Public Act 096-0525
 		





HB3964 Enrolled
LRB096 05814 AMC 15893 b






    AN ACT concerning public employee benefits.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:



 
    Section 5. The Illinois Pension Code is amended  by changing 
Section 14-103.12 as follows:
 



    (40 ILCS 5/14-103.12)  (from Ch. 108 1/2, par. 14-103.12)



    Sec. 14-103.12. Final average compensation. 

    (a) For retirement and
survivor annuities, "final average 
compensation" means the monthly
compensation obtained by 
dividing the total compensation of an employee
during the 
period of: (1) the 48 consecutive months of service within the

last 120 months of service in which the total compensation was 
the highest,
or (2) the total period of service, if less than 
48 months, by the number
of months of service in such period; 
provided that for purposes of
a retirement annuity the average 
compensation for the last 12 months of the
48-month period 
shall not exceed the final average compensation by more than

25%.

    (b) For death and disability benefits, in the case of a 
full-time
employee, "final average compensation" means the 
greater of (1) the rate
of compensation of the employee at the 
date of death or disability
multiplied by 1 in the case of a 
salaried employee, by 174 in the case of
an hourly employee, 
and by 22 in the case of a per diem employee, or (2)
for 
benefits commencing on or after January 1, 1991, final average

compensation as determined under subsection (a).

    For purposes of this paragraph, full or part-time status 
shall be
certified by the employing agency.  Final rate of 
compensation for a
part-time employee shall be the total 
compensation earned during the last
full calendar month prior 
to the date of death or disability.

    (c) Notwithstanding the provisions of subsection (a), for 
the purpose
of calculating retirement and survivor annuities of 
persons with at least
20 years of eligible creditable service 
as defined in Section 14-110, "final average compensation" 
means the monthly rate of
compensation received by the person 
on the last day of eligible creditable
service (but not to 
exceed 115% of the average monthly compensation received
by the 
person for the last 24 months of service, unless the person was 
in
service as a State policeman before the effective date of 
this amendatory
Act of 1997), or the average monthly 
compensation received by the person for
the last 48 months of 
service prior to retirement, whichever is greater.

    (d) Notwithstanding the provisions of subsection (a), for a 
person who
was receiving, on the date of retirement or death, a 
disability benefit
calculated under subdivision (b)(2) of this 
Section, the final average
compensation used to calculate the 
disability benefit may be used for
purposes of calculating the 
retirement and survivor annuities.

    (e) In computing the final average compensation, periods of 
military leave
shall not be considered.

    (f) The changes to this Section made by this amendatory Act 
of 1997
(redefining final average compensation for members 
under the alternative
formula) apply to members who retire on 
or after January 1, 1998, without
regard to whether employment 
terminated before the effective date of this
amendatory Act of 
1997.

    (g) For a member on leave of absence without pay who 
purchases service credit for such period of leave pursuant to 
subsection (l) of Section 14-104, earnings are assumed to be 
equal to the rate of compensation in effect immediately prior 
to the leave.  If no contributions are required to establish 
service credit for the period of leave, the member may elect to 
establish earnings credit for the leave period within 48 months 
after returning to work by making the employee and employer 
contributions required by subsection (l) of Section 14-104, 
based on the rate of compensation in effect immediately prior 
to the leave, plus interest at the actuarially assumed rate. In 
determining the contributions required for establishing 
service credit under this subsection (g), the interest shall be 
calculated from the beginning of the leave of absence to the 
date of payment. 
(Source: P.A. 90-65, eff. 7-7-97.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.