93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4406

 

Introduced 2/3/2004, by Angelo Saviano

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-131   from Ch. 108 1/2, par. 17-131
30 ILCS 805/8.28 new

    Amends the Chicago Teacher Article of the Illinois Pension Code. Provides that salary received on or after July 1, 1999 for overtime, summer school, and other optional service shall be included in the calculation of salary for pension purposes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB4406 LRB093 14991 LRD 40560 b

1     AN ACT in relation to 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 changing
5 Section 17-131 as follows:
 
6     (40 ILCS 5/17-131)  (from Ch. 108 1/2, par. 17-131)
7     Sec. 17-131. Administration of payroll deductions. During
8 any period on or after July 1, 1999 in which salaries are paid,
9 payroll such deductions by an Employer or the Board shall be
10 made for all salary paid on the basis of the full salary rates,
11 exclusive of salaries for overtime, special services or any
12 employment on an optional basis, such as in summer school. If
13 salaries represent adjustments on account of error, deductions
14 by the Employer or the Board shall be at the rates in force
15 during the applicable payroll period. If teachers receive
16 salaries for the school year, as established by an Employer, or
17 if they receive salaries for more than 10 calendar months, the
18 amount required for each year of service shall be deducted by
19 such Employer in installments. On or after July 1, 1999, the
20 total amounts for each semimonthly payroll period, or bi-weekly
21 payroll period, as the case may be, shall be deducted for all
22 salary paid only when salary payments represent 5 days' pay or
23 more. If, on or after July 1, 1999, an Employer or the Board
24 pays salaries to members of the teaching force for vacation
25 periods, the salary shall be considered part of the teacher's
26 annual salary, shall be subject to the standard deductions for
27 pension contributions, and shall be considered to represent
28 additional service credit for each day paid pay for 5 or more
29 days' employment in a bi-weekly or semi-monthly payroll period
30 for purposes set forth in this Section. If deductions from
31 salaries result in amounts of less than one cent, the
32 fractional sums shall be increased to the next higher cent. Any

 

 

HB4406 - 2 - LRB093 14991 LRD 40560 b

1 excess of these fractional increases over the prescribed annual
2 contributions shall be credited to the teachers' accounts.
3     Any person who retires on or after July 1, 1999 and before
4 the effective date of this Act shall be paid a lump sum equal
5 to the amount of pension that he or she would have received for
6 that period if salary received for overtime, summer school, and
7 other optional service had been included in the calculation of
8 salary for pension purposes minus the amount of pension he or
9 she actually received for that period.
10     In the event that, pursuant to Section 17-130.1, employee
11 contributions are picked up or made by the Board of Education
12 on behalf of its employees from the proceeds of the tax levied
13 under Section 34-60 of the School Code, then the amount of the
14 employee contributions which are picked up or made in that
15 manner shall not be deducted from the salaries of such
16 employees.
17 (Source: P.A. 90-566, eff. 1-2-98.)
 
18     Section 90. The State Mandates Act is amended by adding
19 Section 8.28 as follows:
 
20     (30 ILCS 805/8.28 new)
21     Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
22 of this Act, no reimbursement by the State is required for the
23 implementation of any mandate created by this amendatory Act of
24 the 93rd General Assembly.
 
25     Section 99. Effective date. This Act takes effect upon
26 becoming law.