Illinois Compiled Statutes
40 ILCS 5/ - Illinois Pension Code.
Article 21 - Social Security Enabling Act

(40 ILCS 5/Art. 21 heading)

 
(40 ILCS 5/21-101) (from Ch. 108 1/2, par. 21-101)
Sec. 21-101.
Name of Act.
This Article shall be known and may be cited
as the "Social Security Enabling Act", and is a continuation of the "Social
Security Enabling Act", approved August 6, 1951, as amended.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102) (from Ch. 108 1/2, par. 21-102)
Sec. 21-102. Terms defined. For the purposes of this Article,
the terms defined in the Section following this Section and preceding Section 21-103 shall have
the meanings ascribed to them, except when the context otherwise
requires.

(Source: P.A. 97-333, eff. 8-12-11.)
 
(40 ILCS 5/21-102.1) (from Ch. 108 1/2, par. 21-102.1)
Sec. 21-102.1.
Social Security Act.
"Social Security Act" means the Act of Congress approved August 14, 1935,
Chapter 531, 49 Stat. 620, as heretofore or hereafter amended.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.2) (from Ch. 108 1/2, par. 21-102.2)
Sec. 21-102.2.
Federal Insurance Contributions Act.
"Federal Insurance
Contributions Act" or "FICA" means Subchapters A, B and C of Chapter 21 of
the Federal Internal Revenue Code of 1986, as such Code may from time to
time be amended.

(Source: P.A. 85-442.)
 
(40 ILCS 5/21-102.3) (from Ch. 108 1/2, par. 21-102.3)
Sec. 21-102.3.
State Agency.
"State Agency" means the Social Security
Division of the State Employees'
Retirement System of Illinois. The board of trustees of such system shall
serve as the administrative body thereof, but may delegate any of its
functions with respect to the administration of such Division to any
individual.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.4) (from Ch. 108 1/2, par. 21-102.4)
Sec. 21-102.4.
Secretary.
"Secretary" means the Secretary of the
Department of Health and Human Services, or any individual to whom the
Secretary has delegated any of his functions under the Social Security Act
with respect to coverage of employees of States and their political
subdivisions.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.5) (from Ch. 108 1/2, par. 21-102.5)
Sec. 21-102.5.
Federal-State Agreement.
"Federal-State Agreement"
means the agreement between the Secretary and the State of Illinois entered
into by the State Agency on September 15, 1953, as authorized by the Social
Security Enabling Act for the purpose of extending coverage under Title II
of the Social Security Act.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.6) (from Ch. 108 1/2, par. 21-102.6)
Sec. 21-102.6.
Modification to the Federal-State Agreement.

"Modification to the Federal-State Agreement" means an amendment to the
Federal-State Agreement to extend coverage to coverage groups or
additional employee classifications consistent with the provisions of Section
218 of the Social Security Act and this Article.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.7) (from Ch. 108 1/2, par. 21-102.7)
Sec. 21-102.7.
Coverage agreement.
"Coverage agreement" means an
agreement between the State Agency and a coverage group for the purpose of
extending social security coverage to the employees of the coverage group.
Such agreement shall specify the terms, conditions and scope of coverage.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.8) (from Ch. 108 1/2, par. 21-102.8)
Sec. 21-102.8.
Political subdivision.
"Political subdivision" means any of the following:
(a) a city, village, township, incorporated town or county, or a school,
road, library, park, hospital or other local district with general
continuous power to levy taxes on property within such district;
(b) an instrumentality created under the laws of the State of Illinois
which is legally separate and distinct from the State of Illinois, and
which is not an entity included in subdivision (a) of this Section;
(c) a noncorporate public entity created and existing under a contract
or agreement between 2 or more public agencies as provided for in this
Intergovernmental Cooperation Act, or between 2 or more school districts
under The School Code, or between 2 or more governmental entities under any
other Act authorizing intergovernmental cooperation.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.9) (from Ch. 108 1/2, par. 21-102.9)
Sec. 21-102.9.
Retirement system.
"Retirement system" means any annuity, pension or retirement fund or system
established by State law or by action of a political subdivision, except
those applying to municipal firemen and police.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.10) (from Ch. 108 1/2, par. 21-102.10)
Sec. 21-102.10.
Governing body.
"Governing body" means: (a) in cities, the city council; (b)
in villages or incorporated towns, the board of trustees; (c) in townships,
the town clerk for purposes of receiving petitions, the electors for
purposes of the election
of social security coverage, and
the board of town trustees for all other purposes; (d) in other political
subdivisions, the corporate authority, body or officer authorized by law to
levy taxes for the maintenance and operation of the political subdivision;
(e) in political subdivisions without the authority to levy taxes and in
noncorporate public entities, the person or group of persons having ultimate
authority to expend funds for the payment of earnings to employees.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.11) (from Ch. 108 1/2, par. 21-102.11)
Sec. 21-102.11.
Absolute coverage group.
"Absolute coverage group"
means a political subdivision that has not established a retirement system
for its employees as of the time the entity enters into a coverage agreement.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.12) (from Ch. 108 1/2, par. 21-102.12)
Sec. 21-102.12.

"Retirement system coverage group" means a grouping of
employees who are in positions covered by a public retirement system which
has been placed under social security coverage by either Section 218(d)(3)
or Section 218(d)(6) of the Social Security Act.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.13) (from Ch. 108 1/2, par. 21-102.13)
Sec. 21-102.13.
Employment.
"Employment" means service
covered under a coverage agreement pursuant to this Article, which is
performed by a person who is employed by the State or a political
subdivision, or who holds an elective or appointive office of the State or
a political subdivision.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.14) (from Ch. 108 1/2, par. 21-102.14)
Sec. 21-102.14.
Employee.
"Employee" means any person engaged in employment.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.15) (from Ch. 108 1/2, par. 21-102.15)
Sec. 21-102.15.
Policeman.
"Policeman" means any person who is a member
of the police department of a municipality as defined in Section 3-103 of
this Code or of a city subject to Article 5 of this Code, whether paid on a
full-time or part-time basis, or of a law enforcement organization within a
department or agency of the State, and who is by virtue of such public employment
vested by law with a primary duty to maintain public order or to make arrests
for offenses, whether that duty extends to all offenses or is limited to
specific offenses.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.16) (from Ch. 108 1/2, par. 21-102.16)
Sec. 21-102.16.
Fireman.
"Fireman" means any member of
a regularly constituted fire department of a municipality as defined in
Section 4-103 of this Code, or of a city subject to Article 6 of this Code,
whether paid on a full time, part time or per-call basis; or any member
occupying a classified position as a fire fighter in the fire protection
service of a State department.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-102.17) (from Ch. 108 1/2, par. 21-102.17)
Sec. 21-102.17.
Wages.
"Wages" means remuneration for employment, including
the cash value of remuneration paid in any medium other than cash,
but not including that part of such remuneration which would not constitute
"wages" within the meaning of the Social Security Act for wages paid
prior to January 1, 1987, or the Federal Insurance Contributions Act for
wages paid after December 31, 1986.

(Source: P.A. 85-442.)
 
(40 ILCS 5/21-102.18) (from Ch. 108 1/2, par. 21-102.18)
Sec. 21-102.18.
Mandatory medicare coverage.
"Mandatory medicare
coverage" means the mandatory coverage in the Federal Medicare Insurance
Program of all State and local governmental personnel who are in positions
not covered under the Federal Social Security Insurance Program and who
were not performing regular and substantial services prior to April 1,
1986, without regard to whether such State or local government has come
under the provisions of this Article with respect to the Federal Social
Security Insurance Program.

(Source: P.A. 84-1472.)
 
(40 ILCS 5/21-102.19) (from Ch. 108 1/2, par. 21-102.19)
Sec. 21-102.19.
Optional medicare coverage.
"Optional medicare
coverage" means coverage in the Federal Medicare Insurance Program, by
means of a voluntary coverage agreement, of State or local government
personnel who are in positions not covered under the Federal Social Security
Insurance Program, and who were performing regular and substantial services
for such State or local government on March 31, 1986, and who have not
terminated such service after March 31, 1986.

(Source: P.A. 84-1472.)
 
(40 ILCS 5/21-102.20) (from Ch. 108 1/2, par. 21-102.20)
Sec. 21-102.20.
Mandatory Social Security Coverage.
"Mandatory Social
Security coverage" means the coverage in the federal Social Security System
that is required under Section 210 of the federal Social Security Act for
certain State and local government personnel who are not members of a State
or local governmental retirement system.

(Source: P.A. 87-11.)
 
(40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
Sec. 21-103.
Political subdivision - election of coverage.
(a) Any political subdivision other than a school district
and other than a political subdivision which is
participating in the Illinois Municipal Retirement Fund under Article 7 of this
Code may, by resolution of the governing body (in the case of a township,
at an annual town meeting or at a special town meeting called for that
purpose), or by referendum, elect to have its employees covered
by the Social Security Act.
Whenever a petition requesting Social Security coverage for
employees, signed by not less than 5% of the legal voters of the
political subdivision, is presented to the governing body, such governing
body shall cause such proposition to be certified to the proper election
officials who shall submit the proposition to the voters at the next
appropriate election in accordance with the general election law, or in the
case of a township at the next annual town meeting if the petition is received
more than 15 and less than 60 days before the annual town meeting, or else at a
special town meeting called for that purpose. In the territory of the
political subdivision every elector may vote upon the proposition stated in the
petition. Such proposition shall be in substantially the following form:

--------------------------------------------------------------
Shall....(political subdivision)
enter into a coverage agreement with
the Social Security Division of YES
the State Employees' Retirement -----------------------
System for extension of Federal Social NO
Security coverage to employees
of....(political subdivision)?

--------------------------------------------------------------
If a majority of all of the votes cast upon the proposition is in favor
thereof, or if the governing body has adopted a resolution or ordinance
providing for coverage of its employees, the governing body shall execute the
coverage agreement provided by the State Agency and submit such coverage
agreement to the State Agency for approval. The coverage agreement shall be
approved by the State Agency if it meets the requirements of subsection (b).
(b) Each coverage agreement of a political subdivision and any
amendment thereof shall be approved by the State Agency if it finds that
such coverage agreement, or such coverage agreement as amended,
is in conformity with such requirements as are provided in the regulations
of the State Agency, except that no such coverage agreement shall be
approved unless:
(c) In addition to the requirements in subsection (b), no coverage
agreement which provides for an effective date of coverage prior to January
1, 1987 shall be approved unless:
(Source: P.A. 90-448, eff. 8-16-97.)
 
(40 ILCS 5/21-104) (from Ch. 108 1/2, par. 21-104)
Sec. 21-104.

Noncorporate public entities - election
of coverage. Any noncorporate public entity may by
resolution of its governing body elect to have its employees covered by the
Social Security Act in the same manner and subject to the same
conditions as are set forth in Sections 21-103 and 21-105, but subject
to the following additional conditions:
(a) that the agreement by which the entity was created or an amendment
to that agreement authorizes the entity to provide for the extension of
Social Security benefits to its employees; and
(b) that Social Security contributions due on wages covered under the
agreement paid prior to January 1, 1987 and wage reports required for
calendar years prior to 1987 are submitted to the State Agency along with
the coverage agreement executed by the entity.

(Source: P.A. 85-442.)
 
(40 ILCS 5/21-105) (from Ch. 108 1/2, par. 21-105)
Sec. 21-105.
Retirement systems - election of coverage.
A referendum
on the question
of coverage under the Social Security Act may be authorized by the Governor
with respect to any retirement system, or by the
board of trustees of such system, or by the governing body of any
political subdivision which has established a retirement system, except
for a retirement system established under Article
3, 4, 5 or 6 of this Code.
Such a referendum shall also be held upon petition
signed by at least 10% of the members of any retirement system except for
a retirement system established
under Article 3, 4, 5 or 6 of this Code. Such
petition shall be examined and checked by the governing body or board of
trustees of the retirement system, and such
board or body shall certify that each signer of the petition is an
eligible member qualified
to vote in such referendum, and that the names of all ineligible individuals
have been stricken.
Prior to a referendum on that question and to the notice of
the referendum required by either Section 218(d)(3) or 218(d)(7)
of the Social
Security Act, a plan of coverage shall be formulated by the governing
body of each retirement system or Board of Trustees, as the case may be,
whose members are to participate in the referendum for the coordination
of the retirement system with the social security insurance provisions
of Title II of the Social Security Act.
Where a retirement system is governed by an Act of the State of
Illinois, such plan of coverage shall be presented to the General
Assembly for enactment by amendment to such Act.
The ballot to be used in the
referendum shall contain a clear description of the plan of coverage,
which description may take the form of a summary statement setting forth
the changes or revisions, if any, to be made in the benefit and
contribution provisions of the retirement system, and the obligations to
be imposed upon the members of the system if the plan of coverage is
approved in the referendum and their positions are included under an
agreement pursuant to the provisions of this Article.
The referendum shall be subject to the following conditions:
(a) Only eligible employees as defined in Section 218(d)(3) of the Social
Security Act shall be permitted to vote.
(b) Should such referendum under Section 218(d)(3)
fail to obtain approval, any subsequent referendum among members
of the retirement
system in question shall not be held for a period of at least 3 years
from the date of the
referendum.
(c) Upon receipt of satisfactory proof that the conditions of the
referendum specified in either Section 218(d)(3) or Section 218(d)(7)
of the Social Security Act have been met, the Governor or an official of the
State designated by him shall so certify to the Secretary. Proper steps
to give effect to the results of the referendum
shall then be taken by the State Agency, and a modification to the
Federal-State Agreement shall be executed in accordance with
Section 21-108 within a period of 2 years from the date of the referendum.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-105.1) (from Ch. 108 1/2, par. 21-105.1)
Sec. 21-105.1. Election of optional medicare coverage. The State or
any political subdivision or noncorporate public entity may elect to
provide optional medicare coverage for its personnel in the same manner and
subject to the same conditions as are set forth in Sections 21-103, 21-104
and 21-105 for the election of Social Security coverage, including a retirement system established under Article 3, 4, 5, or 6 of this Code, notwithstanding the provisions contained in Section 21-105 of this Article.

(Source: P.A. 98-1117, eff. 8-26-14.)
 
(40 ILCS 5/21-105.2) (from Ch. 108 1/2, par. 21-105.2)
Sec. 21-105.2.
Mandatory Social Security Coverage.
Beginning July 1,
1991, the State and all political subdivisions that have any employees who
are subject to mandatory Social Security coverage shall report the wages of
those employees on their quarterly wage reports to the IRS, and shall make
the appropriate FICA contributions as required by law with respect to those
employees. Such employees may be added to the appropriate coverage groups
in accordance with the modification procedures provided in this Article.

(Source: P.A. 87-11.)
 
(40 ILCS 5/21-106) (from Ch. 108 1/2, par. 21-106)
Sec. 21-106.
Municipal police and firemen.
(1) If a municipality enters into a coverage agreement under this
Article prior to having established a pension plan under Article 3 or 4 of
this Code, all police positions and all firemen positions, including
members of a volunteer fire department organized pursuant to municipal
ordinance, shall become subject to social security and be included within
the absolute coverage group of the municipality in compliance with Section
218(b)(5) of the Social Security Act. If a municipality establishes a
pension plan under Article 3 or 4 of this Code subsequent to establishing
social security coverage under the conditions set forth in this subsection,
the police and firemen positions shall remain subject to social security as
part of the original absolute coverage group.
(2) If a municipality enters into a coverage agreement under
this Article subsequent to having established a pension plan under
Article 3, 4, 5 or 6 of this Code, or subsequent to becoming legally obligated
to establish such plan even though having not complied, all police and firemen
positions included under such pension plan shall be exempted from social
security coverage and excluded from the absolute coverage group of that
municipality pursuant to Section 218(d)(5)(A) of the Social Security Act.
(3) If the covered or non-covered social security status of the police
and firemen positions in a municipality has been determined under the
conditions set forth in either subsection (1) or (2) of this Section, such
covered or non-covered status shall remain in effect in the event the
municipality shall begin participation in the Illinois Municipal Retirement
Fund pursuant to Sections 7-132 and 7-134 of this Code.
(4) Police and firemen positions which have not acquired social security
coverage as part of an absolute coverage group under an agreement executed
by the municipality pursuant to Section 21-103 shall not acquire social
security coverage by virtue of the municipality's mandate to participate
in the Illinois Municipal Retirement Fund under Section 7-132, or the
municipality's election to participate under Section 7-134.
(5) Incumbents occupying police and firemen positions who because of
age, physical condition, length of service or other disqualifications are
ineligible to participate in local pension plans established under Articles
3 and 4 of this Code are also excluded from social security coverage if the
employing municipality has obtained social security coverage under the
conditions stated in subsections (2) and (4) of this Section, except that
beginning July 1, 1991, such persons are subject to mandatory Social Security
coverage.

(Source: P.A. 87-11.)
 
(40 ILCS 5/21-107) (from Ch. 108 1/2, par. 21-107)
Sec. 21-107.
State police and firemen.
Any position in the
service of a State agency, department, board or commission which (1) has
been designated as a fireman, police officer, or law enforcement officer by
the State Department of Central Management Services, the State Attorney
General or the State Agency, or declared to be a fireman or police position
as a result of a court ruling upon the question, and (2) extends to the
incumbent the right to participation in the State Employees' Retirement
System, shall be exempted from Social Security coverage in compliance with
Section 218(d)(5)(A) of the Social Security Act, effective as of the date
of such designation or court ruling, except that beginning July 1, 1991,
incumbents of such positions who do not participate in the State Employees'
Retirement System shall be subject to mandatory Social Security coverage.

(Source: P.A. 85-442; 87-11.)
 
(40 ILCS 5/21-108) (from Ch. 108 1/2, par. 21-108)
Sec. 21-108.
Modification to Federal-State Agreement.
Upon approval
of the coverage agreement submitted by an absolute or retirement system
coverage group, the State Agency, on behalf of the State of Illinois, shall
modify the Federal-State Agreement to extend coverage to employees of the
coverage group consistent with the provisions
of Section 218 of the Social Security Act, this Article and the approved
coverage agreement. Such modification shall specify:
(1) the coverage group or employee classification to be covered;
(2) any employee classification to be excluded, or to continue to be excluded in
the case of a modification to extend coverage to additional employee
classifications of a covered political subdivision;
(3) the approximate number of employees to be covered by the modification;
(4) the title of the reporting official designated by the political
subdivision as responsible for social security reporting to the State Agency;
(5) the effective date of coverage; and
(6) the controlling date for purposes of retroactive coverage.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
Sec. 21-109.
Payment of Contributions.
(a) Absolute coverage group: Each political subdivision which has
established Social Security coverage for its employees under this Article
shall pay contributions on
covered wages paid prior to January 1, 1987 in the amounts and at the rates
prescribed by subchapters A and B of the Federal Insurance Contributions
Act at the times prescribed in the regulations of the State Agency.
Taxes due on wages covered under the Social Security Coverage Agreement
paid after December 31, 1986 shall be paid by each political subdivision to
the Internal Revenue Service in the amounts and at the rates specified in
the Federal Insurance Contributions Act and at the times prescribed in the
regulations of the Internal Revenue Service.
Every political subdivision required to make
payments is authorized in consideration of the employee's retention in,
or entry upon, employment to impose upon each of its employees, as to
services which are covered by the coverage agreement, a contribution with
respect to wages computed by applying the rates of contribution prescribed by
Subchapter A of the Federal Insurance Contributions Act, and to deduct the
amount of such contribution from such employee's wages when paid.
Failure to deduct such contribution shall not relieve the employee or
employer of liability therefor.
(b) Retirement system coverage group: As a condition of its coverage
agreement, the governing body or board of trustees of any retirement system
which has adopted Social Security coverage for its members under this Article
shall assume responsibility to the State Agency for the compiling of wage data,
the collection of related contributions prescribed by subchapters A and B of
the Federal Insurance Contributions Act, and the timely reporting and payment
of such items upon the wages of all covered employees paid prior to January 1,
1987 in the manner and at the times prescribed by the State Agency.
Coincident to the adoption of coverage, the governing body or board of
trustees of the retirement system shall promulgate rules and regulations
in conformity with federal regulations, applicable to the State or local
governmental entities or to the agencies and employees participating
therein, to insure the correct application of coverage and the timely and
accurate reporting of wages and collection of contributions.
In the event of failure by the retirement system or the governmental
entities or agencies participating therein to comply with the timely reporting
and payment requirements imposed by this Section, the retirement system
shall be assessed any federal interest or late filing penalties arising
therefrom.
The contributions collected under this Section by any retirement system which
elects to adopt coverage shall be remitted at such times as the State Agency
shall prescribe.
The employees comprising the executive and administrative staff of any
retirement system which elects to adopt the provisions of this
Article shall have the contributions made by the body employing them.
(c) If more or less than the correct amount of contributions is paid to
the State Agency, proper adjustment, or refund without interest if
adjustment is impractical, shall be made in such manner and at such times
as the State Agency shall prescribe.

(Source: P.A. 90-448, eff. 8-16-97.)
 
(40 ILCS 5/21-109.1) (from Ch. 108 1/2, par. 21-109.1)
Sec. 21-109.1.
(a) Notwithstanding any law to the contrary, State
agencies, as defined in the State Auditing Act, shall remit to the
Comptroller all contributions required under subchapters A, B and C
of the Federal Insurance Contributions Act, at the rates and at the times
specified in that Act, for wages paid on or after January 1, 1987 on a
warrant of the State Comptroller.
(b) The Comptroller shall establish a fund to be known as the Social
Security Administration Fund, with the State Treasurer as ex officio
custodian. Contributions and other monies received by the Comptroller for
the purposes of the Federal Insurance Contributions Act shall either be
directly remitted to the U.S. Secretary of the Treasury or be held in
trust in such fund, and shall be paid upon the order of the Comptroller for:
(c) The Comptroller may collect from a State agency the actual or
anticipated amount of any interest and late charges arising from the State
agency's failure to collect and remit to the Comptroller contributions as
required by the Federal Insurance Contributions Act. Such interest and
charges shall be due and payable upon receipt of notice thereof from the
Comptroller.
(d) The Comptroller shall pay to the U. S. Secretary of the Treasury
such amounts at such times as may be required under the Federal Insurance
Contributions Act.
(e) The Comptroller may direct and the State Treasurer shall transfer amounts from the Social Security Administration Fund into the Capital Facility and Technology Modernization Fund as the Comptroller deems necessary. The Comptroller may direct and the State Treasurer shall transfer any such amounts so transferred to the Capital Facility and Technology Modernization Fund back to the Social Security Administration Fund at any time.

(Source: P.A. 102-16, eff. 6-17-21.)
 
(40 ILCS 5/21-110) (from Ch. 108 1/2, par. 21-110)
Sec. 21-110.
Tax levy.
The governing body of any political subdivision
with the power to levy taxes is hereby authorized and empowered to increase
its annual tax levy above the limitation now or hereafter otherwise
authorized by law, by the amount necessary to meet the cost of
participation in the Federal Social Security Insurance Program, including
any share of the cost of participation of an instrumentality or entity
described in subsection (b) or (c) of Section 21-102.8 for which the
political subdivision is responsible, without regard to whether such
participation is mandatory or optional, and without regard to whether the
political subdivision has otherwise come under the provisions of this
Article for purposes of participation in the Federal Social Security
Insurance Program.

(Source: P.A. 87-11.)
 
(40 ILCS 5/21-110.1) (from Ch. 108 1/2, par. 21-110.1)
Sec. 21-110.1.
Medicare taxes.
(a) The governing body of every
political subdivision with the power to levy taxes is hereby authorized and
empowered to increase its annual tax levy above the limitation now or
hereafter otherwise authorized by law, by the amount necessary to meet the
cost of its participation in the Federal Medicare Program, including any
share of the cost of participation of an instrumentality or entity
described in subsection (b) or (c) of Section 21-102.8 for which the
political subdivision is responsible, without regard
to whether such participation is mandatory or optional, and without regard
to whether the political subdivision has come under the provisions of this
Article for purposes of participation in the Federal Social Security Insurance Program.
(b) The payment of medicare taxes to the State Agency shall be made in
the same manner and under the same conditions as are set forth in Section
21-109 for payment of Social Security contributions, except that the State
Agency may designate a retirement system to assume responsibility to the
State Agency for the compiling of wage data, the collection of medicare
taxes, and the timely reporting and payment of such items for specified
persons under mandatory or optional medicare coverage, regardless of
whether such retirement system has entered into a coverage agreement for
Social Security coverage pursuant to Section 21-105.
(c) The penalty and audit provisions of Sections 21-112, 21-113 and
21-114 shall apply to the failure or refusal to make timely and correct
payments of medicare taxes or reports of wages in accordance with State
Agency regulations.

(Source: P.A. 84-1472.)
 
(40 ILCS 5/21-112) (from Ch. 108 1/2, par. 21-112)
Sec. 21-112.
Penalties.
For failure to make timely reporting of
employee wages and payment of contributions on covered wages paid prior
to January 1, 1987 in accordance with State Agency
regulations, a delinquent political subdivision or retirement system may be
assessed a late filing penalty which shall be, upon receipt of notice,
immediately due and payable to the State Agency. The amount of the penalty
may be adjusted from time to time with the approval of the Board of
Trustees of the State Employees' Retirement System of Illinois. If
the late filing is of such duration that the State Agency is unable
to make timely payment on behalf of the political subdivision or retirement
system to the U.S. Department of Health and Human Services and a federal
interest charge arises, the late filing penalty shall be applied toward
payment of the federal interest charge. If the federal interest charge
exceeds the amount of the late filing penalty, the political subdivision or
retirement system shall be assessed the balance of the federal interest charge.

(Source: P.A. 85-442.)
 
(40 ILCS 5/21-113) (from Ch. 108 1/2, par. 21-113)
Sec. 21-113.
Tax audit.
(1) Upon failure or refusal of any covered
political subdivision or retirement system to submit wage reports and pay
amounts due the State Agency on covered wages paid prior to January 1,
1987 in accordance with the terms of its agreement or applicable
regulations, the State Agency after giving notice may order the entity to
make its payroll books and related records available at the office of the
State Agency in Springfield, or at the business office of the entity as the
State Agency shall direct, and may audit those books and records to determine
the liability for reporting wages, the amount of contributions
due, the late filing penalty, and the federal interest
charge. The expenses incurred by the State
Agency to conduct the audit may be included in the amount due.
(2) Upon completion of the audit, the entity shall be given an opportunity
to make payment of the amount due. In the event of refusal to make
payment, the State Agency shall then certify the amount to be collected to
the State Comptroller who shall deduct such amounts or any part thereof
from any State funds to which the entity may be entitled. Upon exercising
the State's right of setoff, the Comptroller shall pay amounts so deducted
to the State Agency.
(3) If State funds are not available from which setoff can be made by
the Comptroller, the State Agency may proceed by instituting action in
the appropriate circuit court against the defaulting entity
to recover the amount due.

(Source: P.A. 85-442.)
 
(40 ILCS 5/21-114) (from Ch. 108 1/2, par. 21-114)
Sec. 21-114.
General investigative audits.
The State Agency upon
its own initiative may conduct investigative field audits of the books and
payroll records for calendar years prior to 1987 of any political
subdivision or retirement system which has adopted coverage. The audits
may be conducted at the business office of any participating entity or at
any other site mutually convenient to the State Agency and the entity. The
State Agency may require covered entities to submit reconciliation
statements disclosing total wages and compensation disbursed for all
personal services performed during a designated period for comparison with
wages included upon reports for which contributions were paid in that same period.
The State Agency may also require, accept and rely upon payroll audits
performed by the field staff of any retirement system conducted in accordance
with guidelines established by the State Agency, to determine compliance
with the reporting and collection of contributions upon covered wages.
The cost of investigative audits conducted by the State Agency under
this Section shall be recovered through levy of the annual administrative
charge as provided in Section 21-116; however, if the investigative audit
should disclose substantial noncompliance requiring an extensive audit,
the State Agency may assess audit costs summarily against the noncomplying
entity.

(Source: P.A. 85-442.)
 
(40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
Sec. 21-115.
Special fund abolished; designation of remittance agents.
(a) The Social Security Contribution Fund is abolished at the close of
business on June 30, 1997. Any balance then remaining in that Fund shall be
transferred to the Social Security Administration Fund created under Section
21-109.1, and any amounts thereafter designated for deposit into the Social
Security Contribution Fund shall instead be deposited into the Social Security
Administration Fund.
(b) The State Agency is authorized to designate any retirement
system which has adopted coverage under this Article to act as remittance agent
on behalf of the State Agency and to make payment of the Social Security
contributions collected upon the wages of employees within the retirement
system coverage group directly to the designated Federal Reserve Bank. Any
retirement system so designated as a
remittance agent shall continue to be subject to the regulations of the State
Agency with respect to coverage determinations, wage reporting, corrective
adjustments, and accountability for tax collections in the same manner as any
other covered entity.

(Source: P.A. 90-448, eff. 8-16-97.)
 
(40 ILCS 5/21-117) (from Ch. 108 1/2, par. 21-117)
Sec. 21-117.
Inactivation.
Any political subdivision which ceases its corporate existence as the result of legal
dissolution, annexation, or consolidation, shall promptly notify the
State Agency and furnish
legal documentation of such fact, whereupon the State Agency shall notify
the Secretary of the U.S. Department of Health and
Human Services to permanently inactivate
the coverage and reporting requirements applicable to such entity. If any
employees remain upon the payroll of the entity beyond the official date
of dissolution, the notice to the State Agency shall specify the ending
date of the calendar month in which their employment relationship shall
cease, and the coverage and reporting requirements under the entity's agreement
shall continue upon any wages paid during that period. The dissolution
notice must identify the name and address of the repository where the payroll
books and records of the dissolved entity shall be preserved for the statutory period.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-118) (from Ch. 108 1/2, par. 21-118)
Sec. 21-118.
Administrative review.
All orders for
inactivation of a plan under Section 21-117 made by the State Agency shall
be subject to judicial review pursuant to the provisions of the
Administrative Review Law, and all amendments and modifications thereof,
and the rules adopted pursuant thereto.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-119) (from Ch. 108 1/2, par. 21-119)
Sec. 21-119.
Rules and regulations.
The State Agency shall make and
publish such rules and regulations, not
inconsistent with the provisions of this Article, as it finds necessary or
appropriate to the efficient administration of the functions with which it
is charged under this Article.

(Source: P.A. 84-1028.)
 
(40 ILCS 5/21-120)
Sec. 21-120. (Repealed).


(Source: P.A. 100-1148, eff. 12-10-18. Repealed by P.A. 102-210, eff. 7-30-21.)
 
(40 ILCS 5/21-121) (from Ch. 108 1/2, par. 21-121)
Sec. 21-121.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.

(Source: P.A. 84-1028.)

Structure Illinois Compiled Statutes