97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1831

 

Introduced 2/9/2011, by Sen. Kwame Raoul

 

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

 

SB1831LRB097 08644 JDS 48773 b

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 days of validated service, contributors
9shall receive one day of service credit for each day for which
10they are paid salary representing a partial or a full day of
11employment rendered to an Employer or the Board.
12    (b) When computing months of validated service, 17 or more
13days of service rendered to an Employer or the Board in a
14calendar month shall entitle a contributor to one month of
15service credit for purposes of this Article.
16    (c) When computing years of validated service rendered, 170
17or more days of service in a fiscal year or 10 or more months of
18service in a fiscal year shall constitute one year of service
19credit.
20    (d) Notwithstanding subsections (b) and (c) of this
21Section, validated service in any fiscal year shall be that
22fraction of a year equal to the ratio of the number of days of
23service to 170 days.

 

 

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1    (e) For purposes of this Section, no contributor shall earn
2more than one year of service credit per fiscal year.
3When computing validated service, 10 months or more shall
4constitute one year of service unless a lesser number of months
5is established as a school year by an Employer. Salary
6representing 5 days' or more employment paid in a semi-monthly
7or bi-weekly payroll period, whichever the case may be, shall
8be considered for the purpose of computing service credit and
9shall entitle a contributor to 1/2 month of service. When
10computing total service rendered, 3 to 10 days' employment in
11the final total of such service shall entitle a contributor to
121/2 month of service.
13(Source: P.A. 90-566, eff. 1-2-98.)
 
14    (40 ILCS 5/17-131)  (from Ch. 108 1/2, par. 17-131)
15    Sec. 17-131. Administration of payroll deductions.
16    (a) An Employer or the Board shall make pension deductions
17in each pay period on the basis of the salary earned in that
18period, exclusive of salaries for overtime, special services,
19or any employment on an optional basis, such as in summer
20school.
21    (b) If a salary paid in a pay period includes adjustments
22on account of errors or omissions in prior pay periods, then
23salary amounts and related pension deductions shall be
24separately identified as to the adjusted pay period and
25deductions by the Employer or the Board shall be at rates in

 

 

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1force during the applicable adjusted pay period.
2    (c) If members earn salaries for the school year, as
3established by an Employer, or if they earn annual salaries
4over more than a 10-calendar month period, or if they earn
5annual salaries over more than 170 calendar days, the required
6contribution amount shall be deducted by the Employer in
7installments on the basis of salary earned in each pay period.
8The total amounts for each pay period shall be deducted
9whenever salary payments represent a partial or whole day's
10pay.
11    (d) If an Employer or the Board pays a salary to a member
12for vacation periods, then the salary shall be considered part
13of the member's pensionable salary, shall be subject to the
14standard deductions for pension contributions, and shall be
15considered to represent pay for the number of whole days of
16vacation.
17    (e) If deductions from salaries result in amounts of less
18than one cent, the fractional sums shall be increased to the
19next higher cent. Any excess of these fractional increases over
20the prescribed annual contributions shall be credited to the
21members' accounts.
22    (f) In the event that, pursuant to Section 17-130.1,
23employee contributions are picked up or made by the Board of
24Education on behalf of its employees, then the amount of the
25employee contributions which are picked up or made in that
26manner shall not be deducted from the salaries of such

 

 

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1employees.
2During any period in which salaries are paid, such deductions
3by an Employer or the Board shall be made on the basis of the
4full salary rates, exclusive of salaries for overtime, special
5services or any employment on an optional basis, such as in
6summer school. If salaries represent adjustments on account of
7error, deductions by the Employer or the Board shall be at
8rates in force during the applicable payroll period. If
9teachers receive salaries for the school year, as established
10by an Employer, or if they receive salaries for more than 10
11calendar months, the amount required for each year of service
12shall be deducted by such Employer in installments. The total
13amounts for each semimonthly payroll period, or bi-weekly
14payroll period, as the case may be, shall be deducted only when
15salary payments represent 5 days' pay or more. If an Employer
16or the Board pays salaries to members of the teaching force for
17vacation periods, the salary shall be considered part of the
18teacher's annual salary, shall be subject to the standard
19deductions for pension contributions, and shall be considered
20to represent pay for 5 or more days' employment in a bi-weekly
21or semi-monthly payroll period for purposes set forth in this
22Section. If deductions from salaries result in amounts of less
23than one cent, the fractional sums shall be increased to the
24next higher cent. Any excess of these fractional increases over
25the prescribed annual contributions shall be credited to the
26teachers' accounts.

 

 

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

 

 

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1salary earned in that pay period, exclusive of salaries for
2overtime, special services, or any employment on an optional
3basis, such as in summer school; (2) adjustments to pensionable
4salary, exclusive of salaries for overtime, special services,
5or any employment on an optional basis, such as in summer
6school, made in a pay period for any prior pay periods; (3)
7pension contributions attributable to pensionable salary
8earned in the reported pay period or the adjusted pay period as
9required by subsection (b) of Section 17-131.
10    (d) The appropriate officers of the Employer shall certify
11and submit the payroll records no later than 30 calendar days
12after each predesignated payday. The certification shall
13constitute a confirmation of the accuracy of such deductions
14according to the provisions of this Article.
15    (e) The Board has the authority to conduct payroll audits
16of a charter school to determine the existence of any
17delinquencies in contributions to the Fund, and such charter
18school shall be required to provide such books and records and
19contribution information as the Board or its authorized
20representative may require. The Board is also authorized to
21collect delinquent contributions from charter schools and
22develop procedures for the collection of such delinquencies.
23Collection procedures may include legal proceedings in the
24courts of the State of Illinois. Expenses, including reasonable
25attorneys' fees, incurred in the collection of delinquent
26contributions may be assessed by the Board against the charter

 

 

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1school.
2An Employer shall cause the Fund to receive all teachers'
3pension contributions within 15 business days of the
4predesignated paydays. Amount not received by the fifth day
5shall be deemed delinquent and subject to late interest penalty
6(calculated at the average short-term rate of interest earned
7by the Fund for the calendar month preceding the calendar month
8in which the delinquency occurs) starting from the
9predesignated payday and ending on the date payment is
10received. The appropriate officers of the Employer shall
11certify at least monthly to the Fund all amounts deducted from
12the salaries of contributors. The certification shall
13constitute a confirmation of the accuracy of such deductions
14according to the provisions of this Article. For the purpose of
15this Section the predesignated payday shall be determined in
16accordance with each Employer's payroll schedule for
17contributions to the Fund.
18    The Board has the authority to conduct payroll audits of a
19charter school to determine the existence of any delinquencies
20in contributions to the Fund, and such charter school shall be
21required to provide such books and records and contribution
22information as the Board or its authorized representative may
23require. The Board is also authorized to collect delinquent
24contributions from charter schools and develop procedures for
25the collection of such delinquencies. Collection procedures
26may include legal proceedings in the courts of the State of

 

 

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1Illinois. Expenses, including reasonable attorneys' fees,
2incurred in the collection of delinquent contributions may be
3assessed by the Board against the charter school.
4(Source: P.A. 90-566, eff. 1-2-98.)
 
5    Section 90. The State Mandates Act is amended by adding
6Section 8.35 as follows:
 
7    (30 ILCS 805/8.35 new)
8    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
9of this Act, no reimbursement by the State is required for the
10implementation of any mandate created by this amendatory Act of
11the 97th General Assembly.
 
12    Section 99. Effective date. This Act takes effect July 1,
132011.