SB1570sam001 100TH GENERAL ASSEMBLY

Sen. Iris Y. Martinez

Filed: 3/10/2017

10000SB1570sam001 LRB100 06322 RPS 22832 a

AMENDMENT TO SENATE BILL 1570

AMENDMENT NO. ______. Amend Senate Bill 1570 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Pension Code is amended by changing Section 17-132 as follows:

(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. The Fund shall provide a written notice of delinquency to an Employer 10 calendar days before the 30 calendar days of subsection (a) of this Section. If the Fund fails to provide an Employer with a written notice of delinquency 10 calendar days before the 30 calendar days of subsection (a) of this Section, the Fund is prohibited from administering any penalty to the Employer for such submission until the Fund provides a 10 calendar day notice to the Employer.

An Employer assessed a penalty may provide the Board a Request for a Waiver of the penalty for good cause shown within 30 days from the date of issuance of an invoice for such penalty. The invoice will be deemed delinquent if unpaid 30 days from the date of issuance, unless the Board notifies the Employer of acceptance of the Employer's Request for a Waiver of the penalty and such penalty is waived by the Board.

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. The Fund shall provide an Employer with written notice of delinquency 10 calendar days before the 30th calendar day after the predesignated payday. If the Fund fails to provide an Employer with written notice of delinquency 10 calendar days before the 30th calendar day after the predesignated payday, the Fund is prohibited from administering any penalty to the Employer for that delinquent amount until the Fund provides a 10 calendar day notice to the Employer.

An Employer assessed a penalty may provide the Board a Request for a Waiver of the penalty for good cause shown within 30 days from the date of issuance of an invoice for such penalty. The invoice will be deemed delinquent if unpaid 30 days from the date of issuance, unless the Board notifies the Employer of acceptance of the Employer's Request for a Waiver of the penalty and such penalty is waived by 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; and (5) any and all other data necessary for the Fund to calculate pension benefits. 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.

Any proposed amendments or corrections to certified data submitted by an Employer must be made no later than 12 months after the Employer originally submitted the data being amended or corrected or such proposed amended or corrected data may be rejected by the Fund; provided, however, that this limitation does not apply to amendments or corrections to certified data: (i) required by a final and non-appealable order of a court of competent jurisdiction or as determined in a non-appealable and final decision of an administrative agency with competent jurisdiction, or (ii) deemed valid by the Fund and as provided in a legally enforceable settlement agreement between a member or former member and an Employer.

(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.".