Section 4402.10  Authority

 

This Part is promulgated by the Director of Insurance of the State of Illinois pursuant to Section 1A-103 of the Illinois Pension Code [40 ILCS 5/1A-103].

 

(Source:  Amended at 22 Ill. Reg. 15296, effective August 7, 1998)

 

Section 4402.20  Purpose and Scope

 

The purpose of this Part is to define the word "salary" as used in Section 3-125 and 4-124 of the Illinois Pension Code [40 ILCS 5/3-125 and 4-124] as it applies to pension funds formed pursuant to Articles 3 and 4 of the Illinois Pension Code.

 

(Source:  Amended at 22 Ill. Reg. 15296, effective August 7, 1998)

 

Section 4402.30  Definitions

 

            Class, for purposes of this Part, means a subset of individuals in a particular rank (i.e., Patrol versus Administration).  Class may also be signified by the devotion of compensation for education or other work-related achievements.

 

            Fixed, for purposes of this Part, means a payment in a predetermined amount which can be determined through an examination of the appropriation ordinance, plans or agreements establishing salary.

 

            Rank, for purposes of this Part, means the employee's official position, including but not limited to Civil Service Rank, Ranks established by the Police or Fire Commission, Detective, Juvenile Officer, Special Instructor, Shift Commander, Training Officer, Chief, Emergency Medical Technician  (E.M.T.), Paramedic, Range Officer, and  Mechanic.

 

            Regular, for purposes of this Part, means a scheduled payment.  The schedule may be annually, quarterly, monthly or any other basis.

 

            Salary, for purposes of this Part, means any fixed compensation received by an employee of a municipality that participates in one of the pension funds established under Article 3 or 4 of the Illinois Pension Code, which has been approved through an appropriations ordinance of the municipality.  Salary is received regularly and is attached to the rank or class to which the firefighter or police officer is assigned.

 

(Source:  Amended at 20 Ill. Reg. 5838, effective April 9, 1996)

 

Section 4402.35  Salary for Pension Purposes

 

All salary, as defined in Section 4402.30 of this Part, shall be used in pension computations for purposes of determining the correct amount of employee contributions.  The following types of pay are considered salary, in accordance with the definition in Section 4402.30:

 

a)         Base Pay

            The basic salary attached to rank which is specified in the bargaining contract, municipal pay plan or any other document which establishes salary.

 

b)         Education Pay

            Additional compensation for attaining certain levels of academic and professional training, such as an associate or bachelor's degree or attainment of firefighters certification or firearm certification, or any other pay given for designated educational achievement.

 

c)         Holiday Pay

            Additional compensation paid regardless of whether the employee must work on the holiday, unless there is an option, such as time off in lieu of cash compensation.

 

d)         Longevity

            Additional pay received after the employee has attained a specified number of years of service.  This pay may be received with regular salary or in one or more lump sum payments during the year.  When paid in a lump sum, the amount should be prorated to determine the monthly equivalent to compute all pension contributions and benefits.

 

e)         Overtime Pay

            Compensation for time worked beyond the regular work hours, which is already included in the regular salary attached to that rank or class.

 

f)         Specialty Rank

            Compensation for services performed in positions beyond the basic rank, such as detective, juvenile officer, special instructor, shift commander, training officer, chief, emergency medical technician, paramedic, range officer or mechanic.

 

g)         Temporary Pay

            Compensation received for temporarily performing the duties of a higher rank or specialty rank.  This is to be considered salary only if the temporary position has lasted for a continuous period of more than one year.  After temporary pay has been received for one continuous year of service in that position, the amount is considered attached to rank and then becomes salary for purposes of pension computation.

 

(Source:  Added at 20 Ill. Reg. 5838, effective April 9, 1996)

 

Section 4402.40  Non-Salary Compensation

 

For purposes of calculating pension contributions and pension benefits, the following categories of pay shall not be considered compensation:

 

a)         Accumulated Unused Time

            Compensation for unused accumulated vacation, sick, or personal time earned during employment, regardless of whether the compensation is received during employment or after termination.

 

b)         Awards

            Compensation for an extraordinary deed or accomplishment, which is not recurring in nature.

 

c)         Automobile Allowance

            Compensation for the use of the employee's personal automobile.

 

d)         Food Allowance

            Compensation for the purchase of meals while performing the duties required.

 

e)         Housing Allowance

            Compensation received for the purpose of providing housing, in whole or in part.  The method of providing the housing, such as renting or purchasing, is irrelevant.

 

f)         Merit Pay

            Compensation which is neither fixed in amount or determined by a reviewing bargaining agreement or pay plan, nor added into the salary for determining future increases.

 

g)         Overtime Pay

            Compensation paid for working more than the regular hours specified in the contract or pay plan.

 

h)         Shift Differential

            Compensation for working a second or third shift, in addition to the salary attached to that rank or class.

 

i)          Temporary Pay

            Compensation received for temporarily performing the duties of a higher rank or specialty rank position shall not be considered salary unless and until this compensation has been received continually for one full year.

 

j)          Uniform Allowance

            Compensation received as reimbursement or payment for the purchase of necessary uniforms and equipment for use in the performance of the required duties.  This compensation may be paid as reimbursement or as a fixed amount, regardless of the actual amount expended.

 

(Source:  Amended at 20 Ill. Reg. 5838, effective April 9, 1996)

 

Section 4402.50  Retroactive Pay Increases

 

a)         Retroactive payments of compensation are treated as if they were paid during the period for which the increase is computed.  If an employee retired after the effective date of the salary increase and is entitled to receive retroactive payment of salary, the new salary becomes final salary attached to the rank at the time of retirement and the salary on which the service pension is computed.

 

b)         Entitlement to retroactive pay is to be determined by the contract or agreement which authorizes the salary increase.

 

(Source:  Amended at 20 Ill. Reg. 5838, effective April 9, 1996)

 

Section 4402.60  Accumulated Unused Time at Retirement or Disability

 

a)         Whether compensation for accumulated but unused vacation, sick, personal, or compensation time (any other time earned by the employee, but unused at the time of termination of employment or retirement) is considered salary will be determined by the date of retirement or disability.

 

b)         If the employee remains on the payroll and uses the time, the compensation received for that time will be considered salary for purposes of computing pension contributions and benefits.

 

c)         If the employee is removed from the payroll by virtue of leaving employment or being placed on disability leave while accumulated time remains unused, then the lump sum compensation received by the employee for that time is not considered salary for purposes of computing pension contributions and benefits.

 

d)         In the instance where a municipality acts contrary to its stated policy, then there must be a written agreement between the municipality and the participant which states that the participant may remain on the payroll until the entire amount due has been paid, without these payments being considered salary for purposes of computing pension contributions or benefits.

 

(Source:  Added at 20 Ill. Reg. 5838, effective April 9, 1996)