Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/7-114

(40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)

Sec. 7-114. Earnings. "Earnings":

(a) An amount to be determined by the board, equal to the sum of:

1. The total amount of money paid to an employee for

personal services or official duties as an employee (except those employed as independent contractors) paid out of the general fund, or out of any special funds controlled by the municipality, or by any instrumentality thereof, or participating instrumentality, including compensation, fees, allowances (but not including amounts associated with a vehicle allowance payable to an employee who first becomes a participating employee on or after the effective date of this amendatory Act of the 100th General Assembly), or other emolument paid for official duties (but not including automobile maintenance, travel expense, or reimbursements for expenditures incurred in the performance of duties) and, for fee offices, the fees or earnings of the offices to the extent such fees are paid out of funds controlled by the municipality, or instrumentality or participating instrumentality; and

2. The money value, as determined by rules prescribed

by the governing body of the municipality, or instrumentality thereof, of any board, lodging, fuel, laundry, and other allowances provided an employee in lieu of money.

(b) For purposes of determining benefits payable under this fund
payments to a person who is engaged in an independently established
trade, occupation, profession or business and who is paid for his
service on a basis other than a monthly or other regular salary, are not
earnings.

(c) If a disabled participating employee is eligible to receive Workers'
Compensation for an accidental injury and the participating municipality or
instrumentality which employed the participating employee when injured
continues to pay the participating employee regular salary or other
compensation or pays the employee an amount in excess of the Workers'
Compensation amount, then earnings shall be deemed to be the total payments,
including an amount equal to the Workers' Compensation payments.  These
payments shall be subject to employee contributions and allocated as if paid to
the participating employee when the regular payroll amounts would have been
paid if the participating employee had continued working, and creditable
service shall be awarded for this period.

(d) If an elected official who is a participating employee becomes disabled
but does not resign and is not removed from office, then earnings shall include
all salary payments made for the remainder of that term of office and the
official shall be awarded creditable service for the term of office.

(e) If a participating employee is paid pursuant to "An Act to provide for
the continuation of compensation for law enforcement officers, correctional
officers and firemen who suffer disabling injury in the line of duty", approved
September 6, 1973, as amended, the payments shall be deemed earnings, and the
participating employee shall be awarded creditable service for this period.

(f) Additional compensation received by a person while serving as a
supervisor of assessments, assessor, deputy assessor or member of a board of
review from the State of Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax Code shall not be
earnings for purposes of this Article and shall not be included in the
contribution formula or calculation of benefits for such person pursuant to
this Article.

(g)     Notwithstanding any other provision of this Article, calendar year earnings for Tier 2 regular employees to whom this Section applies shall not exceed the amount determined by the Public Pension Division of the Department of Insurance as required in this subsection; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments.

For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the Fund by November 1 of each year.

(Source: P.A. 102-210, eff. 1-1-22.)