93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2146


 
Introduced 1/14/2004, by Denny Jacobs
 
SYNOPSIS AS INTRODUCED:
 		














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







    Amends the State Employees Article of the Illinois Pension Code.  Provides that, for persons with at least 48 months of service, the calculation of final average compensation shall be based on the total compensation of the person during the period of the 48 consecutive months of service in which the total compensation was the highest (now the period of the 48 consecutive months within the last 120 months of service in which the total compensation was the highest).  Effective immediately.



















LRB093 14749 LRD 40297 b




















FISCAL NOTE ACT MAY APPLY


PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 














SB2146

LRB093 14749 LRD 40297 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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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 
 


 









SB2146
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LRB093 14749 LRD 40297 b







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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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(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.