96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3726


 
Introduced 2/11/2010, by Sen. Michael W. Frerichs
 
SYNOPSIS AS INTRODUCED:
 		





 








40 ILCS 5/15-112
  from Ch. 108 1/2, par. 15-112








     Amends the State Universities Article of the Illinois Pension Code. Provides that compensation that would have been paid to the employee but for a mandatory furlough is credited to the employee for the purpose of defining final rate of earnings under the Article. Effective immediately.
  















LRB096 18973 AMC 34361 b

















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 




  






SB3726

LRB096 18973 AMC 34361 b





  
1
    AN ACT concerning public employee benefits.
  
 
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    Be it enacted by the People of the State of Illinois,
 
3
represented in the General Assembly:
  
 
 
4
    Section 5. The Illinois Pension Code is amended  by changing 
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Section 15-112 as follows:
 



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    (40 ILCS 5/15-112)  (from Ch. 108 1/2, par. 15-112)



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    Sec. 15-112. Final rate of earnings. "Final rate of 
8
earnings":
For an employee who is paid on an hourly basis or 
9
who receives an annual salary
in installments during 12 months 
10
of each academic year, the average annual
earnings during the 
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48 consecutive calendar month period ending with the last
day 
12
of final termination of employment or the 4 consecutive 
13
academic years of
service in which the employee's earnings were 
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the highest, whichever is
greater.
For any other employee, the 
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average annual earnings during the 4 consecutive
academic years 
16
of service in which his or her earnings were the highest.
For 
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an employee with less than 48 months or 4 consecutive academic 
18
years of
service, the average earnings during his or her entire 
19
period of service.
The earnings of an employee with more than 
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36 months of service prior to the
date of becoming a 
21
participant are, for such period, considered equal to the

22
average earnings during the last 36 months of such service.  For 
23
an
employee on leave of absence with pay, or on leave of 
 


 






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absence without pay
who makes contributions during such leave, 
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earnings are assumed to be equal
to the basic compensation on 
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the date the leave began.  For an employee on
disability leave, 
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earnings are assumed to be equal to the basic compensation
on 
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the date disability occurs or the average earnings during the 
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24 months
immediately preceding the month in which disability 
7
occurs, whichever is
greater.

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    For a participant who retires on or after the effective 
9
date of this
amendatory Act of 1997 with at least 20 years of 
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service as a firefighter or
police officer under this Article, 
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the final rate of earnings shall be the
annual rate of earnings 
12
received by the participant on his or her last day as a

13
firefighter or police officer under this Article, if that is 
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greater than the
final rate of earnings as calculated under the 
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other provisions of this
Section.

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    If a participant is an employee for at least
6 months 
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during the academic year in which his or her employment
is 
18
terminated, the annual final rate of earnings shall be 25% of 
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the sum
of (1) the annual basic compensation for that year, and 
20
(2) the amount
earned during the 36 months immediately 
21
preceding that year, if this is
greater than the final rate of 
22
earnings as calculated under the other
provisions of this 
23
Section.

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    In the determination of the final rate of earnings for an 
25
employee, that
part of an employee's earnings for any academic 
26
year beginning after June 30,
1997, which exceeds the 
 


 






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employee's earnings with that employer for the
preceding year 
2
by more than 20 percent shall be excluded; in the event
that an 
3
employee has more than one employer
this limitation shall be 
4
calculated separately for the earnings with
each employer.  In 
5
making such calculation, only the basic compensation of

6
employees shall be considered, without regard to vacation or 
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overtime or to
contracts for summer employment.

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    The following are not considered as earnings in determining 
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final rate of
earnings: (1) severance or separation pay, (2) 
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retirement pay, (3)
payment for unused sick leave, and (4) 
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payments from an employer for
the period used in determining 
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final rate of earnings for any purpose other
than (i) services 
13
rendered, (ii) leave of absence or vacation granted
during that 
14
period, and (iii) vacation of up to 56 work days allowed upon

15
termination of employment; except that, if the benefit has been 
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collectively
bargained between the employer and the recognized 
17
collective bargaining agent
pursuant to the Illinois 
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Educational Labor Relations Act, payment received
during a 
19
period of up to 2 academic years for unused sick leave may be

20
considered as earnings in accordance with the applicable 
21
collective bargaining
agreement, subject to the 20% increase 
22
limitation of this Section.  Any unused
sick leave considered as 
23
earnings under this Section shall not be taken into
account in 
24
calculating service credit under Section 15-113.4.

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    Intermittent periods of service shall be considered as 
26
consecutive in
determining final rate of earnings.

 


 






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    Compensation that would have been paid to the employee but 
2
for a mandatory furlough is credited to the employee for the 
3
purpose of defining final rate of earnings under this Article. 
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(Source: P.A. 92-599, eff. 6-28-02; 93-347, eff. 7-24-03.)

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