Bill Text: IL HB4766 | 2017-2018 | 100th General Assembly | Introduced

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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 within 12 months after the effective date of the amendatory Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB4766 Detail]

Download: Illinois-2017-HB4766-Introduced.html

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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.
LRB100 20480 RPS 35841 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB4766 LRB100 20480 RPS 35841 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
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

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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

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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

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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.)

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Section 99. Effective date. This Act takes effect upon
becoming law.