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Public Act 098-0427


 

Public Act 0427 98TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 098-0427
 
HB2583 EnrolledLRB098 07987 EFG 38077 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 17-106 and 17-132 as follows:
 
    (40 ILCS 5/17-106)  (from Ch. 108 1/2, par. 17-106)
    Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the city, including principals, assistant
principals, the general superintendent of schools, deputy
superintendents of schools, associate superintendents of
schools, assistant and district superintendents of schools,
members of the Board of Examiners, all other persons whose
employment requires a teaching certificate issued under the
laws governing the certification of teachers, any educational,
administrative, professional, or other staff employed in a
charter school operating in compliance with the Charter Schools
Law who is certified under the law governing the certification
of teachers, and employees of the Board, but excluding persons
contributing concurrently to any other public employee pension
system in Illinois for the same employment or receiving
retirement pensions under another Article of this Code for that
same employment, persons employed on an hourly basis (provided
that an Employer may not reclassify a non-hourly employee as an
hourly employee for the purpose of evading or avoiding its
obligations under this Article), and persons receiving
pensions from the Fund who are employed temporarily by an
Employer and not on an annual basis.
    All teachers or staff regardless of their position shall
presumptively be participants in the Fund, unless the Employer
establishes to the satisfaction of the Board that an individual
certified teacher or staff member is not working as a teacher
or administrator directly or indirectly with the Charter
School. Any certified teacher or staff employed by a corporate
or non-profit entity engaged in the administration of a charter
school shall presumptively be a participant in the Fund, unless
the organization establishes to the satisfaction of the Board
that an individual certified teacher or staff member is not
working as a teacher or administrator directly or indirectly
with the Charter School.
    In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the effective
date of this amendatory Act of the 91st General Assembly, and
whose right to participate in the Fund is established or
confirmed by this amendatory Act, such prior participation in
the Fund, including all contributions previously made and
service credits previously earned by the person, are hereby
validated.
    The changes made to this Section and Section 17-149 by this
amendatory Act of the 92nd General Assembly apply without
regard to whether the person was in service on or after the
effective date of this amendatory Act, notwithstanding
Sections 1-103.1 and 17-157.
(Source: P.A. 91-887, eff. 7-6-00; 92-416, eff. 8-17-01;
92-599, eff. 6-28-02.)
 
    (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) An Employer that fails to timely certify and submit
payroll records to the Fund is subject to a statutory penalty
in the amount of $100 per day for each day that a required
certification and submission is late.
    Amounts not received by the 30th calendar day after the
predesignated payday shall be deemed delinquent and subject to
a late interest penalty consisting of interest, which shall
accrue on a monthly basis at the Fund's then effective
actuarial rate of return, and liquidated damages in the amount
of $100 per day, not to exceed 20% of the principal
contributions due, which shall be mandatory except for good
cause shown and in the discretion of the Board (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.
    An Employer in possession of member contributions deducted
from payroll checks is holding Fund assets, and thus becomes a
fiduciary over those assets.
    (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.
    Each Charter School shall designate an administrator as a
"Pension Officer". The Pension Officer shall be responsible for
certifying payroll information and contributions due and
assuring resolution of reported payroll and contribution
deficiencies.
    (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.
(Source: P.A. 97-30, eff. 7-1-11.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.37 as follows:
 
    (30 ILCS 805/8.37 new)
    Sec. 8.37. 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 98th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/16/2013