HB0303 EnrolledLRB101 04585 AWJ 49593 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Local Government Wage Increase Transparency
5Act is amended by changing Section 5 as follows:
 
6    (50 ILCS 155/5)
7    Sec. 5. Disclosure of certain wage increases made to
8employees under Article 7 of the Illinois Pension Code.
9    (a) This Section applies only to a participating employee
10under Article 7 of the Illinois Pension Code (IMRF) who began
11participation before January 1, 2011 and who is not subject to
12a collective bargaining agreement with respect to the
13employment upon which the participation is based.
14    (b) The definitions in Article 7 of the Illinois Pension
15Code also apply to this Section.
16    As used in this Section, "disclosable payment" means a
17payment, whether in the form of an increase in the rate of
18earnings or a lump-sum payment, that:
19        (1) would be made by a participating employer to a
20    participating employee after the employee has expressed to
21    the employer his or her intent to retire or withdraw from
22    service;
23        (2) would have the effect of increasing the employee's

 

 

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1    reportable monthly earnings from that employer by more than
2    6% compared to the previous month; and
3        (3) would be made between 12 months and 90 days prior
4    to the employee's expected termination of service.
5    "Disclosable payment" also includes accumulated sick
6leave.
7    However, "disclosable payment" does not include a refund of
8contributions or any payment required to be paid by State or
9federal law.
10    (c) A disclosable payment shall not be made or payable
11unless the governing body of that participating employer has
12first discussed the specific payment to be made at a meeting
13open to the public and posted and held in accordance with the
14requirements of the Open Meetings Act. At the meeting, the
15governing body shall, at a minimum, disclose (1) the identity
16of the employee, (2) the purpose and amount of the increase or
17payment, (3) the proposed retirement date, (4) the effect of
18the payment upon the expected retirement annuity of the
19employee, and (5) the effect of the payment upon the liability
20of the employer to the Article 7 Fund.
21    (d) The determination of whether the disclosable payment is
22permissible under this Section shall rest exclusively with the
23employer.
24    (e) A participating employer may not make a disclosable
25payment to an employee in a manner inconsistent with this
26Section. This Section is a denial and limitation of home rule

 

 

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1powers and functions under subsection (h) of Section 6 of
2Article VII of the Illinois Constitution.
3(Source: P.A. 99-646, eff. 7-28-16.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.