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Public Act 093-0777
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| HB6616 Enrolled |
LRB093 19757 LRD 45498 b |
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AN ACT in relation to public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by |
changing Section
7-132 as follows:
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(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.
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(A) Municipalities and their instrumentalities.
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(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:
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(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
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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.
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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.
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(2) School districts, other than those specifically
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excluded under this Article, shall be subject to this |
Article, without
election, with respect to all employees |
thereof.
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(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.
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(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 7-134 or by the adoption of a resolution or
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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.
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(c) A participating municipality which succeeds to the |
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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.
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(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
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instrumentality in accordance with subsection (B) of this |
Section.
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(B) Participating instrumentalities.
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(a) The participating instrumentalities designated in
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paragraph (b) of this subsection shall be included within
and |
be subject to this Article if:
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(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
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(2) the Board finds that the application is in
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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
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approval of participation by the applicant.
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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.
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(b) The following participating instrumentalities, so long |
as
they meet the requirements of Section 7-108 and the area |
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served by them
or within their jurisdiction is not located |
entirely within a municipality
having more than one million |
inhabitants, may be included hereunder:
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i. Township School District Trustees.
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ii. Multiple County and Consolidated Health |
Departments created
under Division 5-25 of the Counties |
Code or its predecessor law.
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iii. Public Building Commissions created under the |
Public Building
Commission Act, and located in counties of |
less
than 1,000,000 inhabitants.
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iv. A multitype, consolidated or cooperative
library |
system created under the Illinois Library System Act. Any
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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
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system to the successor system.
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v. Regional Planning Commissions created under |
Division 5-14 of the
Counties Code or its predecessor law.
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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.
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viii. Northeastern Illinois Metropolitan Area Planning |
Commission.
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ix. Southwestern Illinois Metropolitan Area Planning |
Commission.
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x. Illinois Association of Park Districts.
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xi. Illinois Supervisors, County Commissioners and |
Superintendents
of Highways Association.
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xii. Tri-City Regional Port District.
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xiii. An association, or not-for-profit corporation, |
membership in
which is authorized under Section 85-15 of |
the Township Code.
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xiv. Drainage Districts operating under the Illinois |
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Drainage
Code.
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xv. Local mass transit districts created under the |
Local Mass
Transit District Act.
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xvi. Soil and water conservation districts created |
under the Soil
and Water Conservation Districts Law.
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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.
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xviii. Public water districts created under the Public |
Water
District Act.
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xix. Veterans Assistance Commissions established under |
Section
9 of the Military Veterans Assistance Act that
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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
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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.
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xxi. The Illinois Municipal Electric Agency.
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xxii. The Waukegan Port District.
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xxiii. The Fox Waterway Agency created under the Fox |
Waterway Agency
Act.
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xxiv. The Illinois Municipal Gas Agency.
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xxv. The Kaskaskia Regional Port District.
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xxvi. The Southwestern Illinois Development Authority.
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xxvii. The Cairo Public Utility Company.
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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
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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.
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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
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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 |
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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
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a participating instrumentality, subject to such application |
procedures and
rules as the Board may prescribe.
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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
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educational program or project becomes effective.
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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.
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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
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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
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last full school year for each district in relation to the |
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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
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assets and obligations shall be distributed among the districts |
in the
same proportions unless otherwise provided.
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(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 |
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.
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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.
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(e) Each multi-township assessment district, the board of
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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.
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(f) Beginning January 1, 1992, each prospective |
participating
municipality or participating instrumentality |
shall pay to the Fund the
cost, as determined by the Board, of |