Illinois Administrative Code
Title 80 - PUBLIC OFFICIALS AND EMPLOYEES
Part 1570 - THE ADMINISTRATION AND OPERATION OF THE STATE EMPLOYEES' RETIREMENT SYSTEM OF ILLINOIS - SOCIAL SECURITY UNIT
Section 1570.100 - Recovery of Administrative Expenses of the Social Security Unit
Universal Citation: 80 IL Admin Code ยง 1570.100
Current through Register Vol. 48, No. 38, September 20, 2024
a) General Conditions for Recovery of Administrative Expenses
1) Each entity electing participation in the
Social Security insurance program shall reimburse the State Agency for the
benefit of the State Treasury a pro rated share of the State Agency's total
operational expenses.
2) For
purposes of recovering the operational expenses incurred by the State of
Illinois in administering the federal social security program, the State Agency
shall allocate the amounts to be assessed according to the two classifications
of participating entities, Absolute Coverage Group and Retirement System
Coverage Group.
3) The
administrative charge to be assessed upon the two classifications of
participating entities shall be based upon the established costs of operating
the State's Social Security program for the fiscal year ending June 30 as
determined by the official accounts and records of the State Employees'
Retirement System, Social Security Unit.
4) The pro rated share of operating expenses
shall be based on the allocation of time spent in administering coverage for
the two classifications of participating entities.
b) Absolute Coverage Group
1) For the first year of participation (or
fraction thereof) and annually thereafter, each absolute coverage group shall
be assessed a yearly charge of $40 for maintenance of the coverage contract
between the State Agency and the Social Security Administration. Entities in an
inactive status for a full calendar year shall not be assessed a contract
maintenance charge for that year.
2) In addition to the annual contract
maintenance charge, each entity under an absolute coverage group agreement
shall be assessed a pro rata share of the remainder of the State Agency's
annual operating costs after amounts allocated to each retirement system
coverage group and the amounts recovered under the contract maintenance charge
have been subtracted from the total. The pro rata share shall be expressed in
terms of the ratio which each entity's total annual social security
contribution payment bears in relation to the total social security
contributions paid into the State Agency for the calendar year 1986.
c) Annual Statement.
Except for the State Employees' Retirement System, the administrative charge shall be included upon an annual statement forwarded to each participating entity in the month of December and shall become payable on or before April 5 of the following year.
d) Penalty.
There shall be added to each such assessment remaining unpaid more than 30 days after date of Notice of Delinquency has been given a penalty of 5% of the amount of the assessment or a penalty of $10, whichever is greater.
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