Illinois Administrative Code › Title 80 - PUBLIC OFFICIALS AND EMPLOYEES › Part 1600 - UNIVERSITIES RETIREMENT › Subpart B - CONTRIBUTIONS AND SERVICE CREDIT › Section 1600.271 - Employer Contributions for Earnings in Excess of the Governor's Salary

Current through Register Vol. 48, No. 28, July 12, 2024
a) Purpose and
				Applicability. This Section implements Section 15-155(j-5) of the Code. Section
				15-155(j-5) and this Section shall not apply to any participant's earnings to
				the extent the employer pays the employer normal cost for those earnings. For
				purposes of Section 15-155(j-5), the terms stated in subsections (b) through
				(i) shall have the meanings ascribed in this Section.
b) State Fiscal Year. The "State fiscal year"
				shall mean the 12-month period beginning July 1.
c) Governor's Salary. The "amount of the
				salary set by law for the Governor that is in effect on July 1 of that fiscal
				year" shall be the salary for the Governor set by law by the General Assembly
				as of July 1 of the State fiscal year or, in its absence, the most recent
				salary for the Governor set by law by the General Assembly.
d) Earnings Exclusions. Earnings do not
				include payments made under a collective bargaining agreement for unused sick
				leave or payments made for unused vacation.
e) Excess Earnings. The "amount of earnings
				in excess of the amount of the salary set for the Governor" (excess earnings)
				shall be equal to the difference between the earnings and the Governor's salary
				as defined in subsection (c).
f)
				Employer Normal Cost. The "employer normal cost" shall mean the employer normal
				cost described in Section 15-155 , expressed as a total percentage of payroll,
				approved by the Board for the State fiscal year.
This amount shall be
				computed by the System on the basis of the actuarial assumptions and tables
				used in the most recent actuarial valuation of the System that is available at
				the time of the computation.
[
				40 ILCS
				5/15-155 (j-5)]
g) Employer Contribution Amount. The employer
				contribution amount shall be equal to the excess earnings under subsection (e)
				multiplied by the employer normal cost percentage under subsection (f).
h) Multiple or Concurrent
				Employers. In the event that an employee has been employed by two or more
				employers during a State fiscal year, earnings shall be measured and the
				employer contribution amount shall be calculated on an employer-by-employer
				basis.
i) Employer Billing
1) Billing.
Whenever it determines
				that a payment is or may be required under Section 15-155(j-5) of the Code, the
				System shall calculate the amount of the payment and bill the employer for that
				amount. The bill shall specify the calculation used to determine the amount
				due.
[
				40 ILCS
				5/15-155 (j-5)] No bills shall be issued for de
				minimis employer contribution amounts that are $25 or less. The System shall
				issue the bill during the September immediately following the end of the State
				fiscal year to which the bill relates.
2) Request for Recalculation.
If the
				employer disputes the amount of the bill, it may, within 30 days after
issuance
receipt of the bill, apply to the System in writing for a
				recalculation. The application must specify in detail the grounds of the
				dispute. Upon receiving a timely application for recalculation, the System
				shall review the application and, if appropriate, recalculate the amount
				due.
An employer shall be deemed to have been in receipt of the bill
				on the date the bill is issued.
3)
				Payment.
The employer contributions required under this
				subsection
(i)
may be paid in the form of a lump sum within 90
				days after issuance of the bill. If the employer contributions are not paid
				within 90 days after issuance of the bill, then interest will be charged at a
				rate equal to the System's annual actuarially assumed rate of return on
				investment compounded annually from the 91st day after receipt of the
				bill.
All payments
must be received within 3 years after the
				issuanceemployer's receipt of the bill.
[
				40 ILCS
				5/15-155 (j-5)]
4) Comptroller Intercept.
If the
				employer fails to make complete payment, including applicable interest, within
				3 years, then the System may, after giving notice to the employer, certify the
				delinquent amount to the State Comptroller, and the Comptroller shall deduct
				the certified delinquent amount from State funds payable to the employer and
				pay them instead to the System
. [
				40 ILCS
				5/15-155 (j-5)] In the case of an employer that is a
				community college district, Section 15-155.1(b) of the Code shall also apply to
				delinquent amounts including interest after the 3-year period.
5) Appeals of the Recalculation. The employer
				may appeal a recalculation pursuant to Section
				1600.510.