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91_HB0324
LRB9101389EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 7-132.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 7-132 as follows:
7 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
8 Sec. 7-132. Municipalities, instrumentalities and
9 participating instrumentalities included and effective dates.
10 (A) Municipalities and their instrumentalities.
11 (a) The following described municipalities, but not
12 including any with more than 1,000,000 inhabitants, and the
13 instrumentalities thereof, shall be included within and be
14 subject to this Article beginning upon the effective dates
15 specified by the Board:
16 (1) Except as to the municipalities and
17 instrumentalities thereof specifically excluded under
18 this Article, every county shall be subject to this
19 Article, and all cities, villages and incorporated towns
20 having a population in excess of 5,000 inhabitants as
21 determined by the last preceding decennial or subsequent
22 federal census, shall be subject to this Article
23 following publication of the census by the Bureau of the
24 Census. Within 90 days after publication of the census,
25 the Board shall notify any municipality that has become
26 subject to this Article as a result of that census, and
27 shall provide information to the corporate authorities of
28 the municipality explaining the duties and consequences
29 of participation. The notification shall also include a
30 proposed date upon which participation by the
31 municipality will commence.
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1 However, for any city, village or incorporated town
2 that attains a population over 5,000 inhabitants after
3 having provided social security coverage for its
4 employees under the Social Security Enabling Act,
5 participation under this Article shall not be mandatory
6 but may be elected in accordance with subparagraph (3) or
7 (4) of this paragraph (a), whichever is applicable.
8 (2) School districts, other than those specifically
9 excluded under this Article, shall be subject to this
10 Article, without election, with respect to all employees
11 thereof.
12 (3) Towns and all other bodies politic and
13 corporate which are formed by vote of, or are subject to
14 control by, the electors in towns and are located in
15 towns which are not participating municipalities on the
16 effective date of this Act, may become subject to this
17 Article by election pursuant to Section 7-132.1.
18 (4) Any other municipality (together with its
19 instrumentalities), other than those specifically
20 excluded from participation and those described in
21 paragraph (3) above, may elect to be included either by
22 referendum under Section 7-134 or by the adoption of a
23 resolution or ordinance by its governing body. A copy of
24 such resolution or ordinance duly authenticated and
25 certified by the clerk of the municipality or other
26 appropriate official of its governing body shall
27 constitute the required notice to the board of such
28 action.
29 (b) A municipality that is about to begin participation
30 shall submit to the Board an application to participate, in a
31 form acceptable to the Board, not later than 90 days prior to
32 the proposed effective date of participation. The Board
33 shall act upon the application within 90 days, and if it
34 finds that the application is in conformity with its
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1 requirements and the requirements of this Article,
2 participation by the applicant shall commence on a date
3 acceptable to the municipality and specified by the Board,
4 but in no event more than one year from the date of
5 application.
6 (c) A participating municipality which succeeds to the
7 functions of a participating municipality which is dissolved
8 or terminates its existence shall assume and be transferred
9 the net accumulation balance in the municipality reserve and
10 the municipality account receivable balance of the terminated
11 municipality.
12 (d) In the case of a Veterans Assistance Commission
13 whose employees were being treated by the Fund on January 1,
14 1990 as employees of the county served by the Commission, the
15 Fund may continue to treat the employees of the Veterans
16 Assistance Commission as county employees for the purposes of
17 this Article, unless the Commission becomes a participating
18 instrumentality in accordance with subsection (B) of this
19 Section.
20 (B) Participating instrumentalities.
21 (a) The participating instrumentalities designated in
22 paragraph (b) of this subsection shall be included within and
23 be subject to this Article if:
24 (1) an application to participate, in a form
25 acceptable to the Board and adopted by a two-thirds vote
26 of the governing body, is presented to the Board not
27 later than 90 days prior to the proposed effective date;
28 and
29 (2) the Board finds that the application is in
30 conformity with its requirements, that the applicant has
31 reasonable expectation to continue as a political entity
32 for a period of at least 10 years and has the prospective
33 financial capacity to meet its current and future
34 obligations to the Fund, and that the actuarial soundness
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1 of the Fund may be reasonably expected to be unimpaired
2 by approval of participation by the applicant.
3 The Board shall notify the applicant of its findings
4 within 90 days after receiving the application, and if the
5 Board approves the application, participation by the
6 applicant shall commence on the effective date specified by
7 the Board.
8 (b) The following participating instrumentalities, so
9 long as they meet the requirements of Section 7-108 and the
10 area served by them or within their jurisdiction is not
11 located entirely within a municipality having more than one
12 million inhabitants, may be included hereunder:
13 i. Township School District Trustees.
14 ii. Multiple County and Consolidated Health
15 Departments created under Division 5-25 of the Counties
16 Code or its predecessor law.
17 iii. Public Building Commissions created under the
18 Public Building Commission Act, and located in counties
19 of less than 1,000,000 inhabitants.
20 iv. A multitype, consolidated or cooperative
21 library system created under the Illinois Library System
22 Act. Any library system created under the Illinois
23 Library System Act that has one or more predecessors that
24 participated in the Fund may participate in the Fund upon
25 application. The Board shall establish procedures for
26 implementing the transfer of rights and obligations from
27 the predecessor system to the successor system.
28 v. Regional Planning Commissions created under
29 Division 5-14 of the Counties Code or its predecessor
30 law.
31 vi. Local Public Housing Authorities created under
32 the Housing Authorities Act, located in counties of less
33 than 1,000,000 inhabitants.
34 vii. Illinois Municipal League.
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1 viii. Northeastern Illinois Metropolitan Area
2 Planning Commission.
3 ix. Southwestern Illinois Metropolitan Area
4 Planning Commission.
5 x. Illinois Association of Park Districts.
6 xi. Illinois Supervisors, County Commissioners and
7 Superintendents of Highways Association.
8 xii. Tri-City Regional Port District.
9 xiii. An association, or not-for-profit
10 corporation, membership in which is authorized under
11 Section 85-15 of the Township Code.
12 xiv. Drainage Districts operating under the
13 Illinois Drainage Code.
14 xv. Local mass transit districts created under the
15 Local Mass Transit District Act.
16 xvi. Soil and water conservation districts created
17 under the Soil and Water Conservation Districts Law.
18 xvii. Commissions created to provide water supply
19 or sewer services or both under Division 135 or Division
20 136 of Article 11 of the Illinois Municipal Code.
21 xviii. Public water districts created under the
22 Public Water District Act.
23 xix. Veterans Assistance Commissions established
24 under Section 9 of the Military Veterans Assistance Act
25 that serve counties with a population of less than
26 1,000,000.
27 xx. The governing body of an entity, other than a
28 vocational education cooperative, created under an
29 intergovernmental cooperative agreement established
30 between participating municipalities under the
31 Intergovernmental Cooperation Act, which by the terms of
32 the agreement is the employer of the persons performing
33 services under the agreement under the usual common law
34 rules determining the employer-employee relationship.
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1 The governing body of such an intergovernmental
2 cooperative entity established prior to July 1, 1988 may
3 make participation retroactive to the effective date of
4 the agreement and, if so, the effective date of
5 participation shall be the date the required application
6 is filed with the fund. If any such entity is unable to
7 pay the required employer contributions to the fund, then
8 the participating municipalities shall make payment of
9 the required contributions and the payments shall be
10 allocated as provided in the agreement or, if not so
11 provided, equally among them.
12 xxi. The Illinois Municipal Electric Agency.
13 xxii. The Waukegan Port District.
14 xxiii. The Fox Waterway Agency created under the
15 Fox Waterway Agency Act.
16 xxiv. The Illinois Municipal Gas Agency.
17 (c) The governing boards of special education joint
18 agreements created under Section 10-22.31 of the School Code
19 without designation of an administrative district shall be
20 included within and be subject to this Article as
21 participating instrumentalities when the joint agreement
22 becomes effective. However, the governing board of any such
23 special education joint agreement in effect before September
24 5, 1975 shall not be subject to this Article unless the joint
25 agreement is modified by the school districts to provide that
26 the governing board is subject to this Article, except as
27 otherwise provided by this Section.
28 The governing board of the Special Education District of
29 Lake County shall become subject to this Article as a
30 participating instrumentality on July 1, 1997.
31 Notwithstanding subdivision (a)1 of Section 7-139, on the
32 effective date of participation, employees of the governing
33 board of the Special Education District of Lake County shall
34 receive creditable service for their prior service with that
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1 employer, up to a maximum of 5 years, without any employee
2 contribution. Employees may establish creditable service for
3 the remainder of their prior service with that employer, if
4 any, by applying in writing and paying an employee
5 contribution in an amount determined by the Fund, based on
6 the employee contribution rates in effect at the time of
7 application for the creditable service and the employee's
8 salary rate on the effective date of participation for that
9 employer, plus interest at the effective rate from the date
10 of the prior service to the date of payment. Application for
11 this creditable service must be made before July 1, 1998; the
12 payment may be made at any time while the employee is still
13 in service. The employer may elect to make the required
14 contribution on behalf of the employee.
15 The governing board of a special education joint
16 agreement created under Section 10-22.31 of the School Code
17 for which an administrative district has been designated, if
18 there are employees of the cooperative educational entity who
19 are not employees of the administrative district, may elect
20 to participate in the Fund and be included within this
21 Article as a participating instrumentality, subject to such
22 application procedures and rules as the Board may prescribe.
23 The Boards of Control of cooperative or joint educational
24 programs or projects created and administered under Section
25 3-15.14 of the School Code, whether or not the Boards act as
26 their own administrative district, shall be included within
27 and be subject to this Article as participating
28 instrumentalities when the agreement establishing the
29 cooperative or joint educational program or project becomes
30 effective.
31 The governing board of a special education joint
32 agreement entered into after June 30, 1984 and prior to
33 September 17, 1985 which provides for representation on the
34 governing board by less than all the participating districts
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1 shall be included within and subject to this Article as a
2 participating instrumentality. Such participation shall be
3 effective as of the date the joint agreement becomes
4 effective.
5 The governing boards of educational service centers
6 established under Section 2-3.62 of the School Code shall be
7 included within and subject to this Article as participating
8 instrumentalities. The governing boards of vocational
9 education cooperative agreements created under the
10 Intergovernmental Cooperation Act and approved by the State
11 Board of Education shall be included within and be subject to
12 this Article as participating instrumentalities. If any such
13 governing boards or boards of control are unable to pay the
14 required employer contributions to the fund, then the school
15 districts served by such boards shall make payment of
16 required contributions as provided in Section 7-172. The
17 payments shall be allocated among the several school
18 districts in proportion to the number of students in average
19 daily attendance for the last full school year for each
20 district in relation to the total number of students in
21 average attendance for such period for all districts served.
22 If such educational service centers, vocational education
23 cooperatives or cooperative or joint educational programs or
24 projects created and administered under Section 3-15.14 of
25 the School Code are dissolved, the assets and obligations
26 shall be distributed among the districts in the same
27 proportions unless otherwise provided.
28 (d) The governing boards of special recreation joint
29 agreements created under Section 8-10b of the Park District
30 Code, operating without designation of an administrative
31 district or an administrative municipality appointed to
32 administer the program operating under the authority of such
33 joint agreement shall be included within and be subject to
34 this Article as participating instrumentalities when the
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1 joint agreement becomes effective. However, the governing
2 board of any such special recreation joint agreement in
3 effect before January 1, 1980 shall not be subject to this
4 Article unless the joint agreement is modified, by the
5 districts and municipalities which are parties to the
6 agreement, to provide that the governing board is subject to
7 this Article.
8 If the Board returns any employer and employee
9 contributions to any employer which erroneously submitted
10 such contributions on behalf of a special recreation joint
11 agreement, the Board shall include interest computed from the
12 end of each year to the date of payment, not compounded, at
13 the rate of 7% per annum.
14 (e) Each multi-township assessment district, the board
15 of trustees of which has adopted this Article by ordinance
16 prior to April 1, 1982, shall be a participating
17 instrumentality included within and subject to this Article
18 effective December 1, 1981. The contributions required under
19 Section 7-172 shall be included in the budget prepared under
20 and allocated in accordance with Section 2-30 of the Property
21 Tax Code.
22 (f) Beginning January 1, 1992, each prospective
23 participating municipality or participating instrumentality
24 shall pay to the Fund the cost, as determined by the Board,
25 of a study prepared by the Fund or its actuary, detailing the
26 prospective costs of participation in the Fund to be expected
27 by the municipality or instrumentality.
28 (Source: P.A. 89-162, eff. 7-19-95; 90-511, eff. 8-22-97.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.