Bill Text: IL HB4576 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Amends the Chicago Teacher Article of the Illinois Pension Code. Requires charter schools and contract schools to retain all payroll records and contribution information for a minimum of 5 years after the payroll records and contribution information are created. Effective immediately.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Passed) 2026-07-24 - Public Act . . . . . . . . . 104-0614 [HB4576 Detail]

Download: Illinois-2025-HB4576-Enrolled.html

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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.
(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,

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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

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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.
Charter schools and contract schools shall retain all payroll
records and contribution information for a minimum of 5 years
after the payroll records and contribution information are
created. 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.

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(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

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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; 102-636, eff. 8-27-21.)
Section 99. Effective date. This Act takes effect upon
becoming law.