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SB1946 Engrossed |
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LRB096 08984 AMC 19123 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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SB1946 Engrossed |
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LRB096 08984 AMC 19123 b |
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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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SB1946 Engrossed |
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LRB096 08984 AMC 19123 b |
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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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