Public Act 097-0030
 
HB1719 EnrolledLRB097 08643 JDS 48772 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, 17-131, and 17-132 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
more than one year of service credit per fiscal year.
When computing validated service, 10 months or more shall
constitute one year of service unless a lesser number of months
is established as a school year by an Employer. Salary
representing 5 days' or more employment paid in a semi-monthly
or bi-weekly payroll period, whichever the case may be, shall
be considered for the purpose of computing service credit and
shall entitle a contributor to 1/2 month of service. When
computing total service rendered, 3 to 10 days' employment in
the final total of such service shall entitle a contributor to
1/2 month of service.
(Source: P.A. 90-566, eff. 1-2-98.)
 
    (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, 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.
During any period in which salaries are paid, such deductions
by an Employer or the Board shall be made 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
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. The total
amounts for each semimonthly payroll period, or bi-weekly
payroll period, as the case may be, shall be deducted only when
salary payments represent 5 days' pay or more. If 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 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.
    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.)
 
    (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) Amounts not received by the 30th calendar day after the
predesignated payday shall be deemed delinquent and subject to
late interest penalty (calculated at the average short-term
rate of interest earned by the Fund for the calendar month
preceding the calendar month in which the delinquency occurs)
starting from the predesignated payday and ending on the date
payment is received.
    (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.
    (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.
    (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.
An Employer shall cause the Fund to receive all teachers'
pension contributions within 15 business days of the
predesignated paydays. Amount not received by the fifth day
shall be deemed delinquent and subject to late interest penalty
(calculated at the average short-term rate of interest earned
by the Fund for the calendar month preceding the calendar month
in which the delinquency occurs) starting from the
predesignated payday and ending on the date payment is
received. The appropriate officers of the Employer shall
certify at least monthly to the Fund all amounts deducted from
the salaries of contributors. The certification shall
constitute a confirmation of the accuracy of such deductions
according to the provisions of this Article. For the purpose of
this Section the predesignated payday shall be determined in
accordance with each Employer's payroll schedule for
contributions to the Fund.
    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. 90-566, eff. 1-2-98.)
 
    Section 90. The State Mandates Act is amended by adding
Section 8.35 as follows:
 
    (30 ILCS 805/8.35 new)
    Sec. 8.35. 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 97th General Assembly.
 
    Section 99. Effective date. This Act takes effect July 1,
2011.