HB3964 Engrossed

LRB096 05814 AMC 15893 b






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    AN ACT concerning public employee benefits.

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



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



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



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    Sec. 14-103.12. Final average compensation. 

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

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

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25%.

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    (b) For death and disability benefits, in the case of a 
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full-time
employee, "final average compensation" means the 
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greater of (1) the rate
of compensation of the employee at the 
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date of death or disability
multiplied by 1 in the case of a 
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salaried employee, by 174 in the case of
an hourly employee, 
 


 






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and by 22 in the case of a per diem employee, or (2)
for 
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benefits commencing on or after January 1, 1991, final average

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compensation as determined under subsection (a).

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

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

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

 


 






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

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

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

 

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