| Topic: | Plan Administration |
| Subtopic: | Interest Charges, Adjustment |
| Date: | 5/15/1970 |
| Status: | Active |
WHEREAS, municipalities are charged interest at a rate of 1/2% per month on amounts due the Fund that remain unpaid more than one month, and the interest charges thereby arising are reported to each municipality annually as a part of their Accounts Receivable Statement, and
WHEREAS, certain municipalities then request abatement of interest charges on grounds that they failed to receive payroll pre-listings, or they arrived late, or that the payments were mailed within the month but not received and credited to their account until the first of the following month, and
WHEREAS, the Fund can verify the allegations made and determine whether there is reasonable justification for the requests for abatement, and
WHEREAS, the administrative effort and expense to reflect, in the annual Municipality Accounts Receivable Statement, exceptions of the type described, would far exceed the cost of reviewing and adjusting the exceptional interest charges subsequently,
RESOLVED, that the Executive Director be authorized to continue issuing Municipality Accounts Receivable Statements in the manner now employed, and to abate, after investigation, those interest charges made on the Statements which are, in his judgement, not the result of willful failure, or negligence, on the part of a reporting municipality.
(Please note: As of July 1, 1984, the monthly interest rate has increased to 1%. 40 ILCS 5/7-209(c).)