Public Act 101-0261
 
HB2617 EnrolledLRB101 08807 RPS 53895 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 17-131 and 17-132 as follows:
 



    (40 ILCS 5/17-131)  (from Ch. 108 1/2, par. 17-131)



    Sec. 17-131. Administration of payroll deductions. 
    (a) An Employer or the Board shall make pension deductions 
in each pay period on the basis of the salary earned in that 
period, exclusive of salaries for overtime, extracurricular 
activities special services, or any employment on an optional 
basis, such as in summer school.
    (b) If a salary paid in a pay period includes adjustments 
on account of errors or omissions in prior pay periods, then 
salary amounts and related pension deductions shall be 
separately identified as to the adjusted pay period and 
deductions by the Employer or the Board shall be at rates in 
force during the applicable adjusted pay period.
    (c) If members earn salaries for the school year, as 
established by an Employer, or if they earn annual salaries 
over more than a 10-calendar month period, or if they earn 
annual salaries over more than 170 calendar days, the required 
contribution amount shall be deducted by the Employer in 
installments on the basis of salary earned in each pay period. 
The total amounts for each pay period shall be deducted 
whenever salary payments represent a partial or whole day's 
pay.
    (d) If an Employer or the Board pays a salary to a member 
for vacation periods, then the salary shall be considered part 
of the member's pensionable salary, shall be subject to the 
standard deductions for pension contributions, and shall be 
considered to represent pay for the number of whole days of 
vacation.
    (e) If deductions from salaries result in amounts of less 
than one cent, the fractional sums shall be increased to the 
next higher cent. Any excess of these fractional increases over 
the prescribed annual contributions shall be credited to the 
members' accounts.
    (f) In the event that, pursuant to Section 17-130.1, 
employee contributions are picked up or made by the Board of 
Education on behalf of its employees, then the amount of the 
employee contributions which are picked up or made in that 
manner shall not be deducted from the salaries of such 
employees. 


(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, extracurricular activities special services, or any 
employment on an optional basis, such as in summer school; (2) 
adjustments to pensionable salary, exclusive of salaries for 
overtime, extracurricular activities 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, extracurricular 
activities 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 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. 98-427, eff. 8-16-13; 99-176, eff. 7-29-15.)

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