Public Act 100-0281
 
HB0418 EnrolledLRB100 04239 RPS 14245 b


  
    AN ACT concerning public employee benefits.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Illinois Pension Code is amended  by changing 
Sections 3-109.1, 3-124.1, and 7-109 and  by adding Section 
3-109.4 as follows:
 



    (40 ILCS 5/3-109.1)  (from Ch. 108 1/2, par. 3-109.1)



    Sec. 3-109.1. Chief of police. 

    (a) Except as provided in subsection (a-5), beginning 
Beginning January 1, 1990, any person who is employed as the 
chief
of police of a "participating municipality" as defined in 
Section 7-106 of this
Code, may elect to participate in the 
Illinois Municipal Retirement Fund rather
than in a fund 
created under this Article 3.  Except as provided in
subsection 
(b), this election shall be irrevocable, and shall be
filed in 
writing with the Board of the Illinois Municipal Retirement 
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.
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.