97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2061
 
Introduced , by Rep. Carol A. Sente
 
SYNOPSIS AS INTRODUCED:
 

 
40 ILCS 5/1-162 new

     Amends the Illinois Pension Code. Provides that if the amount of earnings of a participant or member of the specified pension systems or retirement funds exceeds the amount of his or her earnings with the same employer for the previous plan year by more than 12%, then that portion of the increase of salary in excess of 12% shall not be included in the calculation of  any of the following, as is applicable: final average salary, highest
    average annual salary for any 4 consecutive years within the last 10 years of service immediately preceding the date of withdrawal, average final salary, final average compensation, or average salary. Effective July 1, 2011.
  


LRB097 08049 JDS 48172 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
HB2061LRB097 08049 JDS 48172 b


  
1    AN ACT concerning public employee benefits.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Pension Code is amended  by adding 
5Section 1-162 as follows:
 
6    (40 ILCS 5/1-162 new)
7    Sec. 1-162. Salary increase provisions applicable to new 
8hires. 
9    (a) The provisions of this Section apply to a person who, 
10on or after the effective date of this Act, first becomes a 
11member or a participant under any retirement system or pension 
12fund established under this Code, except any fund established 
13under Article 22.
14    (b) Notwithstanding any other provision of this Code, if 
15the amount of a participant's or member's earnings for any plan 
16year used to determine final average salary exceeds the amount 
17of his or her earnings with the same employer for the previous 
18plan year by more than 12%, then that portion of the increase 
19of salary in excess of 12% shall not be included in the 
20calculation used to determine final average salary.
21    (c) For the purposes of a person who, on or after the 
22effective date of this amendatory Act of the 97th General 
23Assembly, first becomes a member or participant of a retirement 
 
 
HB2061- 2 -LRB097 08049 JDS 48172 b

1system or pension fund to which this Section applies, the term 
2"final average salary" shall be replaced in subsection (b) of 
3this Section with the following:
4        (1) "final rate of earnings", for  persons covered under 
5    Article 7 or 15;
6        (2) "highest
    average annual salary for any 4 
7    consecutive years within the last 10 years of service 
8    immediately preceding the date of withdrawal", for  persons 
9    covered under Article 8, 9, 10, 11, or 12;
10        (3) "average final salary", for  persons covered under 
11    Article 13;
12        (4) "final average compensation", for  persons covered 
13    under Article 14; and
14        (5) "average salary", for persons covered under 
15    Article 17.
  
 
16    Section 99. Effective date. This Act takes effect July 1, 
172011.