99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4259

Introduced , by Rep. Martin J. Moylan - Elaine Nekritz - Fred Crespo, Michelle Mussman, Natalie A. Manley, et al.

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Pension Code. In the Illinois Municipal Retirement Fund (IMRF) Article, provides that the definition of "employee" does not include a person who on or after the effective date becomes an employee of the following participating instrumentalities: the Illinois Municipal League; the Illinois Association of Park Districts; the Illinois Supervisors, County Commissioners and Superintendents of Highways Association; the United Counties Council; the Will County Governmental League; or certain other associations and not-for-profit corporations. In the State Universities Article, provides that a person who, on or after the effective date of the amendatory Act, becomes an employee of any association of community college boards organized under a certain provision of the Public Community College Act, the Association of Illinois Middle-Grade Schools, the Illinois Association of School Administrators, the Illinois Association for Supervision and Curriculum Development, the Illinois Principals Association, the Illinois Association of School Business Officials, or the Illinois Special Olympics shall not be deemed an employee under the Article. Provides that an individual that begins employment after the effective date of the amendatory Act with an entity not defined as an employer in the Article shall not be deemed an employee for the purposes of the Article. Provides that in the case of doubt as to whether any person is an employee, as defined in the Article, the decision of the Board of Trustees shall be final. In the Downstate Teacher Article, provides that an employee of a school board association who becomes an employee after the effective date of the amendatory Act is not a teacher for the purposes of the Article.

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FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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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 changing

5 Sections 7-109, 15-106, 15-107, and 16-106 as follows:

6 (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)

7 (Text of Section WITHOUT the changes made by P.A. 98-599,

8 which has been held unconstitutional)

9 Sec. 7-109. Employee.

10 (1) "Employee" means any person who:

11 (a) 1. Receives earnings as payment for the performance

12 of personal services or official duties out of the

13 general fund of a municipality, or out of any special

14 fund or funds controlled by a municipality, or by an

15 instrumentality thereof, or a participating

16 instrumentality, including, in counties, the fees or

17 earnings of any county fee office; and

18 2. Under the usual common law rules applicable in

19 determining the employer-employee relationship, has

20 the status of an employee with a municipality, or any

21 instrumentality thereof, or a participating

22 instrumentality, including aldermen, county

23 supervisors and other persons (excepting those

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1 employed as independent contractors) who are paid

2 compensation, fees, allowances or other emolument for

3 official duties, and, in counties, the several county

4 fee offices.

5 (b) Serves as a township treasurer appointed under the

6 School Code, as heretofore or hereafter amended, and who

7 receives for such services regular compensation as

8 distinguished from per diem compensation, and any regular

9 employee in the office of any township treasurer whether or

10 not his earnings are paid from the income of the permanent

11 township fund or from funds subject to distribution to the

12 several school districts and parts of school districts as

13 provided in the School Code, or from both such sources; or

14 is the chief executive officer, chief educational officer,

15 chief fiscal officer, or other employee of a Financial

16 Oversight Panel established pursuant to Article 1H of the

17 School Code, other than a superintendent or certified

18 school business official, except that such person shall not

19 be treated as an employee under this Section if that person

20 has negotiated with the Financial Oversight Panel, in

21 conjunction with the school district, a contractual

22 agreement for exclusion from this Section.

23 (c) Holds an elective office in a municipality,

24 instrumentality thereof or participating instrumentality.

25 (2) "Employee" does not include persons who:

26 (a) Are eligible for inclusion under any of the

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1 following laws:

2 1. "An Act in relation to an Illinois State

3 Teachers' Pension and Retirement Fund", approved May

4 27, 1915, as amended;

5 2. Articles 15 and 16 of this Code.

6 However, such persons shall be included as employees to

7 the extent of earnings that are not eligible for inclusion

8 under the foregoing laws for services not of an

9 instructional nature of any kind.

10 However, any member of the armed forces who is employed

11 as a teacher of subjects in the Reserve Officers Training

12 Corps of any school and who is not certified under the law

13 governing the certification of teachers shall be included

14 as an employee.

15 (b) Are designated by the governing body of a

16 municipality in which a pension fund is required by law to

17 be established for policemen or firemen, respectively, as

18 performing police or fire protection duties, except that

19 when such persons are the heads of the police or fire

20 department and are not eligible to be included within any

21 such pension fund, they shall be included within this

22 Article; provided, that such persons shall not be excluded

23 to the extent of concurrent service and earnings not

24 designated as being for police or fire protection duties.

25 However, (i) any head of a police department who was a

26 participant under this Article immediately before October

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1 1, 1977 and did not elect, under Section 3-109 of this Act,

2 to participate in a police pension fund shall be an

3 "employee", and (ii) any chief of police who elects to

4 participate in this Fund under Section 3-109.1 of this

5 Code, regardless of whether such person continues to be

6 employed as chief of police or is employed in some other

7 rank or capacity within the police department, shall be an

8 employee under this Article for so long as such person is

9 employed to perform police duties by a participating

10 municipality and has not lawfully rescinded that election.

11 (c) Are contributors to or eligible to contribute to a

12 Taft-Hartley pension plan to which the participating

13 municipality is required to contribute as the person's

14 employer based on earnings from the municipality. Nothing

15 in this paragraph shall affect service credit or creditable

16 service for any period of service prior to the effective

17 date of this amendatory Act of the 98th General Assembly,

18 and this paragraph shall not apply to individuals who are

19 participating in the Fund prior to the effective date of

20 this amendatory Act of the 98th General Assembly.

21 (d) Become an employee of any of the following

22 participating instrumentalities on or after the effective

23 date of this amendatory Act of the 99th General Assembly:

24 the Illinois Municipal League; the Illinois Association of

25 Park Districts; the Illinois Supervisors, County

26 Commissioners and Superintendents of Highways Association;

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1 an association, or not-for-profit corporation, membership

2 in which is authorized under Section 85-15 of the Township

3 Code; the United Counties Council; or the Will County

4 Governmental League.

5 (3) All persons, including, without limitation, public

6 defenders and probation officers, who receive earnings from

7 general or special funds of a county for performance of

8 personal services or official duties within the territorial

9 limits of the county, are employees of the county (unless

10 excluded by subsection (2) of this Section) notwithstanding

11 that they may be appointed by and are subject to the direction

12 of a person or persons other than a county board or a county

13 officer. It is hereby established that an employer-employee

14 relationship under the usual common law rules exists between

15 such employees and the county paying their salaries by reason

16 of the fact that the county boards fix their rates of

17 compensation, appropriate funds for payment of their earnings

18 and otherwise exercise control over them. This finding and this

19 amendatory Act shall apply to all such employees from the date

20 of appointment whether such date is prior to or after the

21 effective date of this amendatory Act and is intended to

22 clarify existing law pertaining to their status as

23 participating employees in the Fund.

24 (Source: P.A. 97-429, eff. 8-16-11; 97-609, eff. 8-26-11;

25 97-813, eff. 7-13-12; 98-712, eff. 7-16-14.)

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1 (40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)

2 (Text of Section WITHOUT the changes made by P.A. 98-599,

3 which has been held unconstitutional)

4 Sec. 15-106. Employer. "Employer": The University of

5 Illinois, Southern Illinois University, Chicago State

6 University, Eastern Illinois University, Governors State

7 University, Illinois State University, Northeastern Illinois

8 University, Northern Illinois University, Western Illinois

9 University, the State Board of Higher Education, the Illinois

10 Mathematics and Science Academy, the University Civil Service

11 Merit Board, the Board of Trustees of the State Universities

12 Retirement System, the Illinois Community College Board,

13 community college boards, any association of community college

14 boards organized under Section 3-55 of the Public Community

15 College Act, the Board of Examiners established under the

16 Illinois Public Accounting Act, and, only during the period for

17 which employer contributions required under Section 15-155 are

18 paid, the following organizations: the alumni associations,

19 the foundations and the athletic associations which are

20 affiliated with the universities and colleges included in this

21 Section as employers. An individual that begins employment

22 after the effective date of this amendatory Act of the 99th

23 General Assembly with an entity not defined as an employer in

24 this Section shall not be deemed an employee for the purposes

25 of this Article with respect to that employment and shall not

26 be eligible to participate in the System with respect to that

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1 employment; provided, however, that those individuals who are

2 both employed and already participants in the System on the

3 effective date of this amendatory Act of the 99th General

4 Assembly shall be allowed to continue as participants in the

5 System for the duration of that employment and continue to earn

6 service credit.

7 Notwithstanding any provision of law to the contrary, an

8 individual who begins employment with any of the following

9 employers on or after the effective date of this amendatory Act

10 of the 99th General Assembly shall not be deemed an employee

11 and shall not be eligible to participate in the System with

12 respect to that employment: any association of community

13 college boards organized under Section 3-55 of the Public

14 Community College Act, the Association of Illinois

15 Middle-Grade Schools, the Illinois Association of School

16 Administrators, the Illinois Association for Supervision and

17 Curriculum Development, the Illinois Principals Association,

18 the Illinois Association of School Business Officials, or the

19 Illinois Special Olympics; provided, however, that those

20 individuals who are both employed and already participants in

21 the System on the effective date of this amendatory Act of the

22 99th General Assembly shall be allowed to continue as

23 participants in the System for the duration of that employment

24 and continue to earn service credit.

25 A department as defined in Section 14-103.04 is an employer

26 for any person appointed by the Governor under the Civil

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1 Administrative Code of Illinois who is a participating employee

2 as defined in Section 15-109. The Department of Central

3 Management Services is an employer with respect to persons

4 employed by the State Board of Higher Education in positions

5 with the Illinois Century Network as of June 30, 2004 who

6 remain continuously employed after that date by the Department

7 of Central Management Services in positions with the Illinois

8 Century Network, the Bureau of Communication and Computer

9 Services, or, if applicable, any successor bureau.

10 The cities of Champaign and Urbana shall be considered

11 employers, but only during the period for which contributions

12 are required to be made under subsection (b-1) of Section

13 15-155 and only with respect to individuals described in

14 subsection (h) of Section 15-107.

15 (Source: P.A. 95-369, eff. 8-23-07; 95-728, eff. 7-1-08 - See

16 Sec. 999.)

17 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)

18 (Text of Section WITHOUT the changes made by P.A. 98-599,

19 which has been held unconstitutional)

20 Sec. 15-107. Employee.

21 (a) "Employee" means any member of the educational,

22 administrative, secretarial, clerical, mechanical, labor or

23 other staff of an employer whose employment is permanent and

24 continuous or who is employed in a position in which services

25 are expected to be rendered on a continuous basis for at least

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1 4 months or one academic term, whichever is less, who (A)

2 receives payment for personal services on a warrant issued

3 pursuant to a payroll voucher certified by an employer and

4 drawn by the State Comptroller upon the State Treasurer or by

5 an employer upon trust, federal or other funds, or (B) is on a

6 leave of absence without pay. Employment which is irregular,

7 intermittent or temporary shall not be considered continuous

8 for purposes of this paragraph.

9 However, a person is not an "employee" if he or she:

10 (1) is a student enrolled in and regularly attending

11 classes in a college or university which is an employer,

12 and is employed on a temporary basis at less than full

13 time;

14 (2) is currently receiving a retirement annuity or a

15 disability retirement annuity under Section 15-153.2 from

16 this System;

17 (3) is on a military leave of absence;

18 (4) is eligible to participate in the Federal Civil

19 Service Retirement System and is currently making

20 contributions to that system based upon earnings paid by an

21 employer;

22 (5) is on leave of absence without pay for more than 60

23 days immediately following termination of disability

24 benefits under this Article;

25 (6) is hired after June 30, 1979 as a public service

26 employment program participant under the Federal

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1 Comprehensive Employment and Training Act and receives

2 earnings in whole or in part from funds provided under that

3 Act; or

4 (7) is employed on or after July 1, 1991 to perform

5 services that are excluded by subdivision (a)(7)(f) or

6 (a)(19) of Section 210 of the federal Social Security Act

7 from the definition of employment given in that Section (42

8 U.S.C. 410).

9 (b) Any employer may, by filing a written notice with the

10 board, exclude from the definition of "employee" all persons

11 employed pursuant to a federally funded contract entered into

12 after July 1, 1982 with a federal military department in a

13 program providing training in military courses to federal

14 military personnel on a military site owned by the United

15 States Government, if this exclusion is not prohibited by the

16 federally funded contract or federal laws or rules governing

17 the administration of the contract.

18 (c) Any person appointed by the Governor under the Civil

19 Administrative Code of the State is an employee, if he or she

20 is a participant in this system on the effective date of the

21 appointment.

22 (d) A participant on lay-off status under civil service

23 rules is considered an employee for not more than 120 days from

24 the date of the lay-off.

25 (e) A participant is considered an employee during (1) the

26 first 60 days of disability leave, (2) the period, not to

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1 exceed one year, in which his or her eligibility for disability

2 benefits is being considered by the board or reviewed by the

3 courts, and (3) the period he or she receives disability

4 benefits under the provisions of Section 15-152, workers'

5 compensation or occupational disease benefits, or disability

6 income under an insurance contract financed wholly or partially

7 by the employer.

8 (f) Absences without pay, other than formal leaves of

9 absence, of less than 30 calendar days, are not considered as

10 an interruption of a person's status as an employee. If such

11 absences during any period of 12 months exceed 30 work days,

12 the employee status of the person is considered as interrupted

13 as of the 31st work day.

14 (g) A staff member whose employment contract requires

15 services during an academic term is to be considered an

16 employee during the summer and other vacation periods, unless

17 he or she declines an employment contract for the succeeding

18 academic term or his or her employment status is otherwise

19 terminated, and he or she receives no earnings during these

20 periods.

21 (h) An individual who was a participating employee employed

22 in the fire department of the University of Illinois's

23 Champaign-Urbana campus immediately prior to the elimination

24 of that fire department and who immediately after the

25 elimination of that fire department became employed by the fire

26 department of the City of Urbana or the City of Champaign shall

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1 continue to be considered as an employee for purposes of this

2 Article for so long as the individual remains employed as a

3 firefighter by the City of Urbana or the City of Champaign. The

4 individual shall cease to be considered an employee under this

5 subsection (h) upon the first termination of the individual's

6 employment as a firefighter by the City of Urbana or the City

7 of Champaign.

8 (i) An individual who is employed on a full-time basis as

9 an officer or employee of a statewide teacher organization that

10 serves System participants or an officer of a national teacher

11 organization that serves System participants may participate

12 in the System and shall be deemed an employee, provided that

13 (1) the individual has previously earned creditable service

14 under this Article, (2) the individual files with the System an

15 irrevocable election to become a participant before the

16 effective date of this amendatory Act of the 97th General

17 Assembly, (3) the individual does not receive credit for that

18 employment under any other Article of this Code, and (4) the

19 individual first became a full-time employee of the teacher

20 organization and becomes a participant before the effective

21 date of this amendatory Act of the 97th General Assembly. An

22 employee under this subsection (i) is responsible for paying to

23 the System both (A) employee contributions based on the actual

24 compensation received for service with the teacher

25 organization and (B) employer contributions equal to the normal

26 costs (as defined in Section 15-155) resulting from that

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1 service; all or any part of these contributions may be paid on

2 the employee's behalf or picked up for tax purposes (if

3 authorized under federal law) by the teacher organization.

4 A person who is an employee as defined in this subsection

5 (i) may establish service credit for similar employment prior

6 to becoming an employee under this subsection by paying to the

7 System for that employment the contributions specified in this

8 subsection, plus interest at the effective rate from the date

9 of service to the date of payment. However, credit shall not be

10 granted under this subsection for any such prior employment for

11 which the applicant received credit under any other provision

12 of this Code, or during which the applicant was on a leave of

13 absence under Section 15-113.2.

14 (j) A person employed by the State Board of Higher

15 Education in a position with the Illinois Century Network as of

16 June 30, 2004 shall be considered to be an employee for so long

17 as he or she remains continuously employed after that date by

18 the Department of Central Management Services in a position

19 with the Illinois Century Network, the Bureau of Communication

20 and Computer Services, or, if applicable, any successor bureau

21 and meets the requirements of subsection (a).

22 (k) In the case of doubt as to whether any person is an

23 employee within the meaning of this Section, the decision of

24 the Board shall be final.

25 (Source: P.A. 97-651, eff. 1-5-12.)

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1 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)

2 (Text of Section WITHOUT the changes made by P.A. 98-599,

3 which has been held unconstitutional)

4 Sec. 16-106. Teacher. "Teacher": The following

5 individuals, provided that, for employment prior to July 1,

6 1990, they are employed on a full-time basis, or if not

7 full-time, on a permanent and continuous basis in a position in

8 which services are expected to be rendered for at least one

9 school term:

10 (1) Any educational, administrative, professional or

11 other staff employed in the public common schools included

12 within this system in a position requiring certification

13 under the law governing the certification of teachers;

14 (2) Any educational, administrative, professional or

15 other staff employed in any facility of the Department of

16 Children and Family Services or the Department of Human

17 Services, in a position requiring certification under the

18 law governing the certification of teachers, and any person

19 who (i) works in such a position for the Department of

20 Corrections, (ii) was a member of this System on May 31,

21 1987, and (iii) did not elect to become a member of the

22 State Employees' Retirement System pursuant to Section

23 14-108.2 of this Code; except that "teacher" does not

24 include any person who (A) becomes a security employee of

25 the Department of Human Services, as defined in Section

26 14-110, after June 28, 2001 (the effective date of Public

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1 Act 92-14), or (B) becomes a member of the State Employees'

2 Retirement System pursuant to Section 14-108.2c of this

3 Code;

4 (3) Any regional superintendent of schools, assistant

5 regional superintendent of schools, State Superintendent

6 of Education; any person employed by the State Board of

7 Education as an executive; any executive of the boards

8 engaged in the service of public common school education in

9 school districts covered under this system of which the

10 State Superintendent of Education is an ex-officio member;

11 (4) Any employee of a school board association

12 operating in compliance with Article 23 of the School Code

13 who is certificated under the law governing the

14 certification of teachers, provided that he or she becomes

15 such an employee before the effective date of this

16 amendatory Act of the 99th General Assembly;

17 (5) Any person employed by the retirement system who:

18 (i) was an employee of and a participant in the

19 system on August 17, 2001 (the effective date of Public

20 Act 92-416), or

21 (ii) becomes an employee of the system on or after

22 August 17, 2001;

23 (6) Any educational, administrative, professional or

24 other staff employed by and under the supervision and

25 control of a regional superintendent of schools, provided

26 such employment position requires the person to be

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1 certificated under the law governing the certification of

2 teachers and is in an educational program serving 2 or more

3 districts in accordance with a joint agreement authorized

4 by the School Code or by federal legislation;

5 (7) Any educational, administrative, professional or

6 other staff employed in an educational program serving 2 or

7 more school districts in accordance with a joint agreement

8 authorized by the School Code or by federal legislation and

9 in a position requiring certification under the laws

10 governing the certification of teachers;

11 (8) Any officer or employee of a statewide teacher

12 organization or officer of a national teacher organization

13 who is certified under the law governing certification of

14 teachers, provided: (i) the individual had previously

15 established creditable service under this Article, (ii)

16 the individual files with the system an irrevocable

17 election to become a member before the effective date of

18 this amendatory Act of the 97th General Assembly, (iii) the

19 individual does not receive credit for such service under

20 any other Article of this Code, and (iv) the individual

21 first became an officer or employee of the teacher

22 organization and becomes a member before the effective date

23 of this amendatory Act of the 97th General Assembly;

24 (9) Any educational, administrative, professional, or

25 other staff employed in a charter school operating in

26 compliance with the Charter Schools Law who is certificated

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1 under the law governing the certification of teachers;

2 (10) Any person employed, on the effective date of this

3 amendatory Act of the 94th General Assembly, by the

4 Macon-Piatt Regional Office of Education in a

5 birth-through-age-three pilot program receiving funds

6 under Section 2-389 of the School Code who is required by

7 the Macon-Piatt Regional Office of Education to hold a

8 teaching certificate, provided that the Macon-Piatt

9 Regional Office of Education makes an election, within 6

10 months after the effective date of this amendatory Act of

11 the 94th General Assembly, to have the person participate

12 in the system. Any service established prior to the

13 effective date of this amendatory Act of the 94th General

14 Assembly for service as an employee of the Macon-Piatt

15 Regional Office of Education in a birth-through-age-three

16 pilot program receiving funds under Section 2-389 of the

17 School Code shall be considered service as a teacher if

18 employee and employer contributions have been received by

19 the system and the system has not refunded those

20 contributions.

21 An annuitant receiving a retirement annuity under this

22 Article or under Article 17 of this Code who is employed by a

23 board of education or other employer as permitted under Section

24 16-118 or 16-150.1 is not a "teacher" for purposes of this

25 Article. A person who has received a single-sum retirement

26 benefit under Section 16-136.4 of this Article is not a

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1 "teacher" for purposes of this Article.

2 (Source: P.A. 97-651, eff. 1-5-12; 98-463, eff. 8-16-13.)

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INDEX

Statutes amended in order of appearance