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Public Act 101-0261


 

Public Act 0261 101ST GENERAL ASSEMBLY

  
  
  

 


 
Public Act 101-0261
 
HB2617 EnrolledLRB101 08807 RPS 53895 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 17-131 and 17-132 as follows:
 
    (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, extracurricular
activities 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.
(Source: P.A. 97-30, eff. 7-1-11.)
 
    (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 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.
    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, extracurricular activities special services, or any
employment on an optional basis, such as in summer school; (2)
adjustments to pensionable salary, exclusive of salaries for
overtime, extracurricular activities 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; and (4) any salary paid by an
Employer if that salary is compensation for validated service
and is exclusive of salary for overtime, extracurricular
activities special services, or any employment on an optional
basis, such as in summer school. Payroll records required by
item (4) of this paragraph shall identify the number of days of
service rendered by the member and whether each day of service
represents a partial or whole day of service.
    (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 all payroll information, including contributions
due and certified sick days payable pursuant to Section 17-134,
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. 98-427, eff. 8-16-13; 99-176, eff. 7-29-15.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/9/2019