Public Act 099-0176
 
HB2502 EnrolledLRB099 07451 EFG 27572 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 17-114, 17-132, and 17-149 as follows:
 
    (40 ILCS 5/17-114)  (from Ch. 108 1/2, par. 17-114)
    Sec. 17-114. Computation of service.
    (a) When computing days of validated service, contributors
shall receive one day of service credit for each day for which
they are paid salary representing a partial or a full day of
employment rendered to an Employer or the Board.
    (b) When computing months of validated service, 17 or more
days of service rendered to an Employer or the Board in a
calendar month shall entitle a contributor to one month of
service credit for purposes of this Article.
    (c) When computing years of validated service rendered, 170
or more days of service in a fiscal year or 10 or more months of
service in a fiscal year shall constitute one year of service
credit.
    (d) Notwithstanding subsections (b) and (c) of this
Section, validated service in any fiscal year shall be that
fraction of a year equal to the ratio of the number of days of
service to 170 days.
    (e) For purposes of this Section, no contributor shall earn
(i) more than one year of service credit per fiscal year, (ii)
more than one day of service credit per calendar day, or (iii)
more than 10 days of service credit in a 2 calendar week period
as determined by the Fund.
(Source: P.A. 97-30, eff. 7-1-11.)
 
    (40 ILCS 5/17-132)  (from Ch. 108 1/2, par. 17-132)
    Sec. 17-132. Payments and certification of salary
deductions.
    (a) An Employer shall cause the Fund to receive all
members' payroll records and pension contributions within 30
calendar days after each predesignated payday. For purposes of
this Section, the predesignated payday shall be determined in
accordance with each Employer's payroll schedule for
contributions to the Fund.
    (b) An Employer that fails to timely certify and submit
payroll records to the Fund is subject to a statutory penalty
in the amount of $100 per day for each day that a required
certification and submission is late.
    Amounts not received by the 30th calendar day after the
predesignated payday shall be deemed delinquent and subject to
a penalty consisting of interest, which shall accrue on a
monthly basis at the Fund's then effective actuarial rate of
return, and liquidated damages in the amount of $100 per day,
not to exceed 20% of the principal contributions due, which
shall be mandatory except for good cause shown and in the
discretion of the Board.
    An Employer in possession of member contributions deducted
from payroll checks is holding Fund assets, and thus becomes a
fiduciary over those assets.
    (c) The payroll records shall report (1) all pensionable
salary earned in that pay period, exclusive of salaries for
overtime, special services, or any employment on an optional
basis, such as in summer school; (2) adjustments to pensionable
salary, exclusive of salaries for overtime, special services,
or any employment on an optional basis, such as in summer
school, made in a pay period for any prior pay periods; (3)
pension contributions attributable to pensionable salary
earned in the reported pay period or the adjusted pay period as
required by subsection (b) of Section 17-131; and (4) any
salary paid by an Employer if that salary is compensation for
validated service and is exclusive of salary for overtime,
special services, or any employment on an optional basis, such
as in summer school. Payroll records required by item (4) of
this paragraph shall identify the number of days of service
rendered by the member and whether each day of service
represents a partial or whole day of service.
    (d) The appropriate officers of the Employer shall certify
and submit the payroll records no later than 30 calendar days
after each predesignated payday. The certification shall
constitute a confirmation of the accuracy of such deductions
according to the provisions of this Article.
    Each Charter School shall designate an administrator as a
"Pension Officer". The Pension Officer shall be responsible for
certifying all payroll information, including and
contributions due and certified sick days payable pursuant to
Section 17-134, and assuring resolution of reported payroll and
contribution deficiencies.
    (e) The Board has the authority to conduct payroll audits
of a charter school to determine the existence of any
delinquencies in contributions to the Fund, and such charter
school shall be required to provide such books and records and
contribution information as the Board or its authorized
representative may require. The Board is also authorized to
collect delinquent contributions from charter schools and
develop procedures for the collection of such delinquencies.
Collection procedures may include legal proceedings in the
courts of the State of Illinois. Expenses, including reasonable
attorneys' fees, incurred in the collection of delinquent
contributions may be assessed by the Board against the charter
school.
(Source: P.A. 97-30, eff. 7-1-11; 98-427, eff. 8-16-13.)
 
    (40 ILCS 5/17-149)  (from Ch. 108 1/2, par. 17-149)
    Sec. 17-149. Cancellation of pensions.
    (a) If any person receiving a disability retirement pension
from the Fund is re-employed as a teacher by an Employer, the
pension shall be cancelled on the date the re-employment
begins, or on the first day of a payroll period for which
service credit was validated, whichever is earlier.
    (b) If any person receiving a service retirement pension
from the Fund is re-employed as a teacher on a permanent or
annual basis by an Employer, the pension shall be cancelled on
the date the re-employment begins, or on the first day of a
payroll period for which service credit was validated,
whichever is earlier. However, subject to the limitations and
requirements of subsection (c-5), the pension shall not be
cancelled in the case of a service retirement pensioner who is
re-employed on a temporary and non-annual basis or on an hourly
basis.
    (c) If the date of re-employment on a permanent or annual
basis occurs within 5 school months after the date of previous
retirement, exclusive of any vacation period, the member shall
be deemed to have been out of service only temporarily and not
permanently retired. Such person shall be entitled to pension
payments for the time he could have been employed as a teacher
and received salary, but shall not be entitled to pension for
or during the summer vacation prior to his return to service.
    When the member again retires on pension, the time of
service and the money contributed by him during re-employment
shall be added to the time and money previously credited. Such
person must acquire 3 consecutive years of additional
contributing service before he may retire again on a pension at
a rate and under conditions other than those in force or
attained at the time of his previous retirement.
    (c-5) The service retirement pension shall not be cancelled
in the case of a service retirement pensioner who is
re-employed as a teacher on a temporary and non-annual basis or
on an hourly basis, so long as the person (1) does not work as a
teacher for compensation on more than 100 days in a school year
or and (2) does not accept gross compensation for the
re-employment in a school year in excess of (i) $30,000 or (ii)
in the case of a person who retires with at least 5 years of
service as a principal, an amount that is equal to the daily
rate normally paid to retired principals multiplied by 100.
These limitations apply only to school years that begin on or
after the effective date of this amendatory Act of the 97th
General Assembly. Such re-employment does not require
contributions, result in service credit, or constitute active
membership in the Fund.
    To be eligible for such re-employment without cancellation
of pension, the pensioner must notify the Fund and the Board of
Education of his or her intention to accept re-employment under
this subsection (c-5) before beginning that re-employment (or
if the re-employment began before the effective date of this
amendatory Act, then within 30 days after that effective date).
    An Employer The Board of Education must certify to the Fund
the temporary and non-annual or hourly status and the
compensation of each pensioner re-employed under this
subsection at least quarterly, and when the pensioner is
approaching the earnings limitation under this subsection.
    If the pensioner works more than 100 days or accepts excess
gross compensation for such re-employment in any school year
that begins on or after the effective date of this amendatory
Act of the 97th General Assembly, the service retirement
pension shall thereupon be cancelled.
    The Board of the Fund shall adopt rules for the
implementation and administration of this subsection.
    (d) Notwithstanding Sections 1-103.1 and 17-157, the
changes to this Section made by Public Act 90-32 apply without
regard to whether termination of service occurred before the
effective date of that Act and apply retroactively to August
23, 1989.
    Notwithstanding Sections 1-103.1 and 17-157, the changes
to this Section and Section 17-106 made by Public Act 92-599
apply without regard to whether termination of service occurred
before the effective date of that Act.
    Notwithstanding Sections 1-103.1 and 17-157, the changes
to this Section made by this amendatory Act of the 97th General
Assembly apply without regard to whether termination of service
occurred before the effective date of this amendatory Act.
(Source: P.A. 97-912, eff. 8-8-12.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.39 as follows:
 
    (30 ILCS 805/8.39 new)
    Sec. 8.39. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 99th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.