SB2093 EnrolledLRB102 12831 RPS 18173 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
5changing Sections 17-105.1, 17-106, and 17-132 and by adding
6Section 17-134.2 as follows:
 
7    (40 ILCS 5/17-105.1)
8    Sec. 17-105.1. Employer. "Employer": The Board of
9Education, and a charter school as defined under the
10provisions of Section 27A-5 of the School Code, and a contract
11school operating pursuant to an agreement with the Board of
12Education.
13(Source: P.A. 90-566, eff. 1-2-98.)
 
14    (40 ILCS 5/17-106)  (from Ch. 108 1/2, par. 17-106)
15    Sec. 17-106. Contributor, member or teacher.
16"Contributor", "member" or "teacher": All members of the
17teaching force of the city, including principals, assistant
18principals, the general superintendent of schools, deputy
19superintendents of schools, associate superintendents of
20schools, assistant and district superintendents of schools,
21members of the Board of Examiners, all other persons whose
22employment requires a teaching certificate issued under the

 

 

SB2093 Enrolled- 2 -LRB102 12831 RPS 18173 b

1laws governing the certification of teachers, any educational
2staff employed in a contract school operating pursuant to an
3agreement with the Board of Education who is employed in a
4position requiring certification or licensure under the School
5Code (excluding all managerial, supervisory, and confidential
6employees) and is required to or elects to participate
7pursuant to Section 17-134.2, any educational, administrative,
8professional, or other staff employed in a charter school
9operating in compliance with the Charter Schools Law who is
10certified under the law governing the certification of
11teachers, and employees of the Board, but excluding persons
12contributing concurrently to any other public employee pension
13system in Illinois for the same employment or receiving
14retirement pensions under another Article of this Code for
15that same employment, persons employed on an hourly basis
16(provided that an Employer may not reclassify a non-hourly
17employee as an hourly employee for the purpose of evading or
18avoiding its obligations under this Article), and persons
19receiving pensions from the Fund who are employed temporarily
20by an Employer and not on an annual basis.
21    All teachers or staff regardless of their position shall
22presumptively be participants in the Fund, unless the Employer
23establishes to the satisfaction of the Board that an
24individual certified teacher or staff member is not working as
25a teacher or administrator directly or indirectly with the
26Charter School. Any certified teacher or staff employed by a

 

 

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1corporate or non-profit entity engaged in the administration
2of a charter school shall presumptively be a participant in
3the Fund, unless the organization establishes to the
4satisfaction of the Board that an individual certified teacher
5or staff member is not working as a teacher or administrator
6directly or indirectly with the Charter School.
7    In the case of a person who has been making contributions
8and otherwise participating in this Fund prior to the
9effective date of this amendatory Act of the 91st General
10Assembly, and whose right to participate in the Fund is
11established or confirmed by this amendatory Act, such prior
12participation in the Fund, including all contributions
13previously made and service credits previously earned by the
14person, are hereby validated.
15    The changes made to this Section and Section 17-149 by
16this amendatory Act of the 92nd General Assembly apply without
17regard to whether the person was in service on or after the
18effective date of this amendatory Act, notwithstanding
19Sections 1-103.1 and 17-157.
20(Source: P.A. 98-427, eff. 8-16-13.)
 
21    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
22    Sec. 17-132. Payments and certification of salary
23deductions.
24    (a) An Employer shall cause the Fund to receive all
25members' payroll records and pension contributions within 30

 

 

SB2093 Enrolled- 4 -LRB102 12831 RPS 18173 b

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

 

 

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1prior pay periods; (3) pension contributions attributable to
2pensionable salary earned in the reported pay period or the
3adjusted pay period as required by subsection (b) of Section
417-131; and (4) any salary paid by an Employer if that salary
5is compensation for validated service and is exclusive of
6salary for overtime, extracurricular activities, or any
7employment on an optional basis, such as in summer school.
8Payroll records required by item (4) of this paragraph shall
9identify the number of days of service rendered by the member
10and whether each day of service represents a partial or whole
11day of service.
12    (d) The appropriate officers of the Employer shall certify
13and submit the payroll records no later than 30 calendar days
14after each predesignated payday. The certification shall
15constitute a confirmation of the accuracy of such deductions
16according to the provisions of this Article.
17    Each Charter School and contract school shall designate an
18administrator as a "Pension Officer". The Pension Officer
19shall be responsible for certifying all payroll information,
20including contributions due and certified sick days payable
21pursuant to Section 17-134, and assuring resolution of
22reported payroll and contribution deficiencies.
23    (e) The Board has the authority to conduct payroll audits
24of a charter school or contract school to determine the
25existence of any delinquencies in contributions to the Fund,
26and such charter school or contract school shall be required

 

 

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1to provide such books and records and contribution information
2as the Board or its authorized representative may require. The
3Board is also authorized to collect delinquent contributions
4from charter schools and contract schools and develop
5procedures for the collection of such delinquencies.
6Collection procedures may include legal proceedings in the
7courts of the State of Illinois. Expenses, including
8reasonable attorneys' fees, incurred in the collection of
9delinquent contributions may be assessed by the Board against
10the charter school or contract school.
11    (f) The Fund shall provide a conditional grace period for
12contract schools that show evidence of timely and good faith
13efforts to submit payroll records and make pension
14contributions due between January 1, 2022 and April 1, 2022.
15If payroll records and pension contributions due during that
16time period are not submitted by April 1, 2022, the statutory
17penalties, liquidated damages, and interest shall be
18calculated from the original due date to the submission date
19of the pension contributions or payroll records, as
20applicable.
21    Evidence of timely and good faith efforts shall include,
22but are not limited to, the following:
23        (1) evidence of the contract school's continuing
24    efforts to submit payroll records and make pension
25    contributions, both before and after the date the payroll
26    records and pension contributions were due;

 

 

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1        (2) documented evidence submitted by the contract
2    school of the contract school's continuing efforts to
3    submit payroll records and make pension contributions;
4        (3) evidence in the possession of the Fund of the
5    contract school's continuing efforts to submit payroll
6    records and make pension contributions; and
7        (4) contact by the contract school with the Fund to
8    seek assistance and notify the Fund of difficulties with
9    submitting the payroll records and making the pension
10    contributions within a period of time determined by the
11    Board after the date the pension contributions and payroll
12    records were due.
13    The Fund may adopt rules to implement the changes made by
14this amendatory Act of the 102nd General Assembly.
15(Source: P.A. 101-261, eff. 8-9-19.)
 
16    (40 ILCS 5/17-134.2 new)
17    Sec. 17-134.2. Employee of a contract school. Any
18educational staff of a contract school operating pursuant to
19an agreement with the Board of Education who is employed in a
20position requiring certification or licensure under the School
21Code on or after the effective date of this amendatory Act of
22the 102nd General Assembly (excluding all managerial,
23supervisory, and confidential employees) shall participate as
24a member beginning on January 1, 2022, unless the person began
25employment with the contract school before the effective date

 

 

SB2093 Enrolled- 8 -LRB102 12831 RPS 18173 b

1of this amendatory Act of the 102nd General Assembly.
2    Any educational staff employed in a contract school
3operating pursuant to an agreement with the Board of Education
4who began employment in a position requiring certification or
5licensure under the School Code before the effective date of
6this amendatory Act of the 102nd General Assembly (excluding
7all managerial, supervisory, and confidential employees) may
8irrevocably elect, in a manner prescribed by the Board, to
9participate as a member for service accrued after January 1,
102022 with the contract school, another contract school, a
11charter school, or the Board of Education. In no event shall a
12person accrue service for employment with a contract school
13that occurred before January 1, 2022.
 
14    Section 90. The State Mandates Act is amended by adding
15Section 8.45 as follows:
 
16    (30 ILCS 805/8.45 new)
17    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
188 of this Act, no reimbursement by the State is required for
19the implementation of any mandate created by this amendatory
20Act of the 102nd General Assembly.
 
21    Section 99. Effective date. This Act takes effect July 1,
222021.