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.