HB0551 96TH GENERAL ASSEMBLY

LRB096 02997 AMC 13011 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0551

Introduced 2/4/2009, by Rep. Daniel J. Burke

SYNOPSIS AS INTRODUCED:

40 ILCS 5/17-131	from Ch. 108 1/2, par. 17-131
30 ILCS 805/8.33 new

Amends the Chicago Teacher Article of the Pension Code. Provides that salary received on or after July 1, 2009 for overtime, summer school, and other optional service shall be included in the calculation of salary for pension purposes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT in relation to 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 Section 17-131 as follows:

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

Sec. 17-131. Administration of payroll deductions. During any period on or after July 1, 2009 in which salaries are paid, payroll such deductions by an Employer or the Board shall be made for all salary paid on the basis of the full salary rates, exclusive of salaries for overtime, special services or any employment on an optional basis, such as in summer school. If salaries represent adjustments on account of error, deductions by the Employer or the Board shall be at the rates in force during the applicable payroll period. If teachers receive salaries for the school year, as established by an Employer, or if they receive salaries for more than 10 calendar months, the amount required for each year of service shall be deducted by such Employer in installments. Beginning July 1, 2009, the total amounts for each semimonthly payroll period, or bi-weekly payroll period, as the case may be, shall be deducted for all salary paid only when salary payments represent 5 days' pay or more. If, on or after July 1, 2009, an Employer or the Board pays salaries to members of the teaching force for vacation periods, the salary shall be considered part of the teacher's annual salary, shall be subject to the standard deductions for pension contributions, and shall be considered to represent additional service credit for each day paid pay for 5 or more days' employment in a bi-weekly or semi-monthly payroll period for purposes set forth in this Section. 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 teachers' accounts.

Any person who retires on or after July 1, 2009 and before the effective date of this amendatory Act of the 96th General Assembly shall be paid a lump sum equal to the amount of pension that he or she would have received for that period if salary received for overtime, summer school, and other optional service had been included in the calculation of salary for pension purposes, minus the amount of pension he or she actually received for that period.

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 from the proceeds of the tax levied under Section 34-60 of the School Code, 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. 90-566, eff. 1-2-98.)

Section 90. The State Mandates Act is amended by adding Section 8.33 as follows:

(30 ILCS 805/8.33 new)

Sec. 8.33. 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 96th General Assembly.

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