96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB1946


 
Introduced 2/20/2009, by Sen. Kwame Raoul
 
SYNOPSIS AS INTRODUCED:
 		








  



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








    Amends the State Employee Article of the Illinois Pension Code. In provisions concerning final average compensation, provides that for a member on leave of absence without pay who purchases service credit for that period of leave, earnings are assumed to be equal to the rate of compensation in effect immediately prior to the leave.  Provides that, 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, plus interest at the actuarially assumed rate. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB1946

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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 
22
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, unless the member establishes this earnings 
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credit within 90 days after returning to work, in which case no 
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interest is required. 
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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.