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Article 7 - Illinois Municipal Retirement Fund

      (40 ILCS 5/Art. 7 heading)ARTICLE 7. ILLINOIS MUNICIPAL RETIREMENT FUND

(40 ILCS 5/7‑101) (from Ch. 108 1/2, par. 7‑101)     Sec. 7‑101. Creation of fund.     A retirement and benefit fund to be known as the "Illinois Municipal Retirement Fund" is hereby created. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑102) (from Ch. 108 1/2, par. 7‑102)     Sec. 7‑102. Purpose. The purpose of this fund is to provide a sound and efficient system for the payment of annuities and other benefits, in addition to the annuities and benefits available, as herein provided, under the Federal Social Security Act, to certain officers and employees, and to their beneficiaries, of municipalities, as herein defined.     It is the mission of this Fund to efficiently and impartially develop, implement and administer programs that provide income protection to members and their beneficiaries on behalf of participating employers in a prudent manner. (Source: P.A. 87‑740.)

(40 ILCS 5/7‑103) (from Ch. 108 1/2, par. 7‑103)     Sec. 7‑103. Terms defined.     The terms used in this Article have the meanings ascribed to them in Sections 7‑‑104 to 7‑‑131, inclusive, except when the context otherwise requires. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑104) (from Ch. 108 1/2, par. 7‑104)     Sec. 7‑104. Fund.     "Fund": The Illinois Municipal Retirement Fund. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑105) (from Ch. 108 1/2, par. 7‑105)     Sec. 7‑105. "Municipality": A city, village, incorporated town, county, township; and any school, park, sanitary, road forest preserve, water, fire protection, public health, river conservancy, mosquito abatement, tuberculosis sanitarium, public community college district, or other local district with general continuous power to levy taxes on the property within such district; now existing or hereafter created within the State; and, for the purposes of providing annuities and benefits to its employees, the fund itself. (Source: P.A. 84‑1308.)

(40 ILCS 5/7‑106) (from Ch. 108 1/2, par. 7‑106)     Sec. 7‑106. Participating municipality.     "Participating municipality": Any municipality included within this fund in accordance with Section 7‑‑132. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑107) (from Ch. 108 1/2, par. 7‑107)     Sec. 7‑107. Instrumentality.     "Instrumentality": Any body, corporate or politic, or any legal entity, other than a municipality, having power to appropriate for, or to authorize expenditures for, payment of earnings to employees from any fund or funds derived in whole or in part from taxes, assessments, fees or other revenues of a municipality; and, in counties, the several county fee offices. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑108) (from Ch. 108 1/2, par. 7‑108)     Sec. 7‑108. "Participating Instrumentality": (a) A political entity created under the laws of the State of Illinois, without general continuous power to levy taxes, and which is legally separate and distinct from the State of Illinois and any municipality and whose employees by reason of their relation to such political entity are not employees of the State of Illinois or a municipality.     (b) A not‑for‑profit organization, which is incorporated under the laws of the State of Illinois, or an association, membership in which is limited to municipalities or limited to townships and authorized by statute. (Source: P. A. 77‑1615.)

(40 ILCS 5/7‑109) (from Ch. 108 1/2, par. 7‑109)     Sec. 7‑109. Employee.     (1) "Employee" means any person who:         (a) 1. Receives earnings as payment for the

performance of personal services or official duties out of the general fund of a municipality, or out of any special fund or funds controlled by a municipality, or by an instrumentality thereof, or a participating instrumentality, including, in counties, the fees or earnings of any county fee office; and

2. Under the usual common law rules applicable

in determining the employer‑employee relationship, has the status of an employee with a municipality, or any instrumentality thereof, or a participating instrumentality, including aldermen, county supervisors and other persons (excepting those employed as independent contractors) who are paid compensation, fees, allowances or other emolument for official duties, and, in counties, the several county fee offices.

(b) Serves as a township treasurer appointed under

the School Code, as heretofore or hereafter amended, and who receives for such services regular compensation as distinguished from per diem compensation, and any regular employee in the office of any township treasurer whether or not his earnings are paid from the income of the permanent township fund or from funds subject to distribution to the several school districts and parts of school districts as provided in the School Code, or from both such sources.

(c) Holds an elective office in a municipality,

instrumentality thereof or participating instrumentality.

(2) "Employee" does not include persons who:         (a) Are eligible for inclusion under any of the

following laws:

1. "An Act in relation to an Illinois State

Teachers' Pension and Retirement Fund", approved May 27, 1915, as amended;

2. Articles 15 and 16 of this Code.         However, such persons shall be included as employees

to the extent of earnings that are not eligible for inclusion under the foregoing laws for services not of an instructional nature of any kind.

However, any member of the armed forces who is

employed as a teacher of subjects in the Reserve Officers Training Corps of any school and who is not certified under the law governing the certification of teachers shall be included as an employee.

(b) Are designated by the governing body of a

municipality in which a pension fund is required by law to be established for policemen or firemen, respectively, as performing police or fire protection duties, except that when such persons are the heads of the police or fire department and are not eligible to be included within any such pension fund, they shall be included within this Article; provided, that such persons shall not be excluded to the extent of concurrent service and earnings not designated as being for police or fire protection duties. However, (i) any head of a police department who was a participant under this Article immediately before October 1, 1977 and did not elect, under Section 3‑109 of this Act, to participate in a police pension fund shall be an "employee", and (ii) any chief of police who elects to participate in this Fund under Section 3‑109.1 of this Code, regardless of whether such person continues to be employed as chief of police or is employed in some other rank or capacity within the police department, shall be an employee under this Article for so long as such person is employed to perform police duties by a participating municipality and has not lawfully rescinded that election.

(3) All persons, including, without limitation, public defenders and probation officers, who receive earnings from general or special funds of a county for performance of personal services or official duties within the territorial limits of the county, are employees of the county (unless excluded by subsection (2) of this Section) notwithstanding that they may be appointed by and are subject to the direction of a person or persons other than a county board or a county officer. It is hereby established that an employer‑employee relationship under the usual common law rules exists between such employees and the county paying their salaries by reason of the fact that the county boards fix their rates of compensation, appropriate funds for payment of their earnings and otherwise exercise control over them. This finding and this amendatory Act shall apply to all such employees from the date of appointment whether such date is prior to or after the effective date of this amendatory Act and is intended to clarify existing law pertaining to their status as participating employees in the Fund. (Source: P.A. 90‑460, eff. 8‑17‑97.)

(40 ILCS 5/7‑109.1) (from Ch. 108 1/2, par. 7‑109.1)     Sec. 7‑109.1. "Seasonal Employee": An employee whose position normally requires regular service during a period of at least 6 consecutive months, but less than 12 months, in a 12 month period. (Source: Laws 1967, p. 2091.)

(40 ILCS 5/7‑109.2) (from Ch. 108 1/2, par. 7‑109.2)     Sec. 7‑109.2. "Intermittent Employee": An employee, whose position normally requires service intermittently, rather than regularly, and a person whose position normally requires regular service for a period of less than 6 consecutive months in a 12 month period. (Source: Laws 1967, p. 2091.)

(40 ILCS 5/7‑109.3) (from Ch. 108 1/2, par. 7‑109.3)     Sec. 7‑109.3. "Sheriff's Law Enforcement Employees".     (a) "Sheriff's law enforcement employee" or "SLEP" means:         (1) A county sheriff and all deputies, other than

special deputies, employed on a full time basis in the office of the sheriff.

(2) A person who has elected to participate in this

Fund under Section 3‑109.1 of this Code, and who is employed by a participating municipality to perform police duties.

(3) A law enforcement officer employed on a full

time basis by a Forest Preserve District, provided that such officer shall be deemed a "sheriff's law enforcement employee" for the purposes of this Article, and service in that capacity shall be deemed to be service as a sheriff's law enforcement employee, only if the board of commissioners of the District have so elected by adoption of an affirmative resolution. Such election, once made, may not be rescinded.

(4) A person not eligible to participate in a fund

established under Article 3 of this Code who is employed on a full‑time basis by a participating municipality or participating instrumentality to perform police duties at an airport, but only if the governing authority of the employer has approved sheriff's law enforcement employee status for its airport police employees by adoption of an affirmative resolution. Such approval, once given, may not be rescinded.

(b) An employee who is a sheriff's law enforcement employee and is granted military leave or authorized leave of absence shall receive service credit in that capacity. Sheriff's law enforcement employees shall not be entitled to out‑of‑State service credit under Section 7‑139. (Source: P.A. 92‑16, eff. 6‑28‑01.)

(40 ILCS 5/7‑110) (from Ch. 108 1/2, par. 7‑110)     Sec. 7‑110. Participating employee.     "Participating employee": Any person included within this fund, and eligible to benefits therefrom, as provided in Section 7‑‑137. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑111) (from Ch. 108 1/2, par. 7‑111)     Sec. 7‑111. "Prior Service": The period beginning on the day a participating employee first became an employee of a municipality, or of an instrumentality thereof, or of a municipality or instrumentality that was superseded by the employing participating municipality, or of a participating instrumentality, and ending on the effective date of participation of the municipality or participating instrumentality, or upon the latest termination of service prior to such effective date, but excluding (a) the intervening periods during which the employee was separated from the service of the municipality and all instrumentalities thereof, or of the participating instrumentality, (b) periods during which the employee was employed in a position normally requiring less than 600 hours of service during a year, and (c) periods during which the employee served in a position normally requiring performance of duty less than 1000 hours per year, if the participating municipality or participating instrumentality adopted, prior to its effective date of participation, a resolution or ordinance excluding persons in such positions from participation. (Source: P.A. 90‑448, eff. 8‑16‑97.)

(40 ILCS 5/7‑112) (from Ch. 108 1/2, par. 7‑112)     Sec. 7‑112. "Current Service": The period beginning on the day an employee first becomes a participating employee and ending on the day of the latest separation from service of all participating municipalities, and instrumentalities thereof, and participating instrumentalities, but excluding all intervening periods during which the employee was separated from the service of all participating municipalities and instrumentalities thereof, and participating instrumentalities. (Source: Laws 1967, p. 2091.)

(40 ILCS 5/7‑113) (from Ch. 108 1/2, par. 7‑113)     Sec. 7‑113. "Creditable Service": All periods of prior service or current service for which credits are granted under the provisions of Section 7‑139. (Source: P.A. 90‑448, eff. 8‑16‑97.)

(40 ILCS 5/7‑114) (from Ch. 108 1/2, par. 7‑114)     Sec. 7‑114. Earnings. "Earnings":     (a) An amount to be determined by the board, equal to the sum of:         1. The total amount of money paid to an employee for

personal services or official duties as an employee (except those employed as independent contractors) paid out of the general fund, or out of any special funds controlled by the municipality, or by any instrumentality thereof, or participating instrumentality, including compensation, fees, allowances, or other emolument paid for official duties (but not including automobile maintenance, travel expense, or reimbursements for expenditures incurred in the performance of duties) and, for fee offices, the fees or earnings of the offices to the extent such fees are paid out of funds controlled by the municipality, or instrumentality or participating instrumentality; and

2. The money value, as determined by rules

prescribed by the governing body of the municipality, or instrumentality thereof, of any board, lodging, fuel, laundry, and other allowances provided an employee in lieu of money.

(b) For purposes of determining benefits payable under this fund payments to a person who is engaged in an independently established trade, occupation, profession or business and who is paid for his service on a basis other than a monthly or other regular salary, are not earnings.     (c) If a disabled participating employee is eligible to receive Workers' Compensation for an accidental injury and the participating municipality or instrumentality which employed the participating employee when injured continues to pay the participating employee regular salary or other compensation or pays the employee an amount in excess of the Workers' Compensation amount, then earnings shall be deemed to be the total payments, including an amount equal to the Workers' Compensation payments. These payments shall be subject to employee contributions and allocated as if paid to the participating employee when the regular payroll amounts would have been paid if the participating employee had continued working, and creditable service shall be awarded for this period.     (d) If an elected official who is a participating employee becomes disabled but does not resign and is not removed from office, then earnings shall include all salary payments made for the remainder of that term of office and the official shall be awarded creditable service for the term of office.     (e) If a participating employee is paid pursuant to "An Act to provide for the continuation of compensation for law enforcement officers, correctional officers and firemen who suffer disabling injury in the line of duty", approved September 6, 1973, as amended, the payments shall be deemed earnings, and the participating employee shall be awarded creditable service for this period.     (f) Additional compensation received by a person while serving as a supervisor of assessments, assessor, deputy assessor or member of a board of review from the State of Illinois pursuant to Section 4‑10 or 4‑15 of the Property Tax Code shall not be earnings for purposes of this Article and shall not be included in the contribution formula or calculation of benefits for such person pursuant to this Article. (Source: P.A. 87‑740; 88‑670, eff. 12‑2‑94.)

(40 ILCS 5/7‑115) (from Ch. 108 1/2, par. 7‑115)     Sec. 7‑115. Rate of earnings. "Rate of earnings": The actual rate upon which the earnings of an employee are calculated at any time, as certified in a written notice, on file with the board, by the governing body of the municipality, or instrumentality, or participating instrumentality. For periods during which the employee did not participate but is entitled to creditable service, the monthly earnings shall be considered to be the earnings in the position for each calendar year divided by the number of months of creditable service in that year. (Source: P.A. 82‑596.)

(40 ILCS 5/7‑116) (from Ch. 108 1/2, par. 7‑116)     Sec. 7‑116. "Final rate of earnings":     (a) For retirement and survivor annuities, the monthly earnings obtained by dividing the total earnings received by the employee during the period of either (1) the 48 consecutive months of service within the last 120 months of service in which his total earnings were the highest or (2) the employee's total period of service, by the number of months of service in such period.     (b) For death benefits, the higher of the rate determined under paragraph (a) of this Section or total earnings received in the last 12 months of service divided by twelve. If the deceased employee has less than 12 months of service, the monthly final rate shall be the monthly rate of pay the employee was receiving when he began service.     (c) For disability benefits, the total earnings of a participating employee in the last 12 calendar months of service prior to the date he becomes disabled divided by 12.     (d) In computing the final rate of earnings: (1) the earnings rate for all periods of prior service shall be considered equal to the average earnings rate for the last 3 calendar years of prior service for which creditable service is received under Section 7‑139 or, if there is less than 3 years of creditable prior service, the average for the total prior service period for which creditable service is received under Section 7‑139; (2) for out of state service and authorized leave, the earnings rate shall be the rate upon which service credits are granted; (3) periods of military leave shall not be considered; (4) the earnings rate for all periods of disability shall be considered equal to the rate of earnings upon which the employee's disability benefits are computed for such periods; (5) the earnings to be considered for each of the final three months of the final earnings period shall not exceed 125% of the highest earnings of any other month in the final earnings period; and (6) the annual amount of final rate of earnings shall be the monthly amount multiplied by the number of months of service normally required by the position in a year. (Source: P.A. 90‑448, eff. 8‑16‑97.)

(40 ILCS 5/7‑117) (from Ch. 108 1/2, par. 7‑117)     Sec. 7‑117. Annuitant.     "Annuitant": A person receiving an annuity from this fund. (Source: Laws 1963, p. 161.)

    (40 ILCS 5/7‑118)(from Ch. 108 1/2, par. 7‑118)
    Sec. 7‑118. "Beneficiary".
    (a) "Beneficiary" means:
        (1) Any person or persons, trust, or charity

designated as a beneficiary by an employee, former employee who has not yet received a retirement annuity or separation benefit, or employee annuitant. If no designation is on file or no beneficiary so designated survives, the estate of the employee, former employee who has not yet received a retirement annuity or separation benefit, or employee annuitant.

(2) Any person or persons, trust, or charity

designated as a beneficiary by a beneficiary annuitant or, if no designation is on file or no beneficiary so designated survives, the estate of the beneficiary annuitant.

(3) The estate of a surviving spouse annuitant where

the employee or employee annuitant filed no designation, or no person designated survives at the death of a surviving spouse annuitant.

(b) Designations of beneficiaries shall be in writing on

forms prescribed by the board and effective upon filing in the fund offices. The designation forms shall provide for contingent beneficiaries. Divorce, dissolution or annulment of marriage revokes the designation of an employee's former spouse as a beneficiary on a designation executed before entry of judgment for divorce, dissolution or annulment of marriage.

(Source: P.A. 96‑1140, eff. 7‑21‑10.)

(40 ILCS 5/7‑119) (from Ch. 108 1/2, par. 7‑119)     Sec. 7‑119. Annuity.     "Annuity": A series of equal monthly payments, payable as of the first day of each calendar month during the life of an annuitant, the first payment to be made as of the first day of the calendar month coincidental with or next following the date upon which the annuity begins, and the last payment to be made as of the first day of the calendar month in which the annuitant dies or the annuity is terminated. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑120) (from Ch. 108 1/2, par. 7‑120)     Sec. 7‑120. Board.     "Board": The board of trustees of the fund. (Source: Laws 1963, p. 161.)

(40 ILCS 5/7‑121) (from Ch. 108 1/2, par. 7‑121)     Sec. 7‑121. "Governing body": (a) the city council in cities; (b) the board of trustees in villages or in incorporated towns; (c) the county board in counties; (d) in townships, the electors for purposes of electing whether the township shall participate and to appropriate funds and levy taxes for municipal contributions, under Section 7‑171, for the town and any other bodies politic included as a part of the town under Section 7‑132.1 and the Board of Town Trustees for all other purposes; (e) the corporate authority, body or officers, as the case may be, authorized by law to levy taxes for the maintenance and operation of the municipality in other municipalities; (f) the person or group of persons having ultimate authority to expend funds for the payment of earnings to employees in participating instrumentalities; or, (g) the board itself. (Source: P.A. 82‑783.)

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