Bill Text: IL SB1570 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: 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. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced) 2017-08-04 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB1570 Detail]

Download: Illinois-2017-SB1570-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1570

Introduced 2/9/2017, by Sen. Iris Y. Martinez

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. Effective immediately.
LRB100 06322 RPS 16360 b
FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

SB1570LRB100 06322 RPS 16360 b
1 AN ACT concerning public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by changing
5Section 17-132 as follows:
6 (40 ILCS 5/17-132) (from Ch. 108 1/2, par. 17-132)
7 Sec. 17-132. Payments and certification of salary
8deductions.
9 (a) An Employer shall cause the Fund to receive all
10members' payroll records and pension contributions within 30
11calendar days after each predesignated payday. For purposes of
12this Section, the predesignated payday shall be determined in
13accordance with each Employer's payroll schedule for
14contributions to the Fund.
15 (a-5) The Fund shall provide a written notice of
16delinquency to an Employer within 10 business days of the
17Fund's discovery of any payroll record that is not timely
18certified or submitted or any incomplete pension contribution.
19The notice shall describe the specific grounds for the
20delinquency. An Employer shall have 30 business days to respond
21to and, if necessary, contest the notice of delinquency. If the
22Fund fails to provide an Employer with a written notice of
23delinquency within 10 business days of the Fund's discovery of

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1any payroll record that is not timely certified or submitted or
2any incomplete pension contribution, the Fund shall be
3prohibited from administering any penalty set forth in
4subsection (b) to the Employer for such payroll record or
5contribution. An Employer that provides necessary corrections
6or amendments to a payroll record or makes the required
7contribution before receiving a written notice of delinquency
8from the Fund shall not be subject to a penalty. An Employer
9that provides necessary corrections or amendments to a payroll
10record or makes the required contribution within 12 months
11after receipt of the notice of delinquency shall not be subject
12to a statutory penalty set forth in subsection (b).
13 (b) An Employer that fails to timely certify and submit
14payroll records to the Fund within the timelines set forth in
15subsections (a) and (a-5) of this Section is subject to a
16statutory penalty in the amount of $100 per day for each day
17that a required certification and submission is late, not to
18exceed 100% of the principal contributions due.
19 Amounts not received by the timelines set forth in
20subsection (a-5) the 30th calendar day after the predesignated
21payday shall be deemed delinquent and subject to a penalty
22consisting of interest, which shall accrue on a monthly basis
23at the Fund's then effective actuarial rate of return, and
24liquidated damages in the amount of $100 per day, not to exceed
2520% of the principal contributions due, which shall be
26mandatory except for good cause shown and in the discretion of

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1the Board.
2 An Employer in possession of member contributions deducted
3from payroll checks is holding Fund assets, and thus becomes a
4fiduciary over those assets.
5 Any penalties that are outstanding on the effective date of
6this amendatory Act of the 100th General Assembly shall be
7waived if the Employer makes the necessary corrections or
8amendments to the required payroll records or submits the
9required contribution.
10 (c) The payroll records shall report (1) all pensionable
11salary earned in that pay period, exclusive of salaries for
12overtime, special services, or any employment on an optional
13basis, such as in summer school; (2) adjustments to pensionable
14salary, exclusive of salaries for overtime, special services,
15or any employment on an optional basis, such as in summer
16school, made in a pay period for any prior pay periods; (3)
17pension contributions attributable to pensionable salary
18earned in the reported pay period or the adjusted pay period as
19required by subsection (b) of Section 17-131; and (4) any
20salary paid by an Employer if that salary is compensation for
21validated service and is exclusive of salary for overtime,
22special services, or any employment on an optional basis, such
23as in summer school. Payroll records required by item (4) of
24this paragraph shall identify the number of days of service
25rendered by the member and whether each day of service
26represents a partial or whole day of service.

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1 (d) The appropriate officers of the Employer shall certify
2and submit the payroll records no later than 30 calendar days
3after each predesignated payday. The certification shall
4constitute a confirmation of the accuracy of such deductions
5according to the provisions of this Article.
6 Each Charter School shall designate an administrator as a
7"Pension Officer". The Pension Officer shall be responsible for
8certifying all payroll information, including contributions
9due and certified sick days payable pursuant to Section 17-134,
10and assuring resolution of reported payroll and contribution
11deficiencies.
12 (e) The Board has the authority to conduct payroll audits
13of a charter school to determine the existence of any
14delinquencies in contributions to the Fund, and such charter
15school shall be required to provide such books and records and
16contribution information as the Board or its authorized
17representative may require. The Board is also authorized to
18collect delinquent contributions from charter schools and
19develop procedures for the collection of such delinquencies.
20Collection procedures may include legal proceedings in the
21courts of the State of Illinois. Expenses, including reasonable
22attorneys' fees, incurred in the collection of delinquent
23contributions may be assessed by the Board against the charter
24school.
25(Source: P.A. 98-427, eff. 8-16-13; 99-176, eff. 7-29-15.)
26 Section 99. Effective date. This Act takes effect upon

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1becoming law.
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