Bill Text: IL SB3720 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides for the Philip J. Rock Center and School to participate in the Fund as a participating instrumentality. Includes provisions relating to prior service and inability to pay the required employer contributions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3720 Detail]

Download: Illinois-2011-SB3720-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 SB3720 Introduced 2/10/2012, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
40 ILCS 5/7-132 from Ch. 108 1/2, par. 7-132
30 ILCS 805/8.36 new
Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides for the Philip J. Rock Center and School to participate in the Fund as a participating instrumentality. Includes provisions relating to prior service and inability to pay the required employer contributions. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
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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
Section 7-132 as follows:
(40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
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

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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
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

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from participation and those described in paragraph (3)
above, may elect to be included either by referendum under
Section 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.
(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

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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.
(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

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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
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.

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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.
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.

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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
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.

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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
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.

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(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 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

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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.
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

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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
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

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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
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

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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 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

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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
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

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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
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. 96-211, eff. 8-10-09; 96-551, eff. 8-17-09;
96-1000, eff. 7-2-10; 96-1046, eff. 7-14-10; 97-429, eff.
8-16-11.)
Section 90. The State Mandates Act is amended by adding
Section 8.36 as follows:
(30 ILCS 805/8.36 new)
Sec. 8.36. 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 97th General Assembly.
Section 99. Effective date. This Act takes effect upon

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becoming law.