Section 4415.10  Purpose

 

This Part sets forth the procedural requirements for the submission of the annual compliance fee by pension funds to the Department of  Insurance as required by Section 1A-112 of the Illinois Pension Code [40 ILCS 5/1A-112].  Additionally, this Part will further the directive of the Legislature given to the Public Pension Division of the Department of Insurance to automate its operations as set forth in Section 1A-107 of the Illinois Pension Code [40 ILCS 5/1A-107].

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.20  Applicability

 

This Part applies to every pension fund that is required to file an annual statement with the Department of Insurance pursuant to Section 1A-109 of the Code [40 ILCS 5/1A-109] .

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.30  Definitions

 

Automated Clearing House, or ACH, means a central distribution and settlement point for the electronic clearing of debts between the financial institutions rather than the physical movement of paper items.  The term includes any Federal reserve bank, or an organization established by agreement with the National Automated Clearing House Association, which operates as a clearing house for transmitting or receiving entries between banks and/or bank accounts and which authorizes an electronic transfer of funds between banks or bank's accounts.

 

ACH Debit means the electronic transfer of funds from the pension fund's account for deposit in the Public Pension Regulation Fund pursuant to Section 8(f) of the State Finance Act [30 ILCS 105/8(f)].

 

Annual compliance fee means the fee required to be paid by pension funds pursuant to Section 1A-112 of the Illinois Pension Code [40 ILCS 5/1A-112].

 

Basis point means 0.01% [40 ILCS 5/1A-102].

 

Department means the Illinois Department of Insurance.

 

Payment information means the data that the Department of Insurance requires from a pension fund for the purpose of making an ACH Debit transaction.

 

Pension Fund means any public pension fund, annuity and benefit fund, or retirement system established under the Illinois Pension Code [40 ILCS 5/1A-102].

 

Pension Laws means the Illinois Pension Code [40 ILCS 5], the Deferred Compensation Continuing Appropriation Act [40 ILCS 10], and the State Pension Funds Continuing Appropriation Act [40 ILCS 15].

 

Public Pension Division means the Public Employee Pension Division of the Department of Insurance [40 ILCS 5/1A-102].

 

State Pension Fund means any of the following pension funds:  General Assembly Retirement System (see 40 ILCS 5/Art. 2), State Employees' Retirement System (see 40 ILCS 5/Art. 14), State Universities Retirement System (see 40 ILCS 5/Art. 15), Teachers' Retirement System of the State of Illinois (see 40 ILCS 5/Art. 16), and Judges Retirement System of Illinois (see 40 ILCS 5/Art. 18).

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.40  Annual Compliance Fee Amount

 

Every pension fund that is required to file an annual statement under Section 1A-109 of the Code shall pay an annual compliance fee pursuant to the following schedule:

 

a)         In the case of a pension fund under Article 3 or 4 of the Code, the annual compliance fee is 0.02% (2 basis points) of the total assets of the pension fund, as reported in the most current annual statement of the fund, but no more than $8,000; or

 

b)         In the case of all other pension funds and retirement systems, the annual compliance fee shall be $8,000. [40 ILCS 5/1A-112(a)]

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.50  Notification of Annual Compliance Fee Amount

 

The Public Pension Division shall notify by mail each pension fund of the amount of its annual compliance fee, calculated pursuant to Section 4415.40 of this Part, at least 45 days prior to the payment due date set forth in Section 4415.60 of this Part.  Failure of the Public Pension Division to provide notification to any pension fund pursuant to this Section does not relieve any pension fund from the obligations of Section 1A-112 of the Code.

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.60  Annual Compliance Fee Payment Date

 

The annual compliance fee shall be due on June 30 for the following State fiscal year.  [40 ILCS 5/1A-112(b)]

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.70  Payment Method

 

a)         Payment of the annual compliance fee may be made by any of the following methods:

 

1)         By check or money order in U.S. funds, made payable to the Illinois State Treasurer and mailed to:

 

Illinois Department of Insurance,

Attn: Tax and Audit Unit

320 West Washington St.

 

Springfield, Illinois 62767-0001;

 

2)         By State voucher, submitted to the address in subsection (a)(1) above; or

 

3)         By utilizing an ACH payment process that is compatible with the State accounting systems.  This option cannot be utilized without first obtaining specific written acceptance from the Department of Insurance.

 

b)         Pension funds seeking approval to make payment utilizing the ACH must first obtain the written approval of the Department of Insurance.  Upon receipt of approval and at least 30 days prior to the payment due date, the Pension fund shall file with the Public Pension Division, as set forth in Section 4415.60 of this Part, the appropriate information of either:

 

1)         If a State pension fund, payment information as shown in Illustration A of this Part, which must contain at least the following information:

 

A)        Fund account number from which the annual compliance fee may be withdrawn; and

 

B)        State pension fund name; or

 

2)         If not a State pension fund, payment information as shown in Illustration B of this Part, which must contain at least the following information:

 

A)        Banking account number from which the annual compliance fee payment may be withdrawn;

 

B)        Routing number for the financial institution in which the bank account is held;

 

C)        The pension fund name; and

 

D)        Financial institution's name where the pension fund's account is located.

 

c)         Filings made pursuant to subsection (b) of this Section shall be addressed to the Department of Insurance, Tax and Audit Unit, 320 West Washington, Springfield, Illinois 62767-0001.

 

d)         Pension funds electing to make payment utilizing the ACH are not required to file the payment information required by subsection (b) of this Section if the payment information has been previously submitted and has not changed since the previous submittal.

 

e)         Based on the payment information provided by the pension funds under subsection (b) of this Section, the Public Pension Division will initiate an ACH Debit transfer or account transfer on the payment due date, or the first business day thereafter, in an amount equal to the annual compliance fee as calculated pursuant to Section 4415.40 of this Part and as stated in the notification sent pursuant to Section 4415.50 of this Part.

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.80  Hearing on Annual Compliance Fee Amount

 

A pension fund that wants to challenge the annual compliance fee as calculated by the Public Pension Division pursuant to Section 4415.40 of this Part, and as stated in the notification pursuant to Section 4415.50 of this Part, may submit a written request for hearing pursuant to 50 Ill. Adm. Code 2402 within 15 days after receipt of the notification.  The written request shall include the pension fund's reasons for disagreement with the Public Pension Division's calculation of the annual compliance fee and must include a copy of the Public Pension Division notification sent pursuant to Section 4415.50 of this Part.  The pension fund will not be assessed late fees pursuant to 50 Ill. Adm. Code 4435 and Section 1A-113 of the Code by the Department of Insurance unless the pension fund loses its administrative hearing under 50 Ill. Adm. Code 2402.

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

 

Section 4415.90  Penalties

 

Every pension fund required to pay an annual compliance fee pursuant to Section 4415.20 will also be subject to a penalty as set forth in Section 1A-113(c) of the Illinois Pension Code [40 ILCS 5] and may also be subject to a civil penalty as set forth in Section 1A-113(d)(5) of the Code and 50 Ill. Adm. Code 4435.60 if the pension fund fails to comply by the payment due date, as set forth in  Section 4415.60.

 

(Source:  Amended at 43 Ill. Reg. 413, effective December 21, 2018)

Section 4415.ILLUSTRATION A   Designation for Fund Transfer for State Pension Fund for Payment of Annual Compliance Fee

 

Illinois Department of Insurance

Public Pension Division

 

Designation for Automated Clearing House Payment of Annual Compliance Fees

 

State Pension Fund Name:

City:

State

Zip Code

Fund Account Number to be Debited:

Fund Account Number to be Credited:

Amount of Transfer:

Requested Date of Transfer:

Statutory Authority:

Authorized State Pension Fund Representative:

Phone Number:

Signed:

Dated:

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)

Section 4415.ILLUSTRATION B   Designation for Automated Clearing House Payment of Compliance Annual Fees

 

Illinois Department of Insurance

Public Pension Division

 

Designation for Automated Clearing House

Payment of Annual Compliance Fees

 

Depository Name:
Account Name:
City:							State			Zip Code
Routing Transit Number of Depository Above:
Account Number to be Debited:
Authorized Pension Representative:
Phone Number:
Signed:
Dated:

 

(Source:  Amended at 30 Ill. Reg. 13176, effective July 24, 2006)