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Public Act 102-0636


 

Public Act 0636 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0636
 
SB2093 EnrolledLRB102 12831 RPS 18173 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 17-105.1, 17-106, and 17-132 and by adding
Section 17-134.2 as follows:
 
    (40 ILCS 5/17-105.1)
    Sec. 17-105.1. Employer. "Employer": The Board of
Education, and a charter school as defined under the
provisions of Section 27A-5 of the School Code, and a contract
school operating pursuant to an agreement with the Board of
Education.
(Source: P.A. 90-566, eff. 1-2-98.)
 
    (40 ILCS 5/17-106)  (from Ch. 108 1/2, par. 17-106)
    Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the city, including principals, assistant
principals, the general superintendent of schools, deputy
superintendents of schools, associate superintendents of
schools, assistant and district superintendents of schools,
members of the Board of Examiners, all other persons whose
employment requires a teaching certificate issued under the
laws governing the certification of teachers, any educational
staff employed in a contract school operating pursuant to an
agreement with the Board of Education who is employed in a
position requiring certification or licensure under the School
Code (excluding all managerial, supervisory, and confidential
employees) and is required to or elects to participate
pursuant to Section 17-134.2, any educational, administrative,
professional, or other staff employed in a charter school
operating in compliance with the Charter Schools Law who is
certified under the law governing the certification of
teachers, and employees of the Board, but excluding persons
contributing concurrently to any other public employee pension
system in Illinois for the same employment or receiving
retirement pensions under another Article of this Code for
that same employment, persons employed on an hourly basis
(provided that an Employer may not reclassify a non-hourly
employee as an hourly employee for the purpose of evading or
avoiding its obligations under this Article), and persons
receiving pensions from the Fund who are employed temporarily
by an Employer and not on an annual basis.
    All teachers or staff regardless of their position shall
presumptively be participants in the Fund, unless the Employer
establishes to the satisfaction of the Board that an
individual certified teacher or staff member is not working as
a teacher or administrator directly or indirectly with the
Charter School. Any certified teacher or staff employed by a
corporate or non-profit entity engaged in the administration
of a charter school shall presumptively be a participant in
the Fund, unless the organization establishes to the
satisfaction of the Board that an individual certified teacher
or staff member is not working as a teacher or administrator
directly or indirectly with the Charter School.
    In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the
effective date of this amendatory Act of the 91st General
Assembly, and whose right to participate in the Fund is
established or confirmed by this amendatory Act, such prior
participation in the Fund, including all contributions
previously made and service credits previously earned by the
person, are hereby validated.
    The changes made to this Section and Section 17-149 by
this amendatory Act of the 92nd General Assembly apply without
regard to whether the person was in service on or after the
effective date of this amendatory Act, notwithstanding
Sections 1-103.1 and 17-157.
(Source: P.A. 98-427, eff. 8-16-13.)
 
    (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, or any employment on an
optional basis, such as in summer school; (2) adjustments to
pensionable salary, exclusive of salaries for overtime,
extracurricular activities, 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, 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 and contract 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 or contract school to determine the
existence of any delinquencies in contributions to the Fund,
and such charter school or contract 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 contract 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 or contract school.
    (f) The Fund shall provide a conditional grace period for
contract schools that show evidence of timely and good faith
efforts to submit payroll records and make pension
contributions due between January 1, 2022 and April 1, 2022.
If payroll records and pension contributions due during that
time period are not submitted by April 1, 2022, the statutory
penalties, liquidated damages, and interest shall be
calculated from the original due date to the submission date
of the pension contributions or payroll records, as
applicable.
    Evidence of timely and good faith efforts shall include,
but are not limited to, the following:
        (1) evidence of the contract school's continuing
    efforts to submit payroll records and make pension
    contributions, both before and after the date the payroll
    records and pension contributions were due;
        (2) documented evidence submitted by the contract
    school of the contract school's continuing efforts to
    submit payroll records and make pension contributions;
        (3) evidence in the possession of the Fund of the
    contract school's continuing efforts to submit payroll
    records and make pension contributions; and
        (4) contact by the contract school with the Fund to
    seek assistance and notify the Fund of difficulties with
    submitting the payroll records and making the pension
    contributions within a period of time determined by the
    Board after the date the pension contributions and payroll
    records were due.
    The Fund may adopt rules to implement the changes made by
this amendatory Act of the 102nd General Assembly.
(Source: P.A. 101-261, eff. 8-9-19.)
 
    (40 ILCS 5/17-134.2 new)
    Sec. 17-134.2. Employee of a contract school. Any
educational staff of a contract school operating pursuant to
an agreement with the Board of Education who is employed in a
position requiring certification or licensure under the School
Code on or after the effective date of this amendatory Act of
the 102nd General Assembly (excluding all managerial,
supervisory, and confidential employees) shall participate as
a member beginning on January 1, 2022, unless the person began
employment with the contract school before the effective date
of this amendatory Act of the 102nd General Assembly.
    Any educational staff employed in a contract school
operating pursuant to an agreement with the Board of Education
who began employment in a position requiring certification or
licensure under the School Code before the effective date of
this amendatory Act of the 102nd General Assembly (excluding
all managerial, supervisory, and confidential employees) may
irrevocably elect, in a manner prescribed by the Board, to
participate as a member for service accrued after January 1,
2022 with the contract school, another contract school, a
charter school, or the Board of Education. In no event shall a
person accrue service for employment with a contract school
that occurred before January 1, 2022.
 
    Section 90. The State Mandates Act is amended by adding
Section 8.45 as follows:
 
    (30 ILCS 805/8.45 new)
    Sec. 8.45. 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 102nd General Assembly.
 
    Section 99. Effective date. This Act takes effect July 1,
2021.

Effective Date: 8/27/2021