Public Act 097-0030
 
HB1719 EnrolledLRB097 08643 JDS 48772 b


  
    AN ACT concerning public employee benefits.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Illinois Pension Code is amended  by changing 
Sections 17-114, 17-131, and 17-132 as follows:
 



    (40 ILCS 5/17-114)  (from Ch. 108 1/2, par. 17-114)



    Sec. 17-114. Computation of service. 
    (a) When computing days of validated service, contributors 
shall receive one day of service credit for each day for which 
they are paid salary representing a partial or a full day of 
employment rendered to an Employer or the Board.
    (b) When computing months of validated service, 17 or more 
days of service rendered to an Employer or the Board in a 
calendar month shall entitle a contributor to one month of 
service credit for purposes of this Article.
    (c) When computing years of validated service rendered, 170 
or more days of service in a fiscal year or 10 or more months of 
service in a fiscal year shall constitute one year of service 
credit.
    (d) Notwithstanding subsections (b) and (c) of this 
Section, validated service in any fiscal year shall be that 
fraction of a year equal to the ratio of the number of days of 
service to 170 days.
    (e) For purposes of this Section, no contributor shall earn 
more than one year of service credit per fiscal year. 
When computing validated service, 10 months or more shall 
constitute one
year of service unless a lesser number of months 
is established as a school
year by an Employer. Salary 
representing 5 days'
or more
employment paid in a semi-monthly 
or bi-weekly payroll period, whichever
the case may be, shall 
be considered for the purpose of computing service
credit and 
shall entitle a contributor to 1/2 month of service. When

computing total service rendered, 3 to 10 days' employment in 
the final
total of such service shall entitle a contributor to 
1/2 month of service.

(Source: P.A. 90-566, eff. 1-2-98.)

 



    (40 ILCS 5/17-131)  (from Ch. 108 1/2, par. 17-131)



    Sec. 17-131. Administration of payroll deductions. 
    (a) An Employer or the Board shall make pension deductions 
in each pay period on the basis of the salary earned in that 
period, exclusive of salaries for overtime, special services, 
or any employment on an optional basis, such as in summer 
school.
    (b) If a salary paid in a pay period includes adjustments 
on account of errors or omissions in prior pay periods, then 
salary amounts and related pension deductions shall be 
separately identified as to the adjusted pay period and 
deductions by the Employer or the Board shall be at rates in 
force during the applicable adjusted pay period.
    (c) If members earn salaries for the school year, as 
established by an Employer, or if they earn annual salaries 
over more than a 10-calendar month period, or if they earn 
annual salaries over more than 170 calendar days, the required 
contribution amount shall be deducted by the Employer in 
installments on the basis of salary earned in each pay period. 
The total amounts for each pay period shall be deducted 
whenever salary payments represent a partial or whole day's 
pay.
    (d) If an Employer or the Board pays a salary to a member 
for vacation periods, then the salary shall be considered part 
of the member's pensionable salary, shall be subject to the 
standard deductions for pension contributions, and shall be 
considered to represent pay for the number of whole days of 
vacation.
    (e) If deductions from salaries result in amounts of less 
than one cent, the fractional sums shall be increased to the 
next higher cent. Any excess of these fractional increases over 
the prescribed annual contributions shall be credited to the 
members' accounts.
    (f) In the event that, pursuant to Section 17-130.1, 
employee contributions are picked up or made by the Board of 
Education on behalf of its employees, then the amount of the 
employee contributions which are picked up or made in that 
manner shall not be deducted from the salaries of such 
employees. 
During any period in which salaries are paid, such deductions

by an Employer or the Board shall be made on
the basis of the 
full
salary rates, exclusive of salaries for overtime, special 
services or
any employment on an optional basis, such as in 
summer school. If
salaries represent adjustments on account of 
error, deductions
by the Employer or the Board shall be at 
rates in force
during the applicable
payroll period. If 
teachers receive salaries for the school year, as
established 
by an Employer, or if they receive
salaries for more
than 10 
calendar months, the amount required for each year of service 
shall be
deducted by such Employer in installments.  The
total 
amounts for
each semimonthly payroll period, or bi-weekly 
payroll period, as the case
may be, shall be deducted only when 
salary payments represent 5 days' pay
or more.  If an Employer 
or the Board pays salaries to
members of
the teaching force for 
vacation periods, the salary shall be considered
part of the 
teacher's annual salary, shall be subject to the standard

deductions for pension contributions, and shall be
considered 
to represent
pay for 5 or more days' employment in a bi-weekly 
or semi-monthly payroll
period for purposes set forth in this 
Section.  If deductions from salaries
result
in amounts of less 
than one cent, the fractional sums shall be increased
to the 
next higher cent.  Any excess of these fractional increases over 
the
prescribed annual contributions shall be credited to the 
teachers' accounts.

    In the event that, pursuant to Section 17-130.1, employee

contributions
are picked up or made by the Board of Education 
on behalf of its employees
from the proceeds of the tax levied 
under
Section 34-60 of the School Code, then the amount of the 
employee
contributions which are picked up or made in that 
manner shall not be
deducted from the salaries of such 
employees.

(Source: P.A. 90-566, eff. 1-2-98.)

 



    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)



    Sec. 17-132. Payments and certification of salary 
deductions. 
    (a) An Employer shall cause the Fund to receive all 
members' payroll records and pension contributions within 30 
calendar days after each predesignated payday. For purposes of 
this Section, the predesignated payday shall be determined in 
accordance with each Employer's payroll schedule for 
contributions to the Fund.
    (b) Amounts not received by the 30th calendar day after the 
predesignated payday shall be deemed delinquent and subject to 
late interest penalty (calculated at the average short-term 
rate of interest earned by the Fund for the calendar month 
preceding the calendar month in which the delinquency occurs) 
starting from the predesignated payday and ending on the date 
payment is received.
    (c) The payroll records shall report  (1) all pensionable 
salary earned in that pay period, exclusive of salaries for 
overtime, special services, or any employment on an optional 
basis, such as in summer school; (2) adjustments to pensionable 
salary, exclusive of salaries for overtime, special services, 
or any employment on an optional basis, such as in summer 
school, made in a pay period for any prior pay periods; (3) 
pension contributions attributable to pensionable salary 
earned in the reported pay period or the adjusted pay period as 
required by subsection (b) of Section 17-131.
    (d) The appropriate officers of the Employer shall certify 
and submit the payroll records no later than 30 calendar days 
after each predesignated payday.  The certification shall 
constitute a confirmation of the accuracy of such deductions 
according to the provisions of this Article.
    (e) The Board has the authority to conduct payroll audits 
of a charter school to determine the existence of any 
delinquencies in contributions to the Fund, and such charter 
school shall be required to provide such books and records and 
contribution information as the Board or its authorized 
representative may require. The Board is also authorized to 
collect delinquent contributions from charter schools and 
develop procedures for the collection of such delinquencies. 
Collection procedures may include legal proceedings in the 
courts of the State of Illinois. Expenses, including reasonable 
attorneys' fees, incurred in the collection of delinquent 
contributions may be assessed by the Board against the charter 
school. 
An Employer
shall cause the Fund to receive all teachers' 
pension
contributions within 15 business days of the 
predesignated paydays. Amount
not received by the fifth day 
shall be deemed delinquent and subject to
late interest penalty 
(calculated at the average short-term rate of interest
earned 
by the Fund for the calendar month preceding the calendar month 
in
which the delinquency occurs) starting from the 
predesignated payday and
ending on the date payment is 
received.
The appropriate officers of the Employer shall

certify at least monthly to the Fund all amounts
deducted from

the salaries of contributors. The certification shall 
constitute a
confirmation of the accuracy of such deductions 
according to the
provisions of this Article. For the purpose of 
this Section the predesignated
payday shall be determined in 
accordance with each Employer's
payroll schedule for 
contributions to the Fund.

    The Board has the authority to conduct payroll audits of a 
charter school
to determine the existence of any delinquencies 
in contributions to the Fund,
and such charter school shall be 
required to provide such books and records and
contribution 
information as the Board or its authorized representative may

require.  The Board is also authorized to collect delinquent 
contributions from
charter schools and develop procedures for 
the collection of such
delinquencies.  Collection procedures 
may include legal proceedings in the
courts of the State of 
Illinois.  Expenses, including reasonable attorneys'
fees, 
incurred in the collection of delinquent contributions may be 
assessed by
the Board against the charter school.

(Source: P.A. 90-566, eff. 1-2-98.)

 
    Section 90. The State Mandates Act is amended by adding 
Section 8.35 as follows:
 
    (30 ILCS 805/8.35 new)
    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 
of this Act, no reimbursement by the State is required for the 
implementation of any mandate created by this amendatory Act of 
the 97th General Assembly.
 
 
    Section 99. Effective date. This Act takes effect July 1, 
2011. 
  


Effective Date:  7/1/2011