97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3426
 
Introduced 2/24/2011, by Rep. David Harris
 
SYNOPSIS AS INTRODUCED:
 

 
  
40 ILCS 5/7-116  from Ch. 108 1/2, par. 7-116
30 ILCS 805/8.35 new

     Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that lump sum payments for  retirement, severance, or sick or vacation time may not be used to calculate the final rate of earnings. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
  


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
 
 
A BILL FOR
 

  
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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 changing 
5Section 7-116 as follows:
 



6    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)



7    Sec. 7-116. "Final rate of earnings": 

8    (a) For retirement and survivor annuities, the monthly 
9earnings obtained
by dividing the total earnings received by 
10the employee during the period of
either (1) the 48 consecutive 
11months of service within the last 120 months of
service in 
12which his total earnings were the highest or (2) the
employee's 
13total period of service, by the number of months
of service in 
14such period.

15    (b) For death benefits, the higher of the rate determined 
16under
paragraph (a) of this Section or total earnings received 
17in the last 12 months
of service divided by twelve.  If the 
18deceased employee has less than 12 months
of service, the 
19monthly final rate shall be the monthly rate of pay the

20employee was receiving when he began service.

21    (c) For disability benefits, the total earnings of a 
22participating
employee in the last 12 calendar months of 
23service prior to the date he
becomes disabled divided by 12.

 
 
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1    (d) In computing the final rate of earnings: (1) the 
2earnings rate for
all periods of prior service shall be 
3considered equal to the average
earnings rate for the last 3 
4calendar years of prior service for
which creditable service is 
5received under Section 7-139 or, if there is less than 3 years 
6of
creditable prior service, the average for the total prior 
7service period
for which creditable service is received under 
8Section 7-139; (2) for out
of state service and authorized

9leave, the earnings rate shall be the rate upon which service 
10credits are
granted; (3) periods of military leave shall not be 
11considered; (4) the
earnings rate for all periods of disability 
12shall be considered equal to
the rate of earnings upon which 
13the employee's disability benefits are
computed for such 
14periods; (5) the earnings to be considered for each of
the 
15final three months of the final earnings period shall not 
16exceed 125%
of the highest earnings of any other month in the 
17final earnings period;
and (6) the annual amount of final rate 
18of earnings shall be the monthly
amount multiplied by the 
19number of months of service normally required by
the position 
20in a year; and (7) lump sum payments for retirement, severance, 
21or sick or vacation time shall not be considered.

22(Source: P.A. 90-448, eff. 8-16-97.)

 
23    Section 90. The State Mandates Act is amended by adding 
24Section 8.35 as follows:
 
 
 
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1    (30 ILCS 805/8.35 new)
2    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 
3of this Act, no reimbursement by the State is required for the 
4implementation of any mandate created by this amendatory Act of 
5the 97th General Assembly.
 
 
6    Section 99. Effective date. This Act takes effect upon 
7becoming law.