HB4766 100TH GENERAL ASSEMBLY

LRB100 20480 RPS 35841 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB4766

Introduced , by Rep. Arthur Turner

SYNOPSIS AS INTRODUCED:

40 ILCS 5/17-132

from Ch. 108 1/2, par. 17-132

Amends the Chicago Teacher Article of the Illinois Pension Code. In a provision that requires Employers to submit payroll records and pension contributions within 30 calendar days after each predesignated payday and establishes penalties for delinquent submissions, requires the Fund to provide a written notice of delinquency to an Employer within 10 business days of the Fund's discovery of any payroll record that is not timely certified or submitted or any incomplete pension contribution. Prohibits the Fund from administering certain penalties if the Fund fails to provide the written notice of delinquency. Provides that an Employer that provides necessary corrections to a payroll record or makes the required contribution within 12 months after receipt of the notice of delinquency shall not be subject to certain penalties. Makes changes to an exception to the mandatory penalty for delinquent payments. Provides that any penalties that are outstanding on the effective date of the amendatory Act shall be waived if the Employer makes the necessary corrections or amendments to the required payroll records or submits the required contribution within 12 months after the effective date of the amendatory Act. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

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 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.

(a-5) The Fund shall provide a written notice of delinquency to an Employer within 10 business days of the Fund's discovery of any payroll record that is not timely certified or submitted or any incomplete pension contribution. The notice shall describe the specific grounds for the delinquency. An Employer shall have 30 business days to respond to and, if necessary, contest the notice of delinquency. If the Fund fails to provide an Employer with a written notice of delinquency within 10 business days of the Fund's discovery of any payroll record that is not timely certified or submitted or any incomplete pension contribution, the Fund shall be prohibited from administering any penalty set forth in subsection (b) to the Employer for such payroll record or contribution. An Employer that provides necessary corrections or amendments to a payroll record or makes the required contribution before receiving a written notice of delinquency from the Fund shall not be subject to a penalty. An Employer that provides necessary corrections or amendments to a payroll record or makes the required contribution within 12 months after receipt of the notice of delinquency shall not be subject to a statutory penalty set forth in subsection (b).

(b) An Employer that fails to timely certify and submit payroll records to the Fund within the timelines set forth in subsections (a) and (a-5) of this Section is subject to a statutory penalty in the amount of $100 per day for each day that a required certification and submission is late, not to exceed 100% of the principal contributions due.

Amounts not received by the timelines set forth in subsection (a-5) 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.

Any penalties that are outstanding on the effective date of this amendatory Act of the 100th General Assembly shall be waived if the Employer makes the necessary corrections or amendments to the required payroll records or submits the required contribution within 12 months after the effective date of this amendatory Act of the 100th General Assembly.

(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 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.