96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0551

 

Introduced 2/4/2009, by Rep. Daniel J. Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-131   from Ch. 108 1/2, par. 17-131
30 ILCS 805/8.33 new

    Amends the Chicago Teacher Article of the Pension Code. Provides that salary received on or after July 1, 2009 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.


LRB096 02997 AMC 13011 b

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

 

 

A BILL FOR

 

HB0551 LRB096 02997 AMC 13011 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, 2009 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. Beginning July 1, 2009, 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, 2009, an Employer or the Board

 

 

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1 pays salaries to members of the teaching force for vacation
2 periods, the salary shall be considered part of the teacher's
3 annual salary, shall be subject to the standard deductions for
4 pension contributions, and shall be considered to represent
5 additional service credit for each day paid pay for 5 or more
6 days' employment in a bi-weekly or semi-monthly payroll period
7 for purposes set forth in this Section. If deductions from
8 salaries result in amounts of less than one cent, the
9 fractional sums shall be increased to the next higher cent. Any
10 excess of these fractional increases over the prescribed annual
11 contributions shall be credited to the teachers' accounts.
12     Any person who retires on or after July 1, 2009 and before
13 the effective date of this amendatory Act of the 96th General
14 Assembly shall be paid a lump sum equal to the amount of
15 pension that he or she would have received for that period if
16 salary received for overtime, summer school, and other optional
17 service had been included in the calculation of salary for
18 pension purposes, minus the amount of pension he or she
19 actually received for that period.
20     In the event that, pursuant to Section 17-130.1, employee
21 contributions are picked up or made by the Board of Education
22 on behalf of its employees from the proceeds of the tax levied
23 under Section 34-60 of the School Code, then the amount of the
24 employee contributions which are picked up or made in that
25 manner shall not be deducted from the salaries of such
26 employees.

 

 

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1 (Source: P.A. 90-566, eff. 1-2-98.)
 
2     Section 90. The State Mandates Act is amended by adding
3 Section 8.33 as follows:
 
4     (30 ILCS 805/8.33 new)
5     Sec. 8.33. Exempt mandate. Notwithstanding Sections 6 and 8
6 of this Act, no reimbursement by the State is required for the
7 implementation of any mandate created by this amendatory Act of
8 the 96th General Assembly.
 
9     Section 99. Effective date. This Act takes effect upon
10 becoming law.