IL HB1804

Amends Section 17-131 of the Illinois Pension Code regarding administration of payroll deductions for public employee pension contributions.

Clarifies that pension deductions are made based on salary earned in each pay period, excluding overtime, extracurricular activities, and optional employment such as summer school.

Requires that when salary adjustments are made for errors or omissions in prior pay periods, the adjusted amounts and deductions be separately identified and calculated using the rates in force during the applicable adjusted pay period.

Establishes that vacation pay is considered pensionable salary subject to standard pension contribution deductions and represents pay for the number of whole days of vacation taken.

Specifies that when employee contributions are picked up or made by the employer or school board on behalf of employees, those amounts shall not be deducted from employee salaries.