093_HB3430

 
                                     LRB093 03772 LRD 03807 b

 1        AN ACT in relation to public employee benefits.

 2        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
 5    changing Section 15-112 as follows:

 6        (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
 7        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
10    months of each academic year,  the  average  annual  earnings
11    during  the  48 consecutive calendar month period ending with
12    the last day of final termination  of  employment  or  the  4
13    consecutive academic years of service in which the employee's
14    earnings  were  the  highest,  whichever  is greater. For any
15    other employee, the average  annual  earnings  during  the  4
16    consecutive  academic  years  of  service in which his or her
17    earnings were the highest. For an employee with less than  48
18    months  or  4  consecutive  academic  years  of  service, the
19    average earnings during his or her entire period of  service.
20    The  earnings  of  an  employee  with  more than 36 months of
21    service prior to the date of becoming a participant are,  for
22    such  period, considered equal to the average earnings during
23    the last 36 months of such service.  For an employee on leave
24    of absence with pay, or on leave of absence without  pay  who
25    makes  contributions  during such leave, earnings are assumed
26    to be equal to the basic compensation on the date  the  leave
27    began.   For  an  employee  on disability leave, earnings are
28    assumed to be equal to the basic  compensation  on  the  date
29    disability  occurs  or  the  average  earnings  during the 24
30    months immediately preceding the month  in  which  disability
31    occurs, whichever is greater.
 
                            -2-      LRB093 03772 LRD 03807 b
 1        For  a  participant who retires on or after the effective
 2    date of this amendatory Act of 1997 with at least 20 years of
 3    service  as  a  firefighter  or  police  officer  under  this
 4    Article, the final rate of earnings shall be the annual  rate
 5    of  earnings  received  by the participant on his or her last
 6    day as a firefighter or police officer under this Article, if
 7    that is greater than the final rate of earnings as calculated
 8    under the other provisions of this Section.
 9        If a participant is an employee for  at  least  6  months
10    during  the  academic  year in which his or her employment is
11    terminated, the annual final rate of earnings shall be 25% of
12    the sum of (1) the annual basic compensation for  that  year,
13    and  (2)  the  amount earned during the 36 months immediately
14    preceding that year, if this is greater than the  final  rate
15    of  earnings as calculated under the other provisions of this
16    Section.
17        In the determination of the final rate of earnings for an
18    employee,  that  part  of  an  employee's  earnings  for  any
19    academic year beginning after June 30,  1997,  which  exceeds
20    the  employee's earnings with that employer for the preceding
21    year by more than 20 percent shall be excluded; in the  event
22    that  an  employee has more than one employer this limitation
23    shall be calculated separately for  the  earnings  with  each
24    employer.    In  making  such  calculation,  only  the  basic
25    compensation of employees shall be considered, without regard
26    to  vacation  or  overtime  or  to   contracts   for   summer
27    employment.
28        The   following   are   not  considered  as  earnings  in
29    determining final rate of earnings: severance  or  separation
30    pay,  retirement  pay,  payment  for  unused  sick  leave and
31    payments from an employer for the period used in  determining
32    final  rate  of  earnings for any purpose other than services
33    rendered, leave of absence or vacation  granted  during  that
34    period,  and  vacation  of  up  to  56 work days allowed upon
 
                            -3-      LRB093 03772 LRD 03807 b
 1    termination of employment; except that, if  the  benefit  has
 2    been  collectively  bargained  between  the  employer and the
 3    recognized  collective  bargaining  agent  pursuant  to   the
 4    Illinois  Educational  Labor  Relations Act, payment received
 5    during a period of up to 2 academic  years  for  unused  sick
 6    leave  may  be  considered as earnings in accordance with the
 7    applicable collective bargaining agreement,  subject  to  the
 8    20%  increase  limitation  of  this Section.  Any unused sick
 9    leave considered as earnings under this Section shall not  be
10    taken  into  account  in  calculating  service  credit  under
11    Section 15-113.4.
12        Intermittent  periods  of  service shall be considered as
13    consecutive in determining final rate of earnings.
14    (Source: P.A. 91-887, eff. 7-6-00; 92-599, eff. 6-28-02.)

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