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Illinois General Assembly· HB 4909Governor Approved

PEN CD-IMRF-EMPLOYEE, the official text

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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.
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