Illinois General Assembly - Full Text of HB2502
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Full Text of HB2502  99th General Assembly


Rep. Daniel J. Burke

Filed: 3/18/2015





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2    AMENDMENT NO. ______. Amend House Bill 2502 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 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



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1or more days of service in a fiscal year or 10 or more months of
2service in a fiscal year shall constitute one year of service
4    (d) Notwithstanding subsections (b) and (c) of this
5Section, validated service in any fiscal year shall be that
6fraction of a year equal to the ratio of the number of days of
7service to 170 days.
8    (e) For purposes of this Section, no contributor shall earn
9(i) more than one year of service credit per fiscal year, (ii)
10more than one day of service credit per calendar day, or (iii)
11more than 10 days of service credit in a 2 calendar week period
12as determined by the Fund.
13(Source: P.A. 97-30, eff. 7-1-11.)
14    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
15    Sec. 17-132. Payments and certification of salary
17    (a) An Employer shall cause the Fund to receive all
18members' payroll records and pension contributions within 30
19calendar days after each predesignated payday. For purposes of
20this Section, the predesignated payday shall be determined in
21accordance with each Employer's payroll schedule for
22contributions to the Fund.
23    (b) An Employer that fails to timely certify and submit
24payroll records to the Fund is subject to a statutory penalty
25in the amount of $100 per day for each day that a required



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1certification and submission is late.
2    Amounts not received by the 30th calendar day after the
3predesignated payday shall be deemed delinquent and subject to
4a penalty consisting of interest, which shall accrue on a
5monthly basis at the Fund's then effective actuarial rate of
6return, and liquidated damages in the amount of $100 per day,
7not to exceed 20% of the principal contributions due, which
8shall be mandatory except for good cause shown and in the
9discretion of the Board.
10    An Employer in possession of member contributions deducted
11from payroll checks is holding Fund assets, and thus becomes a
12fiduciary over those assets.
13    (c) The payroll records shall report (1) all pensionable
14salary earned in that pay period, exclusive of salaries for
15overtime, special services, or any employment on an optional
16basis, such as in summer school; (2) adjustments to pensionable
17salary, exclusive of salaries for overtime, special services,
18or any employment on an optional basis, such as in summer
19school, made in a pay period for any prior pay periods; (3)
20pension contributions attributable to pensionable salary
21earned in the reported pay period or the adjusted pay period as
22required by subsection (b) of Section 17-131; and (4) any
23salary paid by an Employer if that salary is compensation for
24validated service and is exclusive of salary for overtime,
25special services, or any employment on an optional basis, such
26as in summer school. Payroll records required by item (4) of



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1this paragraph shall identify the number of days of service
2rendered by the member and whether each day of service
3represents a partial or whole day of service.
4    (d) The appropriate officers of the Employer shall certify
5and submit the payroll records no later than 30 calendar days
6after each predesignated payday. The certification shall
7constitute a confirmation of the accuracy of such deductions
8according to the provisions of this Article.
9    Each Charter School shall designate an administrator as a
10"Pension Officer". The Pension Officer shall be responsible for
11certifying all payroll information, including and
12contributions due and certified sick days payable pursuant to
13Section 17-134, and assuring resolution of reported payroll and
14contribution deficiencies.
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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2(Source: P.A. 97-30, eff. 7-1-11; 98-427, eff. 8-16-13.)
3    (40 ILCS 5/17-149)  (from Ch. 108 1/2, par. 17-149)
4    Sec. 17-149. Cancellation of pensions.
5    (a) If any person receiving a disability retirement pension
6from the Fund is re-employed as a teacher by an Employer, the
7pension shall be cancelled on the date the re-employment
8begins, or on the first day of a payroll period for which
9service credit was validated, whichever is earlier.
10    (b) If any person receiving a service retirement pension
11from the Fund is re-employed as a teacher on a permanent or
12annual basis by an Employer, the pension shall be cancelled on
13the date the re-employment begins, or on the first day of a
14payroll period for which service credit was validated,
15whichever is earlier. However, subject to the limitations and
16requirements of subsection (c-5), the pension shall not be
17cancelled in the case of a service retirement pensioner who is
18re-employed on a temporary and non-annual basis or on an hourly
20    (c) If the date of re-employment on a permanent or annual
21basis occurs within 5 school months after the date of previous
22retirement, exclusive of any vacation period, the member shall
23be deemed to have been out of service only temporarily and not
24permanently retired. Such person shall be entitled to pension
25payments for the time he could have been employed as a teacher



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1and received salary, but shall not be entitled to pension for
2or during the summer vacation prior to his return to service.
3    When the member again retires on pension, the time of
4service and the money contributed by him during re-employment
5shall be added to the time and money previously credited. Such
6person must acquire 3 consecutive years of additional
7contributing service before he may retire again on a pension at
8a rate and under conditions other than those in force or
9attained at the time of his previous retirement.
10    (c-5) The service retirement pension shall not be cancelled
11in the case of a service retirement pensioner who is
12re-employed as a teacher on a temporary and non-annual basis or
13on an hourly basis, so long as the person (1) does not work as a
14teacher for compensation on more than 100 days in a school year
15or and (2) does not accept gross compensation for the
16re-employment in a school year in excess of (i) $30,000 or (ii)
17in the case of a person who retires with at least 5 years of
18service as a principal, an amount that is equal to the daily
19rate normally paid to retired principals multiplied by 100.
20These limitations apply only to school years that begin on or
21after the effective date of this amendatory Act of the 97th
22General Assembly. Such re-employment does not require
23contributions, result in service credit, or constitute active
24membership in the Fund.
25    To be eligible for such re-employment without cancellation
26of pension, the pensioner must notify the Fund and the Board of



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1Education of his or her intention to accept re-employment under
2this subsection (c-5) before beginning that re-employment (or
3if the re-employment began before the effective date of this
4amendatory Act, then within 30 days after that effective date).
5    An Employer The Board of Education must certify to the Fund
6the temporary and non-annual or hourly status and the
7compensation of each pensioner re-employed under this
8subsection at least quarterly, and when the pensioner is
9approaching the earnings limitation under this subsection.
10    If the pensioner works more than 100 days or accepts excess
11gross compensation for such re-employment in any school year
12that begins on or after the effective date of this amendatory
13Act of the 97th General Assembly, the service retirement
14pension shall thereupon be cancelled.
15    The Board of the Fund shall adopt rules for the
16implementation and administration of this subsection.
17    (d) Notwithstanding Sections 1-103.1 and 17-157, the
18changes to this Section made by Public Act 90-32 apply without
19regard to whether termination of service occurred before the
20effective date of that Act and apply retroactively to August
2123, 1989.
22    Notwithstanding Sections 1-103.1 and 17-157, the changes
23to this Section and Section 17-106 made by Public Act 92-599
24apply without regard to whether termination of service occurred
25before the effective date of that Act.
26    Notwithstanding Sections 1-103.1 and 17-157, the changes



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1to this Section made by this amendatory Act of the 97th General
2Assembly apply without regard to whether termination of service
3occurred before the effective date of this amendatory Act.
4(Source: P.A. 97-912, eff. 8-8-12.)
5    Section 90. The State Mandates Act is amended by adding
6Section 8.39 as follows:
7    (30 ILCS 805/8.39 new)
8    Sec. 8.39. 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 99th General Assembly.
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".