101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1996

 

Introduced 2/15/2019, by Sen. Martin A. Sandoval

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-131  from Ch. 108 1/2, par. 17-131
40 ILCS 5/17-132  from Ch. 108 1/2, par. 17-132

    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that an Employer or the Board of Trustees shall make pension deductions in each pay period on the basis of the salary earned in that period, exclusive of salaries for overtime, extracurricular activities (instead of special services), or any employment on an optional basis, such as summer school. Makes conforming changes. Effective immediately.


LRB101 08808 RPS 53896 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1996LRB101 08808 RPS 53896 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 17-131 and 17-132 as follows:
 
6    (40 ILCS 5/17-131)  (from Ch. 108 1/2, par. 17-131)
7    Sec. 17-131. Administration of payroll deductions.
8    (a) An Employer or the Board shall make pension deductions
9in each pay period on the basis of the salary earned in that
10period, exclusive of salaries for overtime, extracurricular
11activities special services, or any employment on an optional
12basis, such as in summer school.
13    (b) If a salary paid in a pay period includes adjustments
14on account of errors or omissions in prior pay periods, then
15salary amounts and related pension deductions shall be
16separately identified as to the adjusted pay period and
17deductions by the Employer or the Board shall be at rates in
18force during the applicable adjusted pay period.
19    (c) If members earn salaries for the school year, as
20established by an Employer, or if they earn annual salaries
21over more than a 10-calendar month period, or if they earn
22annual salaries over more than 170 calendar days, the required
23contribution amount shall be deducted by the Employer in

 

 

SB1996- 2 -LRB101 08808 RPS 53896 b

1installments on the basis of salary earned in each pay period.
2The total amounts for each pay period shall be deducted
3whenever salary payments represent a partial or whole day's
4pay.
5    (d) If an Employer or the Board pays a salary to a member
6for vacation periods, then the salary shall be considered part
7of the member's pensionable salary, shall be subject to the
8standard deductions for pension contributions, and shall be
9considered to represent pay for the number of whole days of
10vacation.
11    (e) If deductions from salaries result in amounts of less
12than one cent, the fractional sums shall be increased to the
13next higher cent. Any excess of these fractional increases over
14the prescribed annual contributions shall be credited to the
15members' accounts.
16    (f) In the event that, pursuant to Section 17-130.1,
17employee contributions are picked up or made by the Board of
18Education on behalf of its employees, then the amount of the
19employee contributions which are picked up or made in that
20manner shall not be deducted from the salaries of such
21employees.
22(Source: P.A. 97-30, eff. 7-1-11.)
 
23    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
24    Sec. 17-132. Payments and certification of salary
25deductions.

 

 

SB1996- 3 -LRB101 08808 RPS 53896 b

1    (a) An Employer shall cause the Fund to receive all
2members' payroll records and pension contributions within 30
3calendar days after each predesignated payday. For purposes of
4this Section, the predesignated payday shall be determined in
5accordance with each Employer's payroll schedule for
6contributions to the Fund.
7    (b) An Employer that fails to timely certify and submit
8payroll records to the Fund is subject to a statutory penalty
9in the amount of $100 per day for each day that a required
10certification and submission is late.
11    Amounts not received by the 30th calendar day after the
12predesignated payday shall be deemed delinquent and subject to
13a penalty consisting of interest, which shall accrue on a
14monthly basis at the Fund's then effective actuarial rate of
15return, and liquidated damages in the amount of $100 per day,
16not to exceed 20% of the principal contributions due, which
17shall be mandatory except for good cause shown and in the
18discretion of the Board.
19    An Employer in possession of member contributions deducted
20from payroll checks is holding Fund assets, and thus becomes a
21fiduciary over those assets.
22    (c) The payroll records shall report (1) all pensionable
23salary earned in that pay period, exclusive of salaries for
24overtime, extracurricular activities special services, or any
25employment on an optional basis, such as in summer school; (2)
26adjustments to pensionable salary, exclusive of salaries for

 

 

SB1996- 4 -LRB101 08808 RPS 53896 b

1overtime, extracurricular activities special services, or any
2employment on an optional basis, such as in summer school, made
3in a pay period for any prior pay periods; (3) pension
4contributions attributable to pensionable salary earned in the
5reported pay period or the adjusted pay period as required by
6subsection (b) of Section 17-131; and (4) any salary paid by an
7Employer if that salary is compensation for validated service
8and is exclusive of salary for overtime, extracurricular
9activities special services, or any employment on an optional
10basis, such as in summer school. Payroll records required by
11item (4) of this paragraph shall identify the number of days of
12service rendered by the member and whether each day of service
13represents a partial or whole day of service.
14    (d) The appropriate officers of the Employer shall certify
15and submit the payroll records no later than 30 calendar days
16after each predesignated payday. The certification shall
17constitute a confirmation of the accuracy of such deductions
18according to the provisions of this Article.
19    Each Charter School shall designate an administrator as a
20"Pension Officer". The Pension Officer shall be responsible for
21certifying all payroll information, including contributions
22due and certified sick days payable pursuant to Section 17-134,
23and assuring resolution of reported payroll and contribution
24deficiencies.
25    (e) The Board has the authority to conduct payroll audits
26of a charter school to determine the existence of any

 

 

SB1996- 5 -LRB101 08808 RPS 53896 b

1delinquencies in contributions to the Fund, and such charter
2school shall be required to provide such books and records and
3contribution information as the Board or its authorized
4representative may require. The Board is also authorized to
5collect delinquent contributions from charter schools and
6develop procedures for the collection of such delinquencies.
7Collection procedures may include legal proceedings in the
8courts of the State of Illinois. Expenses, including reasonable
9attorneys' fees, incurred in the collection of delinquent
10contributions may be assessed by the Board against the charter
11school.
12(Source: P.A. 98-427, eff. 8-16-13; 99-176, eff. 7-29-15.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.