Illinois General Assembly - Full Text of SB1523
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Full Text of SB1523  98th General Assembly




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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 17-106 and 17-132 as follows:
6    (40 ILCS 5/17-106)  (from Ch. 108 1/2, par. 17-106)
7    Sec. 17-106. Contributor, member or teacher.
8"Contributor", "member" or "teacher": All members of the
9teaching force of the city, including principals, assistant
10principals, the general superintendent of schools, deputy
11superintendents of schools, associate superintendents of
12schools, assistant and district superintendents of schools,
13members of the Board of Examiners, all other persons whose
14employment requires a teaching certificate issued under the
15laws governing the certification of teachers, any educational,
16administrative, professional, or other staff employed in a
17charter school operating in compliance with the Charter Schools
18Law who is certified under the law governing the certification
19of teachers, and employees of the Board, but excluding persons
20contributing concurrently to any other public employee pension
21system in Illinois for the same employment or receiving
22retirement pensions under another Article of this Code for that
23same employment, persons employed on an hourly basis (provided



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1that an Employer may not reclassify a non-hourly employee as an
2hourly employee for the purpose of evading or avoiding its
3obligations under this Article), and persons receiving
4pensions from the Fund who are employed temporarily by an
5Employer and not on an annual basis.
6    All teachers or staff regardless of their position shall
7presumptively be participants in the Fund, unless the Employer
8establishes to the satisfaction of the Board that an individual
9certified teacher or staff member is not working as a teacher
10or administrator directly or indirectly with the Charter
11School. Any certified teacher or staff employed by a corporate
12or non-profit entity engaged in the administration of a charter
13school shall presumptively be a participant in the Fund, unless
14the organization establishes to the satisfaction of the Board
15that an individual certified teacher or staff member is not
16working as a teacher or administrator directly or indirectly
17with the Charter School.
18    In the case of a person who has been making contributions
19and otherwise participating in this Fund prior to the effective
20date of this amendatory Act of the 91st General Assembly, and
21whose right to participate in the Fund is established or
22confirmed by this amendatory Act, such prior participation in
23the Fund, including all contributions previously made and
24service credits previously earned by the person, are hereby
26    The changes made to this Section and Section 17-149 by this



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1amendatory Act of the 92nd General Assembly apply without
2regard to whether the person was in service on or after the
3effective date of this amendatory Act, notwithstanding
4Sections 1-103.1 and 17-157.
5(Source: P.A. 91-887, eff. 7-6-00; 92-416, eff. 8-17-01;
692-599, eff. 6-28-02.)
7    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
8    Sec. 17-132. Payments and certification of salary
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 late interest penalty consisting of interest, which shall
23accrue on a monthly basis at the Fund's then effective
24actuarial rate of return, and liquidated damages in the amount
25of $100 per day, not to exceed 20% of the principal



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1contributions due, which shall be mandatory except for good
2cause shown and in the discretion of the Board (calculated at
3the average short-term rate of interest earned by the Fund for
4the calendar month preceding the calendar month in which the
5delinquency occurs) starting from the predesignated payday and
6ending on the date payment is received.
7    An Employer in possession of member contributions deducted
8from payroll checks is holding Fund assets, and thus becomes a
9fiduciary over those assets.
10    (c) The payroll records shall report (1) all pensionable
11salary earned in that pay period, exclusive of salaries for
12overtime, special services, or any employment on an optional
13basis, such as in summer school; (2) adjustments to pensionable
14salary, exclusive of salaries for overtime, special services,
15or any employment on an optional basis, such as in summer
16school, made in a pay period for any prior pay periods; (3)
17pension contributions attributable to pensionable salary
18earned in the reported pay period or the adjusted pay period as
19required by subsection (b) of Section 17-131.
20    (d) The appropriate officers of the Employer shall certify
21and submit the payroll records no later than 30 calendar days
22after each predesignated payday. The certification shall
23constitute a confirmation of the accuracy of such deductions
24according to the provisions of this Article.
25    Each Charter School shall designate an administrator as a
26"Pension Officer". The Pension Officer shall be responsible for



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1certifying payroll information and contributions due and
2assuring resolution of reported payroll and contribution
4    (e) The Board has the authority to conduct payroll audits
5of a charter school to determine the existence of any
6delinquencies in contributions to the Fund, and such charter
7school shall be required to provide such books and records and
8contribution information as the Board or its authorized
9representative may require. The Board is also authorized to
10collect delinquent contributions from charter schools and
11develop procedures for the collection of such delinquencies.
12Collection procedures may include legal proceedings in the
13courts of the State of Illinois. Expenses, including reasonable
14attorneys' fees, incurred in the collection of delinquent
15contributions may be assessed by the Board against the charter
17(Source: P.A. 97-30, eff. 7-1-11.)
18    Section 90. The State Mandates Act is amended by adding
19Section 8.37 as follows:
20    (30 ILCS 805/8.37 new)
21    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
22of this Act, no reimbursement by the State is required for the
23implementation of any mandate created by this amendatory Act of
24the 98th General Assembly.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.