the terminated
municipality.
(d) In the case of a Veterans Assistance Commission whose
employees were being treated by the Fund on January 1, 1990 as
employees of the county served by the Commission, the Fund may
continue to treat the employees of the Veterans Assistance
Commission as county employees for the purposes of this
Article, unless the Commission becomes a participating
instrumentality in accordance with subsection (B) of this
Section.
(B) Participating instrumentalities.

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(a) The participating instrumentalities designated in
paragraph (b) of this subsection shall be included within and
be subject to this Article if:
(1) an application to participate, in a form
acceptable to the Board and adopted by a two-thirds vote
of the governing body, is presented to the Board not later
than 90 days prior to the proposed effective date; and
(2) the Board finds that the application is in
conformity with its requirements, that the applicant has
reasonable expectation to continue as a political entity
for a period of at least 10 years and has the prospective
financial capacity to meet its current and future
obligations to the Fund, and that the actuarial soundness
of the Fund may be reasonably expected to be unimpaired by
approval of participation by the applicant.
The Board shall notify the applicant of its findings
within 90 days after receiving the application, and if the
Board approves the application, participation by the applicant
shall commence on the effective date specified by the Board.
(b) The following participating instrumentalities, so long
as they meet the requirements of Section 7-108 and the area
served by them or within their jurisdiction is not located
entirely within a municipality having more than one million
inhabitants, may be included hereunder:
i. Township School District Trustees.
ii. Multiple County and Consolidated Health

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Departments created under Division 5-25 of the Counties
Code or its predecessor law.
iii. Public Building Commissions created under the
Public Building Commission Act, and located in counties of
less than 1,000,000 inhabitants.
iv. A multitype, consolidated or cooperative library
system created under the Illinois Library System Act. Any
library system created under the Illinois Library System
Act that has one or more predecessors that participated in
the Fund may participate in the Fund upon application. The
Board shall establish procedures for implementing the
transfer of rights and obligations from the predecessor
system to the successor system.
v. Regional Planning Commissions created under
Division 5-14 of the Counties Code or its predecessor law.
vi. Local Public Housing Authorities created under the
Housing Authorities Act, located in counties of less than
1,000,000 inhabitants.
vii. Illinois Municipal League.
viii. Northeastern Illinois Metropolitan Area Planning
Commission.
ix. Southwestern Illinois Metropolitan Area Planning
Commission.
x. Illinois Association of Park Districts.
xi. Illinois Supervisors, County Commissioners and
Superintendents of Highways Association.

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xii. Tri-City Regional Port District.
xiii. An association, or not-for-profit corporation,
membership in which is authorized under Section 85-15 of
the Township Code.
xiv. Drainage Districts operating under the Illinois
Drainage Code.
xv. Local mass transit districts created under the
Local Mass Transit District Act.
xvi. Soil and water conservation districts created
under the Soil and Water Conservation Districts Law.
xvii. Commissions created to provide water supply or
sewer services or both under Division 135 or Division 136
of Article 11 of the Illinois Municipal Code.
xviii. Public water districts created under the Public
Water District Act.
xix. Veterans Assistance Commissions established under
Section 9 of the Military Veterans Assistance Act that
serve counties with a population of less than 1,000,000.
xx. The governing body of an entity, other than a
vocational education cooperative, created under an
intergovernmental cooperative agreement established
between participating municipalities under the
Intergovernmental Cooperation Act, which by the terms of
the agreement is the employer of the persons performing
services under the agreement under the usual common law
rules determining the employer-employee relationship. The

SB0065 - 19 - LRB103 00029 RPS 45029 b
governing body of such an intergovernmental cooperative
entity established prior to July 1, 1988 may make
participation retroactive to the effective date of the
agreement and, if so, the effective date of participation
shall be the date the required application is filed with
the fund. If any such entity is unable to pay the required
employer contributions to the fund, then the participating
municipalities shall make payment of the required
contributions and the payments shall be allocated as
provided in the agreement or, if not so provided, equally
among them.
xxi. The Illinois Municipal Electric Agency.
xxii. The Waukegan Port District.
xxiii. The Fox Waterway Agency created under the Fox
Waterway Agency Act.
xxiv. The Illinois Municipal Gas Agency.
xxv. The Kaskaskia Regional Port District.
xxvi. The Southwestern Illinois Development Authority.
xxvii. The Cairo Public Utility Company.
xxviii. Except with respect to employees who elect to
participate in the State Employees' Retirement System of
Illinois under Section 14-104.13 of this Code, the Chicago
Metropolitan Agency for Planning created under the
Regional Planning Act, provided that, with respect to the
benefits payable pursuant to Sections 7-146, 7-150, and
7-164 and the requirement that eligibility for such

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benefits is conditional upon satisfying a minimum period
of service or a minimum contribution, any employee of the
Chicago Metropolitan Agency for Planning that was
immediately prior to such employment an employee of the
Chicago Area Transportation Study or the Northeastern
Illinois Planning Commission, such employee's service at
the Chicago Area Transportation Study or the Northeastern
Illinois Planning Commission and contributions to the
State Employees' Retirement System of Illinois established
under Article 14 and the Illinois Municipal Retirement
Fund shall count towards the satisfaction of such
requirements.
xxix. United Counties Council (formerly the Urban
Counties Council), but only if the Council has a ruling
from the United States Internal Revenue Service that it is
a governmental entity.
xxx. The Will County Governmental League, but only if
the League has a ruling from the United States Internal
Revenue Service that it is a governmental entity.
xxxi. The Firefighters' Pension Investment Fund.
xxxii. The Police Officers' Pension Investment Fund.
(c) The governing boards of special education joint
agreements created under Section 10-22.31 of the School Code
without designation of an administrative district shall be
included within and be subject to this Article as
participating instrumentalities when the joint agreement

SB0065 - 21 - LRB103 00029 RPS 45029 b
becomes effective. However, the governing board of any such
special education joint agreement in effect before September
5, 1975 shall not be subject to this Article unless the joint
agreement is modified by the school districts to provide that
the governing board is subject to this Article, except as
otherwise provided by this Section.
The governing board of the Special Education District of
Lake County shall become subject to this Article as a
participating instrumentality on July 1, 1997. Notwithstanding
subdivision (a)1 of Section 7-139, on the effective date of
participation, employees of the governing board of the Special
Education District of Lake County shall receive creditable
service for their prior service with that employer, up to a
maximum of 5 years, without any employee contribution.
Employees may establish creditable service for the remainder
of their prior service with that employer, if any, by applying
in writing and paying an employee contribution in an amount
determined by the Fund, based on the employee contribution
rates in effect at the time of application for the creditable
service and the employee's salary rate on the effective date
of participation for that employer, plus interest at the
effective rate from the date of the prior service to the date
of payment. Application for this creditable service must be
made before July 1, 1998; the payment may be made at any time
while the employee is still in service. The employer may elect
to make the required contribution on behalf of the employee.

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The governing board of a special education joint agreement
created under Section 10-22.31 of the School Code for which an
administrative district has been designated, if there are
employees of the cooperative educational entity who are not
employees of the administrative district, may elect to
participate in the Fund and be included within this Article as
a participating instrumentality, subject to such application
procedures and rules as the Board may prescribe.
The Boards of Control of cooperative or joint educational
programs or projects created and administered under Section
3-15.14 of the School Code, whether or not the Boards act as
their own administrative district, shall be included within
and be subject to this Article as participating
instrumentalities when the agreement establishing the
cooperative or joint educational program or project becomes
effective.
The governing board of a special education joint agreement
entered into after June 30, 1984 and prior to September 17,
1985 which provides for representation on the governing board
by less than all the participating districts shall be included
within and subject to this Article as a participating
instrumentality. Such participation shall be effective as of
the date the joint agreement becomes effective.
The governing boards of educational service centers
established under Section 2-3.62 of the School Code shall be
included within and subject to this Article as participating

SB0065 - 23 - LRB103 00029 RPS 45029 b
instrumentalities. The governing boards of vocational
education cooperative agreements created under the
Intergovernmental Cooperation Act and approved by the State
Board of Education shall be included within and be subject to
this Article as participating instrumentalities. If any such
governing boards or boards of control are unable to pay the
required employer contributions to the fund, then the school
districts served by such boards shall make payment of required
contributions as provided in Section 7-172. The payments shall
be allocated among the several school districts in proportion
to the number of students in average daily attendance for the
last full school year for each district in relation to the
total number of students in average attendance for such period
for all districts served. If such educational service centers,
vocational education cooperatives or cooperative or joint
educational programs or projects created and administered
under Section 3-15.14 of the School Code are dissolved, the
assets and obligations shall be distributed among the
districts in the same proportions unless otherwise provided.
The governing board of Paris Cooperative High School shall
be included within and be subject to this Article as a
participating instrumentality on the effective date of this
amendatory Act of the 96th General Assembly. If the governing
board of Paris Cooperative High School is unable to pay the
required employer contributions to the fund, then the school
districts served shall make payment of required contributions

SB0065 - 24 - LRB103 00029 RPS 45029 b
as provided in Section 7-172. The payments shall be allocated
among the several school districts in proportion to the number
of students in average daily attendance for the last full
school year for each district in relation to the total number
of students in average attendance for such period for all
districts served. If Paris Cooperative High School is
dissolved, then the assets and obligations shall be
distributed among the districts in the same proportions unless
otherwise provided.
The Philip J. Rock Center and School shall be included
within and be subject to this Article as a participating
instrumentality on the effective date of this amendatory Act
of the 97th General Assembly. The Philip J. Rock Center and
School shall certify to the Fund the dates of service of all
employees within 90 days of the effective date of this
amendatory Act of the 97th General Assembly. The Fund shall
transfer to the IMRF account of the Philip J. Rock Center and
School all creditable service and all employer contributions
made on behalf of the employees for service at the Philip J.
Rock Center and School that were reported and paid to IMRF by
another employer prior to this date. If the Philip J. Rock
Center and School is unable to pay the required employer
contributions to the Fund, then the amount due will be paid by
all employers as defined in item (2) of paragraph (a) of
subsection (A) of this Section. The payments shall be
allocated among these employers in proportion to the number of

SB0065 - 25 - LRB103 00029 RPS 45029 b
students in average daily attendance for the last full school
year for each district in relation to the total number of
students in average attendance for such period for all
districts. If the Philip J. Rock Center and School is
dissolved, then its IMRF assets and obligations shall be
distributed in the same proportions unless otherwise provided.
Financial Oversight Panels established under Article 1H of
the School Code shall be included within and be subject to this
Article as a participating instrumentality on the effective
date of this amendatory Act of the 97th General Assembly. If
the Financial Oversight Panel is unable to pay the required
employer contributions to the fund, then the school districts
served shall make payment of required contributions as
provided in Section 7-172. If the Financial Oversight Panel is
dissolved, then the assets and obligations shall be
distributed to the district served.
(d) The governing boards of special recreation joint
agreements created under Section 8-10b of the Park District
Code, operating without designation of an administrative
district or an administrative municipality appointed to
administer the program operating under the authority of such
joint agreement shall be included within and be subject to
this Article as participating instrumentalities when the joint
agreement becomes effective. However, the governing board of
any such special recreation joint agreement in effect before
January 1, 1980 shall not be subject to this Article unless the

SB0065 - 26 - LRB103 00029 RPS 45029 b
joint agreement is modified, by the districts and
municipalities which are parties to the agreement, to provide
that the governing board is subject to this Article.
If the Board returns any employer and employee
contributions to any employer which erroneously submitted such
contributions on behalf of a special recreation joint
agreement, the Board shall include interest computed from the
end of each year to the date of payment, not compounded, at the
rate of 7% per annum.
(e) Each multi-township assessment district, the board of
trustees of which has adopted this Article by ordinance prior
to April 1, 1982, shall be a participating instrumentality
included within and subject to this Article effective December
1, 1981. The contributions required under Section 7-172 shall
be included in the budget prepared under and allocated in
accordance with Section 2-30 of the Property Tax Code.
(f) The Illinois Medical District Commission created under
the Illinois Medical District Act may be included within and
subject to this Article as a participating instrumentality,
notwithstanding that the location of the District is entirely
within the City of Chicago. To become a participating
instrumentality, the Commission must apply to the Board in the
manner set forth in paragraph (a) of this subsection (B). If
the Board approves the application, under the criteria and
procedures set forth in paragraph (a) and any other applicable
rules, criteria, and procedures of the Board, participation by

SB0065 - 27 - LRB103 00029 RPS 45029 b
the Commission shall commence on the effective date specified
by the Board.
(C) Prospective participants.
Beginning January 1, 1992, each prospective participating
municipality or participating instrumentality shall pay to the
Fund the cost, as determined by the Board, of a study prepared
by the Fund or its actuary, detailing the prospective costs of
participation in the Fund to be expected by the municipality
or instrumentality.
(Source: P.A. 102-637, eff. 8-27-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.