97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3399

 

Introduced 2/24/2011, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/17-114  from Ch. 108 1/2, par. 17-114
40 ILCS 5/17-131  from Ch. 108 1/2, par. 17-131
40 ILCS 5/17-132  from Ch. 108 1/2, par. 17-132
30 ILCS 805/8.35 new

    Amends the Chicago Teachers Article of the Illinois Pension Code. Changes the method for calculating validated service. Limits the amount of pension credit that may be granted each year. Authorizes deductions for omissions made in prior pay periods. Requires deductions to be made whenever salary represents pay for a day or part of a day (rather than pay for 5 days). Makes other changes concerning the administration of payroll deductions. Requires employers to cause the Fund to receive all payroll records and pension contributions (rather than just pension contributions) within 30 calendar (rather than 15 business) days after each predesignated payday. Makes other changes concerning the payment and certification of salary deductions. Amends the State Mandates Act to require implementation without reimbursement. Effective July 1, 2011.


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

 

 

A BILL FOR

 

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1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 17-114, 17-131, and 17-132 as follows:
 
6    (40 ILCS 5/17-114)  (from Ch. 108 1/2, par. 17-114)
7    Sec. 17-114. Computation of service.
8    (a) When computing validated service, contributors shall
9receive one day of pension service credit for each day for
10which they are paid salary representing a partial or full day
11of employment.
12    (b) When computing validated service, 17 or more days of
13service rendered to an employer in a calendar month shall
14entitle a contributor to one month of service credit for
15purposes of this Article.
16    (c) When computing total validated service rendered, 170 or
17more days of service in a fiscal or school year or 10 or more
18months of service in a fiscal year or school year or more shall
19constitute one year of service unless a lesser number of days
20or months is established as a school year by an Employer.
21    (d) Validated service in any fiscal or school year shall be
22that fraction of a year equal to the ratio of the number of
23days of service during the school term to 170 days or a lesser

 

 

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1number of days if that shorter period is determined to be a
2school year.
3    (e) No more than one year of pension credit may be granted
4per fiscal or school year.
5Salary representing 5 days' or more employment paid in a
6semi-monthly or bi-weekly payroll period, whichever the case
7may be, shall be considered for the purpose of computing
8service credit and shall entitle a contributor to 1/2 month of
9service. When computing total service rendered, 3 to 10 days'
10employment in the final total of such service shall entitle a
11contributor to 1/2 month of service.
12(Source: P.A. 90-566, eff. 1-2-98.)
 
13    (40 ILCS 5/17-131)  (from Ch. 108 1/2, par. 17-131)
14    Sec. 17-131. Administration of payroll deductions.
15    (a) An employer or the Board shall make pension deductions
16in each pay period on the basis of the salary earned in that
17period, During any period in which salaries are paid, such
18deductions by an Employer or the Board shall be made on the
19basis of the full salary rates, exclusive of salaries for
20overtime, special services, or any employment on an optional
21basis, such as in summer school.
22    (b) If a salary paid in a pay period includes salaries
23represent adjustments on account of errors or omissions in
24prior pay periods error, then salary amounts and related
25pension deductions shall be separately identified as to the

 

 

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1adjusted pay period and deductions by the employer Employer or
2the Board shall be at rates in force during the applicable
3adjusted pay payroll period.
4    (c) If members earn teachers receive salaries for the
5school year, as established by an employer Employer, or if they
6earn annual salaries over receive salaries for more than a
710-calendar month period months, or if they earn annual
8salaries over more than 170 calendar days, the amount required
9contribution amount for each year of service shall be deducted
10by the employer such Employer in installments on the basis of
11salary earned in each pay period. The total amounts for each
12pay semimonthly payroll period, or bi-weekly payroll period, as
13the case may be, shall be deducted whenever only when salary
14payments represent a partial or whole day's 5 days' pay or
15more.
16    (d) If an employer Employer or the Board pays a salary
17salaries to a member members of the teaching force for vacation
18periods, then the salary shall be considered part of the
19member's pensionable teacher's annual salary, shall be subject
20to the standard deductions for pension contributions, and shall
21be considered to represent pay for the number of whole days of
22vacation 5 or more days' employment in a bi-weekly or
23semi-monthly payroll period for purposes set forth in this
24Section.
25    (e) If deductions from salaries result in amounts of less
26than one cent, the fractional sums shall be increased to the

 

 

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1next higher cent. Any excess of these fractional increases over
2the prescribed annual contributions shall be credited to the
3members' teachers' accounts.
4    In the event that, pursuant to Section 17-130.1, employee
5contributions are picked up or made by the Board of Education
6on behalf of its employees from the proceeds of the tax levied
7under Section 34-60 of the School Code, then the amount of the
8employee contributions which are picked up or made in that
9manner shall not be deducted from the salaries of such
10employees.
11(Source: P.A. 90-566, eff. 1-2-98.)
 
12    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
13    Sec. 17-132. Payments and certification of salary
14deductions.
15    (a) An employer Employer shall cause the Fund to receive
16all members' teachers' payroll records and pension
17contributions within 30 calendar 15 business days after each of
18the predesignated payday paydays. For purposes of this Section,
19the predesignated payday shall be determined in accordance with
20each employer's payroll schedule for contributions to the Fund.
21    (b) Amounts Amount not received by the 30th calendar fifth
22day after the predesignated payday shall be deemed delinquent
23and subject to late interest penalty (calculated at the average
24short-term rate of interest earned by the Fund for the calendar
25month preceding the calendar month in which the delinquency

 

 

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1occurs) starting from the predesignated payday and ending on
2the date payment is received.
3    (c) The payroll records shall report: (1) all pensionable
4salary earned in that pay period, exclusive of salaries for
5overtime, special services, or any employment on an optional
6basis, such as in summer school; (2) adjustments to pensionable
7salary, exclusive of salaries for overtime, special services,
8or any employment on an optional basis, such as in summer
9school, made in a pay period for any prior pay periods; and (3)
10pension contributions attributable to pensionable salary
11earned in the reported pay period or the adjusted pay period as
12required by subsection (b) of Section 17-131.
13    (d) The appropriate officers of the employer Employer shall
14certify and submit the payroll records no later than 30
15calendar days after each predesignated payday at least monthly
16to the Fund all amounts deducted from the salaries of
17contributors. The certification shall constitute a
18confirmation of the accuracy of such deductions according to
19the provisions of this Article. For the purpose of this Section
20the predesignated payday shall be determined in accordance with
21each Employer's payroll schedule for contributions to the Fund.
22    (e) The Board has the authority to conduct payroll audits
23of a charter school to determine the existence of any
24delinquencies in contributions to the Fund, and such charter
25school shall be required to provide such books and records and
26contribution information as the Board or its authorized

 

 

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1representative may require. The Board is also authorized to
2collect delinquent contributions from charter schools and
3develop procedures for the collection of such delinquencies.
4Collection procedures may include legal proceedings in the
5courts of the State of Illinois. Expenses, including reasonable
6attorneys' fees, incurred in the collection of delinquent
7contributions may be assessed by the Board against the charter
8school.
9(Source: P.A. 90-566, eff. 1-2-98.)
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.35 as follows:
 
12    (30 ILCS 805/8.35 new)
13    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 97th General Assembly.
 
17    Section 99. Effective date. This Act takes effect July 1,
182011.