PEN CD-IMRF-EMPLOYEE

Full Bill Text

HB4909 Enrolled LRB104 20038 RPS 33489 b 1 AN ACT concerning public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Pension Code is amended by 5 changing Section 7-109 as follows: 6 (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109) 7 Sec. 7-109. Employee. 8 (1) "Employee" means any person who: 9 (a) 1. Receives earnings as payment for the 10 performance of personal services or official duties out of 11 the general fund of a municipality, or out of any special 12 fund or funds controlled by a municipality, or by an 13 instrumentality thereof, or a participating 14 instrumentality, including, in counties, the fees or 15 earnings of any county fee office; and 16 2. Under the usual common law rules applicable in 17 determining the employer-employee relationship, has the 18 status of an employee with a municipality, or any 19 instrumentality thereof, or a participating 20 instrumentality, including alderpersons, county 21 supervisors and other persons (excepting those employed as 22 independent contractors) who are paid compensation, fees, 23 allowances or other emolument for official duties, and, in HB4909 Enrolled - 2 - LRB104 20038 RPS 33489 b 1 counties, the several county fee offices. 2 (b) Serves as a township treasurer appointed under the 3 School Code, as heretofore or hereafter amended, and who 4 receives for such services regular compensation as 5 distinguished from per diem compensation, and any regular 6 employee in the office of any township treasurer whether 7 or not his earnings are paid from the income of the 8 permanent township fund or from funds subject to 9 distribution to the several school districts and parts of 10 school districts as provided in the School Code, or from 11 both such sources; or is the chief executive officer, 12 chief educational officer, chief fiscal officer, or other 13 employee of a Financial Oversight Panel established 14 pursuant to Article 1H of the School Code, other than a 15 superintendent or certified school business official, 16 except that such person shall not be treated as an 17 employee under this Section if that person has negotiated 18 with the Financial Oversight Panel, in conjunction with 19 the school district, a contractual agreement for exclusion 20 from this Section. 21 (c) Holds an elective office in a municipality, 22 instrumentality thereof or participating instrumentality. 23 (2) "Employee" does not include persons who: 24 (a) Are eligible for inclusion under any of the 25 following laws: 26 1. "An Act in relation to an Illinois State HB4909 Enrolled - 3 - LRB104 20038 RPS 33489 b 1 Teachers' Pension and Retirement Fund", approved May 2 27, 1915, as amended; 3 2. Articles 15 and 16 of this Code. 4 However, such persons shall be included as employees 5 to the extent of earnings that are not eligible for 6 inclusion under the foregoing laws for services not of an 7 instructional nature of any kind. 8 However, any member of the armed forces who is 9 employed as a teacher of subjects in the Reserve Officers 10 Training Corps of any school and who is not certified 11 under the law governing the certification of teachers 12 shall be included as an employee. 13 (b) Are designated by the governing body of a 14 municipality in which a pension fund is required by law to 15 be established for policemen or firemen, respectively, as 16 performing police or fire protection duties, except that 17 when such persons are the heads of the police or fire 18 department and are not eligible to be included within any 19 such pension fund, they shall be included within this 20 Article; provided, that such persons shall not be excluded 21 to the extent of concurrent service and earnings not 22 designated as being for police or fire protection duties. 23 However, (i) any head of a police department who was a 24 participant under this Article immediately before October 25 1, 1977 and did not elect, under Section 3-109 of this Act, 26 to participate in a police pension fund shall be an HB4909 Enrolled - 4 - LRB104 20038 RPS 33489 b 1 "employee", and (ii) any chief of police who became a 2 participating employee under this Article before January 3 1, 2019 and who elects to participate in this Fund under 4 Section 3-109.1 of this Code, regardless of whether such 5 person continues to be employed as chief of police or is 6 employed in some other rank or capacity within the police 7 department, shall be an employee under this Article for so 8 long as such person is employed to perform police duties 9 by a participating municipality and has not lawfully 10 rescinded that election. 11 (b-5) Were not participating employees under this 12 Article before August 26, 2018 (the effective date of 13 Public Act 100-1097) and participated as a chief of police 14 in a fund under Article 3 and return to work in any 15 capacity with the police department, with any oversight of 16 the police department, or in an advisory capacity for the 17 police department with the same municipality with which 18 that pension was earned, regardless of whether they are 19 considered an employee of the police department or are 20 eligible for inclusion in the municipality's Article 3 21 fund. 22 (c) Are contributors to or eligible to contribute to a 23 Taft-Hartley pension plan to which the participating 24 municipality is required to contribute as the person's 25 employer based on earnings from the municipality. Nothing 26 in this paragraph shall affect service credit or HB4909 Enrolled - 5 - LRB104 20038 RPS 33489 b 1 creditable service for any period of service prior to July 2 16, 2014 (the effective date of Public Act 98-712), and 3 this paragraph shall not apply to individuals who are 4 participating in the Fund prior to July 16, 2014 (the 5 effective date of Public Act 98-712). 6 Notwithstanding any other provision of this Section, 7 any person who is part of or becomes part of a bargaining 8 unit for which a participating municipality is required to 9 contribute to a Taft-Hartley pension plan under a 10 collective bargaining agreement or other written agreement 11 in effect on or before the effective date of this 12 amendatory Act of the 104th General Assembly shall be 13 deemed to be an employee within the meaning of this 14 subsection (1) for any period on and after July 16, 2014. 15 (d) Become an employee of any of the following 16 participating instrumentalities on or after January 1, 17 2017 (the effective date of Public Act 99-830): the 18 Illinois Municipal League; the Illinois Association of 19 Park Districts; the Illinois Supervisors, County 20 Commissioners and Superintendents of Highways Association; 21 an association, or not-for-profit corporation, membership 22 in which is authorized under Section 85-15 of the Township 23 Code; the United Counties Council; or the Will County 24 Governmental League. 25 (e) Are members of the Board of Trustees of the 26 Firefighters' Pension Investment Fund, as created under HB4909 Enrolled - 6 - LRB104 20038 RPS 33489 b 1 Article 22C of this Code, in their capacity as members of 2 the Board of Trustees of the Firefighters' Pension 3 Investment Fund. 4 (f) Are members of the Board of Trustees of the Police 5 Officers' Pension Investment Fund, as created under 6 Article 22B of this Code, in their capacity as members of 7 the Board of Trustees of the Police Officers' Pension 8 Investment Fund. 9 (3) All persons, including, without limitation, public 10 defenders and probation officers, who receive earnings from 11 general or special funds of a county for performance of 12 personal services or official duties within the territorial 13 limits of the county, are employees of the county (unless 14 excluded by subsection (2) of this Section) notwithstanding 15 that they may be appointed by and are subject to the direction 16 of a person or persons other than a county board or a county 17 officer. It is hereby established that an employer-employee 18 relationship under the usual common law rules exists between 19 such employees and the county paying their salaries by reason 20 of the fact that the county boards fix their rates of 21 compensation, appropriate funds for payment of their earnings 22 and otherwise exercise control over them. This finding and 23 this amendatory Act shall apply to all such employees from the 24 date of appointment whether such date is prior to or after the 25 effective date of this amendatory Act and is intended to 26 clarify existing law pertaining to their status as HB4909 Enrolled - 7 - LRB104 20038 RPS 33489 b 1 participating employees in the Fund. 2 (Source: P.A. 102-15, eff. 6-17-21; 102-637, eff. 8-27-21; 3 102-813, eff. 5-13-22.) 4 Section 90. The State Mandates Act is amended by adding 5 Section 8.50 as follows: 6 (30 ILCS 805/8.50 new) 7 Sec. 8.50. Exempt mandate. Notwithstanding Sections 6 and 8 8 of this Act, no reimbursement by the State is required for 9 the implementation of any mandate created by this amendatory 10 Act of the 104th General Assembly. 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.