Bill Text: IL HB0441 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. In the General Assembly Article, restricts participation in the General Assembly Retirement System to persons who become participants before the effective date of the amendatory Act and provides that, beginning on that date, the System shall not accept any new participants. Makes related changes. In the Illinois Municipal Retirement Fund, Chicago Municipal, and Cook County Articles, provides that a person who holds part-time elective office is not an employee, contributor, or participant with respect to that office, unless he or she (i) was elected to that office before the effective date of the amendatory Act and (ii) has elected while in that office to become a contributor. Provides that an elective office shall be presumed to be part-time in the absence of an official job description or determination by the legal advisor of the applicable unit of local government, filed with the Board of the Fund, declaring the elective office to be full-time.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB0441 Detail]

Download: Illinois-2017-HB0441-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0441 Introduced , by Rep. Jeanne M Ives SYNOPSIS AS INTRODUCED:
40 ILCS 5/2-101 from Ch. 108 1/2, par. 2-101
40 ILCS 5/2-105 from Ch. 108 1/2, par. 2-105
40 ILCS 5/2-107 from Ch. 108 1/2, par. 2-107
40 ILCS 5/7-137 from Ch. 108 1/2, par. 7-137
40 ILCS 5/8-113 from Ch. 108 1/2, par. 8-113
40 ILCS 5/8-243 from Ch. 108 1/2, par. 8-243
40 ILCS 5/9-108 from Ch. 108 1/2, par. 9-108
Amends the Illinois Pension Code. In the General Assembly Article, restricts participation in the General Assembly Retirement System to persons who become participants before the effective date of the amendatory Act and provides that, beginning on that date, the System shall not accept any new participants. Makes related changes. In the Illinois Municipal Retirement Fund, Chicago Municipal, and Cook County Articles, provides that a person who holds part-time elective office is not an employee, contributor, or participant with respect to that office, unless he or she (i) was elected to that office before the effective date of the amendatory Act and (ii) has elected while in that office to become a contributor. Provides that an elective office shall be presumed to be part-time in the absence of an official job description or determination by the legal advisor of the applicable unit of local government, filed with the Board of the Fund, declaring the elective office to be full-time.
LRB100 05376 RPS 15387 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB0441 LRB100 05376 RPS 15387 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 2-101, 2-105, 2-107, 7-137, 8-113, 8-243, and 9-108 as
follows:
(40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101)
Sec. 2-101. Creation of system. A retirement system is
created to provide retirement annuities, survivor's annuities
and other benefits for certain members of the General Assembly,
certain elected state officials, and their beneficiaries.
The system shall be known as the "General Assembly
Retirement System". All its funds and property shall be a trust
separate from all other entities, maintained for the purpose of
securing payment of annuities and benefits under this Article.
Participation in the retirement system created under this
Article is restricted to persons who became participants before
the effective date of this amendatory Act of the 100th General
Assembly. Beginning on that date, the System shall not accept
any new participants.
(Source: P.A. 83-1440.)
(40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105)

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Sec. 2-105. Member. "Member": Members of the General
Assembly of this State, including persons who enter military
service while a member of the General Assembly, and any person
serving as Governor, Lieutenant Governor, Secretary of State,
Treasurer, Comptroller, or Attorney General for the period of
service in such office.
Any person who has served for 10 or more years as Clerk or
Assistant Clerk of the House of Representatives, Secretary or
Assistant Secretary of the Senate, or any combination thereof,
may elect to become a member of this system while thenceforth
engaged in such service by filing a written election with the
board. Any person so electing shall be deemed an active member
of the General Assembly for the purpose of validating and
transferring any service credits earned under any of the funds
and systems established under Articles 3 through 18 of this
Code.
However, notwithstanding any other provision of this
Article, a person shall not be deemed a member for the purposes
of this Article unless he or she became a participant of the
System before the effective date of this amendatory Act of the
100th General Assembly.
(Source: P.A. 85-1008.)
(40 ILCS 5/2-107) (from Ch. 108 1/2, par. 2-107)
Sec. 2-107. Participant. "Participant": Any member who
elects to participate; and any former member who elects to

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continue participation under Section 2-117.1, for the duration
of such continued participation. However, notwithstanding any
other provision of this Article, a person shall not be deemed a
participant for the purposes of this Article unless he or she
became a participant of the System before the effective date of
this amendatory Act of the 100th General Assembly.
(Source: P.A. 86-1488.)
(40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
Sec. 7-137. Participating and covered employees.
(a) The persons described in this paragraph (a) shall be
included within and be subject to this Article and eligible to
benefits from this fund, beginning upon the dates hereinafter
specified:
1. Except as to the employees specifically excluded
under the provisions of this Article, all persons who are
employees of any municipality (or instrumentality thereof)
or participating instrumentality on the effective date of
participation of the municipality or participating
instrumentality beginning upon such effective date.
2. Except as to the employees specifically excluded
under the provisions of this Article, all persons, who
became employees of any participating municipality (or
instrumentality thereof) or participating instrumentality
after the effective date of participation of such
municipality or participating instrumentality, beginning

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upon the date such person becomes an employee.
3. All persons who file notice with the board as
provided in paragraph (b) 2 and 3 of this Section,
beginning upon the date of filing such notice.
(b) The following described persons shall not be considered
participating employees eligible for benefits from this fund,
but shall be included within and be subject to this Article
(each of the descriptions is not exclusive but is cumulative):
1. Any person who occupies an office or is employed in
a position normally requiring performance of duty during
less than 600 hours a year for a municipality (including
all instrumentalities thereof) or a participating
instrumentality. If a school treasurer performs services
for more than one school district, the total number of
hours of service normally required for the several school
districts shall be considered to determine whether he
qualifies under this paragraph;
2. Except as provided in items 2.5 and 2.6, any person
who holds full-time elective office, unless he or she has
elected while in that office in a written notice on file
with the board to become a participating employee;
2.5. Except as provided in item 2.6, any person who
holds elective office as a member of a county board,
unless:
(i) the person was first elected as a member of a
county board before the effective date of this

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amendatory Act of the 99th General Assembly;
(ii) the person has elected while in that office,
in a written notice on file with the board, to become a
participating employee;
(iii) the county board has filed the resolution
required by subsection (a) of Section 7-137.2 of this
Article; and
(iv) the person has submitted the required time
sheets evidencing that the person has met the hourly
standard as required by subsection (b) of Section
7-137.2 of this Article;
2.6. Any person who is an elected member of a county
board and is first so elected on or after the effective
date of this amendatory Act of the 99th General Assembly;
2.7. Any person who holds part-time elective office,
unless he or she (i) was elected to that office before the
effective date of this amendatory Act of the 100th General
Assembly and (ii) has elected while in that office in a
written notice on file with the board to become a
participating employee. An elective office shall be
presumed to be part-time in the absence of an official job
description or determination by the legal advisor of the
applicable participating municipality or participating
instrumentality, filed with the Board, declaring the
elective position to be full-time;
3. Any person working for a city hospital unless any

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such person, while in active employment, has elected in a
written notice on file with the board to become a
participating employee and notification thereof is
received by the board;
4. Any person who becomes an employee after June 30,
1979 as a public service employment program participant
under the federal Comprehensive Employment and Training
Act and whose wages or fringe benefits are paid in whole or
in part by funds provided under such Act;
5. Any person who is actively employed by a
municipality on its effective date of participation in the
Fund if that municipality (i) has at least 35 employees on
its effective date of participation; (ii) is located in a
county with at least 2,000,000 inhabitants; and (iii)
maintains an independent defined benefit pension plan for
the benefit of its eligible employees, unless the person
files with the board within 90 days after the
municipality's effective date of participation an
irrevocable election to participate.
(c) Any person electing to be a participating employee,
pursuant to paragraph (b) of this Section may not change such
election, except as provided in Section 7-137.1.
(d) Any employee who occupied the position of school nurse
in any participating municipality on August 8, 1961 and
continuously thereafter until the effective date of the
exercise of the option authorized by this subparagraph, who on

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August 7, 1961 was a member of the Teachers' Retirement System
of Illinois, by virtue of certification by the Department of
Registration and Education as a public health nurse, may elect
to terminate participation in this Fund in order to
re-establish membership in such System. The election may be
exercised by filing written notice thereof with the Board or
with the Board of Trustees of said Teachers' Retirement System,
not later than September 30, 1963, and shall be effective on
the first day of the calendar month next following the month in
which the notice was filed. If the written notice is filed with
such Teachers' Retirement System, that System shall
immediately notify this Fund, but neither failure nor delay in
notification shall affect the validity of the employee's
election. If the option is exercised, the Fund shall notify
such Teachers' Retirement System of such fact and transfer to
that system the amounts contributed by the employee to this
Fund, including interest at 3% per annum, but excluding
contributions applicable to social security coverage during
the period beginning August 8, 1961 to the effective date of
the employee's election. Participation in this Fund as to any
credits on or after August 8, 1961 and up to the effective date
of the employee's election shall terminate on such effective
date.
(e) Any participating municipality or participating
instrumentality, other than a school district or special
education joint agreement created under Section 10-22.31 of the

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School Code, may, by a resolution or ordinance duly adopted by
its governing body, elect to exclude from participation and
eligibility for benefits all persons who are employed after the
effective date of such resolution or ordinance and who occupy
an office or are employed in a position normally requiring
performance of duty for less than 1000 hours per year for the
participating municipality (including all instrumentalities
thereof) or participating instrumentality except for persons
employed in a position normally requiring performance of duty
for 600 hours or more per year (i) by such participating
municipality or participating instrumentality prior to the
effective date of the resolution or ordinance and (ii) by a
participating municipality or participating instrumentality,
which had not adopted such a resolution when the person was
employed, and the function served by the employee's position is
assumed by another participating municipality or participating
instrumentality. Notwithstanding the foregoing, a
participating municipality or participating instrumentality
which is formed solely to succeed to the functions of a
participating municipality or participating instrumentality
shall be considered to have adopted any such resolution or
ordinance which may have been applicable to the employees
performing such functions. The election made by the resolution
or ordinance shall take effect at the time specified in the
resolution or ordinance, and once effective shall be
irrevocable.

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(Source: P.A. 99-900, eff. 8-26-16.)
(40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
Sec. 8-113. Municipal employee, employee, contributor, or
participant. "Municipal employee", "employee", "contributor",
or "participant":
(a) Any employee of an employer employed in the classified
civil service thereof other than by temporary appointment or in
a position excluded or exempt from the classified service by
the Civil Service Act, or in the case of a city operating under
a personnel ordinance, any employee of an employer employed in
the classified or career service under the provisions of a
personnel ordinance, other than in a provisional or exempt
position as specified in such ordinance or in rules and
regulations formulated thereunder.
(b) Any employee in the service of an employer before the
Civil Service Act came in effect for the employer.
(c) Any person employed by the board.
(d) Any person employed after December 31, 1949, but prior
to January 1, 1984, in the service of the employer by temporary
appointment or in a position exempt from the classified service
as set forth in the Civil Service Act, or in a provisional or
exempt position as specified in the personnel ordinance, who
meets the following qualifications:
(1) has rendered service during not less than 12
calendar months to an employer as an employee, officer, or

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official, 4 months of which must have been consecutive full
normal working months of service rendered immediately
prior to filing application to be included; and
(2) files written application with the board, while in
the service, to be included hereunder.
(e) After December 31, 1949, any alderman or other officer
or official of the employer, who files, while in office,
written application with the board to be included hereunder.
Notwithstanding any other provision of this Article, however, a
person who holds part-time elective city office is not an
employee, contributor, or participant with respect to that
office, unless he or she (i) was so elected before the
effective date of this amendatory Act of the 100th General
Assembly and (ii) has elected while in that office to become a
contributor. An elective city office shall be presumed to be
part-time in the absence of an official job description or
determination by the legal advisor of the city, filed with the
board, declaring the elective city office to be full-time.
(f) Beginning January 1, 1984, any person employed by an
employer other than the Chicago Housing Authority or the Public
Building Commission of the city, whether or not such person is
serving by temporary appointment or in a position exempt from
the classified service as set forth in the Civil Service Act,
or in a provisional or exempt position as specified in the
personnel ordinance, provided that such person is neither (1)
an alderman or other officer or official of the employer, nor

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(2) participating, on the basis of such employment, in any
other pension fund or retirement system established under this
Act.
(g) After December 31, 1959, any person employed in the law
department of the city, or municipal court or Board of Election
Commissioners of the city, who was a contributor and
participant, on December 31, 1959, in the annuity and benefit
fund in operation in the city on said date, by virtue of the
Court and Law Department Employees' Annuity Act or the Board of
Election Commissioners Employees' Annuity Act.
After December 31, 1959, the foregoing definition includes
any other person employed or to be employed in the law
department, or municipal court (other than as a judge), or
Board of Election Commissioners (if his salary is provided by
appropriation of the city council of the city and his salary
paid by the city) -- subject, however, in the case of such
persons not participants on December 31, 1959, to compliance
with the same qualifications and restrictions otherwise set
forth in this Section and made generally applicable to
employees or officers of the city concerning eligibility for
participation or membership.
(h) After December 31, 1965, any person employed in the
public library of the city -- and any other person -- who was a
contributor and participant, on December 31, 1965, in the
pension fund in operation in the city on said date, by virtue
of the Public Library Employees' Pension Act.

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(i) After December 31, 1968, any person employed in the
house of correction of the city, who was a contributor and
participant, on December 31, 1968, in the pension fund in
operation in the city on said date, by virtue of the House of
Correction Employees' Pension Act.
(j) Any person employed full-time on or after the effective
date of this amendatory Act of the 92nd General Assembly by the
Chicago Housing Authority who has elected to participate in
this Fund as provided in subsection (a) of Section 8-230.9.
(k) Any person employed full-time by the Public Building
Commission of the city who has elected to participate in this
Fund as provided in subsection (d) of Section 8-230.7.
(Source: P.A. 92-599, eff. 6-28-02.)
(40 ILCS 5/8-243) (from Ch. 108 1/2, par. 8-243)
Sec. 8-243. Service as alderman or member of city council.
Whenever any person has served or hereafter serves as a duly
elected alderman or member of the city council of any city of
more than 500,000 inhabitants and is or hereafter becomes a
contributing participant in any pension fund or any annuity and
benefit fund in existence in such city by operation of law, the
period of service as such alderman or member of the city
council shall be counted as a period of service in computing
any annuity or pension which such person may become entitled to
receive from such fund upon separation from the service, except
as ruled out for minimum annuity purposes in Section

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8-232(a)(3), and except that service in a part-time elective
office of the city shall not be counted unless the official was
so elected before the effective date of this amendatory Act of
the 100th General Assembly. An elective office shall be
presumed to be part-time in the absence of an official job
description or determination by the legal advisor of the city,
filed with the Board, declaring the elective position to be
full-time.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-108) (from Ch. 108 1/2, par. 9-108)
Sec. 9-108. "Employee", "contributor" or "participant".
(a) Any employee of the county employed in any position in
the classified civil service of the county, or in any position
under the County Police Merit Board as a deputy sheriff in the
County Police Department.
Any such employee employed after January 1, 1968 and before
January 1, 1984 shall be entitled only to the benefits provided
in Sections 9-147 and 9-156, prior to the earlier of completion
of 12 consecutive calendar months of service and January 1,
1984, and no contributions shall be made by him during this
period. Upon the completion of said period contributions shall
begin and the employee shall become entitled to the benefits of
this Article.
Any such employee may elect to make contributions for such
period and receive credit therefor under rules prescribed by

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the board.
Any such employee in service on or after January 1, 1984,
regardless of when he became an employee, shall be deemed a
participant and contributor to the fund created by this Article
and the employee shall be entitled to the benefits of this
Article.
(b) Any employee of the county employed in any position not
included in the classified civil service of the county whose
salary or wage is paid in whole or in part by the county. Any
such employee employed after July 1, 1957, and before January
1, 1984, shall be entitled only to the benefits provided in
Sections 9-147 and 9-156, prior to the earlier of completion of
12 consecutive calendar months of service and January 1, 1984,
and no contributions shall be made by him during this period.
Upon the completion of said period contributions shall begin
and the employee shall become entitled to the benefits of this
Article.
Any such employee may elect to make contributions for such
period and receive credit therefor under rules prescribed by
the board.
Any such employee in service on or after January 1, 1984,
regardless of when he became an employee, shall be deemed a
participant and contributor to the fund created by this Article
and the employee shall be entitled to the benefits of this
Article.
(c) Any full-time county officer elected by vote of the

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people, including a member of the county board, when such
officer elects to become a contributor. A person who holds a
part-time elective county office is not an employee,
contributor, or participant with respect to that office, unless
he or she (i) was elected to that office before the effective
date of this amendatory Act of the 100th General Assembly and
(ii) has elected while in that office to become a contributor.
An elective county office shall be presumed to be part-time in
the absence of an official job description or determination by
the legal advisor of the county, filed with the Board,
declaring the elective county office to be full-time.
(d) Any person employed by the board.
(e) Employees of a County Department of Public Aid in
counties of 3,000,000 or more population who are transferred to
State employment by operation of law enacted by the 76th
General Assembly and who elect not to become members of the
Retirement System established under Article 14 of this Code as
of the date they become State employees shall retain their
membership in the fund established in this Article 9 until the
first day of the calendar month next following the date on
which they become State employees, at which time they shall
become members of the System established under Article 14.
(f) If, by operation of law, a function of a "Governmental
Unit", as such term is defined in the "Retirement Systems
Reciprocal Act" in Article 20 of the Illinois Pension Code, is
transferred in whole or in part to the county in which this

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Article is in force and effect, and employees are transferred
as a group or class to such county service, such transferred
employee shall, if on the day immediately prior to the date of
such transfer he was a contributor and participant in the
annuity and benefit fund or retirement system in operation in
such other "Governmental Unit" for employees of such Unit,
immediately upon such transfer be deemed a participant and
contributor to the fund created by this Article.
(Source: P.A. 90-655, eff. 7-30-98.)