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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, 17-132, and 17-149 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
2(i) more than one year of service credit per fiscal year, (ii)
3more than one day of service credit per calendar day, or (iii)
4more than 10 days of service credit in a 2 calendar week period
5as determined by the Fund.
6(Source: P.A. 97-30, eff. 7-1-11.)
 
7    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
8    Sec. 17-132. Payments and certification of salary
9deductions.
10    (a) An Employer shall cause the Fund to receive all
11members' payroll records and pension contributions within 30
12calendar days after each predesignated payday. For purposes of
13this Section, the predesignated payday shall be determined in
14accordance with each Employer's payroll schedule for
15contributions to the Fund.
16    (b) An Employer that fails to timely certify and submit
17payroll records to the Fund is subject to a statutory penalty
18in the amount of $100 per day for each day that a required
19certification and submission is late.
20    Amounts not received by the 30th calendar day after the
21predesignated payday shall be deemed delinquent and subject to
22a penalty consisting of interest, which shall accrue on a
23monthly basis at the Fund's then effective actuarial rate of
24return, and liquidated damages in the amount of $100 per day,
25not to exceed 20% of the principal contributions due, which

 

 

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1shall be mandatory except for good cause shown and in the
2discretion of the Board.
3    An Employer in possession of member contributions deducted
4from payroll checks is holding Fund assets, and thus becomes a
5fiduciary over those assets.
6    (c) The payroll records shall report (1) all pensionable
7salary earned in that pay period, exclusive of salaries for
8overtime, special services, or any employment on an optional
9basis, such as in summer school; (2) adjustments to pensionable
10salary, exclusive of salaries for overtime, special services,
11or any employment on an optional basis, such as in summer
12school, made in a pay period for any prior pay periods; (3)
13pension contributions attributable to pensionable salary
14earned in the reported pay period or the adjusted pay period as
15required by subsection (b) of Section 17-131; and (4) any
16salary paid by an Employer if that salary is compensation for
17validated service and is exclusive of salary for overtime,
18special services, or any employment on an optional basis, such
19as in summer school. Payroll records required by item (4) of
20this paragraph shall identify the number of days of service
21rendered by the member and whether each day of service
22represents a partial or whole day of service.
23    (d) The appropriate officers of the Employer shall certify
24and submit the payroll records no later than 30 calendar days
25after each predesignated payday. The certification shall
26constitute a confirmation of the accuracy of such deductions

 

 

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1according to the provisions of this Article.
2    Each Charter School shall designate an administrator as a
3"Pension Officer". The Pension Officer shall be responsible for
4certifying all payroll information, including and
5contributions due and certified sick days payable pursuant to
6Section 17-134, and assuring resolution of reported payroll and
7contribution deficiencies.
8    (e) The Board has the authority to conduct payroll audits
9of a charter school to determine the existence of any
10delinquencies in contributions to the Fund, and such charter
11school shall be required to provide such books and records and
12contribution information as the Board or its authorized
13representative may require. The Board is also authorized to
14collect delinquent contributions from charter schools and
15develop procedures for the collection of such delinquencies.
16Collection procedures may include legal proceedings in the
17courts of the State of Illinois. Expenses, including reasonable
18attorneys' fees, incurred in the collection of delinquent
19contributions may be assessed by the Board against the charter
20school.
21(Source: P.A. 97-30, eff. 7-1-11; 98-427, eff. 8-16-13.)
 
22    (40 ILCS 5/17-149)  (from Ch. 108 1/2, par. 17-149)
23    Sec. 17-149. Cancellation of pensions.
24    (a) If any person receiving a disability retirement pension
25from the Fund is re-employed as a teacher by an Employer, the

 

 

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1pension shall be cancelled on the date the re-employment
2begins, or on the first day of a payroll period for which
3service credit was validated, whichever is earlier.
4    (b) If any person receiving a service retirement pension
5from the Fund is re-employed as a teacher on a permanent or
6annual basis by an Employer, the pension shall be cancelled on
7the date the re-employment begins, or on the first day of a
8payroll period for which service credit was validated,
9whichever is earlier. However, subject to the limitations and
10requirements of subsection (c-5), the pension shall not be
11cancelled in the case of a service retirement pensioner who is
12re-employed on a temporary and non-annual basis or on an hourly
13basis.
14    (c) If the date of re-employment on a permanent or annual
15basis occurs within 5 school months after the date of previous
16retirement, exclusive of any vacation period, the member shall
17be deemed to have been out of service only temporarily and not
18permanently retired. Such person shall be entitled to pension
19payments for the time he could have been employed as a teacher
20and received salary, but shall not be entitled to pension for
21or during the summer vacation prior to his return to service.
22    When the member again retires on pension, the time of
23service and the money contributed by him during re-employment
24shall be added to the time and money previously credited. Such
25person must acquire 3 consecutive years of additional
26contributing service before he may retire again on a pension at

 

 

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1a rate and under conditions other than those in force or
2attained at the time of his previous retirement.
3    (c-5) The service retirement pension shall not be cancelled
4in the case of a service retirement pensioner who is
5re-employed as a teacher on a temporary and non-annual basis or
6on an hourly basis, so long as the person (1) does not work as a
7teacher for compensation on more than 100 days in a school year
8or and (2) does not accept gross compensation for the
9re-employment in a school year in excess of (i) $30,000 or (ii)
10in the case of a person who retires with at least 5 years of
11service as a principal, an amount that is equal to the daily
12rate normally paid to retired principals multiplied by 100.
13These limitations apply only to school years that begin on or
14after the effective date of this amendatory Act of the 97th
15General Assembly. Such re-employment does not require
16contributions, result in service credit, or constitute active
17membership in the Fund.
18    To be eligible for such re-employment without cancellation
19of pension, the pensioner must notify the Fund and the Board of
20Education of his or her intention to accept re-employment under
21this subsection (c-5) before beginning that re-employment (or
22if the re-employment began before the effective date of this
23amendatory Act, then within 30 days after that effective date).
24    An Employer The Board of Education must certify to the Fund
25the temporary and non-annual or hourly status and the
26compensation of each pensioner re-employed under this

 

 

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1subsection at least quarterly, and when the pensioner is
2approaching the earnings limitation under this subsection.
3    If the pensioner works more than 100 days or accepts excess
4gross compensation for such re-employment in any school year
5that begins on or after the effective date of this amendatory
6Act of the 97th General Assembly, the service retirement
7pension shall thereupon be cancelled.
8    The Board of the Fund shall adopt rules for the
9implementation and administration of this subsection.
10    (d) Notwithstanding Sections 1-103.1 and 17-157, the
11changes to this Section made by Public Act 90-32 apply without
12regard to whether termination of service occurred before the
13effective date of that Act and apply retroactively to August
1423, 1989.
15    Notwithstanding Sections 1-103.1 and 17-157, the changes
16to this Section and Section 17-106 made by Public Act 92-599
17apply without regard to whether termination of service occurred
18before the effective date of that Act.
19    Notwithstanding Sections 1-103.1 and 17-157, the changes
20to this Section made by this amendatory Act of the 97th General
21Assembly apply without regard to whether termination of service
22occurred before the effective date of this amendatory Act.
23(Source: P.A. 97-912, eff. 8-8-12.)
 
24    Section 90. The State Mandates Act is amended by adding
25Section 8.39 as follows:
 

 

 

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1    (30 ILCS 805/8.39 new)
2    Sec. 8.39. Exempt mandate. Notwithstanding Sections 6 and 8
3of this Act, no reimbursement by the State is required for the
4implementation of any mandate created by this amendatory Act of
5the 99th General Assembly.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.