Illinois General Assembly - Full Text of SB2093
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Full Text of SB2093  102nd General Assembly


Rep. Lindsey LaPointe

Filed: 5/20/2021





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2    AMENDMENT NO. ______. Amend Senate Bill 2093 by replacing
3everything after the enacting clause with the following:
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
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.



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1"Contributor", "member" or "teacher": All members of the
2teaching force of the city, including principals, assistant
3principals, the general superintendent of schools, deputy
4superintendents of schools, associate superintendents of
5schools, assistant and district superintendents of schools,
6members of the Board of Examiners, all other persons whose
7employment requires a teaching certificate issued under the
8laws governing the certification of teachers, any educational
9staff employed in a contract school operating pursuant to an
10agreement with the Board of Education who is employed in a
11position requiring certification or licensure under the School
12Code (excluding all managerial, supervisory, and confidential
13employees) and is required to or elects to participate
14pursuant to Section 17-134.2, any educational, administrative,
15professional, or other staff employed in a charter school
16operating in compliance with the Charter Schools Law who is
17certified under the law governing the certification of
18teachers, and employees of the Board, but excluding persons
19contributing concurrently to any other public employee pension
20system in Illinois for the same employment or receiving
21retirement pensions under another Article of this Code for
22that same employment, persons employed on an hourly basis
23(provided that an Employer may not reclassify a non-hourly
24employee as an hourly employee for the purpose of evading or
25avoiding its obligations under this Article), and persons
26receiving pensions from the Fund who are employed temporarily



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1by an Employer and not on an annual basis.
2    All teachers or staff regardless of their position shall
3presumptively be participants in the Fund, unless the Employer
4establishes to the satisfaction of the Board that an
5individual certified teacher or staff member is not working as
6a teacher or administrator directly or indirectly with the
7Charter School. Any certified teacher or staff employed by a
8corporate or non-profit entity engaged in the administration
9of a charter school shall presumptively be a participant in
10the Fund, unless the organization establishes to the
11satisfaction of the Board that an individual certified teacher
12or staff member is not working as a teacher or administrator
13directly or indirectly with the Charter School.
14    In the case of a person who has been making contributions
15and otherwise participating in this Fund prior to the
16effective date of this amendatory Act of the 91st General
17Assembly, and whose right to participate in the Fund is
18established or confirmed by this amendatory Act, such prior
19participation in the Fund, including all contributions
20previously made and service credits previously earned by the
21person, are hereby validated.
22    The changes made to this Section and Section 17-149 by
23this amendatory Act of the 92nd General Assembly apply without
24regard to whether the person was in service on or after the
25effective date of this amendatory Act, notwithstanding
26Sections 1-103.1 and 17-157.



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1(Source: P.A. 98-427, eff. 8-16-13.)
2    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
3    Sec. 17-132. Payments and certification of salary
5    (a) An Employer shall cause the Fund to receive all
6members' payroll records and pension contributions within 30
7calendar days after each predesignated payday. For purposes of
8this Section, the predesignated payday shall be determined in
9accordance with each Employer's payroll schedule for
10contributions to the Fund.
11    (b) An Employer that fails to timely certify and submit
12payroll records to the Fund is subject to a statutory penalty
13in the amount of $100 per day for each day that a required
14certification and submission is late.
15    Amounts not received by the 30th calendar day after the
16predesignated payday shall be deemed delinquent and subject to
17a penalty consisting of interest, which shall accrue on a
18monthly basis at the Fund's then effective actuarial rate of
19return, and liquidated damages in the amount of $100 per day,
20not to exceed 20% of the principal contributions due, which
21shall be mandatory except for good cause shown and in the
22discretion of the Board.
23    An Employer in possession of member contributions deducted
24from payroll checks is holding Fund assets, and thus becomes a
25fiduciary over those assets.



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1    (c) The payroll records shall report (1) all pensionable
2salary earned in that pay period, exclusive of salaries for
3overtime, extracurricular activities, or any employment on an
4optional basis, such as in summer school; (2) adjustments to
5pensionable salary, exclusive of salaries for overtime,
6extracurricular activities, or any employment on an optional
7basis, such as in summer school, made in a pay period for any
8prior pay periods; (3) pension contributions attributable to
9pensionable salary earned in the reported pay period or the
10adjusted pay period as required by subsection (b) of Section
1117-131; and (4) any salary paid by an Employer if that salary
12is compensation for validated service and is exclusive of
13salary for overtime, extracurricular activities, or any
14employment on an optional basis, such as in summer school.
15Payroll records required by item (4) of this paragraph shall
16identify the number of days of service rendered by the member
17and whether each day of service represents a partial or whole
18day of service.
19    (d) The appropriate officers of the Employer shall certify
20and submit the payroll records no later than 30 calendar days
21after each predesignated payday. The certification shall
22constitute a confirmation of the accuracy of such deductions
23according to the provisions of this Article.
24    Each Charter School and contract school shall designate an
25administrator as a "Pension Officer". The Pension Officer
26shall be responsible for certifying all payroll information,



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1including contributions due and certified sick days payable
2pursuant to Section 17-134, and assuring resolution of
3reported payroll and contribution deficiencies.
4    (e) The Board has the authority to conduct payroll audits
5of a charter school or contract school to determine the
6existence of any delinquencies in contributions to the Fund,
7and such charter school or contract school shall be required
8to provide such books and records and contribution information
9as the Board or its authorized representative may require. The
10Board is also authorized to collect delinquent contributions
11from charter schools and contract schools and develop
12procedures for the collection of such delinquencies.
13Collection procedures may include legal proceedings in the
14courts of the State of Illinois. Expenses, including
15reasonable attorneys' fees, incurred in the collection of
16delinquent contributions may be assessed by the Board against
17the charter school or contract school.
18    (f) The Fund shall provide a conditional grace period for
19contract schools that show evidence of timely and good faith
20efforts to submit payroll records and make pension
21contributions due between January 1, 2022 and April 1, 2022.
22If payroll records and pension contributions due during that
23time period are not submitted by April 1, 2022, the statutory
24penalties, liquidated damages, and interest shall be
25calculated from the original due date to the submission date
26of the pension contributions or payroll records, as



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2    Evidence of timely and good faith efforts shall include,
3but are not limited to, the following:
4        (1) evidence of the contract school's continuing
5    efforts to submit payroll records and make pension
6    contributions, both before and after the date the payroll
7    records and pension contributions were due;
8        (2) documented evidence submitted by the contract
9    school of the contract school's continuing efforts to
10    submit payroll records and make pension contributions;
11        (3) evidence in the possession of the Fund of the
12    contract school's continuing efforts to submit payroll
13    records and make pension contributions; and
14        (4) contact by the contract school with the Fund to
15    seek assistance and notify the Fund of difficulties with
16    submitting the payroll records and making the pension
17    contributions within a period of time determined by the
18    Board after the date the pension contributions and payroll
19    records were due.
20    The Fund may adopt rules to implement the changes made by
21this amendatory Act of the 102nd General Assembly.
22(Source: P.A. 101-261, eff. 8-9-19.)
23    (40 ILCS 5/17-134.2 new)
24    Sec. 17-134.2. Employee of a contract school. Any
25educational staff of a contract school operating pursuant to



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1an agreement with the Board of Education who is employed in a
2position requiring certification or licensure under the School
3Code on or after the effective date of this amendatory Act of
4the 102nd General Assembly (excluding all managerial,
5supervisory, and confidential employees) shall participate as
6a member beginning on January 1, 2022, unless the person began
7employment with the contract school before the effective date
8of this amendatory Act of the 102nd General Assembly.
9    Any educational staff employed in a contract school
10operating pursuant to an agreement with the Board of Education
11who began employment in a position requiring certification or
12licensure under the School Code before the effective date of
13this amendatory Act of the 102nd General Assembly (excluding
14all managerial, supervisory, and confidential employees) may
15irrevocably elect, in a manner prescribed by the Board, to
16participate as a member for service accrued after January 1,
172022 with the contract school, another contract school, a
18charter school, or the Board of Education. In no event shall a
19person accrue service for employment with a contract school
20that occurred before January 1, 2022.
21    Section 90. The State Mandates Act is amended by adding
22Section 8.45 as follows:
23    (30 ILCS 805/8.45 new)
24    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and



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18 of this Act, no reimbursement by the State is required for
2the implementation of any mandate created by this amendatory
3Act of the 102nd General Assembly.
4    Section 99. Effective date. This Act takes effect July 1,