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.