Bill Text: IL SB3053 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Chicago Teacher Article of the Illinois Pension Code. Adds to the definition of "employer" a contract school operating pursuant to an agreement with the Chicago Board of Education. Adds to the definition of "teacher" the educational staff employed by a contract school operating pursuant to an agreement with the Chicago Board of Education in a position requiring certification or licensure (excluding all managerial, supervisory, and confidential employees) and are required to or elect to participate. Provides that any educational staff of a contract school operating pursuant to an agreement with the Chicago Board of Education who is employed in a position requiring certification or licensure on or after the effective date of the amendatory Act (excluding all managerial, supervisory, and confidential employees) shall participate as a member, unless the person began employment with the contract school before the effective date of the amendatory Act. Authorizes educational staff who began employment with the contract school before the effective date of the amendatory Act to irrevocably elect to participate as a member for service accrued after the effective date of the election. Makes conforming and other changes. Effective July 1, 2021.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3053 Detail]

Download: Illinois-2019-SB3053-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3053 Introduced 2/5/2020, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
40 ILCS 5/17-105.1
40 ILCS 5/17-106 from Ch. 108 1/2, par. 17-106
40 ILCS 5/17-132 from Ch. 108 1/2, par. 17-132
40 ILCS 5/17-134.2 new
30 ILCS 805/8.44 new
Amends the Chicago Teacher Article of the Illinois Pension Code. Adds to the definition of "employer" a contract school operating pursuant to an agreement with the Chicago Board of Education. Adds to the definition of "teacher" the educational staff employed by a contract school operating pursuant to an agreement with the Chicago Board of Education in a position requiring certification or licensure (excluding all managerial, supervisory, and confidential employees) and are required to or elect to participate. Provides that any educational staff of a contract school operating pursuant to an agreement with the Chicago Board of Education who is employed in a position requiring certification or licensure on or after the effective date of the amendatory Act (excluding all managerial, supervisory, and confidential employees) shall participate as a member, unless the person began employment with the contract school before the effective date of the amendatory Act. Authorizes educational staff who began employment with the contract school before the effective date of the amendatory Act to irrevocably elect to participate as a member for service accrued after the effective date of the election. Makes conforming and other changes. Effective July 1, 2021.
LRB101 18926 RPS 68385 b
FISCAL NOTE ACT MAY APPLY PENSION IMPACT NOTE ACT MAY APPLY STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
A BILL FOR
SB3053 LRB101 18926 RPS 68385 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

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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

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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

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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

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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

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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.
(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 101st General Assembly (excluding all managerial,
supervisory, and confidential employees) shall participate as
a member, unless the person began employment with the contract
school before the effective date of this amendatory Act of the
101st 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

SB3053 - 7 - LRB101 18926 RPS 68385 b
this amendatory Act of the 101st 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 the effective
date of the election with the contract school or with another
contract school. In no event shall a person accrue service for
employment with a contract school that occurred before the
effective date of the election to participate as a member.
Section 90. The State Mandates Act is amended by adding
Section 8.44 as follows:
(30 ILCS 805/8.44 new)
Sec. 8.44. 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 101st General Assembly.
Section 99. Effective date. This Act takes effect July 1,
2021.